April 23 (Reuters) - MSCI's ( MSCI ) first-quarter

profit rose on Tuesday, due to strong demand for its index

products and analytics services as the likelihood of fewer U.S.

Federal Reserve rate cuts sparked volatility.

Companies such as MSCI ( MSCI ) benefit from market swings as

investors rush to rebalance portfolios and hedge against risks.

Recurring subscriptions in its index segment -- agreements

where clients pay regular fees to access MSCI's ( MSCI ) products over a

specified period -- rose 8% to $213 million, primarily due to

strong growth from market-cap weighted and custom index products

and special packages.

Asset-based fees in the segment rose about 13% to $150.3

million.

"Record AUM balances in MSCI ( MSCI )-linked index products drove

strong revenue growth from asset-based fees," CEO Henry A.

Fernandez said.

The global index provider also offers clients subscriptions

for information, data and tools to help them evaluate and invest

in diverse global markets.

MSCI's ( MSCI ) ESG and climate arm posted a 16% jump in operating

revenue in the three months ended March 31.

Meanwhile, new recurring sales in analytics led to the

unit's highest first quarter in a decade with nearly 12% growth

in operating revenue.

Excluding one-off charges, MSCI ( MSCI ) earned $3.52 a share for the

first quarter, up from $3.14 a share a year earlier.