Profile: MSCI Inc (MSCI.N)
36.52USD
4:01pm EDT
$1.47 (+4.19%)
$35.05
$36.00
$36.83
$35.73
289,250
128,383
$36.87
$24.77
MSCI Inc. (MSCI), incorporated in 1998, is a provider of investment decision support tools, including indices, portfolio risk and performance analytics and corporate governance products and services. The Company operates in two segments: the Performance and Risk business, and the Governance business. The Company’s products are global equity indices and environmental, social and governance (ESG) products marketed under the MSCI and MSCI Research brands, its portfolio risk and performance analytics covering global equity and fixed income markets marketed under the Barra brand, its market and credit risk analytics marketed under the RiskMetrics and Barra brands, its governance research and outsourced proxy voting and reporting services marketed under the ISS brand, its valuation models and risk management software for the energy and commodities markets marketed under the FEA brand and its forensic accounting risk research, legal and regulatory risk assessment and due diligence products marketed under the CFRA brand. As of December 31, 2011, the Company had approximately 6,200 clients across 82 countries. In November 2012, the Company's MSCI Limited acquired IPD Group Limited. In January 2013, it acquired Investor Force Holdings Inc. In April 2013, it completed the sale of its CFRA business.
The Company’s products and services address multiple markets, asset classes and geographies and are sold to a diverse client base including asset owners, such as pension funds, endowments, foundations, central banks, family offices and insurance companies; institutional and retail asset managers, such as managers of pension assets, mutual funds, exchange traded funds (ETFs), hedge funds and private wealth; financial intermediaries, such as banks, broker-dealers, exchanges, custodians and investment consultants; and corporate clients. MSCI had offices in 30 cities in 20 countries to help serve its client base, with approximately 54.4% of its revenue from clients in the Americas, 31.9% in Europe, the Middle East and Africa (EMEA) and 13.7% in Asia and Australia, based on revenues, during the year ended December 31, 2011. Its revenues are grouped into five product and/or service categories: Index and ESG, Risk Management Analytics Products, Portfolio Management Analytics, Energy and Commodity Analytics and Governance.
Performance and Risk Business Segment
MSCI’s Performance and Risk business is a global provider of investment decision support tools, including equity indices, portfolio risk and performance analytics, credit analytics and environmental, social and governance (ESG) products. It also has product offerings in the areas of energy and commodity asset valuation analytics and fixed income portfolio analytics. The Company’s products consists of index data, risk and analytics data and ESG ratings, analysis and research delivered via data feeds and software applications. MSCI’s index and risk data are created by applying its models and methodologies to market and fundamental data. The Company’s software applications offer its clients portfolio analytics to perform analysis of their portfolios, using its risk data, the client’s portfolio data and fundamental and market data.
The Company’s Performance and Risk products are used in many areas of the investment process, including portfolio construction and rebalancing, performance benchmarking and attribution, risk management and analysis, index-linked investment product creation, asset allocation, assessment of social responsibility, environmental stewardship and the effects of climate change on investments, investment manager selection and investment research. The products within MSCI’s Performance and Risk business are its Global Equity Indices and ESG products marketed under the MSCI and MSCI ESG brands, its market and credit risk analytics marketed under the RiskMetrics and Barra brands, the Company’s portfolio risk and performance analytics covering global equity and fixed income markets marketed under the Barra brand and its valuation models and risk management software for the energy and commodities markets marketed under the FEA brand.
the Company's MSCI-branded equity indices are designed to measure returns available to investors across a variety of markets, sizes, styles and industries. MSCI’s MSCI ESG indices are designed to help clients incorporate environmental, social and governance factors into their investment decisions. As of December 31, 2011, it calculated over 150,000 indices daily. In addition to delivering its products directly to MSCI’s clients, as of December 31, 2011, the Company also had more than 65 third-party financial information and analytics software providers that distributed its various equity index products worldwide. The Company’s primary index products include MSCI Global Equity Indices, MSCI US Equity Indices, MSCI Custom Indices, MSCI ESG Indices, Global Industry Classification Standard (GICS) and MSCI ESG Products. MSCI Global Equity Indices are designed to measure returns available to global investors across a variety of public equity markets.
