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
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