A Sharper Focus on U.K. Stocks: Barra UK Total Market Equity Model

For more than 30 years, institutional investors have relied on Barra models to help better manage portfolios and understand market risks.  MSCI’s new Barra UK Total Market Equity Model offers investment professionals a more granular view of the investable equity universe in the world’s fifth biggest economy.

This new model provides full coverage of the U.K. equity market, across more than 20 years of performance history. It includes Systematic Equity Strategy factors to help managers measure sensitivities to potentially crowded trades as well as a comprehensive set of fundamental factors based on point-in-time data, essential for building and back testing investment strategies. The model is enriched with Barra Descriptors, the building blocks of the model’s factors, which are available for the first-time ever for U.K. equity investors as a valuable tool for alpha research and strategy evaluation.

The Barra UK Total Market Equity Model refines the predecessor model’s 43 industry factors to 28 GICS®-based factors for more intuitive and robust economic and investment differentiation and improved explanatory power. It captures the attributes and performance of 600 equity securities and a total of more than 2600 assets, including U.K.-listed Global Depository Receipts, as of April 2016. Daily history dates back to 1995 for back-testing and stress-testing purposes.

Whether you are seeking alpha or strengthening risk management procedures, the new Barra UK Total Market Equity Model can bring the U.K. equity universe into sharper focus.

To learn more about the UK Total Market Equity Model, download the fact sheet or contact your MSCI representative.

Barra UK Total Market Equity Model

Barra’s new model employs premium input datasets including Point-In-Time fundamental data and provides insight into the sources of risk and return with Systematic Equity Strategy factors.

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MSCI Barra Equity Models

MSCI offers more than 70 equity risk models in four categories.