Profile: MSCI Inc (MSCI.K)
2 Dec 2016
MSCI Inc. (MSCI), incorporated on July 2, 1998, together with its subsidiaries, offers content, applications and services to support the needs of institutional investors throughout their investment processes. The Company's operating segment includes Index, Analytics and All Other segment. All Other segment comprises ESG and Real Estate segments. The ESG operating segment offers products institutional investors use for assessing risks and opportunities arising from environmental, social and governance issues. ESG tools are used to evaluate both individual securities and investment portfolios. The Real Estate operating segment is a provider of real estate performance analysis for funds, investors, managers, lenders and occupiers.
The Index operating segment is a provider of investment decision support tools, including equity indexes and equity index benchmarks. The products are used in many areas of the investment process, including portfolio construction and rebalancing, asset allocation, performance benchmarking and attribution, regulatory and client reporting and index-linked investment product creation. Its indexes are used in areas of the investment process, including index-linked product creation and performance benchmarking, as well as portfolio construction and rebalancing, and asset allocation. MSCI calculates over 180,000 global equity indexes and approximately 8,300 custom indexes. Products in MSCI's Index segment include MSCI Global Equity Indexes, MSCI Custom Indexes, MSCI Factor Indexes, MSCI ESG Indexes, MSCI Real Estate Indexes and Global Industry Classification Standard (GICS). The MSCI Global Equity Indexes include the MSCI ACWI, MSCI World, MSCI EAFE, MSCI ACWI IMI, MSCI Emerging Market and MSCI USA Indexes. The Company also offers industry indexes, value and growth style indexes and large-, mid-, small- and micro-capitalization size segment indexes. It also offers indexes to be used as the basis for exchange traded funds (ETFs) and other financial products.
MSCI Custom Indexes can reflect specific investment criteria, such as socially responsible investment requirements or regulatory constraints. MSCI offers a suite of factor index families, including the MSCI Minimum Volatility Indexes, high-exposure factor indexes (such as the MSCI Enhanced Value, MSCI Equal Weighted and MSCI High Dividend Yield Indexes), single high capacity factor indexes (such as the MSCI Quality Tilt, MSCI Dividend Tilt, MSCI Size Tilt, MSCI Momentum Tilt, MSCI Volatility Tilt and MSCI Value Weighted Indexes), and combinations of factor indexes and multi-factor indexes, such as the MSCI Diversified Multiple-Factor Indexes. The MSCI ESG Indexes include Sustainability Indexes that use a selection process based on MSCI ESG Ratings; Socially Responsible Investment (SRI) Indexes that exclude companies based on certain values, norms or ethical standards; Environmental Indexes, including Low Carbon Indexes, Fossil Fuels Exclusion Indexes and benchmarks that represent the markets for renewable energy and clean technology, and custom indexes based on client-defined ESG specifications. MSCI's Real Estate indexes cover sectors, factors, liquidity and custom indexes that span the real estate market. It offers GICS Direct, a joint product of MSCI and Standard & Poor's. GICS Direct is a database comprising over 44,000 active companies and over 54,000 securities classified by sector, industry group, industry and sub-industry in accordance with the GICS methodology.
The Analytics operating segment consists of products and services used for portfolio construction, risk management and reporting. The products enable institutional investors to monitor, analyze and report on the risk and return of investments across a variety of asset classes. In addition, the Analytics segment includes products that help investors value, model and hedge physical assets and derivatives across a number of market segments, including energy and commodity assets. MSCI's Analytics platform includes Barra multi-factor models; pricing models; methodologies for performance attribution; RiskMetrics models for statistical analysis, such as value at risk (VaR), and tools for security analysis, portfolio optimization, back testing and stress testing. Analytics products offered by the Company include RiskMetrics RiskManager, BarraOne, Barra Portfolio Manager, Barra Equity Models Direct, Barra Integrated Model (BIM), Barra Aegis, HedgePlatform, InvestorForce, WealthBench and CreditManager. RiskManager is a scalable platform accessed by clients via a license to a secure, interactive Web-based application service, and is offered as an outsourced risk reporting service or as a Web service. BarraOne provides clients with global, multi-asset class risk analysis using Barra's fundamental factor methodology. BarraOne also includes VaR simulation, stress testing, optimization and performance attribution modules.
