MSCI multi-factor indexes allow passive implementation

MSCI Inc. (NYSE: MSCI) said it has launched the MSCI Multi-Factor Indexes, offering institutional investors a basis for passively implementing index-linked multi-factor strategies transparently and cost-effectively.

MSCI multi-factor indexes are available in standard combinations provided by MSCI or as a custom mix created by the client.

“Combining factor indexes makes sense from a diversification standpoint,” said Remy Briand, head of MSCI Index Research. “Factor returns have historically been quite cyclical, with some factors underperforming the market cap-weighted benchmark for several years in a row. Combining factors has historically yielded a smoother ride over time.”

MSCI has published a series of research papers that describe the financial science behind factor-based investing and the effects of diversifying across multiple factors, as well as explaining various use cases for factor indexes by institutional investors considering factor allocations.

MSCI is a provider of investment decision support tools to investors globally, including asset managers, banks, hedge funds and pension funds. MSCI products and services include indices, portfolio risk and performance analytics, and governance tools. The company´s website is at www.msci.com

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