Perspectives

One effect of the COVID-19 pandemic has been enormous uncertainty for investors. Our weekly podcast is designed to help you navigate the current crisis with insights heard directly from our leading researchers. This episode features MSCI’s Head of Research and Product Development, Peter Zangari and what he’s learned about managing through times of great volatility.

How does this market crisis compare to previous periods of extreme volatility, such as the 2008 global financial crisis? We spoke with Dimitris Melas, who leads MSCI’s core research on equity indexes and analytics, to get his take on the characteristics of the current crisis so far and the signs of recovery seen during past crises.

Head of Research and Product Development, Peter Zangari returns to the podcast this week to offer his views and share recent insights on generational change, market volatility across asset classes and opportunities to view the markets through new lenses.

Some areas of the market performed as expected during the current crisis — others have surprised. Raina Oberoi, head of index solutions research for the Americas, applies a factor- and sector-based lens and shares insight into the ways in which markets are, and are not, exhibiting resilience.

Zhen Wei, MSCI’s head of China research, understands what it’s like to navigate from the center of a market crisis. He shares his thoughts on Asian economic and market activity as the region begins to recover and what investors are thinking about as they try and prepare for what comes next.

Unpredictable pricing. Increasing bid-ask spreads. Uncertainty in U.S. Treasurys. Laszlo Hollo, of the risk management and liquidity core research team, details how sudden and significant volatility threatened to dry up fixed-income markets and what central banks have done to try and refill the well.

What else does the Fed have in its arsenal to help fight the economic effects of COVID-19? Andy Sparks, MSCI’s head of portfolio management research, discusses how the Fed has helped markets keep functioning, as well as the flexibility – and limits – it has as it works to keep laying the groundwork for a “robust as possible” rebound.

Will employees be keen to return to the office when governments give the go-ahead? Will employers want them to? The outcome could impact commercial real estate valuations, explains Will Robson, global head of real estate solutions research.

What guided MSCI's decision to proceed with the scheduled May semi-annual index review despite recent volatility? Craig Feldman, global head of index management research, shares his thoughts on the answers to these questions, the review’s key takeaways and the value of consistency.

ESG has emerged as a source of resilience for markets during the current crisis. Does this signal a fundamental shift for investors? In part one of a two-part episode, Linda-Eling Lee, global head of ESG research, discusses ESG themes to watch in the post-COVID-19 era.

Instead of wondering about the shape of an eventual recovery, what if we focused on its color? In part two of our conversation with head of ESG research, Linda-Eling Lee, we look at potential risks and opportunities post-COVID-19 and ask: What might a “green recovery” look like?

Securitized products have been a major focus for investors, and the Fed, during this crisis, just as they were in 2008. How has this market reacted to Washington’s moves this time around? And what is it telling us about what to expect going forward? We speak with David Zhang, MSCI’s head of research on securitized products.

Stress tests can be useful tools for examining potential scenarios for the market’s recovery from the effects of COVID-19. Thomas Verbraken, of MSCI’s risk management solutions team, explains.

What have we learned from the COVID-19 market crisis? Dimitris Melas, global head of equity research returns to the podcast with his take.

We get the reasons behind the results of MSCI’s annual review — on Argentina, Turkey, Iceland and other markets — from global head of index solutions and chairman of the MSCI equity index committee, Sebastien Lieblich.

From cashless transactions to sophisticated tracking, technology has played a major role as China battles the effects of COVID-19. Xiaoshu Wang from the ESG Research team in Beijing discusses investor reaction and efforts to boost the economy in the wake of a second wave.

Did equity and fixed-income factors perform as expected during the first full quarter of COVID-19’s global spread? Hitendra Varsani, executive director, core equity research, analyzes the results for Q2, and what MSCI’s models showed as the third quarter kicked off.

Brett Winton, head of reserach at ARK Invest, explains how advancements in genomic technologies combined with artificial intelligence have proven invaluable in the fight against COVID-19 — and the profound implications for human health and investors far beyond the current crisis.

Advances in artificial intelligence, machine learning and even user interfaces have radically changed the way investors collect, analyze and interact with data, and how they manage portfolios. In fact, every aspect of the investment process has been affected — and COVID-19 has only increased the pace of change.

We take a look at the latest research around four key elements of single-factor portfolio construction: investment universe selection, factor definition, portfolio breadth and security weighting.

As investors continue coping with the consequences of COVID-19, Andy Sparks provides his perspective on the power of the right words from the right sources (aka, the Fed) and other insights from his team’s research.

George Bonne, executive director on the equity core research team leveraged advancements in artificial intelligence and other technologies to identify and quantify “factors” related to the effects of COVID-19. We explored what he found and the implications for further research.