As of December 31, 2011, the MSCI Global Equity Indices provided equity market coverage for over 70 countries in its market categories, as well as various regional indices built from the component country indices, including MSCI EAFE (Europe, Australasia, and Far East), MSCI World, MSCI ACWI IMI (All Country World Investable Market Index) and MSCI Emerging Market Indices. In addition, the MSCI Global Equity Indices include industry indices, thematic and strategy indices, value and growth style indices and large-, mid-, small- and micro-capitalization size segment indices. The indices in the Risk Premia family include Risk Weighted index and additional Value Weighted indices. Other indices include the MSCI EM 50 Index and other regional indices, such as Overseas China and Andean region, as well as new depository receipt indices, and the United Sates tax exempt index series.
The MSCI US Equity Indices are designed to reflect the full breadth of investment opportunities within the United Sates equity markets. The MSCI US Equity Indices include value and growth style indices, large-, mid-, small- and micro-capitalization size segment indices and sectors/industries indices. As of December 31, 2011, the Company calculated approximately 5,500 custom indices, which apply a client’s customization criteria to an existing MSCI index. The MSCI ESG Indices include sustainability indices, indices that take into account certain values, norms or ethical standards, environmental-themed indices, such as alternative energy or clean technology and custom indices. GICS was developed and is maintained jointly by MSCI and Standard & Poor’s Financial Services, LLC (Standard & Poor’s).
MSCI also offers GICS Direct, a joint product of MSCI and Standards & Poor’s. GICS Direct is a database of more than 42,000 active companies and over 47,000 securities classified by sector, industry group, industry and sub-industry in accordance with GICS methodology. MSCI ESG products and services help investors integrate ESG factors into their investment decisions. MSCI ESG products include research, screening and modeling tools that allow institutional investors and asset managers. MSCI ESG products also provide ESG ratings and analysis on thousands of companies worldwide.
The Company’s risk management analytics products offer a risk assessment framework for managing and monitoring investments in a variety of asset classes across an organization. The products are based on MSCI’s integrated fundamental multi-factor risk models, value-at-risk methodologies and asset valuation models. Its two major products in Risk Management Analytics Products include BarraOne and RiskManager in addition, MSCI offers Hedge Fund Risk Transparency Solutions, DataMetrics, WealthBench and CreditManager. BarraOne, powered by the Barra Integrated Model, provides clients with global, multi-asset class risk analysis using Barra fundamental factor technology. BarraOne also includes value at risk (VaR) simulation, stress testing, optimization and performance attribution. The product is accessed by clients via interactive Web-based session, Web services or on an outsourced basis.
Clients use RiskManager for daily analyzing, measuring and monitoring of market risk at fund and firm level, for sensitivity and stress testing, and for interactive what-if analysis. RiskManager includes, among other modules, the CounterParty Risk Reporting module. HedgePlatform, a reporting service, and InterSight, an interactive Web-based reporting service, allow 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. HedgePlatform and InterSight reports include statistics, such as exposure, sensitivities, scenario analysis, stress tests and VaR analysis. DataMetrics is a data service that allows clients to access the market data embedded in RiskManager for use in their own or other third-party systems.
WealthBench is an investment planning platform for private banks, financial advisors, brokerages and trust companies. CreditManager product is a portfolio credit risk management system used primarily by banks to calculate economic capital and credit scores, facilitate risk-based pricing and measure risk concentrations. The application is designed to consolidate and compare risks and opportunities across multiple credit exposures including bonds, credit derivatives and traditional lending. MSCI’s Barra-branded equity portfolio management analytics products are designed to assist investment professionals in analyzing and managing risks and returns for equities at both the asset and portfolio level in developed, emerging and frontier equity markets. Barra equity models identify and analyze the factors that influence equity asset returns and risk.
