MSCI Responds To Rubio: We Only 'Help Investors'

Msci Inc MSCI CEO Henry Fernandez publicly responded Friday to U.S. Sen. Marco Rubio's (R-FL) comments on the company's Chinese index holdings, and said the stock market index manager's purpose is merely to "help investors."

What Happened

Rubio is among a handful of bipartisan lawmakers pushing MSCI to divest or restrict Chinese companies involved in human rights violations.

On Wednesday, he told CNBC the MSCI's All Country World ex-U.S. Investable Market index includes exposure to Chinese military contractors who are active in the South China Sea.

Fernandez responded in a CNBC interview from the sidelines of the Baron Investment Conference in New York.

MSCI is not an investor, nor is it an asset manager or investment adviser, the CEO said. 

MSCI is an intermediary, or an agent that helps investors "figure out how to invest around the world in a good way," he said.

"We cannot tell investors what decisions to make." 

Why It's Important

MSCI does not exist to investigate individual companies and potential ties to alleged wrongdoings, Fernandez said.

Investors are responsible for doing their own homework on the "shopping list" basket of stocks included in an index, he said. 

If the legal landscape related to Chinese equities changes and restricts the flow of assets by the U.S., then MSCI will respond accordingly, the CEO said. 

"We'll create specialized indices for those clients in that one country that take those legal and regulatory restrictions into account." 

MSCI shares were up 0.25% at $223.14 at the time of publication. 

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