MSCI (MSCI) 31 Jan 232022 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the MSCI Fourth Quarter 2022 Earnings Conference Call.

As a reminder, this call is being recorded. [Operator Instructions]

I would like to now turn the call over to Jeremy Ulan, Head of Investor Relations and Treasurer.

You may now begin.

operator. you, Thank welcome conference and MSCI quarter fourth Good to earnings call. XXXX day, the morning, press Earlier results issued we this a fourth of for release quarter XXXX. the our announcing be as a quarterly along earnings with msci.com, This our available brief this Relations under press well presentation, the update, release, Investor will as call referenced on an website, are on tab.

this Let statements. me forward-looking remind call contains you that

they statements, are not today's to and second date place which forward-looking speak cautioned on the the only are by You on presentation. governed reliance which made are on the of as undue language of slide

For statements a additional disclaimer uncertainties, other XX-K and forward-looking most the our our please Form recent see discussion of in and and risk filings. factors in risks SEC

addition U.S. meaningful measures results basis free EPS non-GAAP into our in the cash adjusted core limited to refer adjusted We to GAAP, non-GAAP and also including, adjusted believe on of performance. facilitate but measures, not and period-to-period operating insight flow. EBITDA, comparisons to, presented During provide today's expenses, we EBITDA call, our

in You'll measures the measures as this of earnings as to meaningful, reconciliation earnings materials of to we equivalent presentation. information be GAAP an in deem uses management the find these how well why and appendix a explanation the the

to filings. rate, We agreements of client variety our in particular point XX will for value SEC detail that at a estimates recurring exclusions the run also under subject revenues in months of discuss our a which adjustments time the we the next and annualized

rate. rate recurring estimate realize and on will XX over place you recurring of amount we result differ We, will revenues. to of run not caution months adjustments reliance those to actual following forecast the therefore, undue a or As from run exclusions, the revenues

of foreign or changes We which will and the of impact acquisitions discuss figures, currency divestitures. in any the organic impact exclude growth also

Officer. Henry our and Wiechmann, Pettit, Financial today President Fernandez, and Chairman call Andy the our and COO; are Chief On our CEO; Baer

to mode. point the like the would listen-only may I be members this of media out Finally, a that call in on morning

now call With to let the Henry me over that, turn Fernandez. Henry?

and Welcome, everyone, Jeremy. joining you, us Thank you thank today. for

significant headwinds, quarter of results off growth organic This organic with Among quarter fourth In our highlights, to of MSCI of global delivered posted XX%. we focus expense subscription on drove fourth face year. revenue. growth successful X%, XX% combined revenue our the in of adjusted growth another revenue AUM-linked a despite EPS including our intense growth, cap management, reduction strong

MSCI repurchased terms management, capital of $XX worth In of we million shares. more than

of the note would to Directors Board increasing our XX% has dividend share. You approved also that by per $X.XX

revenue organic XXXX X%, a of For including of posted organic as whole, subscription growth growth we revenue XX%.

totaled also repurchases EPS XX%, growth of We adjusted nearly and achieved share $X.X billion. our

the to cautiously us to in about We delivered makes of market year historic despite benefit these results us diversified volatility, thrive our franchise, all ahead. all-weather optimistic MSCI from continues which levels which allows environments.

and options recurring AUM-linked XX% XXXX, which over recurrent revenue was listed total; revenue, X%. transaction-based came including our about XX% revenue, about which XX%; In futures the of three revenue revenue, subscription streams, which recurring recurring from was and was of

and conditions. more difficult through our environment performed businesses external variability headwinds derivatives the well AUM, While transaction-based and operating created subscription for

solutions helping enabled MSCI growth areas. demonstrated our resilience our secular needs investments long-term adaptability and the the critical expand again of franchise, continue diversified increasingly diverse to client enhance has once have base. balance, making of We in an meet and which to investments These and us are

detail. our Baer will greater solutions talk in about

them understand segments. across like and reliant even classes strategic data, both become help to explore like At to high-quality more market and product asset enormous this, would and analytics times see our XXXX continues fast-moving the I changes. client now, models, backdrop XXXX priorities. For opportunities on our results for MSCI research growth lines, to investors

new MSCI signs That to increased budgets and and pressure is clients longer face being fewer reduced our that said, forward. path on from layoffs sales cycles constantly raises. monitoring are optimistic fund cautiously the for of could we

continues investment Our world. in to shifts major the capture structural strategy