The Company’s Barra equity products utilize the Company’s fundamental multi-factor equity risk model data. Its global equity models include Barra Global Equity Model (GEM3) and Barra Integrated Model (BIM). GEM3 is a multi-factor risk model designed for use in global equity portfolio management and construction. It uses a set of factors that explain the sources of global equity risk and returns. BIM provides a detailed view of risk across markets and asset classes, including currencies, equities, fixed income assets, commodities, mutual fund assets and hedge fund assets. The Company’s single country and regional risk models include Barra Single Country Equity Models and Barra Regional Equity Models. Its single country equity models identify a set of factors to explain sources of risk and return of portfolios in that country. MSCI produces two regional equity models, the Europe Equity Model (EUE3) and the Asia-Pacific Equity Model (ASE1).
These models are designed to be used across a range of applications and are available in different versions to reflect local and regional commonalities, as well as short-term and long-term investment horizons. The EUE3 model covers approximately 16,200 stocks in 29 markets, including many emerging and frontier markets in Eastern Europe. The ASE1 model covers approximately 29,000 stocks in 15 markets, including emerging and frontier markets in the region. The Company’s primary portfolio analytics products include Barra Aegis, Barra Portfolio Manager, Barra Equity Models Direct and Barra Cosmos. Barra Aegis is its equity risk management and analytics system.
Barra Aegis is a software application for equity risk management and portfolio analysis that is powered by its equity risk data. It is deployed by the client as a desktop application. Barra Aegis also provides a factor-based performance attribution module. 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 more systematic investment process and make faster, more informed investment decisions. Barra Equity Models Direct delivers MSCI’s risk data to clients for integration into their own software applications. The risk data in Barra Equity Models Direct is also available via third-party providers.
The Company offers the risk data from global, regional and single country Barra risk models and most of these models are available in short-term and long-term time horizons. Barra Cosmos enables global fixed income portfolio managers to manage risk and optimize return in a multi-currency, global bond portfolio. The Company’s Energy and Commodity Analytics products are software applications that offer a variety of quantitative analytics tools for valuing, modeling and facilitating the hedging of physical assets and derivatives across a number of market segments including energy and commodity assets. These products are used by investors, traders and those hedging investments in these asset classes. The software applications are not provided with any market data or index or risk data. These products are branded FEA and include products such as FEA@Energy, FEA VaRworks and FEA StructureTool.
Governance business
The Company’s Governance business is a provider of corporate governance and financial research and analysis services to institutional investors and corporations around the world. Among other things, the Governance business facilitates the voting of proxies by institutional investors and provides research and analysis to help inform voting decisions and identify risk. The Governance business offers both global security coverage and products and services, including proxy voting, policy creation, research, vote recommendations, vote execution, post-vote disclosure and reporting and analytical tools. The products within its Governance business are its governance research and outsourced proxy voting and reporting services marketed under the ISS brand and the Company’s forensic accounting risk research, legal/regulatory risk assessment and due diligence products marketed under the CFRA brand.
The Company categorizes its Governance business into three categories: Proxy Research and Voting, Global Proxy Distribution (GPD) and Securities Class Action Services (SCAS), ISS Corporate Services and Financial Research and Analysis (FR&A). MSCI’s Proxy Research and Voting, GPD and SCAS products are designed to provide proxy services, including proxy voting and research and analysis to help inform voting decisions and assess issuer-specific risk, to institutional investors globally. Institutional Shareholder Services Inc. (ISS) is the proxy advisory firm that offers a proxy voting service, including policy creation, research, vote recommendations, vote execution and reporting and analytical tools. During 2011, Proxy Research and Voting, GPD and SCAS accounted for approximately 70.4% of revenues attributable to its Governance business. Through its ProxyExchange platform, ISS provides clients with vote recommendations, analyses and online voting capabilities. As of December 31, 2011, research coverage provided on over 6,000 the United Sates -based companies and over 20,000 non- United Sates companies.
