MSCI is a leading provider of indices for a variety of asset classes. Its factor Indexes, which we are going to talk about today, are designed to capture the return of factors which have historically demonstrated excess market returns over the long run. These are rules-based, transparent indexes that target stocks with favorable factor characteristics – as backed by robust academic findings and empirical results – and are designed for simple implementation, replicability, and use for both traditional passive and active mandates.
