MSCI announced the launch of MSCI factor ESG target indexes, designed to help clients leverage the power of MSCI factor indexes while integrating ESG (Environmental, Social and Governance) into their investment strategies.
Demand for such investment products has grown as clients increasingly seek to integrate ESG criteria into their investment processes. MSCI continues to lead the natural evolution in this field by combining the attributes of both factors and ESG to bring next generation products to market. These products are designed to allow clients to more effectively incorporate ESG integration into Factor focused portfolios.
The new indexes are based on MSCI’s leading Factor Indexes; Minimum Volatility, Quality, Value and MultiFactor indexes and use the MSCI ESG ratings, provided by MSCI ESG Research.
Diana Tidd, head of Index at MSCI said, “MSCI new launch of indexes helps our clients integrate ESG while still focusing on the benefits of factor investing. We work closely with our clients to bring index solutions to market.”