MSCI Inc.

Private-credit funds posted strong returns in 2024, eclipsing #privateequity and private real assets, including #realestate. But it’s not all smooth sailing for private credit — distress rates have risen as borrowers have been squeezed by the higher costs of their floating-rate loans. Across asset types in the closed-end fund universe, distributions — or the lack thereof — continue to be a concern for asset owners. The slowdown in distributions that started in early 2022 has shown little sign of abating. #MSCIResearch drilled down to net cash flows of individual fund vintages to pinpoint the experience for asset owners. Learn more: http://ms.spr.ly/6044oVGgI and http://ms.spr.ly/6046oVGg0

Happy holidays! #ESG now is off for the holidays. We will be back the week of January 6. See you soon! http://ms.spr.ly/6043obmQZ

This week, our #ESGNow podcast takes a deep dive into the trends that could shape sustainability and climate investing in 2025, and we ask if private real estate appraisal values are hiding risks. We also dissect the latest figures for the RCA CPPI. As the year comes to an end, we announce an exciting change for readers. For the last 18 months, the MSCI Research Wrap-Up has brought you the best of the insights from #MSCIResearch. Early next year, look for the inaugural edition of the MSCI Research Roundup, a weekly LinkedIn newsletter featuring highlights of our research, as well as exclusive features, such as incisive charts, videos and the opportunity to hear from some of our key research professionals you may not always hear from. Until then, wishing you all happy holidays and new year. The Sustainability and Climate Trends to Watch for 2025 We talk to some of the authors behind the trends identified, from #energy #transition opportunities emerging in private markets through to rising social risks and data access for #AI models. http://ms.spr.ly/6046obmW0 The Risks of Appraisal Uncertainties in Private Real Estate The downturn in U.S. #realestate performance focused attention on the appraised values of properties, particularly those enduring the harshest reset. We discuss whether a more transparent measure of value would benefit investors. http://ms.spr.ly/6047obmWF US Property Prices on Improving Path #Commercial-property pricing dipped just 0.5% in November from a year earlier and on the month prices increased again. The RCA CPPI National All-Property Index rose 0.3% from October, registering a sixth consecutive monthly gain. Of the major #property types, only apartment fell on the month. http://ms.spr.ly/6049obmWN And don’t forget, you can still subscribe now to receive our MSCI Weekly emails straight to your inbox: ms.spr.ly/6048gPCLw

#Concentration and #crowding create headwinds for active managers. Our research shows a #benchmark-splitting approach could have expanded the range of opportunities in periods of high #equity-market concentration. And using the MSCI Security Crowding Model and MSCI Global Equity Factor Trading Model, #MSCIResearch analysis shows a simple crowding-score-based constraint can aid in spotting securities most at risk of de-rating as well as identifying the most- and least-crowded market segments. Read our report http://ms.spr.ly/6045owFEx and two articles http://ms.spr.ly/6046owFEI and http://ms.spr.ly/6047owFEL

We are thrilled to announce that Naomi English, Head of ESG at MSCI, has been named to Fin-Erth’s 2024 list of 101 Leading Women in Climate! This recognition highlights Naomi’s “extraordinary contribution to developing award-winning climate and biodiversity products.” Her strategic leadership and input have been key in solidifying MSCI’s position as an industry leader while advancing our commitment of bringing greater transparency to financial markets. Please join us in congratulating Naomi on this well-deserved achievement. We would also like to congratulate the accomplished women accompanying Naomi in the Climate Data & Analytics category. See full list of winners here - http://ms.spr.ly/6041owFpX

Are you ready to scale up your investment strategy? 🌍💼 Together with Xtrackers by DWS DWS Group, we have launched the first hybrid world ETF: the Scalable MSCI AC World Xtrackers UCITS ETF. With our combined capital market expertise and many years of experience, we are setting a new global standard. The ground-breaking hybrid replication method combines the best of both worlds: leveraging the advantages of physical and synthetic replication. With just one ETF you can invest in the whole world: It covers almost 90% of the global investable markets across 23 developed and 24 emerging countries. It’s the simple all-in-one solution for global diversification. For more information about the new Scalable Xtrackers ETF, check out the link in the comments. #ScalableCapital #ETF MSCI Inc.

Diversification — across sectors and countries — has never been more important than amid today's rapidly evolving geopolitical environment and accelerating pace of deglobalization. #MSCIResearch reimagines the framework for country and regional investing to integrate #macroeconomics, #thematicinvesting and sector inputs that reflect our world’s dynamics. Our complementary analysis focuses on #sectorinvesting in the U.S., observing how sector-rotation strategies have improved a portfolio’s return and lowered its risk over the last two decades. Get the specifics here: http://ms.spr.ly/6049on3PD and http://ms.spr.ly/6040on3PE

The downturn in U.S. real-estate performance focused attention on the appraised values of #commercialproperty, particularly those undergoing the harshest reset, such as CBD offices. Would using more transparent measures of value, such as transaction prices, benefit investors and the industry? #MSCIResearch has more: http://ms.spr.ly/6046onMei #CREdata

Higher borrowing costs and a slump in prices are bad news for #commercialproperty investors, especially when it comes time to pay back or refinance loans. #MSCIResearch estimated the volume of U.S. loans maturing in coming years and estimated the amount of loans that had been extended, paying particular attention to the office market, which has suffered the most of the property types in the post-COVID-19 downturn. The problems are not limited to the U.S. In Europe, where debt data is more opaque, we presented a way to visualize the portion of assets that may have trouble #refinancing. Read more: http://ms.spr.ly/6045oVGPt and http://ms.spr.ly/6047oVGPv

From all of us at MSCI, we wish you a happy holiday season and a prosperous New Year! Let’s take a moment to celebrate the biggest moments we shared together in 2024. http://ms.spr.ly/6046oZKPy