Global Investing

Many institutional investors now view global equities as a single broad asset class, shifting away from the “home bias” historically found in their total stock portfolios. Our research discusses the effects of taking a “one world” approach that includes emerging markets and small-cap equities. It also explores the role of growing new markets such as China-A Shares and frontier markets. 


 

Featured research papers and Blog posts


EVALUATING OPPORTUNITIES IN ACTIVE MANAGEMENT

Research Paper - Success in active management is a complex interaction of two dimensions – market opportunity and manager skill. Where is the intersection of markets that have provided the greatest opportunity and where managers have delivered persistent outperformance?


How can active managers put ESG to work?

Blog post - MSCI research shows that companies exhibiting favorable ESG characteristics have historically had a positive impact on equity valuation, risk and performance. How can ESG data and ratings can be integrated into stock selection and portfolio construction while still preserving the portfolio’s fundamental characteristics?


Foundations of ESG Investing: Passive Investing Part 3

Research paper - When seeking to integrate ESG criteria into their portfolios, institutional investors increasingly are focusing on the potential financial benefits. One way asset owners can implement ESG integration is through passive allocations to portfolios that seek to replicate ESG indexes.


Foundations of ESG Investing: Part 2

Research Paper - Institutional investors are looking to integrate ESG criteria into their portfolios for a variety of reasons, ranging from ethical values to minimizing risk. But whatever the motivations, an ad hoc approach can lead to suboptimal results. Instead, a top-down approach can afford greater consistency throughout the entire portfolio.


Why index funds promote market efficiency

Blog Post - Institutions and individuals increasingly invest through funds that track indexes. While index funds bring transparency and low cost, their critics claim that they allocate capital indiscriminately, hurting market efficiency. Is this claim supported by the evidence?


Winners and loser of a U.S.-China trade war

Blog post - The question of who wins or loses a U.S.-China trade war has more than two possible answers. While much of the analysis has focused on China’s heavier reliance on exports to the U.S., American companies (and those who invest in them) actually have greater revenue exposure to China than the other way around.


Putting the spotlight on Spotify

Blog post - Nearly 15 years after Google’s initial public offering, the debate about listed companies that offer unequal voting rights to outside investors rages on. A number of high-profile technology companies including Dropbox Inc., Spotify and Snap Inc. have recently listed shares with unequal voting rights, adding fuel to the debate.


Does the market contain too much Facebook?

Blog post - Facebook’s privacy issues, Apple’s European tax woes and Amazon’s global ambitions are constantly in the news. And over the last few years, large U.S. technology companies, sometimes known as FAANG, have made up larger slices of the global equity market. Should their level of market concentration concern investors?

Thinking Big About Small Cap Investing

Pension funds around the world have increasingly shed their home bias and incorporated global small-cap allocations, but they still fall well short of the 14% global small-cap weighting found in the MSCI ACWI IMI. We explain what they might be missing.

Is it time to change your number?

Investors have long sought equity indexes to measure exposure to the U.S. market and size segments such as large-, mid- and small-capitalization stocks.

MSCI Global Investing and Risk Management Conference

Please join us for the MSCI Global Investing and Risk Management Conference and Workshops to be held in London on May 15-16, 2018.