Alpha-Centric ESG Research

Kyle Rudden

<ul>
<li>Despite the rough market for ESG-related indexed funds recently, <a href="https://www.smartkarma.com/entities/msci-inc" target="_blank" data-smartkarma-citation="entities:17865:1" rel="noopener">MSCI (MSCI US)</a> continues to increase its market share and solidify its already dominant position as the top indexer.</li>
<li>MSCI ESG-related indexes currently have a 67% (and still growing) market share of the overall ESG indexing ecosystem with nearly US$250 billion in index-linked ETF assets globally.</li>
<li>MSCI's dominant market position is even stronger in important ESG niches/verticals, and two in particular: 1) climate change-focused indexes, and 2) Asia-Pacific ESG markets.</li>
</ul>


Despite the rough market for ESG-related indexed funds recently, MSCI (MSCI US) continues to increase its market share and solidify its already dominant position as the top indexer.
MSCI ESG-related indexes currently have a 67% (and still growing) market share of the overall ESG indexing ecosystem with nearly US$250 billion in index-linked ETF assets globally.
MSCI's dominant market position is even stronger in important ESG niches/verticals, and two in particular: 1) climate change-focused indexes, and 2) Asia-Pacific ESG markets.


MSCI ESG Indexes Gaining in Market Share Despite ESG's Recent "Bear Market"

Independent research on the U.S. markets, Baptista Research

Baptista Research

Independent research on the U.S. markets

Baptista Research is an independent financial research house focused on the U.S. markets. We provide equity research as well as credit research reports on the top-listed U.S. companies with most of our focus on technology, consumer goods and services, automobiles, industrials, oil and gas, pharma, and healthcare. Our research has served more than 3000 institutional investors including mutual funds, hedge funds, banks, family offices, and various buy-side firms. We operate a research subscription service where institutions, as well as retail investors, can have priority access to all our research. We also have a wide distribution of our research reports across some of the top global financial platforms. Apart from equity research and credit research, we also provide advisory services with respect to mergers & acquisitions (M&A), private equity/ venture capital fundraising, valuation reports, and investment management services for corporates.
Baptista Research is owned and managed by Ishan Majumdar, an ex-Venture Capitalist/ Investment Banker, a Chartered Accountant, and a Masters’ degree holder in Management from HEC Paris. Ishan has nearly a decade of experience in Mergers and Acquisitions, Leveraged Buyouts (LBOs), Venture Capital Investing, Corporate Strategy, and Valuation in front-office roles at the likes of BNP Paribas CIB, Credit Agricole CIB, Groupe Danone, and TIW Private Equity. He has worked on and closed multiple acquisition deals, leveraged buyouts, and start-up investment transactions.

Equity Bottom-Up

<ul><li>This is our first report on global financial data and analytics behemoth, MSCI Inc.</li><li>Despite facing challenging external circumstances, MSCI reported strong Q1 results reflected in the quarter's key figures, which included over 5% growth in adjusted EPS, 12% organic subscription run rate growth, and over 95% retention rate.</li><li>Notably, the company recorded its 37th consecutive quarter of double-digit run rate growth in index recurring subscriptions.</li></ul>

This is our first report on global financial data and analytics behemoth, MSCI Inc.Despite facing challenging external circumstances, MSCI reported strong Q1 results reflected in the quarter's key figures, which included over 5% growth in adjusted EPS, 12% organic subscription run rate growth, and over 95% retention rate.Notably, the company recorded its 37th consecutive quarter of double-digit run rate growth in index recurring subscriptions.

MSCI Inc: Initiation of Coverage – Recent Collaborations & Other Drivers

<ul>
<li>Whatever one calls it – a boom-going-bust, a bubble bursting, a market correcting – the ESG party that has raged for years appears to be winding down for certain investors.</li>
<li>Some partygoers have over-indulged in the ESG Kool-Aid, and regulators have the perfect elixir to sober them up – new and often confusing "anti-greenwashing" investing regulations.</li>
<li>Particularly consequential for indexed ESG funds.  Index providers and asset managers struggle to comply, evidenced by recent methodology changes, reconstitutions, and fund closings.</li>
</ul>


Whatever one calls it – a boom-going-bust, a bubble bursting, a market correcting – the ESG party that has raged for years appears to be winding down for certain investors.
Some partygoers have over-indulged in the ESG Kool-Aid, and regulators have the perfect elixir to sober them up – new and often confusing "anti-greenwashing" investing regulations.
Particularly consequential for indexed ESG funds.  Index providers and asset managers struggle to comply, evidenced by recent methodology changes, reconstitutions, and fund closings.


Boom, Bust, Reboot, Rebalance: ESG Index Funds And "Greenwashing" Regulations

Cross-Asset Liquidity Strategist, CrossBorder Capital

Michael J. Howell

Cross-Asset Liquidity Strategist

Implementing Research Using Alt Data & AI

CrossBorder Capital

CrossBorder Capital is a London-based independent investment advisory firm. Founded in 1996, it exploits a gap in the investment arena by focusing on Central bank liquidity. 

