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Eze Software, MSCI Partner Roll Out Real-Time Factor Analysis

Traders Magazine Online News, December 11, 2017

John D'Antona Jr.

Eze Software, a global provider of investment technology, has partnered with MSCI to give investment managers the opportunity to measure their exposure to style factors in real time. MSCI’s factor indexes and analytics models are used to help investment managers understand portfolio movements and market risk, enabling them to build portfolios based on objectives and risk tolerance. Integration with Eze Investment Suite will enable managers to adjust style factor exposures based on real-time portfolio performance.

The first integration of its kind ensures investors can analyze their exposures pre-trade, diversify to prevent investments from crossing undesirable exposure thresholds, and adjust their exposures as they trade throughout the day. MSCI will be providing coefficients of the Barra Global Total Market Equity Model for Long-Term Investors and the Barra US Total Market Equity Model for Medium-Term Investors for the offering.

Eze Software will integrate MSCI’s factor coefficients into Eze OMS, providing visibility into real-time exposure to given factors at the portfolio, strategy and security level, including access to intraday charts. This will enable managers to understand what-if impacts a given trade has on portfolio factor exposure; be alerted when factor exposure breaches tolerance levels in pre-trade compliance checks; and to target a specific factor exposure level in a single security.

“We’re excited to partner with MSCI to bring this important functionality to our clients,” said Bill Neuman, Managing Director, Product and Engineering. “With the rise of smart beta strategies, we are seeing more clients using style factors as an analytical tool to optimize their portfolio strategies. By partnering with MSCI, we can ensure clients can act on that analysis in real time, optimizing performance.”

“MSCI is a pioneer in factor investing, and we are excited to provide our factor exposure data to investors through our partnership with Eze Software,” said Jorge Mina, Head of MSCI Analytics. “As factors are becoming integral in making investment decisions, MSCI continues to look for ways to integrate this data for investors to use throughout the investment process.”

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