For is classes simple. reason focus gives asset to asset increasingly and mechanism regions, and an preferences express investment is investing allocation. across investor starters, index The their and popular thesis efficient investors investing types. on Index to

teams. many the one-stop become business MSCI's During We shop styles periods of potential direct that massive in dramatically offer of for our and indices unique emphasize Index I asset indexing of direct financial to exposures, in different strengthened market classes, can more spoken salient. across turmoil, of position layers, the I about investment MSCI XXXX. want before even including types strength indexing have particular.

of year, The full total number XXX%. big investing shift trend the toward clients investment a index direct strategies. that. reflects part we increased a ESG by our outcome-oriented indexing of is broader investing For

has ESG become United know, hot especially a you As issue, States. in button political the

the is parties priority. are is That ESG investors reality risks. However, launder, risks make even a to the from gets integration political And reality. ESG as why different that financial bank is continue noise the and investment

recently remained by XXXX reinforced For Germany overwhelming the MSCI's ESG respondents of An across has findings investment example, to more majority important that strong. demand become said Association companies investment strategy has client and France. which Industry surveyed fund and are for the Index XXXX. their ESG between solutions, U.K., the These U.S.,

in world No climate financial than became to record risks. heat drought single can of more change. record as understand material true ESG and conditions the particular. elevate risk record around climate waves, visible Investors is ESG general increasingly There climate In XXXX, suffer What has true that. in done from countries be of flooding. risks, risk issue is

but recent economy survey, already risk at said an unchecked. either opportunity. respondents not having on next Bank an climate change a years severely if investor over the X/X left that For that climate of Investors more change impact is impact also Deutsche or example, such than have in negative will a XX recognize the only is global

is projects will climate-related have Energy world recent to Agency Consider XX. from as technologies. IEA the now power become renewable the years the as determined much five in the The the leader next investment undisputed in MSCI a report International tools. in that did past renewable it on

we support asset make geographies. ambitions, key to classes To and investments these continue across

As the MSCI is positioned net zero help now a clients to well of types pledges. all achieve result,

we saw banks growth strong XXXX, wealth In client corporates, funds. managers hedge climate in nontraditional traders, especially and especially sales among and segments,

example launched Burgiss continue developed towards printing carbon see where also assets, private have to of the the growth. We we tool foot private end of is area debt private equity innovative with tools possibilities an climate for tremendous One that for and we funds XXXX.

with tech-driven data to improve us MSCI's in our Last of is ongoing different Azure. all client helping platform, support key Microsoft ways. our is month, data The One new transformation MSCI and enablers technology. strategic for built which Microsoft remain the experience our expanded technology many this on we partnership so

investment MSCI strategic world development will build Cloud clients Google ourselves to and insights. acquisition easier an data announced another This Just with platform. data new into platform actionable translate our to partnership week, last and make it for

As during the earlier, analytics I and periods increases of turmoil. mentioned importance research our market models, of data, only

to same maintaining build today's in helping resilient, an better franchise allow invest Our growth. while continues MSCI's us At strong future volatile and landscape navigate the time, role to for essential profitability solutions portfolios. all-weather the investors play

we before been Directors MSCI that press his appointed would Baer note the final congratulate issued to of well-deserved release him a on turn effective Board has to this I call one Just the to morning, I announcing Earlier like over appointment. immediately. Baer.

will changing into you MSCI years, has and it would to to what of tremendous been no plans building energized Baer's skills, or strengthen I significantly all. I many is effectiveness business today. continue remain he engaged As partners step or be know, Board's prospects. to Baer like or I instrumental been as experience unique of that and shareholder value. my create the in timetable to I strategic have have by the extremely company's close thinking the role and and down for also growth CEO and clear XX ability Board. Chairman is at not retire

XX been as and leading with that but look business. time President I If continuing fellow am years more opportunities now more and have years been I've for significant anything, Board today forward that as any closely very this partner excited in many at I to members. CEO the Baer to our I

Again, will turn Baer? now to. call I whom to over the Baer, congratulations

Henry. you, Thank

MSCI I'm the Board join in excited the role. serve transformations. of strategic to is midst and many important our in this very shareholders

MSCI and drive deliver President new shareholder Operating Chief the help and vision insights the bring will and strategic As Officer, operational believe value I've growth that to Board dimension initiatives. our on to developed a I

both priorities on in we environment begin performance. will quarterly the over took the the to current quarter, made I the ability organic is going retention good our quarter have to that investments manage for turn continued of some supportive consistently my in by some and we MSCI's linked our directly XXXX. Now the for of strong the and the steps that resilient markets in comments and highlights to to growth years, I'll ones. during deliver less over

MSCI unprecedented also the to best of and of As and and count aggressively by deploy XXXX to our and we backdrop volatility, pace had ability position beyond the with spend our market demand. to to headwinds client previously, preserve for the guided we indicated opportunities greatest you head realignments managed made discretionary to our select investments

