MSCI reports third-quarter profit rise on robust demand for index products
The MSCI logo is seen in this June 20, 2017 illustration photo. REUTERS/Thomas White/Illustration
Index provider MSCI reported a rise in third-quarter profit on Tuesday, as improved client spending drove up demand for its index products and analytics services.
MSCI creates stock market indices that 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.
When MSCI performs well, it indicates healthy demand for index-based investing and market data. Conversely, weak results might signal an investor pullback or headwinds in the investment management sector.
The data provider posted a profit of $325.4 million for the quarter ending September 30, or $4.25 per share, compared with $280.9 million, or $3.57 per share, a year earlier.
Recurring subscriptions in its index segment rose 8.3 per cent on-year to $242.6 million in the September quarter, driven by growth from market-cap weighted index products.
This pushed total operating revenue nearly 9.5 per cent higher to $793.4 million, while higher asset-based fees also contributed.
U.S. markets have continued to swing higher as lower interest rates and AI exuberance cloud investor anxieties over labor market cracks and tariffs.
This marks a stark turnaround from April, when U.S. President Donald Trump's erratic trade policy roiled markets worldwide.
Operating expenses increased 7 per cent, as the company spent more on employee compensation and information technology.
