MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, today announced the launch of a new series of single-country multi-factor models with Systematic Equity Strategies (SES), MSCI’s new approach to risk modeling. SES factors help capture previously hidden sources of risk and return that managers bet on, which result in greater transparency within portfolios. They also improve the accuracy and explanatory power of a risk model, especially during periods of economic crisis. The Barra Japan Equity Model (JPE4) is the first model in the new SES series. “Continued market uncertainty and volatility have led to greater demand from institutional investors for better risk management and MSCI’s introduction of SES factors directly addresses this demand,” said Mehmet Bayraktar, Head of MSCI Equity Analytics Research, who led the research initiative. “With this innovative new approach to risk modeling, portfolio managers can capture unique sources of risk, especially as they relate to crowding risk, and for the first time obtain more meaningful insight into the risk and return drivers of their proprietary strategy.” In addition to SES factors, JPE4 also includes Daily Model Update and Volatility Regime Adjustment features, which aid managers in forecasting risks that reflect the current market environment. The model also incorporates new Japanese data for better forecasting of local securities and has broad coverage of the Japanese equity market covering over 3,600 Japanese securities. Peter Zangari, Managing Director of Equity Portfolio Management Analytics at MSCI said, “JPE4 offers an unprecedented view into new sources of risk across a broad set of securities in Japan. Its development, and the introduction of the Barra SES Series, is another important step in our mission to provide investors with the tools they seek to help them manage their portfolios.” Learn more about the Barra Japan Equity Model. About MSCI 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 basis 1; 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; MSCI ESG (environmental, social and governance) Research screening, analysis and ratings; ISS governance research and outsourced proxy voting and reporting services; and FEA valuation models and risk management software for the energy and commodities markets. MSCI is headquartered in New York, with research and commercial offices around the world.1 As of September 30, 2012, as published by eVestment, Lipper and Bloomberg on January 31, 2013 For further information on MSCI, please visit our web site at www.msci.com This document and all of the information contained in it, including without limitation all text, data, graphs, charts (collectively, the “Information”) is the property of MSCI Inc. or its subsidiaries (collectively, “MSCI”), or MSCI’s licensors, direct or indirect suppliers or any third party involved in making or compiling any Information (collectively, with MSCI, the “Information Providers”) and is provided for informational purposes only. The Information may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI. The Information may not be used to create derivative works or to verify or correct other data or information. For example (but without limitation), the Information may not be used to create indices, databases, risk models, analytics, software, or in connection with the issuing, offering, sponsoring, managing or marketing of any securities, portfolios, financial products or other investment vehicles utilizing or based on, linked to, tracking or otherwise derived from the Information or any other MSCI data, information, products or services.
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The MSCI ESG Indices use ratings and other data, analysis and information from MSCI ESG Research. MSCI ESG Research is produced by ISS or its subsidiaries. Issuers mentioned or included in any MSCI ESG Research materials may be a client of MSCI, ISS, or another MSCI subsidiary, or the parent of, or affiliated with, a client of MSCI, ISS, or another MSCI subsidiary, including ISS Corporate Services, Inc., which provides tools and services to issuers. MSCI ESG Research materials, including materials utilized in any MSCI ESG Indices or other products, have not been submitted to, nor received approval from, the United States Securities and Exchange Commission or any other regulatory body.Any use of or access to products, services or information of MSCI requires a license from MSCI. MSCI, Barra, RiskMetrics, IPD, ISS, FEA, InvestorForce, and other MSCI brands and product names are the trademarks, service marks, or registered trademarks of MSCI or its subsidiaries in the United States and other jurisdictions. The Global Industry Classification Standard (GICS) was developed by and is the exclusive property of MSCI and Standard & Poor’s. “Global Industry Classification Standard (GICS)” is a service mark of MSCI and Standard & Poor’s.