Investment Insights 2021 Investment Insights 2021 Global Institutional Investor Survey What are the critical challenges facing institutional investors? We surveyed 200 institutional investors globally to better understand their views on the most important investment issues. What are the most important trends for the next three to five years? What is the lasting impact of COVID-19? And what is their latest thinking on factor investing, risk management, and diversity? This report combines survey results with insights from our experts. Download Report 0 seconds of 1 minute, 25 seconds Investors' Key Highlights January 27, 2021 What challenges and trends are driving institutional investment decisions across the world? The headline findings of the MSCI Investment Insights 2021 report are captured in this short video. Download Transcript Report Highlights The move to ESG has accelerated The move to ESG has accelerated Some 73% said they were increasing ESG investing as a response to the pandemic, at least to some extent. Data as a solution Data as a solution From real estate to private investments to risk management, investors are deploying data to solve problems. Some 79% use climate data to manage risk, at least sometimes, and 69% use this data to identify opportunities. Factors and the quiet revolution Factors and the quiet revolution With little fanfare, factor investing has penetrated many investors’ thinking. Around half say factors are “completely central” to asset allocation. The study shows how investors are trying to connect together factor and ESG investing. Pressure on diversity Pressure on diversity Although 63% reported at least some pressure to improve internal diversity, the pressure is uneven . Progress seems slow: Just 11% agreed that “I think the industry has become more diverse.” U.S. investors: myths and reality U.S. investors: myths and reality U.S. investors, especially the largest, are in line with global trends on ESG—sometimes leading. U.S. investors emerge as agile and more focused on disruptive technology than those elsewhere. Download Report MSCI View Introducing Investment Insights 2021 by Baer Pettit Baer Pettit, MSCI’s President and Chief Operating Officer, shares his views on the challenges faced by institutional investors in today’s complex and unstable financial environment. Read More The Investment Ecosystem Under Stress Global Head of Client Coverage, Alvise Munari, explains the interconnectedness of the challenges facing the investment industry, and how institutional investors of varying sizes can go about tackling them. Learn More The Investment Benefit Of Diversity Diana Tidd, MSCI’s Head of Index and Chief Responsibility Officer, discusses diversity in the investment industry - and how the conversation is shifting from policies and metrics to tangible results. Read More Infographic How Scale Makes A Difference This infographic highlights the pressures acting on institutional investors - and how they differ according to AUM. The largest firms have the resources to lead the industry on major issues, leaving smaller ones under pressure to keep up. Read More The State of Play in ESG Once an issue for niche ‘green’ investors, data from our recent survey shows that ESG is now firmly established as a high-priority concern for institutional investors in all regions. View the key findings in our infographic. Learn More The Data-Driven Investor Where data on climate is available, investors are using it to make crucial decisions. This infographic shows how robust, high-quality data is becoming increasing important in all areas of investment decision-making Explore More Related Content Asset Owners MSCI helps pensions, sovereign wealth funds, insurance companies and other institutional investors make better investment decisions through consistent frameworks and tools to assess their portfolios. Read More ESG Framework for Asset Owners We developed a six-step framework designed to support institutional investors seeking to integrate ESG & climate considerations into their portfolio construction and benchmarks. Learn More Highlights of the MSCI Institutional Investor Conference 2020 At our recent annual Institutional Investor conference co-hosted by CalPERS and CalSTRS, we explored the issues asset owners face in building resilient portfolios. Explore More Interested in learning more about Investment Trends? Let us know and we will be in touch shortly. Contact Me Locations Legal Modern Slavery Statement Privacy notice Index regulation Site map Cookies Use of ISO standards Subscribe Contact Us © 2021 MSCI Inc. All rights reserved We use cookies to optimize site functionality and give you the best possible experience. Learn More Accept Cookie Preferences