MSCI FaCS™ on Funds
MSCI FaCS on Funds extends MSCI FaCS, a Factor Classification Standard and framework forevaluating, implementing and reporting style factor exposures to Equity ETFs and mutual fundWith the growth in access of factor investing solutions, comes the need for standards to bring clarity to the confusion.
Exchange Traded Funds (ETFs) and Mutual Funds can be important instruments in any investment portfolio. Despite
their wide usage, however, it is still a challenge to evaluate and compare funds from a standard framework thatprovides investors insight into the drivers of risk and return.
MSCI FaCS on Funds allows investors to use a common language for evaluating and comparing Exchange TradedFunds and Mutual Funds through MSCI FaCS’s 8 Factor Groups.

Key featuresBenefits• Holdings based approach that aggregates at the stock levelto provide fund level factor exposures• Analyze equity funds from a standard factor framework• Coverage of more than 1,600 ETFs globally• Compare multiple funds through 8 Factor Groups available inMSCI FaCS

• MSCI Factor Box provides the visualization to easily compare
Factor exposures between funds and benchmarks• Report Factor exposures as a way to evaluate manager
insight or skill• Coverage of 7,000+ Mutual Funds that cover 27,000+
share classes• Screen and narrow the fund universe based on style Factor
characteristics

What is MSCI FaCS?
• MSCI FaCS is a standard method for evaluating and reporting the Factor characteristics of equity portfolios• MSCI FaCS consists of 8 Factor Groups that have been extensively documented in academic literature and identified by MSCI
Research as key drivers of risk and return• The 8 Factor Groups are constructed by aggregating the 16 Factors and 41 Descriptors from the MSCI Barra Global Equity Factor
Model (GEMLT model), designed to make fund comparisons transparent and intuitive for use• MSCI FaCS is the Factor classification standard that powers Factor Box
Underweight

How does the Factor Box work?
MSCI FaCS on Funds follows a thorough data management
process to incorporate holdings level data from multiple
sources, market data and factor exposures. Users of FaCS onFunds can incorporate this data into their own reporting andcommunication, including MSCI Factor Box.
MSCI Factor Box allows investors to compare Factor exposuresin three different visuals:• Bars shows the fund exposure across Factors• Circle shows the Factor exposure of chosen benchmark• Distance between circle and bar shows difference between
fund exposure and benchmark exposure = Active Factor
exposure

NeutralOverweight

VALUE

LOW SIZE

MOMENTUM

Fund exposure
Benchmark exposure

QUALITYYIELDLOW VOLATILITY*MSCI Factor Box neutral line (Exposure = 0) is based on the Global Equity Universe determined by MSCI IMIMSCI FaCS™ on Funds | msci.com

Based on MSCI’s Global Equity Factor Structure, MSCI FaCS includes 8 Factor Groups, and 16 Factors

VOLATILITY

Beta

MOMENTUM

VALUE

Momentum

Book-to-Price

Mid Cap

Investment Quality

Earnings Yield

Size

Earnings Variability

Reversal

YIELD

Dividend Yield

Residual Volatility

QUALITY

Leverage

SIZE

GROWTH

GrowthLIQUIDITY

Liquidity

Earnings Quality
Profitability

About MSCIMSCI is a leading provider of critical decision support tools and services for the global investment community. With over 45 years ofexpertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key
drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions
that clients use to gain insight into and improve transparency across the investment process.
To learn more, please visit www.msci.com.
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