MSCI to Launch Investment Solutions as a Service in Collaboration with Microsoft

Rhea-AI Summary

MSCI Inc. (NYSE: MSCI) has launched Investment Solutions as a Service in collaboration with Microsoft Corp. This innovative service leverages cloud and AI technologies to support institutional investors in addressing investment challenges. Key features include ESG, Index, Data Management, and Investment Analytics Solutions, tailored to enhance investment decision-making. The partnership reflects growing demand for advanced technologies in finance, aiming to empower investors with robust insights and analytics. The service is set to debut with multiple offerings in 2021.

Positive

• Launch of Investment Solutions as a Service to enhance investment decision-making.
• Collaboration with Microsoft leverages AI and cloud technologies, improving service offerings.
• Introduction of tailored solutions addressing ESG, index customization, and data management.

Negative

• None.

MSCI Inc. (NYSE: MSCI), a leading provider of investment decision support tools and services, today announced the development of Investment Solutions as a Service for the global investment industry in collaboration with Microsoft Corp. The new service will allow institutional investors to use next generation technologies, advanced analytics and big data to help anticipate and address key strategic and investment challenges.

Built to align long-term technology and data trends with the immediate needs of investors, the service will combine Microsoft’s Cloud and AI technologies with MSCI’s extensive data sets, analytical models and deep expertise of the global investment industry to power next-generation investment decision making.

Investment Solutions as a Service will transform the investment process and experience, beginning with the following services launching in 2021:

• ESG Solutions as a Service
• Index Solutions as a Service
• Data Management Solutions as a Service
• Investment Analytics Solutions as a Service

The launch of these services reflects the increasing demand for technologies that offer “solutions as a service”, harness big data and provide customized experiences. The solutions are a part of the strategic alliance created between MSCI and Microsoft in 2020 to accelerate innovation in the global investment industry.

“The partnership with Microsoft underscores MSCI’s continued commitment to develop new and innovative investing solutions,” said Henry Fernandez, Chairman and CEO, MSCI. “We have combined Microsoft’s best of breed technology with our robust data and analytical capabilities and rigorous understanding of client challenges to create a suite of services to empower investors. From responding to the historic and unrivalled challenge of climate change, to harnessing the power of big data and innovative analytics, Investment Solutions as a Service is a milestone in powering the next generation of investment decision making.”

“MSCI and Microsoft share a commitment to accelerating innovation in the financial services industry,” said Scott Guthrie, Executive Vice President, Cloud + AI, Microsoft. “MSCI’s investment solutions, combined with the data and analytics capabilities of Microsoft Azure, will enable investment managers to harness intelligent insights needed to confidently navigate today’s global markets.”

Environmental, Social and Governance (ESG) Solutions as a Service

With ESG firmly established as a high-priority issue for global investors and corporations, ESG Solutions as a Service will help them better understand, analyze and interpret the investment and business risks and opportunities that climate change brings. Leveraging Microsoft’s Azure and PowerBI platforms, investors will be able to evaluate industries and companies with the world’s leading ESG analytics, and corporations will be able to understand their risk assessment when compared to their peers. The service will provide detailed insights on companies’ adaptive capacity to climate change, carbon footprint measurements, as well as exposure to physical risk, including climate-related events such as hurricanes and flooding.

Index Solutions as a Service

Index Solutions as a Service will provide investors with the opportunity to create and customize indexes, marking the first time clients will have MSCI’s index construction capabilities at their fingertips. The service is aimed at delivering an insightful and efficient experience that shortens the time from market hypothesis to new customized indexes. Built on Microsoft Azure, Index Solutions as a Service leverages the insights created through MSCI’s 50+ years of index experience. It will provide clients with a seamless, self-service experience to create, back test and analyze customized indexes; compare those indexes against established benchmarks; refine their creations through an iterative process and order them from MSCI.

Data Management Solutions as a Service & Investment Analytics Solutions as a Service

With Data Management Solutions as a Service and Investment Analytics Solutions as a Service, investors can directly discover and access in a new and dynamic manner a rich and extensive store of data sets and robust analytical capabilities from MSCI’s powerful investment solutions today. MSCI will be releasing a new Developer Portal offering APIs that seamlessly integrate with clients’ existing ecosystems. Through the Developer Portal, developers and researchers can find, select and analyze historical markets data on a range of asset classes and develop their own investment solutions that meet their specific risk and portfolio construction needs.

“The launch of MSCI’s Investment Solutions as a Service is the latest example of our continuous innovation and drive to develop cutting-edge technologies,” said Jigar Thakkar, Chief Technology Officer and Head of Engineering, MSCI. “We recognize that our clients are operating in an increasingly complex environment where the need for intelligent insights for portfolio management and risk analysis has never been more important. Our new services will provide a friction-free experience with rapid self-customization and exploration of our data sets, putting power in the hands of investors like never before.”

About MSCI

MSCI is a leading provider of critical decision support tools and services for the global investment community. With over 50 years of expertise in research, data and technology, we power better investment decisions by enabling clients to understand and analyze key drivers of risk and return and confidently build more effective portfolios. We create industry-leading research-enhanced solutions that clients use to gain insight into and improve transparency across the investment process. To learn more, please visit www.msci.com.

The information contained herein (the “Information”) may not be reproduced or redisseminated in whole or in part without prior written permission from MSCI. The Information may not be used to verify or correct other data, to create any derivative works, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information or any MSCI index is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN MAKING OR COMPILING THE INFORMATION (EACH, AN “INFORMATION PROVIDER”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH INFORMATION PROVIDER HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE INFORMATION PROVIDERS HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited. Privacy notice: For information about how MSCI collects and uses personal data, please refer to our Privacy Notice at https://www.msci.com/privacy-pledge.

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FAQ

What is MSCI's Investment Solutions as a Service?

Investment Solutions as a Service is an innovative offering by MSCI, developed in collaboration with Microsoft, aimed at enhancing investment decision-making for institutional investors.

When will MSCI's new services launch?

The new services are set to launch in 2021.

What technologies are involved in MSCI's new investment solutions?

The solutions combine Microsoft’s cloud and AI technologies with MSCI’s data and analytical capabilities.

What specific services are included in MSCI's Investment Solutions?

The services include ESG Solutions, Index Solutions, Data Management Solutions, and Investment Analytics Solutions.

How does the partnership with Microsoft benefit MSCI investors?

The partnership enhances MSCI's capabilities, providing investors with advanced analytics and tools to navigate global markets effectively.