It specialises in the monitoring and analysis of global liquidity flows - an important determinant of asset prices, from currencies through to bonds, equities and real estate.

CrossBorder Capital implements its investment strategy and currently manages over US$ 350m.


Cross Asset Strategy

<ul>
<li>
 Global Liquidity Index (GLI) moves higher to 17.5 (normal range 0-100). Most national liquidity indexes bottomed around October 2022 
</li>
<li>
Global Liquidity will reverse its recent fall and rebound to US$174 trillion. Rising Central Bank Liquidity is a common theme. Financial dominance driving a return to Central Bank QE.</li>
<li>More liquidity is consistent with future stabilisation and moderate gains in World asset markets. Rebound investment phase. Emerging Markets and Cyclicals favoured. Gold, commodities and crypto also could be winners</li>
</ul>



 Global Liquidity Index (GLI) moves higher to 17.5 (normal range 0-100). Most national liquidity indexes bottomed around October 2022 


Global Liquidity will reverse its recent fall and rebound to US$174 trillion. Rising Central Bank Liquidity is a common theme. Financial dominance driving a return to Central Bank QE.
More liquidity is consistent with future stabilisation and moderate gains in World asset markets. Rebound investment phase. Emerging Markets and Cyclicals favoured. Gold, commodities and crypto also could be winners


<ul>
<li>The International Sustainability Standards Board (ISSB) recently confirmed important aspects of its proposed sustainability reporting standards. One step closer to a unified standard.</li>
<li>Particularly noteworthy is confirmation that disclosures of Scope 3 emissions will be required. Scope 3 emissions are largely unreported, but account for the majority of total emissions.</li>
<li>Scope 3 disclosure could have repercussions for ESG ratings, ESG indices based on ESG ratings, and potentially (though too soon to tell) reconstutions of exchange-traded funds.</li>
</ul>


The International Sustainability Standards Board (ISSB) recently confirmed important aspects of its proposed sustainability reporting standards. One step closer to a unified standard.
Particularly noteworthy is confirmation that disclosures of Scope 3 emissions will be required. Scope 3 emissions are largely unreported, but account for the majority of total emissions.
Scope 3 disclosure could have repercussions for ESG ratings, ESG indices based on ESG ratings, and potentially (though too soon to tell) reconstutions of exchange-traded funds.


ISSB Affirms Scope 3 Emissions Reporting Requirements and Investor-Centric Focus

United States

MSCI Inc. provides investment decision support tools to investment institutions worldwide. The Company produces indices and risk and return portfolio analytics for use in managing investment portfolios.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

MSCI Inc (MSCI US)

MSCI Inc: Initiation of Coverage – Recent Collaborations & Other Drivers

This is our first report on global financial data and analytics behemoth, MSCI Inc. Despite facing challenging external circumstances, MSCI...

Baptista Research

Boom, Bust, Reboot, Rebalance: ESG Index Funds And "Greenwashing" Regulations

The ESG fund lanscape is undergoing a "reboot" of sorts, in the form of evolving anti-greenwashing regulations such as Europe's SFDR.

Kyle Rudden

Global Liquidity Has Bottomed …

Spurred by rising Global Liquidity, expect strong gains in several asset markets. But major World equities and bonds may be largely range-bound for...

Michael J. Howell

ISSB Affirms Scope 3 Emissions Reporting Requirements and Investor-Centric Focus

Confirmation of key aspects of the ISSB sustainability reporting standards bring us one step closer to a single, investor-centric reporting...

Kyle Rudden

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

MSCI ESG Indexes Gaining in Market Share Despite ESG's Recent "Bear Market"

It's been rough for ESG index funds and the ESG indexers that index them. Not for MSCI, though. MSCI continues to gain market share and solidify...

Kyle Rudden

MSCI Inc: Initiation of Coverage – Recent Collaborations & Other Drivers

This is our first report on global financial data and analytics behemoth, MSCI Inc. Despite facing challenging external circumstances, MSCI...

Baptista Research

Boom, Bust, Reboot, Rebalance: ESG Index Funds And "Greenwashing" Regulations

The ESG fund lanscape is undergoing a "reboot" of sorts, in the form of evolving anti-greenwashing regulations such as Europe's SFDR.

Kyle Rudden

Global Liquidity Has Bottomed …

Spurred by rising Global Liquidity, expect strong gains in several asset markets. But major World equities and bonds may be largely range-bound for...

Michael J. Howell

ISSB Affirms Scope 3 Emissions Reporting Requirements and Investor-Centric Focus

Confirmation of key aspects of the ISSB sustainability reporting standards bring us one step closer to a single, investor-centric reporting...

Kyle Rudden