It can be easy to overlook corporate governance in the good times, but when a crisis hits, the importance of good corporate governance comes squarely into focus.

While we haven’t returned to pre-COVID-19 conditions, the difference between credit markets today and how bleak they seemed in March is striking. We explore how we got from there to here and the potential stressors that remain.

Is the talk around the Fed’s seemingly softer stance on inflation and interest rates inflating the importance of the announcement? Our discussion considers the potential impact on fixed income and equity portfolios, as well as the continued disconnect between the economy and markets.

What happens when a pandemic spreads to rental income, the lifeblood of real estate? We explore how lingering effects from the 2008 global financial crisis, commercial real estate’s cyclical nature and COVID-19 changed the prognosis for real estate investors.

The idea of a growth factor premium isn’t new, but it has been difficult to capture in its purest form. What does it take to build a growth factor portfolio and put it to work in today’s markets?

We explore the latest research on climate change, and how investors can work to measure, understand and incorporate new risks — and opportunities — into their portfolios.

From drone package delivery to self-driving cars, autonomous tech has the potential to disrupt a variety of industries, as well as supply chains and the customer experience. Ark Invest analyst, Tasha Keeney joins us to talk about what may be accelerating this trend and what it could mean for investors.

Hitendra Varsani returns with his quarterly analysis of factor performance, including the question of the sustainability of the rally in momentum stocks, the potential opportunity in small caps and new research into the historical impact inflation has had on factors.

Global gateway citiys like Paris, London, Hong Kong and New York provide critical mass, connectivity and economic importance that have appealed to investors and corporate tenants alike. With uncertainty about whether workers will return to the office, has COVID-19 jeopardized the relative dominance of these power cities?

Given the current economic outlook, some investors are skeptical about equity valuations reminiscent of the late 90s. This week on Perspectives, we ask whether they should be.

Snapshots of the index industry can reflect investors’ focus and provide a window on the investment landscape as a whole. Rick Redding, CEO of the Index Industry Association, reviews their 4th annual survey and its illuminating results.

The 40% increase of ESG indexes revealed on last week's episode piqued our curiousity. Why so large a rise? How has it differed across the world? What role have investors and regulators played? We pick up our conversation with Rick Redding, CEO of the Index Industry Association, joined by MSCI’s Head of ESG Index EMEA, Veronique Menou.

2020 brought lockdowns, shuttered businesses, layoffs, a world-wide work-from-home experiment and exposed long-time systemic issues and inequality. We dive into these social issues head first and examine their impact on investors with global ESG editorial director, Meggin Thwing Eastman.

The future of mobility is nothing short of a “revolution,” says Lukas Neckermann, who has researched, written and consulted on the subject for more than 20 years. We discuss the new mobility ecosystem encompassing a diverse range of industries including renewable energy, technology, transportation, travel, infrastructure, entertainment and even public health.

If your home equity market is performing well, why would you look elsewhere for potential opportunities? We search for answers with Raina Oberoi, MSCI's Head of Index Solutions Research for the Americas.

Our journey through the world of global investing continues with a look at the increasingly global focus of fixed-income investors and their search for yield. Next stop: China.

Peter Zangari, MSCI's head of research and product development, provides his perspective on where investors were back in March, their current concerns and some words of wisdom as we get ready to turn the page on 2020.

Did factor performance at the end of 2020 suggest investor optimism in 2021? We explore the question based on the historical relationship between factors and the economic cycle?

China is known as the world’s factory: Good at assembly, great for improving scale. But high-tech breakthroughs? Our guests, including Nina Xiang of the Chinese Money Network, work to sort truth from fiction.

The investment risks around climate change can be quantified and standardized. We get on the road to COP 26, discussing real solutions with Robert Eccles of the Saïd Business School, University of Oxford and MSCI’s Head of ESG Research, Linda-Eling Lee, at the wheel.

Pension funds, endowments and other asset owners hold tremendous sway over the entire investment ecosystem. Baer Pettit and Roger Urwin break down the issues holding the attention of these large, global investors.

We host a frank discussion on the state of diversity, inclusion and equality within the investment industry with CalPERS' Simiso Nzima, Michael Barrington-Hibbert, founder of Barrington Hibbert Associates and co-founder of #10000BlackInterns, MSCI’s Head of Index and Chief Responsibility Officer, Diana Tidd and Head of Analytics and Chair of MSCI’s Executive Diversity Council, Jorge Mina.

Interest in private assets is on the rise, with new participants and new approaches by existing investors expanding and shifting the role private assets play in multi-asset class portfolios. We shine some light on these historically opaque investments.