To climate, fixed reflective climate. delivered the client ESG, XX% ongoing of the For and XX% plan, relationships certainly approach, was subscription Index, of indexes, our client to our investment revenue success made. quarter of investments experience. retention, will and franchise, modernization we've continue during Index, strong In illustrate further and accomplishments Analytics specific the our which XXXX spotlight the strength the include growth we the our these recurring in organic and of I areas client income design

grew ahead. we investments and us rate indexes increased reduced in capabilities, and development well our custom at support positioning global indexes, turnaround scale. to enormous time to opportunities our XX% subscription have models, of strengthened that data continue our These we heavily our the building software the index In invest see model, as deliver capture run to custom

record are In of demand from continued owner where low ongoing action facilitate we're we've $XX index derivatives the and zero our target benefiting benefiting asset transition. futures million, investments year into to We Paris-aligned product driven revenue by from climate listed options, launches new and with franchise. also for exchanges delivered indexes net full carbon

more can period growing less were investment opportunities the full for are that in million, the year. products current earn income allocations than linked especially In We addition, excited with yields another XX% focused area of higher credit in they sales indexes our by indexes, investors now remain the to fixed duration. MSCI, where for year-on-year $XX long-term structured on

proprietary as climate, than $XX the all more linked and attracting strategy, inflows billion, believe At December, where and MSCI's ESG end XXXX. after we partner fixed as space to indexes income fixed ETF our billion to of play the our with key ability We AUM enablers. partnerships to income growth in flanking well was of players $XX in MSCI's strength forge have been during

to Analytics, Let me growth, where we now subscription drove turn FX. run X% excluding rate

were not so New experiencing from versus in concentrated lower XXXX while much sales few but cancel reflective strong higher were events. subscription a volumes, fourth rather also which large higher a cancels client quarter of

remember large trying It's important attribution. in large in enterprise operating a have decisions risk subscription to sales. allocation asset investors is of for our performance, MSCI investors and help performance and what already business calculating understanding achieve and to drove can tools risk as their We These and to serve about in XX% which systems in new Analytics.

use integrate roughly We into during These also clients sales their processes quarter. equity recurring for comprise as cases X/X can third-party more new and our and the targeted models vendors investment platforms. offerings tools such into offer their can that of construction tools portfolio integrate our

distribution Throughout be has for Analytics of we modern, pipeline upcoming XXXX, same increasingly tools, us strong at came in true types office channels a opportunities. for new in enabling The our we professionals including chip the made investments away see to cases with front where flexible both are will investment year. use and XXXX. and the growth from believe MSCI climate

have reports since we our over throughout late include delivered analytics as clients XXXX. in Lab launch the such platforms year our These XX,XXX Climate where in our for investments climate Enterprise,

us Our with risks unique emissions loaded holdings. to understand allowed clients' all physical the has associated portfolios carbon maps and position differentiator. represents well our help as a in as of their clients having transition competitive It

and As MSCI Henry help investment a attractive as firm the tangible most climate of the opportunities indicated, one to for industry. remains

cases, clients we delivered across lines, total with all we measure growing Across all and rate, helps product bonds, XX% including regions. emissions sovereigns equities, MSCI portfolio-wide Back run assets. footprinting segments million year-over-year, client across of portfolio momentum in which $XX and launched ad around tool, corporate June, our private munis,

with companies for key with asset and Since strategic It's managers PCAP then, enabled also emerging insurance deals to enabler others. closing help align us banks, a standards. clients several been it's

asset to wins continue TCFD scenario to drive analysis. with asset with reporting, large also and new owner use them We cases, climate stress specific manager clients help including and testing

recent a make platform analytics launch new It to accomplish. other of the few MSCI new a to Following I clarifying replace not MSCI's what we're powered to a a stand-alone by products. as is world-leading or It to observations vehicle content for integrating One, wanted Azure. is instead trying software and using product

upsell believe applications climate up will We point entry with lab, products clients now providing self-servicing, opportunities. on ESG and self-discovery of key also and they to day-to-day, common RiskManager, manager are our we some others, including and a access enable which that rely

high-returning XXXX during execute financial year. our the investments in and management helped made the us rigorous summary, In we successfully

a for MSCI years to the provides and how will in continue thrive XXXX template success Our and ahead. operate

that, the Andy? over with to And Andy. turn call I'll

Thanks, everyone. hi, Baer, and

As In for Henry and we've of our of the growth. of mentioned, long-term double-digit headwinds, face XXXX durability the reflect quarter investments year, and the high-growth we made nearly market the areas. organic delivering for into full of our completed results target subscription the outperforming XX% attractive XX% revenue by low franchise our consistent benefits the growth

broaden utility our our In seen of usage in our our we double-digit index high-growth across the growth as the expand subscription of growth see Index, consecutive indexes. market our to rate content was traction buy-side cap-weighted of We've of clients continue XX% their quarter and wide healthy run modules And quarter, within tremendous a segments. growth. XXth range

and owners growth managers Across subscription our broker-dealers XX%, managers grew together wealth run hedge while asset had rate Index base, XX%. asset and together subscription funds, of

collectively in a our nonmarket run continued thesis subscription We achieving growth also offerings momentum modules of index XX%. cap rate with saw investment index

