📈 MSCI (NYSE:MSCI) posted an impressive third-quarter performance for 2024, growing revenue by 15.9% to $724.7 million, above the expected 14.5%. Organic revenue surged 11.1%, with index and analytics services each climbing 11.8% and 11.7%, respectively. While facing a pullback in ESG and Climate sales amidst fluctuating demand, MSCI continues to dominate its niche, now managing a record-breaking $5.4 trillion through ETFs and non-listed products — a testament to the resilience of its business model.
💹 Throughout the quarter, MSCI strengthened its footprint among major asset owners, hedge funds, and wealth managers, marking a 17% organic revenue increase. A standout move for MSCI is its focus on new investment solutions in private capital. Since the launch of its Private Capital Fund Indices in July, MSCI’s assets under management in this area grew to $11 trillion, positioning MSCI to set standards in private assets. These strides not only strengthen client relationships but also reinforce MSCI’s advantage in delivering unique, market-specific solutions.
🌍 The ESG and Climate segment, while facing cyclical headwinds, is poised for long-term demand. With over 60,000 private companies and 7,500 private funds covered, MSCI offers critical climate metrics for clients aiming to meet decarbonization goals. As more institutional investors recognize the value of high-quality ESG data, MSCI remains a leader in equipping them with reliable information to navigate the low-carbon transition.
💼 Despite near-term pressures from elevated cancellations and a lengthy sales cycle, MSCI’s strategy to keep pricing moderate has been a smart move, supporting strong client retention. With a proven ability to adapt to market shifts, MSCI holds its ground as a powerful player ready to seize future growth opportunities.
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IMPORTANT: This article is of general nature only and readers should obtain advice specific to their circumstances from professional advisers.