Despite a decade or so of disappointing performance, value’s recent uptick merits examination into what drove its performance historically, and if conditions have changed or if the factor needs to be redefined.

The creation of a universe that blends our lives online and off will change the way we live, work and play. It also has real-world implications for investors and the planet.

The announcement of a company’s net-zero commitment is the result of much analysis and multiple decisions. But the key is that it represents the start of the process, not its conclusion.

As restrictions lift and economies re-emerge from their long slumber, inflation may have reawakened as well. We discuss the implications for investors, including many who have never worked through a time of sustained inflation.

Shareholder proposals for strong action on climate change and diversity have taken center stage at this year’s annual meetings. Hear a report from the front lines and insight into how we arrived at this moment in investment-stewardship history.

What does the future of work look like? The answer will affect corporate day-to-day operations, culture, recruitment and retention and, certainly, investors.

Like those in other industries, investors are looking for more customization, to go to market faster and have more control over the products they build. They’ll find it by looking to the cloud. We explore why and what the impact may be.

We continue our look at diversity, equality and inclusion efforts through the lens of creating a safe space for LGBTQ employees, and how achieving this goal can be difficult, especially for global companies that need to account for different history, cultural norms and laws across different office locations.

As the second quarter of 2021 drew to a close and the global economy continued to reawaken, the big stories were the resurgence of value, the positive correlation between value and momentum and the potential for inflation. What can history and factor ETF flows tell us about our current conditions? Join our quarterly conversation with MSCI's Hitendra Varsani, along with BlackRock’s US Head of Factor ETFs, Robert Hum and Patrick M. Moraniec, Senior Investment Manager of International Equity for the State of Michigan Retirement System.

Asset managers in the U.S. and Europe are clamoring for better data and standards to help meet rising demand for ESG strategies across asset classes. We dig deep into the results of a recent Index Industry Association (IIA) survey of 300 managers, with the IIA’s CEO, Rick Redding, Mark Purdy, managing director of Purdy & Associates and MSCI’s head of global solutions research, Raman Aylur Subramanian.

As regulations increase, along with a growing awareness of the potential impact of climate risks, we get real, with practical approaches for insurance companies and other institutional investors to evaluate the effects of climate change on portfolio management in a carbon-conscious world.

Despite progress, the investment industry can still seem like a club where you can’t even peek through the window without knowing the secret handshake. That’s why role models and mentors are essential, especially for historically underrepresented groups to succeed.

Some feel the growth of ETFs that combine factors and ESG it’s a natural partnership, an inevitable evolution, while others have questions about the explanatory power of ESG and the effects of integrating it into portfolios. We explore the topic with MSCI’s Raina Oberoi and Anthony Kruger of iShares.

Private assets are not immune to climate-change considerations. Accounting for climate-change risks and opportunities is becoming increasingly important in private equity and debt portfolios.

Concerns over corporate leverage in China, and nervousness about inflation and the direction of interest rates were just a few of the reasons behind the shift toward defensive factors in the third quarter. We analyze performance from three continents, with MSCI’s Hitendra Varsani, Mark Carver and Shuo Xu.

In the wake of the volatility seen over the last few days of the third quarter of 2021, we check back in with Hitendra Varsani about what happened, what may have been behind it and what MSCI’s multi-factor model showed as of Sept. 30, 2021.

What does Chris Ailman, Chief Investment Officer for CalSTRS, the second largest public pension fund in the U.S., think about divestment vs. engagement and the investment risks vs. opportunities when it comes to climate change? Listen to a candid conversation with Chris and MSCI’s CEO, Henry Fernandez.

As all eyes turn to Glasgow, we ask High Level Climate Champion for COP, Gonzalo Munoz, what we might see.

What’s it really like to attend the UN’s 26th annual climate change conference? How have the committments and pledges played out on the ground? Linda-Eling Lee, MSCI’s Head of ESG Research fills us in during her week in Glasgow, and we sit down with MSCI's ESG Research Editorial Director, Meggin Thwing Eastman, for additional insights and context.

What was accomplished in Glasgow, and what does it mean for governments, companies and investors? MSCI's Head of Climate Risk Research, Oliver Marchand, evaluates what happened and what may come next.

With COP26 in the history books, we look ahead to assess the implications for corporate action in 2022, through 2030 and beyond.

Assessing inflation higher than many have seen in their working lives requires looking beyond this single piece of the puzzle.

In the race to net-zero, a company’s suppliers can be a drag or the wind at their back. What types of influence can corporations, and investors, bring to bear?