AUM market contributed decline although net of balances $XXX indexes, ETFs balances. approximately the billion appreciation to to billion From equity we year, end of MSCI a full the through September linked year-end, $XXX of for AUM in saw

Additionally, we roughly exposures into quarter during our indexes market of the $XX encouraged into cash into linked billion billion of by ETFs over the and developed to $XX equity billion with inflows inflows market were exposures. $X emerging

share. indexes appetite muted $X.X factor indexes into more yield billion, than linked to representing ETFs on inflows ESG experienced to investor and with ETFs other volatility. more approximately Equity XX% MSCI widely used, market focused positive and minimum linked climate still indexes MSCI where such and of on as more factors we but Flows are presence where were income have less momentum

by year, quarter, shift assets. paid the than decline us offset flat the rate will the by we out supported AUM more steady ETF the was growth lower over strong believe continue declines AUM run basis gradually will points paid ETF levels clients to average over Despite on products. although we the expect to of time, be to basis mix us in fourth year-over-year points clients the During fee last by by a on

futures of volumes market and options, healthy asset-based saw the backdrop. we hedges In embedded as our fee again revenue in against some growth listed natural traded showed choppy the line once

Looking ahead, be to if hope and revenues stabilize, rebound continue market and we this passive. to from non-ETF levels AUM-linked would ETFs would constructive

period to time, a same futures the may and year revenues volatile decline and compared options the volume At ago.

believe both to our AUM-linked passive licensing significant ETF as is in transaction-based for as products. opportunity derivatives in continue non-ETF We well and listed products indexes

Analytics, rate was excluding run subscription FX. X%, growth In nearly

supported traction we in in mentioned, continue our use climate strength factory Bart tools quarters. and our cases by analytics tremendous gain recent in front-office As to

in interfaces content. and access progress our by Additionally, supported our flexible firm-wide has broader, more to enhancements to growth delivering our been

across expect the that as previously given However, cases some of we broad lumpiness and in clients range the have we noted, segment sales we use both cancels support. and

ESG deals the Climate and from in ESG remains we in of tremendous segment, for EMEA. third closing traction in sales engines XX% some most one our grew attractive and deals subscription in in as MSCI. In large-ticket recurring Climate growth both new Climate the rebound quarter saw and research

from an geographies, reached and rate of million, reflecting growth offerings run climate $XX segments. year client firm-wide ago, across increase Our product exceptional XX% a

strong the mission-critical segments, pipeline, see for remain Across backdrop. strong our all demand we a we see must-have we cautious secular market continue tools, of to sales continue although and to given

mentioned we previously, slightly pullbacks, in As see equity levels sometimes cycles. have of of market of lengthening past cancels sales periods sustained we can elevated and

base continue we reposition attractive growth In to critical aggressively our identify profitability opportunities. our growth connection to drive downturn while the investments expense with preserving playbook, in to most efficiencies

we regrade base roughly review even the discipline, have in subscription preserve a our charge, EPS regular our strong a our enabled in revenue and $XX quarter, which took footprint, ago. investment $XX expense than These tough growth talent coupled in tough allowed us and higher to resulting employee areas. of severance to year proactive of through part our even million key environments. fourth As certain actions million our us our in spending adjusted drive actions to expense enhance This growth, has was with

growth enhancements been subscription supported capturing large increases enabled tremendous addressable the our base more our penetrate by price newer doing to has products continuing for by our markets experience. in client and to The continuous clients, and

more new contributed During than within XX% increases our of quarter, XX% all firm-wide fourth about across subscription price products index. the sales and

remain collections healthy, see collection within result issues to extra which believe But over in of We ended approvals related is million, slightly the collectability. is believe of million a slowdown $XXX and of available. came guidance. market cycles year around previous the cash the $XXX small as our below a certain readily low We Free of overall end no we which in clients, we with a client cash well flow balance backdrop. saw we

unchanged. shareholder remained allocation on focused capital maximizing framework, is which returns, Our

continue to the We repurchases through pursue dollars returning our with deploy and growth value-generative EPS increases opportunistically areas, on and capitalize organic return dividend steady capital will that share towards highest a investment adjusted MP&A.

