We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Here's How Much You'd Have If You Invested $1000 in MSCI a Decade Ago
Read MoreHide Full Article
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in MSCI (MSCI - Free Report) ten years ago? It may not have been easy to hold on to MSCI for all that time, but if you did, how much would your investment be worth today?
MSCI's Business In-Depth
With that in mind, let's take a look at MSCI's main business drivers.
MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI reported operating revenues of $2.53 billion in 2023. The company operates under four segments — Index (57.4% of operating revenues), Analytics (24.4%), ESG and Climate (11.4%) and All other- Private Assets (6.9%). During the year ended Dec 31, 2023, MSCI renamed The Burgiss Group, LLC operating segment to Private Capital Solutions.
Index segment includes MSCI Global Equity Indexes, MSCI Custom Indexes, MSCI Factor Indexes, MSCI ESG Indexes, MSCI Real Assets Indexes and Thematic Indexes. Global Industry Classification Standard (GICS) and GICS Direct were developed and are maintained jointly by MSCI and Standard & Poor’s Financial Services.
Analytics segment includes Equity Factor Models, Fixed Income Factor Models, Multi-Asset Class Factor Models, Multi-Asset Class Risk Analytics and Performance Analytics.
MSCI’s major application offerings include RiskMetrics RiskManager, BarraOne, Barra Portfolio Manager, WealthBench & CreditManager, and MSCI Analytics Platform. Through the Analytics segment, MSCI also provides Managed Services, HedgePlatform and InvestorForce solutions.
MSCI’s ESG Research analyzes more than 10,000 entities worldwide. Offerings include MSCI ESG Ratings and MSCI ESG Business Involvement Screening Research.
MSCI generates revenues primarily through subscription fees, which, in most of the cases, is paid in advance. Clients using the company’s indexes as the basis for index-linked investment products (ETFs) or as the basis for passively managed funds also pay license fee, typically in arrears, based on the assets under management (“AUM”) in their investment products.
The company’s clientele includes pension funds, endowments, foundations, central banks, sovereign wealth funds, family offices, insurance companies, mutual funds, hedge funds, ETFs, private wealth, private banks, REITs, broker-dealers, exchanges, custodians, trust companies and wealth managers.
As of Mar 31, 2024, MSCI served more than 6,900 clients across 95 countries worldwide.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For MSCI, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2014 would be worth $10,891.94, or a gain of 989.19%, as of July 17, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 186% and the price of gold went up 79.63% over the same time frame.
Looking ahead, analysts are expecting more upside for MSCI.
MSCI’s prospects are benefiting from strong demand for custom and factor index modules, recurring revenue business models and the growing adoption of its ESG and Climate solutions in the investment process. MSCI’s expanding portfolio of real asset solutions is noteworthy. Acquisitions, including Trove, Burgiss and Fabric, have strengthened MSCI’s portfolio offerings. Trove’s addition makes it the leading provider of global intelligence on carbon credit. Fabric makes it easier to deliver customization at scale for wealth managers. Strong traction from client segments like wealth management, banks and hedge funds is a positive. However, a tighter spending environment and longer sales cycles due to challenging macroeconomic conditions have been a headwind. Shares have underperformed the industry in the year-to-date period.
The stock is up 6.61% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024. The consensus estimate has moved up as well.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Here's How Much You'd Have If You Invested $1000 in MSCI a Decade Ago
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
The fear of missing out, or FOMO, also plays a factor in investing, especially with particular tech giants, as well as popular consumer-facing stocks.
What if you'd invested in MSCI (MSCI - Free Report) ten years ago? It may not have been easy to hold on to MSCI for all that time, but if you did, how much would your investment be worth today?
MSCI's Business In-Depth
With that in mind, let's take a look at MSCI's main business drivers.
MSCI Inc. provides investment decision support tools, including indexes; portfolio construction and risk management products and services; Environmental, Social and Governance (ESG) research and ratings; and real estate research, reporting and benchmarking offerings.
MSCI reported operating revenues of $2.53 billion in 2023. The company operates under four segments — Index (57.4% of operating revenues), Analytics (24.4%), ESG and Climate (11.4%) and All other- Private Assets (6.9%). During the year ended Dec 31, 2023, MSCI renamed The Burgiss Group, LLC operating segment to Private Capital Solutions.
Index segment includes MSCI Global Equity Indexes, MSCI Custom Indexes, MSCI Factor Indexes, MSCI ESG Indexes, MSCI Real Assets Indexes and Thematic Indexes. Global Industry Classification Standard (GICS) and GICS Direct were developed and are maintained jointly by MSCI and Standard & Poor’s Financial Services.
Analytics segment includes Equity Factor Models, Fixed Income Factor Models, Multi-Asset Class Factor Models, Multi-Asset Class Risk Analytics and Performance Analytics.
MSCI’s major application offerings include RiskMetrics RiskManager, BarraOne, Barra Portfolio Manager, WealthBench & CreditManager, and MSCI Analytics Platform. Through the Analytics segment, MSCI also provides Managed Services, HedgePlatform and InvestorForce solutions.
MSCI’s ESG Research analyzes more than 10,000 entities worldwide. Offerings include MSCI ESG Ratings and MSCI ESG Business Involvement Screening Research.
MSCI generates revenues primarily through subscription fees, which, in most of the cases, is paid in advance. Clients using the company’s indexes as the basis for index-linked investment products (ETFs) or as the basis for passively managed funds also pay license fee, typically in arrears, based on the assets under management (“AUM”) in their investment products.
The company’s clientele includes pension funds, endowments, foundations, central banks, sovereign wealth funds, family offices, insurance companies, mutual funds, hedge funds, ETFs, private wealth, private banks, REITs, broker-dealers, exchanges, custodians, trust companies and wealth managers.
As of Mar 31, 2024, MSCI served more than 6,900 clients across 95 countries worldwide.
Bottom Line
Putting together a successful investment portfolio takes a combination of research, patience, and a little bit of risk. For MSCI, if you bought shares a decade ago, you're likely feeling really good about your investment today.
According to our calculations, a $1000 investment made in July 2014 would be worth $10,891.94, or a gain of 989.19%, as of July 17, 2024, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 186% and the price of gold went up 79.63% over the same time frame.
Looking ahead, analysts are expecting more upside for MSCI.
MSCI’s prospects are benefiting from strong demand for custom and factor index modules, recurring revenue business models and the growing adoption of its ESG and Climate solutions in the investment process. MSCI’s expanding portfolio of real asset solutions is noteworthy. Acquisitions, including Trove, Burgiss and Fabric, have strengthened MSCI’s portfolio offerings. Trove’s addition makes it the leading provider of global intelligence on carbon credit. Fabric makes it easier to deliver customization at scale for wealth managers. Strong traction from client segments like wealth management, banks and hedge funds is a positive. However, a tighter spending environment and longer sales cycles due to challenging macroeconomic conditions have been a headwind. Shares have underperformed the industry in the year-to-date period.
The stock is up 6.61% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 2 higher, for fiscal 2024. The consensus estimate has moved up as well.