A news release said GEM2 provides improved portfolio risk forecasts and better explanatory power of the sources of portfolio return. The company said the improvements are driven by the use of a new World factor, the Global Industry Classification Standard (GICS) as the basis of industry factor analysis, the addition of four new risk factors, reformulating existing factors, and a new stock-specific risk model.
According to the company, GEM2 is more responsive to market trends due in part to the use of higher frequency data.
GEM2 allows users to consider industry factors first, common in developed market investing, or country factors first, common in emerging market investing.
More information is at www.mscibarra.com .