Products September 24, 2008

MSCI Barra Releases Latest Version of Risk Management Tool

September 24, 2008 (PLANSPONSOR.com) - MSCI Barra has introduced the latest version of its Barra Global Equity Model (GEM2), a tool designed to help global equity managers better construct and manage risk-adjusted portfolios across developed and emerging markets.
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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 .

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