As Henry increase our to in indicated have we quarter. the earlier, decided dividend first

We or our approach a any are allocation. policy making dividend changes broader to capital to not

align our to more quarter annual the historically shift order annual to quarter, planning decided have dividend increase have We our the from increase first closely announced in to the third where process. we with

climate such want differentiating that source continue opportunities, M&A we areas content fixed as Lastly, evaluate private as ESG also assets, to bolt-on and well unique as capabilities income. I to particularly in underscore of actively and and

to we published XXXX like turn earlier our guidance, would morning. this to which I Lastly,

assumption guidance second overall equity markets Our year. volatility ranges the current from levels first levels reflect in the and with the during half the of slightly of gradually in recovering continued down financial the half year of market

guidance actions deliver the expense captures make Our range continue in efficiency and growth. months taken order in reflects we have to investments recent to will we the

normal in expect of $XX our million seasonality elevated first We benefits expenses and the in $XX expenses to quarter. compensation-related million with

I across that to continued software also our want product lines. of to high interfaces CapEx capitalization reflects a enhance as platforms level highlight our and guidance continue we

that to the tax as expect guidance where expect price year-over-year the share vesting. on Our a receive to is that grant highlights price as awards we to tax primarily reflecting relative a benefit effective of of rate result slightly rate at based amount we first in well the increase our as smaller windfall quarter the

during decline AUM ETF be the the relative tax higher could average first adjusted year. on significant pressure due of the QX last the in growth year-over-year and levels quarter There rate average to levels EPS in to

of well we slight what want the to XXXX cycles on caution based in guidance higher as tax flow of with on consistent quarter. in payments the that expectation saw reflects highlight environment, I free collection cash degree our the a as client Lastly, fourth cash

We continue creation. drive we progress. uniquely all periods we're are keeping on and to value well you the to to ahead, positioned differentiation. uncertainty, to unique positioned year drive our capitalize and clients for we're growth of opportunities look is forward believe MSCI on posted our when times excited and volatility Overall, MSCI In the thrives. help and These

line the open please for operator, that, questions. with And

Instructions] please [Operator Kramm from from UBS. Alex ahead. comes question Our go first Alex,

that off XQ XQ relative of Starting for on to Yes, retention Good morning everyone. to thank side the dropped, the I second the from here, maybe guess, couple decently pretty last you. a years.

think I'm it's probably in I pause this into if seasonal. But any that gives wondering anything of if just I there's year. you you that more sort saw history, look

anything things you about side. the think of You a the results? mentioned on outside gives that pause the you bit analytics more that, But little of sustainability as

Alex, hi Andy. Yes, it's

rates lower that So the retention we - outside can would all given see for analytics, you were to, if and fourth of alluded say, look you retention strong. even period retention rates this, analytics, retention I rates across full but of we and typically the as And the in our know slightly you year actually you segments, quite largest it's product reasonably at rates were do quarter, renewals. healthy. have

are I'd the resiliency. from retention say growth, that in really continues that fact do products to our secular the you year. the areas in And rates create it heavily for I benefit critical mission they think which highlight does full that of some long-term see

say do cautious. I However, would remain we

to As sustained few a past, in of when alluded we pullback. see market I've quarters the

We a mergers. pickup other, client like fund tend closures, to closures, events, restructurings, desk things in see

that caution clients in despite we overall So are pulling certain year, are some areas. rates back sober a might degree proceeding of the a for pretty see strong we and little with bit the retention

forward So we are cautious here. moving

is secondly, but somewhat pieces then of flow. related, for the thanks cash Okay. clarifying And of moving first some and all, free this on

at asset much targets again know people a the like for think don't guide but a into kind as - side my the I are for you what which that side I of on a you read long-term highlighted too and of base trying side, to some revenue guess, minute? delivering I minute subscription growth history the double-digit, means is look revenues, question.

made low as some XXXX a starting view your and just some about change now? little off we bit of would points that that given think double-digits Anything you've the comments potentially on of the cautionary

short-term basis well in done all at tactical XXXX. a So, mean, in XXXX, obviously, on I Alex, we've Henry not

global into right. the - XXXX, but a in is is of There there recession including on markets, There markets. is strong war We a - prospect Europe, many softness. in pipeline energy the going global going have disruption

to see there reopening to China or is a have return We lockdown. of if real a

the we in short-term. So, very remain cautious

remain the day, ESG, well custom opportunities continuation growth do pretty much that which exponentially we analytics. it's a have context that, every indexing, MSCI Clearly in demand direct positive. The in trajectory whether for beginning we're extremely for we whether whether Beyond enormous as is work a indices, of see climate years increasing of we that asset the the climate classes, number at private high it's our in risk is to whole, bode the so, that to for company should come. of it

