MSCI’s fourth-quarter profit rises on robust demand for index products

Jan 28 (Reuters) – Index provider MSCI reported a rise in fourth-quarter profit on Wednesday, as robust client spending boosted demand for its index products and analytics services.

Amid consistent volatility from U.S. tariffs, geopolitics, and macroeconomic jitters, investors sought index products and risk analytics as they rejigged their portfolios.

MSCI’s stock market indices serve as benchmarks for trillions of dollars in assets held by investment funds, pension plans, and asset managers to measure performance and guide investment decisions.

Its results provide insight into demand for market data and index-based investing, a diversified and low-cost strategy that has become interestingly popular across all investor classes.

The data provider posted an adjusted profit of $4.66 per share for the quarter ended December 31, compared with $4.18 per share, a year earlier.

“In the fourth quarter, MSCI delivered strong results, while achieving a number of key milestones, including our 11th straight year of double-digit adjusted EPS growth,” MSCI Chairman and CEO Henry Fernandez said in a statement.

Asset-based fees in its index segment rose 20.7% in the December quarter to $211.7 million from a year earlier, driven by rising average assets under management linked to MSCI’s indices.

This pushed the company’s total operating revenue 10.6% higher to $822.5 million.

Operating expenses also increased, about 6.1%, as the company spent more on employee compensation and information technology.

(Reporting by Ateev Bhandari in Bengaluru; Editing by Shinjini Ganguli)