Designed especially to expand coverage to additional frontier markets, the new model provides an enhanced style factor structure for more detailed forecasts and a new perspective on risk and return.
MSCI equity portfolio management analytics managing director Peter Zangari said that EUE4 assists portfolio and risk managers identify common sources of risk and return across a wide spectrum of European securities.
"Rapidly changing market conditions call for intuitive, dynamic, and stable models, and MSCI is committed to empowering our clients with a comprehensive risk monitoring and portfolio construction framework," Zangari added.
In a bid to support portfolio managers creating and examining portfolios with short investment horizons, EUE4 introduces a new class of Europe equity models with the Daily Forecast Horizon.
For supporting more frequent trading or portfolio rebalancing, the tool caters detailed level of granularity and increased responsiveness, and assists in capturing short-term market dislocations.
Covering 34 nations in Western and Eastern Europe, including MSCI Europe Index, MSCI Frontier Markets Central & Eastern Europe and Commonwealth of Independent States Index, the new model also covers more than 17,000 assets of which over 2,500 are frontier market securities.
