MSCI Creates Factor Classification Standard by Launching MSCI FaCS and MSCI Factor Box

MSCI launched the MSCI FaCS, a factor classification standard and MSCI Factor Box, an updated style box designed to reflect a modern approach to investing.

MSCI FaCS is the framework and standard for evaluating, implementing and reporting factor allocations, based on commonly considered “factors” that have historically driven performance. It includes an extensive global equity factor structure – eight factor groups and 16 factors for more than 70,000 global securities. The factor classification can be viewed at the security level for stock selection or aggregate at the fund or portfolio level to analyze and compare factor exposures – historically key drivers of risk and return behavior over time.

Factor-based investing continues to gain traction among investors. While widely used by institutional investors for decades, increasingly, registered investment advisors and wealth managers are looking at how they can leverage factor approaches or products on behalf of clients. MSCI Factor Box provides a simple solution accessible by a wider mainstream investment audience which has highlighted the need for industry standard measurement and classification as the traditional style box becomes too limiting.