Fair enough, guys. thanks

comes question from from please Toni, next Kaplan Morgan ahead go Stanley. Our Toni

Thanks about there? margins and maybe expansion back margin growth business, enough within I in so guess, Are investing wanted that stepped at take how or investment up the and look talk a analytics step lot I business? Just investment to this opportunities? you a year. basically drivers the the you thinking really much. about of are needs

Lab that so things capitalizing that Enterprise, Climate our we're of to expenses enhancements capabilities quarters, higher work been making have that analytics. have to we've a like we the to the been margin. high I broader factors to the there point in similar Risk have Insights, around been related that doing Yes, contributing several recent level been would out development analytics

dollar we've But meaningful from analytics are actions U.S. has that benefited the actions then take directly expenses those downturn within up just segment. taking the allocated highlight of that's portion when we strong end of corporate hitting many the that analytics. I in highlight And functions, as analytics. not been a And also to would the would well. that I

the benefits that FX expense been Given the of of lot a analytics. size hit the we've have getting base,

bunch or there the that factors your we question with targeted in to investments a margin so our a analytics. and call tactical continue it, bit very I'll are to have And of caused up more, But here. investments, impacted those run be listen to it around analytics technical

It top is investing are of our not there. areas. we So one investment

familiar I you're on. we those think with where focused are areas heavily

are benefit how investments those broader - the we capabilities only But as office, go but on on broader on the equity like in focused well analytics areas MSCI office capabilities so the as that interfaces front applications, focus continuing including those as within we fixed on front of analytics, investing office that franchise content, on MSCI factor support and also to front as our well in the broader and the office models, to franchise. users, some the income not the

investment some run one in very, fixed the portfolio would Toni, if Triple-Crown in this very there everyone product content. Climate disciplined, benefit you process But analytics also to equity in for parts like of the also areas. rigorous the of call, we Lab a on company, I investments which each of the the - mind, heavy like analytics putting that are clearly, add, of we're don't Enterprise, income, analytics, portfolio and

high segment the Each areas is multiple for company. of the front of the areas come when valuations process, of and One IRR they client investment support in Triple-Crown. have they to some in areas, the demonstrate high to of - paybacks elements and return, shorter-term of one this high

So of been investment mentioned, but they've to in rationalize case not in areas other the able of areas. in some Analytics, I the that

So of gotten they have haven't areas from the the ESG capital. indices that. capital climate like because us and custom Other like gotten and and

I a platform launched be to know not replace to an of stand-alone I new MSCI supposed or product just my ONE. to other really replace you - said it's that. recently know old Perfect. on sort I you products. wanted follow-up clarify Maybe ask

maybe it bit understand So a it meaningful. think there, main to because help the us I Thanks. is little seems And I opportunity who I users guess with just are there, the what want better?

here. Baer Sure, Toni

we're of So kind it have range through a then, building. outputs, is are distributed think had. classes, One is different analytics look, about other create we've have which And of cetera, et engines, and kind and think sort through firm and calculation few which throughout of a we the asset platforms et we methods state-of-the-art different distribution layers. Then that various I newer diverse we traditional files, of that the content cetera. way have clearly to some

more a thing the - like, to MSCI presented ability best that about if allows way way - to you the greater together of - to both a to present cetera. in type of do those combination user brought they calculation in that platform, similar - those way improves experience data our a So which think standard flexibility outputs of of traditional is users' it, manipulate our turn the in be on user-friendly in to software et and to sort and industry have how and factory

So on incremental. forward for here. very we're path sure, we think important a It's

course we of to the to that news forward hope As give and we move around we hope of think definitely continue XXXX, of update will intend client all and that you increase. impact that. positive And - the during

I think make this understanding put I are should we is there - today. we comments how maybe some to this somewhat. time, wanted make the So that promise we're And the want department that's a about department in not delivery same try what I and that to to a it, sure it risk the At area.

certainly the in time, flexibility more, our in as functionality, new the way of over of that, sure of clients our that. year that out our new positive capabilities, with - a start MSCI clients really of keep we'll ease be content. start as their working the those So way that we're we'll to integrating you different about think And we progresses, and day-to-day use think make we abreast using a of But bring regards new and this ways as it. will very

Sounds great. Thanks.

