Jan 28 (Reuters) - Index provider MSCI ( 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 ( MSCI ) 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 ( MSCI ) delivered strong results, while
achieving a number of key milestones, including our 11th
straight year of double-digit adjusted EPS growth," MSCI ( 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 ( MSCI )
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)