What is MSCI Inc. (Morgan Stanley Capital International)?
MSCI Inc. is an American investment research firm with an extensive global presence, serving clients worldwide. In particular, MSCI Inc. provides consumers with stock indexes, performance analytics, investment tools, and portfolio risk analysis.
- MSCI Inc. is a globally recognized investment research firm that serves clients worldwide.
- MSCI Inc.’s primary services include performance analytics, risk analysis, investment tools, and creation/implementation of stock indexes.
- The investment research firm constructs and implements stock indexes yearly.
MSCI Inc. Stock Indexes
As mentioned, MSCI Inc. is considered a financial frontrunner with regards to the construction of indexes. Produced yearly, here are the four most popular indexes created by MSCI Inc.
1. MSCI Emerging Market Index
The MSCI Emerging Market Index is a stock index that measures the stock performance of emerging markets. In particular, it tracks the performance of 26 developing countries such as China, India, Mexico, and Russia, among others.
2. MSCI Frontier Market Index
Similar to the MSCI Emerging Market Index, the MSCI Frontier Market Index tracks the stock markets of countries that are even less developed than emerging markets. Some countries in the index include Jordan, Kenya, Serbia, and Vietnam.
3. MSCI EAFE Index
The MSCI EAFE Index (Europe, Australia, and the Far East), measures the performance of stock markets in developed countries, excluding the United States and Canada. Some countries in the index include Germany, Italy, Japan, Spain, and the United Kingdom.
4. MSCI World Index
The MSCI World Index tracks the market performance of mid-to-large companies that have a global presence. The index includes heavily integrated countries, such as Canada, Japan, and the U.S. It does not include emerging or developing markets.
Notably, MSCI Inc. developed the MSCI AC World Index, which includes every country in the world. The “AC” stands for “all countries” and includes emerging/developing markets.
MSCI Inc. Portfolio Management
MSCI Inc. provides tools that allow asset managers to build and manage better portfolios. Below are the portfolio management applications that MSCI Inc. provides to asset managers in need of assistance:
Barra Portfolio Manager: The Barra Portfolio Manager is a cloud-based platform that allows clients to share strategies, analytics, and reports between their organizations.
Barra Aegis Software Platform: An MSCI Inc. application that was designed to help clients actively manage their portfolios.
MSCI Beon: Garnering the most advanced integration technologies, the MSCI Beon is an analytical application designed to solve the most complex data challenges.
Barra Optimizer: A flexible library developed by optimization experts for portfolio management. Some of the key benefits offered from the Barra Optimizer include:
Easy integration: The Barra Optimizer integrates statistical tool libraries such as MATLAB, R, and SAS.
Meaningful results: The Barra Optimizer offers alternative portfolio construction techniques and goes beyond mean-variance optimization.
Transparency: The Barra Optimizer provides transparency through constraint shadow reports, frontier analysis, and solution introspection.
Industry acceptance: Leading institutional investors around the world use the tools.
MSCI Inc. provides integrated and world-recognized portfolio management. The organization is committed to providing an efficient and reliable service to all clients.
MSCI Inc. Fixed Income Analytics
With the growth of fixed income investing, MSCI Inc. provides analytical tools to help investors make the right decisions.
Fixed Income Factor Model: Designed to support investment decisions by making portfolio construction, asset allocation, and key fixed income exposures clearer.
Agency Fixed Rate Prepayment Model: Used to identify key drivers in the performance of multiple mortgage collateral segments.
Fixed Income Portfolio Optimization: Used with the Barra Optimizer and provides portfolio construction that balances predicted risk and return.
Apart from stock indexes and portfolio management, MSCI Inc. is an analytical innovator that provides its clients with extensive investment data.
Clients of MSCI Inc.
Listed below are the main clients that MSCI Inc. serves regularly:
1. Asset Owners
The investment research firm is able to educate and provide better investment decisions for pensions, sovereign wealth funds, insurance companies, and other institutional investors. This is achieved through the use of their world-class analytical tools and portfolio analysis.
2. Asset Managers
It provides asset managers with extensive research on ESG Investing, Factors, and Multiple Asset Classes.
It provides comprehensive research, analytical tools, and indexes that allow banks to make better investment decisions.
4. Wealth Managers
With the use of MSCI Inc’s. investment tools, they can provide wealth managers with the information they need to achieve their client’s portfolio goals.
As a whole, MSCI Inc. provides its clients with research, analytics, indexes, and investment tools that allow them to make better financial decisions.
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