ISS’s proxy voting services include notifying clients of upcoming shareholder meetings, receiving proxy ballots from third-party proxy distributors, generating consolidated proxy ballots and instructions across its clients’ portfolios, executing and tabulating its clients’ votes in accordance with their instructions, maintaining voting records and providing vote reporting. Its GPD service offers a global proxy distribution solution to custodian banks for non- United Sates securities through a single independent platform. GPD provides for the distribution and voting of proxies giving clients the ability to review and download detailed meeting information and individualized account information. GPD also provides online access to record-keeping and reporting across all custodians and sub-custodians. MSCI provides a securities litigation database, including case information and detailed historical class action data, and provide outsourced notification, tracking and claims filing services to its institutional clients.
The Company’s ISS Corporate Services products and services are designed to help clients reduce risk and build shareholder value. ISS Corporate Services tools, data and advisory services help clients to design, manage and measure their corporate governance programs. During 2011, revenues related to its ISS Corporate Services products and services represented approximately 21.2% of the Company’s Governance business total revenues. MSCI’s primary ISS Corporate Services products and services include Compensation Data and Analytics, Governance Exchange and Proxy Research and Publications. Its ExecComp Analytics product provides historical data, benchmarking and analytics on executive compensation and pay for performance. Compass is a Web-based tool enabling clients to model the cost of equity compensation plans and determine optimal equity plan design.
The Company’s product the ExecComp Suite, which includes its ExecComp Analytics product and ongoing benchmarking of equity plan value transfer, burn rates, and dilution. Governance Exchange provides an online discussion forum to facilitate constructive dialogue on corporate governance issues among those involved in corporate governance, including institutional investors, board directors and corporate executives. Members of Governance Exchange also have access to a diverse range of corporate governance viewpoints and research through Webcasts, white papers, surveys, and analysis. Proxy Research and Publications offers a searchable database of publications, research articles and online reports designed to help corporate secretaries, investor relations professionals, executives, directors and other professionals track ISS recommendations and analysis.
MSCI’s FR&A products and services are designed to assess the financial health of companies by analyzing the investment implications of companies’ accounting policies, legal and regulatory exposure, environmental, social and governance practices, mergers and acquisitions initiatives and compensation plans. Its FR&A product and service offerings are provided primarily to portfolio managers for investment analysis, to corporations to monitor compliance with corporate governance practices and to professional services organizations to support due diligence efforts. During 2011, FR&A accounted for approximately 8.4% of revenues attributable to its Governance business. All of FR&A’s products and services are marketed under the CFRA brand.
Through a research process, the Company’s analysts provides research on over 600 companies worldwide while its quantitative tools assess the reported financial results of over 10,000 companies worldwide. The Company focuses on providing its clients with risk analysis reports regarding earnings and cash flow, legal and regulatory risk and overall business health. In addition, CFRA’s Legal Edge product is focused on identifying and analyzing legal and regulatory risks. CFRA also provides customized research services for client-defined projects.
The Company competes with The London Stock Exchange, Northwestern Mutual Life Insurance Group, Standard & Poor’s Financial Services, LLC, CME Group Index Services, LLC, NYSE Euronext, STOXX Ltd, Nikkei Inc., Nomura Securities, Ltd., Tokyo Stock Exchange, Inc., SunGard Data Systems Incorporated, Axioma, Inc., Bloomberg Finance L.P., FactSet Research Systems Inc., Northfield Information Services, Inc., Wilshire Analytics, IBM, BlackRock Inc., Imagine Software, Moody’s Corporation, Broadridge Financial Solutions, Equilar, Inc. and Glass, Lewis & Co.
Company Address
MSCI Inc
7 World Trade Center
49th Floor, 250 Greenwich Street
NEW YORK NY 10007
P: +1212.8043900
F: +1302.6555049
Company Web Links
| Name | Compensation |
|---|---|
Henry Fernandez |
6,000,800 |
Robert Qutub |
2,218,780 |
David Brierwood |
2,551,430 |
Gary Retelny |
1,908,570 |
Chandru Badrinarayanan |
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