“`json
[
{
“Analyst name and firm name”: “Toni Kaplan, Morgan Stanley”,
“The question”: “Wanted to ask about just the selling environment, particularly in index and sustainability. Are clients showing reluctance to make new purchases amid market volatility?”,
“The response”: “Baer Pettit explained that despite uncertainty in the market, MSCI has not seen evidence of a change in clients’ purchasing habits or pipeline. He noted some deals did not close in Q1 but are expected to close in Q2, citing strong client engagement and demand for transparency and analytics.”
},
{
“Analyst name and firm name”: “Manav Patnai, Barclays”,
“The question”: “Could you provide more detail on the downturn playbook and how MSCI is preparing for varying market outcomes?”,
“The response”: “Andy Wishman outlined MSCI’s financial flexibility, mentioning automatic adjustments in incentive compensation, management of non-comp expenses, and control of hiring pace as part of their downturn playbook, ensuring expenses align across different business performances.”
},
{
“Analyst name and firm name”: “Alex Kramm, UBS”,
“The question”: “Regarding international investing, how is money flowing out of the U.S. impacting MSCI’s business, especially on the subscription side?”,
“The response”: “Henry Fernandez noted a shift in global investing towards Europe and Japan, benefiting MSCI due to its global investment metrics. He anticipates improved asset-based fees as more funds move internationally, contrasting previous trends favoring the U.S. market.”
},
{
“Analyst name and firm name”: “Ashish Sabadra, RBC”,
“The question”: “Could you comment on how pricing is trending for renewals and new sales?”,
“The response”: “Baer Pettit stated that pricing contribution from increases is consistent with last year and involves providing clients with enhanced solutions and services, reflecting broader access and enhanced client service within the pricing strategy.”
},
{
“Analyst name and firm name”: “Owen Lau, Oppenheimer”,
“The question”: “Regarding deals that were pushed from Q1 to Q2, what circumstances would allow these to close amid ongoing trade tensions?”,
“The response”: “Baer Pettit emphasized that deal closures were mainly routine activity rather than being driven by market conditions and asserted confidence that these deals will close in Q2, mentioning consistent client engagement despite uncertainties.”
},
{
“Analyst name and firm name”: “Alex Hess, JPMorgan”,
“The question”: “Can you elaborate on the healthy growth in non-ETF passive AUM and what drives it?”,
“The response”: “Andy Wishman clarified that non-ETF AUM grew due to new fund creation, especially in climate and custom mandates. While numbers show lumpiness, direct indexing, institutional passive growth, and custom index mandates have shown resilience.”
},
{
“Analyst name and firm name”: “Faiza Alwai, Deutsche Bank”,
“The question”: “On retention rates in index and analytics, are these levels expected to sustain given asset manager consolidation in Europe?”,
“The response”: “Andy Wishman explained that recent declines in cancellations were mainly due to fewer client events and that the underlying resilience and necessity of MSCI’s tools are likely to sustain robust retention levels in these areas.”
},
{
“Analyst name and firm name”: “Kelsey Xu, Autonomous”,
“The question”: “Under the current environment, what are the growth expectations for new sales in analytics for Q2 and the rest of the year?”,
“The response”: “Henry Fernandez mentioned that periods of uncertainty boost demand for analytics and data, citing a shift towards non-US markets in portfolio allocations and indicating an upswing in client need and engagement with MSCI’s analytics tools.”
},
{
“Analyst name and firm name”: “Scott Wirtzl, Wolfe Research”,
“The question”: “Are you seeing an inflection point in the sustainability and climate segment run rate growth?”,
“The response”: “Henry Fernandez discussed that while sustainability is facing cyclical headwinds, climate risk awareness is increasing, especially in physical risk areas like banking and insurance. Long-term, MSCI expects a return to higher growth due to regulatory and strategic needs.”
},
{
“Analyst name and firm name”: “Craig Huber, Huber Research Partners LLC”,
“The question”: “Is there a material regional difference in ESG year-over-year growth rates?”,
“The response”: “Andy Wishman noted 14% run rate growth in EMEA, 4% in the Americas, and 8.5% in APAC, with climate-related growth particularly notable at 20% across all MSCE segments.”
},
{
“Analyst name and firm name”: “Jason Haas, Wells Fargo”,
“The question”: “Why did first quarter EBITDA expenses come in below expectations?”,
“The response”: “Andy Wishman attributed this to timing factors like year-end comp-related expenses rather than structural changes. He assured the trajectory aligns with annual guidance.”
},
{
“Analyst name and firm name”: “David Motemaden, Evercore ISI”,
“The question”: “Regarding gross sales not closing in Q1, were they concentrated in any specific segment?”,
“The response”: “Baer Pettit emphasized that deal timings are mostly standard practice and evenly distributed across product lines, with the expectation that pushed Q1 sales will close in Q2.”
},
{
“Analyst name and firm name”: “Joshua Dennerlein, Bank of America Securities”,
“The question”: “Could you provide more color on the new Moody’s partnership and its growth impact?”,
“The response”: “Henry Fernandez detailed it leverages Moody’s probability models with MSCI private credit databases, forecasting modest immediate impacts but significant future potential.”
},
{
“Analyst name and firm name”: “George Tong, Goldman Sachs”,
“The question”: “What factors caused net new sales decline in sustainability and climate, and when might growth resume?”,
“The response”: “Andy Wishman stressed muted US demand and European regulatory complexities but noted long-term climate risk demands remain robust, with moderate growth expectations anticipated in coming quarters.”
},
{
“Analyst name and firm name”: “Russell Quelch, Redburn Atlantic”,
“The question”: “Was the improvement in Q1 retention due to lapping one-off events?”,
“The response”: “Andy Wishman explained lower cancellations across segments, particularly due to fewer client events year-over-year, noting the retention improvement is attributable to overall resilient MSCI tool demand rather than price changes.”
},
{
“Analyst name and firm name”: “Gregory Simpson, BNP Paribas Exane”,
“The question”: “Can you elaborate on Private Capital Solutions’ 15% run rate growth?”,
“The response”: “Henry Fernandez emphasized strong growth prospects in transparency and benchmarking capabilities for institutional LPs, wealth advisors, and GPs, with Initial traction for private capital indexes launched last year seen as a positive development.”
}
]
“`