Patnaik go Manav from Manav, from comes please question ahead. next Our Barclays.

drop, were into color Andy, made, to how where guess, they you and more the little some the closures into particularly But retention know get you. us is analytics. kind just those going said guess, being that understand comments what more - cautious to you Thank And just you're of I a on in around, the to bit continue cancellations rate I trying nature? 'XX. Can came drop in just that wanted give how from? I I back 'XX. time you might or

Manav. Thanks, Sure, sure. Yes.

concentration so large segment weren't the cancels in prepared remarks, in but noted much of frequency the the board his a reflective a Baer a of rather higher of So this ones. cancels but few across

large those event-related cancels client lumpiness we've some potentially analytics in both do as were expect And in the past, dynamics some there play. impact dynamics and sales some at from the mentioned environment. some continued competitive and On we few within ones, and

So more improving broadly, momentum we are really encouraged and position. by the competitive

We management or continue on focused in content tools to strategic and we're areas climate income enhancements to in equity see tools analytics the capabilities. and like fixed or portfolio that focus

high subscription was growth actually, which, And single And to the to for the the revenue long-term close run of targets to basis, X.X%, we we've we're are on rate got in digits, FX. excluding quarter, segment the fourth the an close X%. committed quite that growth organic

to the was overall, But it So the lumpiness. we momentum that of a quarter see be segment. continue demonstrated encouraged in the some by we

Got it. I a just Thank question. guess you. broader And then Baer, Henry or

take opportunity. Just the I mean I - thought it, I'd trying to as think - but I someone

and versus technology your Microsoft. already cloud partnerships the announcement trying with key to strategy have understand Google here, you the Just recent

look to. Just each appreciate trying the those to to and forward of agreements what in differences

Manav. you, Thank

in all, mean, past platforms. firm a our the in first of one and I in of the our company. - recent and the So very the past in data major technology data - MSCI, large processing was investment impetus is

factor and We methodologies with is a to with so and private data mix company through risk where models, large data addition indices the and processing business, forth ESG starting and assets and the the third-party like, took has become, in now on climate company. like, our in building models, it MSCI and so data run

now lot way. of third needs clients very source parties. distributed in to of be And our a all addition from sourcing a original data in of to to we effective that data the So are

So we to basically have trying expand three and partnerships we're that and on. specialize work

cetera. Microsoft in of The first has the part, in of et the processing all partnership large amounts risk especially which data in helping with systems, us one processing clearly our been they're and that, Azure, systems index data,

like also how we announced help helping One use them. Obviously, And build in partnership partnership with their the their power MSCI us is behind. there will software on we software to do a and products the

deepen is that to that strengthen. Microsoft, and continues and So

data that this build about Google The Cloud. data, the that well. cloud data That all that index building run is through is helping partnership Google of we're announced Google and data organize and as their we in second then on through data, data, collect one transformation going

is of there's push building. here data a is the component always that So but definitely - computing, cloud

the won't As you know, as Google and - focuses a data but Everyone processing without be is building one on engine, search all there's of the the largest good at data. data search companies in the engine world.

clients. And is in in South way which the Lake our of content, the beta very our effective our a with is distribution partnership third

strengthen So with and our relationship now. that to in we're trying deepen

Thank you much. very

from now we from a question go ahead. Alexander, have And Hess Alexander please JPMorgan.

the know back growth, climate noise. the rate Yes, political of the I maybe and headlines wanted maybe everybody. remained resilient of level, and think then maybe stepping should years? to in implementation grow and which U.S. how firm-wide maybe to at to do and SFTR the I'd headwinds of step few despite ability the as Europe, regulatory sort as run about we like what pretty back see opportunities, sort look hi big ESG over climate's some you the tailwinds ESG high big next and market and and well

Baer. provide me it on quick pass let and some comments then So to

in nothing remarks, as ESG has ESG. all, football get I prepared business the ideology going but lot eventually, of And philosophies. of our is to political political do point And First here well. is political on there - said a with we'll of as on, my to first climate

ESG because corporate we're risks now. that's right fact governance is of company, Our investment nobody - now I totally nonfinancial governance, a and investment the are things right? and of it financial all auditors market or not in and don't that that's company grounded tells ESG business risk. risks the cap what The you material that and investment that know on $XX-plus-billion political the material Then and risks risk.

therefore, they're this that issues we nonfinancial what at least the social the heard of haven't and client we is of to we world processes. doing. that single them. of their any very know And environment clear are And in that tools don't investment preferred we're in integrate governance So provider not risk into looking to

in in there the they also Europe lot trying figure are of the to of clients our lot world, the especially clearly, to a around out how regulations with respond is proposals. U.S. SEC Secondly, by but a far do that and regulation,

into So to need risk is to as a there certain products. clients purchaser and they're are right little to tools bit trying do of of because to data that - what by and they determine a sets the their incorporate pause and

So sales, But the that's the bit a blip Baer, little you on been so the else that of see much less component. in anything political this?