Why have even sustainability-minded organizations avoided sustainable investment options in their retirement plans? Will regulation, such as proposed rules from the U.S. Department of Labor, move the needle?

Despite agreement on the value of gender diversity for companies, progress on that front has not been as rapid as it should be. We review the real-world impact of MSCI’s latest Women on Boards report findings, and what it may take to accelerate the pace.

Fears of stagflation looms large as investors look to the Fed and other central banks and consider the potential effects of the war in Ukraine.

The Fed made good on its word, raising rates and setting the stage for more. How has this affected investors in the U.S. and around the world? Have other central banks followed suit?

The first quarter of 2022 started with concerns about inflation and the potential for low growth — conditions many of today’s investors haven’t seen outside of textbooks. By the end of February, the war in Ukraine had introduced even more volatility. Our latest quarterly check-in digs deep into these issues and more.

As pressure mounts from their own constituents to decarbonize, institutional investors are looking for the companies they invest in to shift from net-zero pronouncements to concrete net-zero action plans.

The tsunami of data in all its new forms creates opportunities for investors to gain an edge, but it’s all too easy to drown in it. How can new technology help investors stay afloat?

The production of everything from food and clothing to medicines and computer chips depends on natural resources in one way or another. At the same time, forests and other natural ecosystems remove carbon from the atmosphere and remain critical to the development of high-quality credits for offsetting emissions. How are investors confronting and accounting for nature-related risks in their portfolios? We look for answers.

As inflation continues to plague the EU and U.S. central bankers announced their latest moves to fight back. MSCI experts joined us to discuss policymakers’ options and a range of scenarios investors can consider to help safeguard their portfolios.

The world of climate emissions’ measurement and reporting continues to be a moving target, and institutional investors face a number of obstacles. We explore these challenges, the important role of regulation and the Partnership for Carbon Accounting Financials (PCAF) standard.

Inflation, rising rates, ongoing supply chain issues and the worst first half of the year for global equities since the 1970s. What options exist for investors positioning portfolios?

Investors have started to see the dollars and cents value of diversity on corporate boards and at all levels of an organization. The new Nasdaq rules seek to advance this cause, but will they work? We explore the question and look to a similar Canadian rule on the books since 2015.

Investors in commercial real estate are confronting the lingering effects of COVID-19 on what being an "office worker" means. We debate the merits of hybrid work and its impact on companies and investors.

We explore the sometimes volatile, push-pull relationship between investors and central banks as each looks to navigate extreme inflation in the U.S., the eurozone and the U.K.

Markets experienced a brief ray of risk-on light during the third quarter, but investors quickly retreated back into the risk-off shadows as the Fed reasserted its tough stance on taming inflation. We take the temperature of the market and explore where we might be headed.

With rising rates and a looming global slowdown in the context of war, climate change and an evolving regulatory environment, MSCI assembled a leading group of experts to provide insight into how investors may look to position themselves to manage risk and capture opportunity in an uncertain world.

When Prime Minster Rishi Sunak took over as the country's third prime minister in just two months, he inherited what he referred to as a "profound economic crisis."" We discuss the impact of fiscal and monetary policy on Great Britain and around the world, as markets contend with runaway inflation, high energy prices and geopolitical uncertainty.

Faced with the undeniable reality of droughts and dry spells from China to the Southwestern U.S. this year, companies and their investors have begun to take the vital issue of water scarcity more seriously.

Despite some positive movement in the fourth quarter, 2022 wasn't pretty for many investors. What may be the global trends to watch this year?

Real estate investors entered 2023 facing a very different investment landscape to the one they encountered at the beginning of 2022. We look at the top five trends for real estate investments in 2023.

While the direct market impact of Russia’s invasion has lessened over time, there have been longer lasting effects that have exacerbated investor concerns around inflation, rising rates and central bank actions around the globe. We examine the issue through a multi-asset-class lens.

We dig into the findings from the latest Women on Boards report, and why they matter for companies and investors, with report co-author Olga Emelianova, MSCI's Chief Responsibility and Chief Diversity Officer, Tia Counts and Shweta Narasimhadevara of State Street Global Advisors.

Banks failing, another sold and governments stepping in to backstop the fallout. Add to that a global economy coping with high inflation and still shaking off the COVID-19 cobwebs and, on top of that, regularly scheduled meetings for two major central banks. Our panel of MSCI experts helps put these events into context for investors managing multi-asset-class portfolios.

The first quarter of 2023 came with its own set of surprises for investors, whether looked at through the lens of market returns, factor returns and trying to figure out Central Banks... not to mention the fallout from some notable bank failures. We examine it all with MSCI’s Hitendra Varsani and Mark Carver.

