MSCI is a leading provider of investment decision support tools to clients ranging from large pension plans to boutique hedge funds.
Located in 24 countries around the world, MSCI is dedicated to supporting the increasingly complex needs of the investment community with groundbreaking new products, high quality data, superior distribution and dedicated client support. Since the MSCI indices were launched over 40 years ago, the company has grown to become one of the world’s leading players in the provision of products and services to institutional investors.
MSCI ESG Intangible Value Assessment (IVA) provides research, ratings, and analysis of companies' financially material risks and opportunities arising from environmental, social, and governance factors. Companies are rated by MSCI ESG analysts on a seven point scale of 'AAA- CCC*' relative to the standards and performance of their industry peers. The MSCI ESG IVA ratings provide a signal to investors of the extent to which a company is well positioned to manage the financially material risks and opportunities arising from key ESG trends. The MSCI ESG IVA Rating is intended to be style-neutral.
MSCI ESG Controversies Score uses more than 30 performance indicators to evaluate 5,000 companies, including constituents of the MSCI World Index and all companies on the MSCI ACWI Index. The MSCI ESG Controversies Score notes when companies breach global norms and conventions such as the UN Global Compact and ILO Core Conventions.
*Final letter ratings on the seven-point scale reflect the weighted averages of scores on key ESG issues as assigned by MSCI ESG Research aggregated and normalized by industry. A benchmark peer set comprised of MSCI World Index constituents within an industry is used to calculate industry-relative ratings to ensure that companies’ relative ratings do not change when other companies are added to or removed from the peer set. The highest scoring benchmark company receives a 10 as its preliminary industry-adjusted score and the lowest scoring benchmark company receives a 0. Each company’s final industry-adjusted score corresponds to a rating between best (AAA) and worst (CCC). Comparisons based on the 10-point scale compare the weighted average rankings of securities in the portfolios to the weighted average rankings of constituents in the benchmark indexes. All rankings on the seven- and 10-point scale are assigned by MSCI ESG Research.
RISKS: Investment in mutual funds involves risk, including possible loss of principal invested. You could lose money on your investment in the Fund or the Fund could underperform because of the following risks: the market prices of stocks held by the Fund may fall; individual investments of the Fund may not perform as expected; the Fund’s portfolio management practices may not achieve the desired result. The Fund does not take defensive positions in declining markets. Accordingly, the Fund’s performance would likely be adversely affected by a decline in the Index. Investments in emerging markets and non-US Securities are generally less liquid and less efficient than investments in developed markets and are subject to additional risks, such as risks of adverse governmental regulation, intervention and political developments. As this Fund can have a high concentration in some issuers the Fund can be adversely impacted by changes affecting issuers. There is no guarantee that the objective will be met and diversification does not eliminate risk.