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MSCI Inc.



Definition

MSCI Inc. is a global provider of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools. Named after its parent company, Morgan Stanley Capital International, it is primarily known for its vast series of geographical, sectorial, and global stock market indexes. These indexes serve as benchmarks for investment portfolios and asset allocations.

Phonetic

The phonetics of the keyword “MSCI Inc.” can be pronounced as “Em-Ess-See-Eye Ink.”

Key Takeaways

  1. MSCI Inc. is a leading provider of critical decision support tools and services for the global investment community. The company provides innovative solutions, such as index, analytics, ESG, and climate risk tools, to investors all over the world.
  2. The company’s robust product line is backed by an extensive team of researchers and a high-standard client service globally. It continuously innovates and develops new products and services that fit changes in the investment landscape. This adaptability has positioned MSCI as a trusted source for investment decision tools.
  3. MSCI’s core objective is to drive better investment decisions and enable clients to achieve their investment objectives. This is reflected in their commitment to an open, transparent, inclusive work environment and a strong governance framework that promotes long-term value for their shareholders.

Importance

MSCI Inc. is crucial in the business and finance world as it is one of the leading providers of critical decision support tools and services for the global investment community. With operations worldwide, the company offers a wide range of products which include indexes, analytics, models, ESG (Environmental, Social, and Governance) research and ratings. MSCI’s indexes in particular are strategically important, as they serve as a benchmark for the performance of stocks, mutual funds, and ETFs (Exchange Traded Funds). These indexes help investors make well-informed investment decisions. Therefore, MSCI Inc. plays a fundamental role in the global finance industry, influencing a variety of investment decisions and strategies.

Explanation

MSCI Inc. is a leading provider of critical decision support tools and services for the global investment community. The primary purpose of MSCI Inc. is to support investors all over the world with its comprehensive tools that bring transparency and insight into their investment processes. With over 50 years of expertise in research, data and technology, MSCI Inc. enables global investors to measure and manage risk and return, further helping businesses to build better, more efficient portfolios. Being highly influential in the investment community, MSCI Inc. sets the standard for equity indexes that serve as the benchmark for global markets. These equity indexes have a broad range of uses, including being used by fund managers for constructing and rebalancing portfolios, by broker/dealers for defining asset allocations, and also by researchers for analyzing financial market trends. Therefore, MSCI Inc. plays a fundamental role in the global investment ecosystem by offering tools, indexes, and services that help investors make informed decisions.

Examples

1. BlackRock Global Funds: BlackRock, one of the biggest asset management companies, uses the MSCI World Index as a benchmark for its Global Funds, i.e., funds that are invested in a globally diversified portfolio of stocks. The company’s performance is often compared to these indexes to determine how well it is performing relative to the global market.2. Vanguard Total International Stock ETF: This investment fund by Vanguard is designed to track the performance of the MSCI All Country World ex USA Investable Market Index, which represents international equity. Thus, Vanguard uses MSCI Inc’s processes in the workings of their ETF.3. Charles Schwab Corporation: This major investment services firm regularly references MSCI indexes, such as the MSCI Emerging Markets Index or the MSCI EAFE Index, to compare the performance of its investment portfolios and give investors an understanding of their standing in the global or specific market.

Frequently Asked Questions(FAQ)

What is MSCI Inc.?

MSCI Inc., formerly known as Morgan Stanley Capital International, is a global provider of equity, fixed income, hedge fund stock market indexes, and multi-asset portfolio analysis tools. It publishes indexes over 11,000 securities from around 70 countries worldwide.

Where is MSCI Inc. headquartered?

MSCI Inc. is headquartered in New York City, New York, USA.

When was MSCI Inc. founded?

MSCI Inc. was founded in 1969.

What is the significance of MSCI indexes?

MSCI indexes are used around the world as benchmarks for investment performance by asset managers. They provide tools for investors to understand market behaviors and for portfolio allocation.

Is MSCI Inc. a public company?

Yes, MSCI Inc. is publicly traded, and is listed on the New York Stock Exchange (NYSE) under the ticker symbol MSCI.

What is the MSCI World Index?

The MSCI World Index is a broad global equity index that represents large and mid-cap equity performance across 23 developed markets. It covers approximately 85% of the free-float-adjusted market capitalization in each country.

What are some other important indexes provided by MSCI?

Aside from the MSCI World Index, other notable MSCI indexes include the MSCI All Country World Index (ACWI), MSCI Frontier Markets Index, and MSCI Emerging Markets Index.

How does MSCI Inc. influence global investment decisions?

Investment decisions are heavily influenced by MSCI’s analytical research, data and benchmarks. Asset managers use these tools to construct and manage their portfolios.

What are the primary services offered by MSCI Inc.?

MSCI offers a range of services including index calculation, asset allocation tools, risk management tools, and ESG research. These services aid the investment decision-making process for global investors.

How reliable are MSCI indexes?

MSCI indexes are considered highly reliable by financial institutions worldwide. They provide a comprehensive and consistent set of measures, making them a preferred choice for comparing global investment performance.

Related Finance Terms

  • Equity Indices
  • Investment Tools
  • Portfolio Management
  • Emerging Markets
  • ESG (Environmental, Social, Governance) Factors

Sources for More Information


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