Barra Portfolio Manager is an integrated risk and performance platform that is designed to help fund managers and their teams gain additional portfolio insight, manage a systematic investment process and make more informed investment decisions. Barra Equity Models Direct includes Barra Global Total Market Models, Barra Regional Equity Models and Barra Single Country Equity Models. BIM provides a detailed view of risk across markets and asset classes, including currencies, equities, fixed income, commodities, mutual funds and hedge funds. Barra Aegis is a sophisticated software application for equity risk management and portfolio analysis that is powered by the Company's equity risk data. HedgePlatform, a reporting service, allows clients that invest in hedge funds, including funds of funds, pension funds and endowments, to measure, evaluate and monitor the risk of their hedge fund investments across multiple hedge fund strategies. InvestorForce products offer performance reporting solutions to the institutional investment community in the United States by providing investment consultants with an integrated solution for daily monitoring, analysis of and reporting on institutional assets. WealthBench is an investment planning platform for private banks, financial advisers, brokerages and trust companies. CreditManager is a portfolio credit risk management system used by banks to calculate economic capital, facilitate risk-based pricing and measure credit risk concentrations.
All Other Segment
All Other segment comprises ESG products and Real Estate products. MSCI's ESG products offer research and ratings that enable institutional investors to assess risks and opportunities arising from ESG issues, as well as evaluate both individual securities and investment portfolios. MSCI develops screening and modeling tools that allow users to align investments with a set of ESG values. ESG products include MSCI ESG Research, MSCI ESG Ratings and MSCI ESG GovernanceMetrics. MSCI ESG Research has an in-house ESG research team, which enables MSCI to control, monitor and manage data quality. It assess a range of data points across over 30 ESG issues, covering over 5,900 global companies in approximately 70 sectors, including more than 150 fixed-income issuers. MSCI ESG Ratings are designed to provide institutional investors with the ability to integrate ESG into investment decisions by identifying risks and opportunities that may not be captured through conventional analysis. This includes ratings for over 25,000 equities and over 140,000 fixed-income securities. MSCI ESG GovernanceMetrics provides institutional investors with corporate governance research and data on over 7,000 public companies.
MSCI's Real Estate products provide real estate performance analysis for funds, investors, managers, lenders and occupiers. The Company provides products and offers services, including research, reporting and benchmarking. MSCI's Real Estate products comprise private real estate benchmarks and indexes branded IPD and include Portfolio Analysis Service (PAS) and IPD Global Intel. PAS is a single platform for real estate risk management and performance attribution that analyzes the strengths and weaknesses of a real estate portfolio's performance relative to its benchmark. PAS provides portfolio management tools that are designed to assist in building effective real estate portfolios, allowing users to gain additional portfolio insight to help them make informed investment decisions. IPD Global Intel is a databank that equips asset owners, researchers, strategists and portfolio and risk managers with data analytics to enhance their understanding of local, regional and global real estate performance and risks. IPD Global Intel comprises a consolidated set of global, regional, national, city and submarket indexes with breakdowns by property type.
The Company competes with The London Stock Exchange Group PLC, CME Group, Inc., CME Group Services LLC, The McGraw-Hill Financial, Inc., Center for Research in Securities Prices, EDHEC-Risk Institute, DAX, STOXX Ltd., BM&FBovespa, the Korea Stock Exchange, China Securities Index Co., Ltd., Singapore Exchange Limited, Research Affiliates LLC, Morningstar, Inc., Nikkei Inc., Nomura Securities, Ltd., the Tokyo Stock Exchange, Inc., Intercontinental Exchange, Inc., Nasdaq, Inc., Solactive AG, WisdomTree, Goldman Sachs Asset Management, IBM), Axioma, Inc., BlackRock Solutions, Bloomberg Finance L.P., Standard & Poor, FactSet Research Systems Inc., Imagine Software, Moody's Corporation, Northfield Information Services, Inc., State Street Analytics, FIS and Wilshire Analytics.
7 World Trade Center
250 Greenwich Street, 49Th Floor
NEW YORK NY 10007
Company Web Links
- MSCI announces latest changes to U.S., China, emerging market indexes
- UPDATE 2-MSCI announces latest changes to U.S., China, emerging market indexes
- MSCI announces latest changes to U.S., China, emerging market indexes
- MSCI excludes W.African Economic and Monetary Union from Frontier Markets 100 Index in November
- BRIEF-MSCI reports Q3 adjusted EPS $0.77