MSCI Equity Factor Models

The next generation Barra models are here!
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Navigating
increasingly
complex investment
challenges
Investors today are designing and investing in more adaptive
and resilient portfolios that are engineered to capture market
opportunities and navigate risk. Equally important are portfolios
reflecting modern views such as sustainability and new or
highly differentiated sources of return. At the same time,
to make more informed investment decisions it’s critical tounderstand the investment characteristics driving portfolio risk
and performance and to manage uncertainty.

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Redefining the way models
are constructed and delivered
MSCI model evolution

The next generation Barra factor models are here. These new models are an evolution of our pioneering Barra models and are designed to help
investors solve modern investing’s most pressing challenges.

MSCI Model Evolution
Barra multifactor
risk models

Multiple nextgeneration models
1989

1975

MSCI Multi-Asset Class
Factor Model
2013

2000s
MSCI Global Equity
Model (GEM)

New Equity
Factor Models
2020

2018
New Systematic Equity
Strategy factors across50+ models

70+ Equity
Factor models

2022
Global Equity
Factor Model+ ESG

New factors –100+ Multi-asset
Crowding,class models
MachineLearning,
Sustainability

Built on the Barra legacy of tried and trusted models launched amore resilient portfolios, manage downside risk and to make betterhalf-century ago, our next generation suite of models reflect today’s
informed
investment decisions. These new factors are complemented
Information Classification:
GENERAL
fast moving and complex financial markets. To keep pace withby new modeling techniques and enhanced risk-forecasting such asthese developments, and investors’ ever-changing needs, our newadaptive covariance capabilities to make the models smarter and moremodels include factors like sustainability, crowding and machine
responsive to market regime. Additionally, our cloud-based technology
learning – empowering investors with the confidence to construct
makes our solutions easier to use and access more seamlessly.

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Key benefits
Adaptive & Responsive

Scalable

Efficient

ModernHighly adaptive risk
modelling framework tounderstand constantly
changing market regimes

Scalable and modular
to simplify theinvestment process

Operational efficiency
powered by cloud-based
technology

Capturing exposuresthrough machinelearning, crowding, andsustainability factors to
express modern views

Expanded Coverage
Special Purpose
Acquisition Companies(SPAC) coverage andspecial handling ofSPACs pre-deal

Elevate your investment processwith new equity factor models
MSCI helps clients build, implement and measure factor-based
strategies through consistent, systematic, and transparent
factor frameworks. Combining the best of academic andpractitioner research, our Barra factor models represent theindustry standard for measuring factor exposure and risk, andfor attributing performance through a factor lens.

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Our models enable investors to implement more rigorous risk management practices, understand and communicate their performance in the context
of risks taken, and construct more robust portfolios.

Better understandthe factors thatdrive portfolio risk
and performance» Gain complete insights into portfolio risk
with MSCI equity factor Models» Assess the ‘bubbliness’ or level ofcrowding of stocks and portfolios to beable to make informed decisions about
downside risk protection or identify
allocation opportunities» Understand and capture non-linear

relationships between factor exposuresand returns using machine learning» Measure the exposures of your portfolio

to ESG and understand its contribution to
portfolio risk and return

Build more
adaptive, resilient
portfolios thatreflect modern
investor views

Access andcustomize solutions
to suit your process» Understand the carbon intensity of your» Access the models in the most modern

portfolio to meet your decarbonization or
net-zero commitments» Align your global investment strategies
with a modular (or more consistent)
factor structureand flexible way via Snowflake» Help your portfolios weather changing

market regimes over multiple cycles withthe help of adaptive factor covariance» Identify clusters of highly similar

companies that may lead to “cluster risk”
in your portfolio» Expand your investment opportunity withnew models evaluating pre-merger Special
Purpose Acquisition Corporations (SPACs)

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The data
you wantin the format
you need
MSCI is redefining how our content is delivered, offering
more agile and cost-efficient ways for investors to accessour models. Our models are designed to work with yourtechnology and preferences. Whether it’s Barra Portfolio
Manager, BarraOne, Models Direct (flat files), third-party
suppliers or Snowflake distribution, MSCI is lowering thebarriers for investors to access our content in a more
efficient and scalable way.

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About MSCI Inc.
MSCI is a leading provider of critical decision support tools and services for the global investmentcommunity. With over 50 years of expertise in research, data and technology, we power better
investment decisions by enabling clients to understand and analyze key drivers of risk and return andconfidently build more effective portfolios. We create industry-leading research-enhanced solutions thatclients use to gain insight into and improve transparency across the investment process.
To learn more, please visit www.msci.com

The information contained herein (the “Information”) may not be reproduced or disseminated in whole or in part without prior written permission from MSCI. The Information may not be used to verify or correct other data, to create indexes, risk models,or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future
performance, analysis, forecast or prediction. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy.
Further, none of the Information or any MSCI index is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided“as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRDPARTY INVOLVED IN THE MAKING OR COMPILING OF THE INFORMATION (EACH, AN “MSCI PARTY”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH MSCI PARTY HEREBY EXPRESSLYDISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NOEVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIEDOF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.
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