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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.

MSCI Inc.
Public
Traded asNYSEMSCI
S&P 500 Component
ISINUS55354G1004 Edit this on Wikidata
Founded1969
Headquarters,
Key people
Henry A. Fernandez, CEO,
Baer Pettit, President,
Linda Huber, CFO,
Laurent Seyer, COO and Chief Client Officer,
Scott Crum, CHRO
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

HistoryEdit

In 1968, Capital International published indexes 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.

AcquisitionsEdit

In 2010 MSCI formally acquired RiskMetrics Group, Inc.[9] and Measurisk.[10]

In 2012 MSCI acquired Investment Property Databank.[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]

IndexesEdit

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 2018 MSCI announced it would begin including mainland Chinese "A" shares in its Emerging Markets Index. Initially the domestic Chinese companies received a 5% weighting in the index even though the stated methodology called for a 40% weighting.[17] While MSCI is the last major index provider to include the companies, the decision has proved controversial due to the fact that many Chinese listed companies refuse to permit the Public Company Accounting Oversight Board to inspect their financial records, thereby sparking criticism and questions from Senator Marco Rubio.[18][19][20] In February 2019, The Wall Street Journal reported the decision was the result of pressure from the Chinese government.[21] In March 2019, CNBC reported that MSCI would quadruple the weightings of mainland Chinese shares in its global benchmarks.[22][23]

ReferencesEdit

  1. ^ a b c d e "MSCI Inc (MSCI) Income Statement - Yahoo Finance".
  2. ^ Frank J. Fabozzi; Harry M. Markowitz (2002-11-25). The Theory and Practice of Investment Management. 160. ISBN 9780471445654.
  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 (2008-09-16). ETFs for the Long Run: What They Are, How They Work, and Simple Strategies. John Wiley. p. 94. ISBN 9780470437667.
  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. ^ Luchetti, Aaron (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. ^ Stein, Mara (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 (February 2011). International Financial Management. p. 288. ISBN 9789381141076.
  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 China A Inclusion\access-date=2019-07-03".
  18. ^ Price, Michelle (2019-06-13). "U.S. senator queries MSCI over inclusion of Chinese shares in major benchmark". Reuters. Retrieved 2019-06-23.
  19. ^ Yap, Livia (2019-05-12). "Foreigners Can Soon Own More China Stocks. But No One Wants Them". Bloomberg News. Retrieved 2019-06-23.
  20. ^ 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.
  21. ^ Bird, Mike (February 3, 2019). "How China Pressured MSCI to Add Its Market to Major Benchmark". The Wall Street Journal. Retrieved 2019-06-23.
  22. ^ "MSCI to quadruple weighting of China A-shares in its global benchmarks". CNBC. 2019-03-01. Retrieved 2019-06-23.
  23. ^ Loder, Asjylyn (May 16, 2019). "Indexes to Unleash Flood of Money Into Chinese Stocks". The Wall Street Journal. Retrieved 2019-06-23.

External linksEdit