S&P 500 Component
|Henry A. Fernandez, CEO,|
Baer Pettit, President,
Andrew Wiechmann, CFO,
Scott Crum, CHRO
|Services||stock market indexes|
|Revenue||US$1.27 billion (2017)|
|US$579.18 million (2017)|
|US$303.97 million (2017)|
|Total assets||US$3.27 billion (2017)|
|Total equity||US$401.01 million (2017)|
Number of employees
MSCI Inc. (formerly Morgan Stanley Capital International and MSCI Barra), is an American finance company headquartered in New York City and serving as a global provider of equity, fixed income, hedge fund stock market indexes, multi-asset portfolio analysis tools and ESG products. It publishes the MSCI BRIC, MSCI World and MSCI EAFE Indexes.
In 2018, MSCI announced it would begin including mainland Chinese "A" shares in its emerging markets index. The decision, reportedly made under the pressure of the Chinese government, with MSCI denying the existence of any political factors behind it, was controversial because many Chinese companies refuse to permit the Public Company Accounting Oversight Board to inspect their financial records.
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. 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. After Dow Jones started float weighting its index funds, MSCI followed. In 2004, MSCI acquired Barra, Inc., to form MSCI Barra. In mid-2007, parent company Morgan Stanley decided to divest MSCI. This was followed by an initial public offering of a minority of stock in November 2007. The divestment was completed in 2009. The company is headquartered in New York City.
The MSCI global equity indexes have been calculated since 1969 and include MSCI World and MSCI EAFE. Initially, the company used eight factors in developing its indexes: momentum, volatility, value, size, growth, size nonlinearity, liquidity, and financial leverage.
Inclusion of Chinese companies
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. MSCI said in the event of full inclusion, China equities would exceed 40% in weighting. 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 from some investors and questions from Senator Marco Rubio and others.
In February 2019, The Wall Street Journal reported the decision was the result of pressure from the Chinese government. MSCI chief executive and chairman Henry Fernandez insisted there was "zero politics" behind the decision. In March 2019, CNBC reported that MSCI would quadruple the weightings of mainland Chinese shares in its global benchmarks. In April 2020, it was reported that Donald Trump was considering an executive action to prohibit the Thrift Savings Plan from transferring $50 billion to mirror the MSCI All Country World Index fund. In December 2020, MSCI announced that it would strip its indexes of seven Chinese companies in response to Executive Order 13959.
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- Official website
- Business data for MSCI Inc.: