Using a simulation-based analysis, we demonstrate that in periods of high market concentration, both asset owners and asset managers could potentially benefit from considering a benchmark-splitting approach. 

Historically, climate investing has focused on portfolio decarbonization, but investors are increasingly turning to a “finance-the-transition” approach, seeking to invest in transition opportunities. The two approaches are not exclusive and best used hand in hand. 

The MSCI Climate Action Indexes offer an additional approach to climate investing by selecting companies in each sector that have reduced or committed to reduce emissions, seem well-positioned to manage climate risk and have generated green revenues. 

COVID-19 hastened the digital transformation of global equities and increased exposures to other themes. We apply an attribution framework to the MSCI ACWI IMI and offer valuable insights into how these shifts have impacted investor portfolios.  

Investors globally are committing to reduce the carbon footprint of their portfolios. We illustrate how indexes can be an option for investors who wish to finance the transition as well as encourage companies to set and meet net-zero targets. 

We show how MSCI Thematic Exposure relevance scores helped position growth funds, as an example, alongside thematic funds, and highlighted key megatrends that drove performance. A thematic lens can help analyze other categories and strategies as well.

China’s emergence as a tech leader holds great potential. But its technology value chain isn’t limited to IT firms. Opportunity lies across sectors, from electric vehicles to medical devices. How does one effectively gain exposure?  

The pressure on institutional investors to act on climate change and demonstrate its influence on their decision-making and portfolio construction continues to grow. Increasingly, the focus is on the alignment of client investment strategies with the decarbonization 

Institutional investors are under pressure to align their strategies with a maximum global temperature increase of 1.5oC as targeted by the Paris Agreement. We examine how they can approach this while respecting other investment constraints.

Thematic investing has become increasingly popular with institutional and retail investors. We review the concept and how it differs from factor and ESG investment processes. Additionally, we lay out how we model various themes to build a rule-based index methodology representing the performance of companies exposed to a certain trend.

This joint discussion paper from MSCI and the OECD proposes a framework for discussion around investment options and the potential role of institutional investors in achieving the SDGs.

Japan’s government has set goals for increasing women’s participation and promotion in the business world, a policy that research shows could have substantial benefits for Japanese firms and the overall economy. Women are a historically underutilized resource in Japan; their greater participation and advancement in the workforce could have substantial benefits for the Japanese economy and long-term portfolio returns. The Japan Empowering Women Index (WIN) aims to overweight companies whose...

HOW CAN UNIVERSAL OWNERS INTEGRATE ESG PRINCIPLES WHILE MAINTAINING A BROAD AND DIVERSIFIED INVESTMENT UNIVERSE? Institutional investors are increasingly looking for ways to integrate ESG considerations into their investment decisions. By doing so, they may aim to mitigate long-term risks, generate higher risk-adjusted performance and/or align investments with broader societal objectives. As ESG investment guidelines become more commonplace among asset owners, and as many continue to build...

Institutional investors concerned with excessive focus on short-term results are increasingly seeking to improve minimum corporate governance standards of their portfolio companies. To date, active engagement has been widely recognized as an effective means to promote sustainable long-term growth and risk management of a portfolio, but such approaches can be costly and difficult to scale. We put forward a potential approach for institutional investors to systematically raise minimum...

Institutional investors concerned with excessive focus on short-term results are increasingly seeking to improve minimum corporate governance standards of their portfolio companies. To date, active engagement has been widely recognized as an effective means to promote sustainable long-term growth and risk management of a portfolio, but such approaches can be costly and difficult to scale. We put forward a potential approach for institutional investors to systematically raise minimum...