The news on progress toward climate change and biodiversity goals was not great as Earth Day 2023 approached. But there were some bright spots, including detailed proposals to move forward, increased attention from governments in the form of regulation and a growing awareness from investors that accounting for these issues may be the right thing to do for their portfolios.

2023 has presented many risks and potential opportunities for investors, including inflation, continued war in Ukraine and China’s lifting of the zero-COVID policy, which allowed people and goods to travel as freely as they did before the pandemic gripped the globe. We look into how it’s gone so far.

As discussions continue in Washington, D.C., we examine how markets have handled the uncertainty so far, how such showdowns played out in the past and three “what if” default scenarios.

In many ways, the EU has led the way on climate regulation in an effort to increase transparency and decision making through disclosure from companies, as well as investors. We discuss what’s expected from the EU sustainable finance package, and its potential impact.

Investors are faced with the potential of “sticky” inflation, continued equity-market concentration and expectations that U.S. interest rates may be higher for longer. We sit down with a panel of MSCI experts to get their views on the questions being asked and answered by markets and investors, and the potential implications heading into the second half of 2023.

Physical risk from climate change has started to affect nearly every region of the world, from the four hottest days on record occurring in a row this month to more frequent, more intense storms. We discuss what this all may mean for companies, insurers and investors.

We sat with MSCI’s global head of research for a wide-ranging discussion, including why he chose to return to the company now, the challenges and opportunities facing the investment industry and a unique take on risk management, ESG and climate and AI and technology.

The launch of the MSCI Sustainability Institute, founded and led by Linda-Eling Lee was attended by some of the most highly respected members of the ESG-investment community. We explore the institute’s aims and how it will work with investors, companies, academics and policymakers to drive action by capital markets.

Our quarterly roundtable examines markets and market-moving events to help institutional investors as they determine the best way forward; across asset classes and parsing out differences between developed and emerging markets.

Richard Hill of Cohen & Steers joins MSCI’s Jim Costello to discuss the changing perceptions of the commercial-property market, from dull and boring to dynamic and complex — and the current set of risks and potential opportunities.

Listen in on an in-depth discussion about the growing demand for and personalized tax-efficient strategies from wealth-management clients — driven by technological revolution and the coming, intergenerational transfer of wealth.

While the media focused on the battle over the wording of the final agreement, there was actually a lot of progress that flew further under the radar, but may have a greater impact on investors. Founding director and head of the MSCI Sustainability Institute, Linda-Eling Lee, and Guy Turner, head of MSCI Carbon Markets, share their experiences on the ground in Dubai and what the outcomes may mean for investors.

Ashley Lester and team help investors find the connections between — and evaluate the risks and potential opportunities of — AI, geopolitics and the effects of climate change, as well as the growing importance of private capital and continued influence of monetary policy.

For global investors, the idea of individual country or market allocations isn’t new. But in today’s world, with a dynamic geopolitical map, the rewiring of supply chains and greater focus on sustainable investing, it may be time for a new approach.

Inflation is down, but stubborn, and investors are still digesting Fed Chair Jerome Powell’s statements after the latest meeting of the FOMC. We sit down for a one-on-one interview with, Andy Sparks, to assess where we stand in the give and take between central banks and markets.

When it comes to commercial real estate, much of the attention of investors and the financial press has focused on the state of the office sector, which has been hurting. And while real concerns exist, there are also potential opportunities across and within the various real-estate sectors.

Last week’s episode left a lot on the cutting-room floor. Here we offer the chance to listen to our complete interview with Jim Costello, chief economist at MSCI Real Assets, where he assesses the commercial real-estate landscape, including the pricing gap between buyers and sellers.

Since ChatGPT's debut less than 18 months ago, artificial intelligence has dominated headlines, and excitement and apprehension now surround its entry into the world of finance and investment. But just what are the expectations and misconceptions?

Abruptly shutting down all the coal-fired power plants may appeal to some, but there would likely be unintended consequences for investors, as well as plant employees and those who live where the plants are located. We dig into why a managed coal phaseout with specific target dates and actions may create a level of certainty for all involved.

Our quarterly market analysis, features a robust discussion of the public and private markets, as well as a deep dive and some surprising results from the world of sustainable investing.

While more countries and companies are making plans for a low-carbon future, emissions are still rising and the deadlines for action are closing in. Enter the carbon markets, where companies can purchase credits to offset their carbon footprint until long-term reduction plans become a reality. We explore these markets and their potential impact on companies and investors.

How does Adam Gibbon of AXA IM balance climate impact with investment results? We get his take on the voluntary carbon markets, and how he assesses potential opportunities for his fund’s portfolio.