MSCI Expands its Risk Premia Index Family with New Quality Indices
by Business Wire
MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, today launched the MSCI Quality Indices, a new category within the MSCI Risk Premia suite of strategy indices.
The MSCI Quality Indices are designed to reflect a quality growth investment strategy by identifying stocks with high quality scores based on three main fundamental variables: high return on equity (ROE), stable year-over-year earnings growth and low financial leverage. The MSCI Quality Indices capture two underlying risk premia factors - growth and low leverage. They complement existing MSCI Risk Premia Indices and can play an effective diversification role in a portfolio of risk premia strategies.
"There has been a clear acceleration of demand for such indices from MSCI's institutional investor clients, and increasing numbers of financial products are being launched based on risk premia categories," said Baer Pettit, Managing Director and Global Head of the MSCI Index Business.
The MSCI Quality Indices aim to capture the quality factor with an objective and transparent methodology, while ensuring reasonably high trading liquidity, investment capacity and moderate turnover of index constituents.
From today, MSCI will offer a first series of five indices:
- MSCI ACWI Quality Index
- MSCI World Quality Index
- MSCI Emerging Markets Quality Index
- MSCI Europe Quality Index
- MSCI USA Quality Index
The MSCI Quality Indices may be licensed for use as benchmarks for quality growth investment strategies, or as the basis for financial products such as exchange traded funds and structured products.
MSCI Inc. is a leading 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 flagship product offerings are: the MSCI indices with close to USD 7 trillion estimated to be benchmarked to them on a worldwide basis1; Barra multi-asset class factor models, portfolio risk and performance analytics; RiskMetrics multi-asset class market and credit risk analytics; IPD real estate information, indices and analytics; IPD real estate information, indices and analytics; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; ISS governance research and outsourced proxy voting and reporting services; FEA valuation models and risk management software for the energy and commodities markets; and CFRA forensic accounting risk research, legal/regulatory risk assessment, and due‐diligence. MSCI is headquartered in New York, with research and commercial offices around the world.
1As of March 31, 2012, as published by eVestment, Lipper and Bloomberg in September, 2012.
For further information on MSCI, please visit our web site at www.msci.com