Latest Model Includes New Daily Forecast Horizon Model, Expands Coverage to Additional Frontier Markets
MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools worldwide, today announced the launch of the next-generation Barra Europe Equity Model (EUE4). This new and enhanced model is designed specifically for portfolio managers investing within the European equity markets. It offers an enhanced style factor structure for more detailed forecasts and a new perspective on risk and return.
EUE4 introduces a new class of Europe equity models with the Daily Forecast Horizon, designed to support portfolio managers constructing and analyzing portfolios with short investment horizons. The detailed level of granularity and increased responsiveness supports more frequent trading or portfolio rebalancing and helps to capture short-term market dislocations.
The new model covers 34 countries in Western and Eastern Europe, including full coverage of the MSCI Europe Index and the MSCI Frontier Markets Central & Eastern Europe and Commonwealth of Independent States Index. Additionally, it covers more than 17,000 assets of which over 2,500 are frontier market securities.
“EUE4 leverages MSCI’s experience in building regional equity multi-factor models and indices, and helps portfolio and risk managers identify common sources of risk and return across a broad set of European securities,” said Peter Zangari, Managing Director of Equity Portfolio Management Analytics at MSCI. “Rapidly changing market conditions call for intuitive, dynamic, and stable models, and MSCI is committed to empowering our clients with a comprehensive risk monitoring and portfolio construction framework.”