MSCI

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MSCI Inc.
Public
Traded asNYSEMSCI
S&P 500 Component
Founded1969
Headquarters,
Key people
Henry A. Fernandez, CEO,
Kathleen Winters, CFO,
Baer Pettit, President
Servicesstock market indexes
portfolio analytics
RevenueIncreaseUS$1.27 billion (2017)[1]
IncreaseUS$579.18 million (2017)[1]
IncreaseUS$303.97 million (2017)[1]
Total assetsIncreaseUS$3.27 billion (2017)[1]
Total equityIncreaseUS$401.01 million (2017)[1]
Number of employees
3300
Websitewww.msci.com Edit this on Wikidata

MSCI Inc. (formerly Morgan Stanley Capital International and MSCI Barra), is a Global provider of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools. It publishes the MSCI BRIC, MSCI World and MSCI EAFE Indexes. The company is currently headquartered at 7 World Trade Center in Manhattan, New York City, U.S.

History[edit]

In 1968, Capital International published indices covering the global stock market for non-U.S. markets. In 1986, Morgan Stanley licensed the rights to the indexes from Capital International and branded the indexes as the Morgan Stanley Capital International (MSCI) indexes.[2] By the 1980s, the MSCI indexes were the primary benchmark indexes outside of the US before being joined by FTSE, Citibank, and Standard & Poor's.[3] After Dow Jones started float weighting its index funds, MSCI followed.[3] In 2004, MSCI acquired Barra, Inc., to form MSCI Barra.[4] In mid-2007, parent company Morgan Stanley decided to divest from, and perhaps spin off, MSCI.[5] This was followed by an initial public offering of a minority of stock in November 2007.[6] The divestment was completed in 2009.[7] The company is headquartered in New York City.[8]

Some companies in MSCI's peer group includes Glass Lewis, Factset, Sovereign Wealth Fund Institute, and Standard & Poor's.

Acquisitions[edit]

MSCI formally acquired both RiskMetrics Group, Inc.[9] and Measurisk[10] in 2010, as well as Investment Property Databank in 2012.[11] In 2013, MSCI acquired Investor Force from ICG Group (formerly Internet Capital Group) in 2013.[12] In August 2014, MSCI acquired GMI Ratings.[13]

Indices[edit]

The MSCI global equity indexes have been calculated since 1969 and include MSCI World[14] and MSCI EAFE.[15] Initially, the company used eight factors in developing its indexes: momentum, volatility, value, size, growth, size nonlinearity, liquidity, and financial leverage.[16]

In 2019, after coming under pressure from the Chinese government, MSCI announced that it would quadruple the weightings of mainland Chinese shares in its global benchmarks.[17][18][19] The move sparked criticism and questions from Senator Marco Rubio.[20][21][22]

References[edit]

  1. ^ a b c d e https://finance.yahoo.com/quote/MSCI/financials?p=MSCI
  2. ^ Frank J. Fabozzi; Harry M. Markowitz. The Theory and Practice of Investment Management. 160.
  3. ^ a b Gastineau, Gary L. (2002-02-14). The Exchange-Traded Funds Manual. John Wiley & Sons. p. 35. ISBN 9780471218944. Retrieved 18 November 2015.
  4. ^ Lawrence Carrel. ETFs for the Long Run: What They Are, How They Work, and Simple Strategies. John Wiley. p. 94.
  5. ^ "Morgan to take MSCI public". Investment News.
  6. ^ "MSCI Barra Spinoff Provides Look At Indexers' Inner Workings". Seeking Alpha. September 17, 2007.
  7. ^ "FAQ". MSCI, Inc. Retrieved 2008-04-24.
  8. ^ Giang Nguyen (April 28, 2016). "Frontier Vietnam Eyes Step Up to Emerging-Market Big Leagues". Bloomberg.
  9. ^ AARON LUCCHETTI (March 2, 2010). "MSCI Seizes RiskMetrics in Union of Niche Firms". Wall Street Journal.
  10. ^ "MSCI Scores Measurisk From JPMorgan". Forbes. July 15, 2010.
  11. ^ "People moves: IPD co-founder, former CEO leave MSCI", realestate.ipe.com, 18 February 2016.
  12. ^ Lozada, Aaron. "MSCI completes acquisition of Investor Force". SNL News. SNL Financial LC. Retrieved 8 February 2013.
  13. ^ Mara Stein (March 11, 2016). "Battle to Grade ESG Investments Heats Up". Wall Street Journal.
  14. ^ Robert R. Johnson; Gerald R. Jensen & Luis Garcia-Feijoo (2015). Invest with the Fed: Maximizing Portfolio Performance by Following Federal Reserve Policy. McGraw Hill Professional. p. 165.
  15. ^ V S Somanath. International Financial Management. p. 288.
  16. ^ Drake, Pamela Peterson; Fabozzi, Frank J. (2012-10-01). Analysis of Financial Statements. John Wiley & Sons. p. 292. ISBN 9781118331910. Retrieved 18 November 2015.
  17. ^ "MSCI to quadruple weighting of China A-shares in its global benchmarks". CNBC. 2019-03-01. Retrieved 2019-06-23.
  18. ^ Bird, Mike (February 3, 2019). "How China Pressured MSCI to Add Its Market to Major Benchmark". The Wall Street Journal. Retrieved 2019-06-23.
  19. ^ Loder, Asjylyn (May 16, 2019). "Indexes to Unleash Flood of Money Into Chinese Stocks". The Wall Street Journal. Retrieved 2019-06-23.
  20. ^ Price, Michelle (2019-06-13). "U.S. senator queries MSCI over inclusion of Chinese shares in major benchmark". Reuters. Retrieved 2019-06-23.
  21. ^ Yap, Livia (2019-05-12). "Foreigners Can Soon Own More China Stocks. But No One Wants Them". Bloomberg News. Retrieved 2019-06-23.
  22. ^ Rogin, Josh (June 13, 2019). "China's infiltration of U.S. capital markets is a national security concern". The Washington Post. Retrieved June 22, 2019.

External links[edit]