I think it covered Henry. you've well,

element only you in clearly and the has one complex on element been EU. the funds mentioned notably regulatory is for - think clients, other the our which a the Europe I

something is us. that we're on, of there clients increase working focused our which regulation will clearly providers ratings ESG information on. Equally, would that the data of So very on doubtless of be on with an include

to ESG that adviser, that, is in and come our And investment that reminder, we're high-quality as ratings us. structured We think run a confident run some issued view already to we we index, as which way entity business. we've particular form that, And the that. with that U.S. getting legal actually is further is regulation I'm the very something I believe with that instance, related and contact a in business registered view been a to as about a a the that an could of don't that regulators risk

noisy believe So provider from very very environment is of that a research. way, grounds, in and we high-quality as many the we precisely And I regulatory complex doesn't, in this any which think opportunity from is scale regards, which a number clearly compromise of an of data benefit adjacent which real. overall, but remains something the and complexity it's can

as a follow-up, speak the meaningful you Aligned benchmarks a quick a can little with going Paris franchise. climate and opportunity bit the opportunity benchmarks to And index transition maybe in that then Is forward?

Absolutely.

our are So you climate is such very look questions indexing short and the but in very from that our it's you high, will benefiting leadership if market There on related - and - passes. in ETF of related number some consistently that this we're in role, products this confident that run, ESG a so. and time, both been and I'm share be clearly in back if flows a moment look we're to at years'

active all is they will They enormous fact clearly an equally, the the But go investors of they of transition through that, categories have globally, to matter so management. with And is will through. this benchmark through see timely rule so for on and only need a we category through to basis this rules-based - do indexes, through growing. indexes portfolios serve by as that a underlying as do capital allocating so

specific to investors' which certain mentioned many will you grow things will continue those specific And customized need. of versions methodologies, serve specific as

growing So we an important category. certainly view it and as

Thank you.

ahead. Our from Lau go from comes question Owen Oppenheimer. next Owen, please

stay market to Thank you cash question. EBITDA flat go talk your want your And back Do to with the to here? go from the your up lower then for take you to also flow you to And it you guidance? to to the please build Thank guidance. market the XXXX? come does low please up, assumption taking take about walk the my talk guidance? expect what I trend free guidance. And it or Could of end about go to high of of side, the adjusted could XXXX on you. end expense about go the does the what to the expense from get to

Sure. Sure.

here. to lot in logical a a I'll unpack So there. in try it fashion

underlie So firstly, on guidance. of all that the market our assumptions

are year. the the levels of second then of half the the we So levels that slightly market rebound declined from through first in assuming their half year and current

underlying guidance. assumption is so And piece every of that our

comment the quarter flow around I we even to underscore to a fourth are that fourth quarter flow. free a at growth You want and make on alluded to of cash XXXX pretty being guidance saw to flow. our if cash year cautious cash do XXXX the 'XX, just XXXX look of more generally, free free relative to in the full relative of you healthy we it.

momentum about collections. Although if you the in after made guidance. remember, quarter, had change our actually cash that strong free third the increased We feeling we we seen flow confident

on that bit ourselves ahead quarter. of in and got we a actually one, in saw bit slowdown the of we of probably fourth cycles frank, be collection To a a

cash assumption caution of flow guidance degree a a we same we for so around of for our And XXXX. that And this as collection are on cycles making year. result, caution have

in invest. guidance the expense this that to but and want actually the be and expenses fourth identifying to I you want have On so, tough efficiencies to piece, continue specific our get to here, quarter, taking - to been able months or actions the underscore I we don't very six too in saw last

continuing So being are we very find efficiencies. pace our measured to We're of on growth. expense

in saw actions took the quarter. front fourth the significant we some You severance on

on has are expense a although to impact areas. base, the key continuing invest in meaningful we that so And

and so the those planning head to more and overall efficiencies grow expense growth. And in on actions continued count by investment XXXX double XX%, despite are that's our than front, we spend the

year. head But in are, we for And those key disciplined to so to the continue us a those firm. half we number guidance, grow invest quite our and are in especially growth be that of the as areas areas, we investment of assuming a for key in first count continuing areas,

more back Google creation of opportunity the partnership. if the we go Cloud this would partnership, expense you understand Thank partnership? for give the incremental the so some you about potential please talk Thank us you. specific I value that mean Google can helpful. this super better want partnership. And revenue to maybe I it and be That's great then could you. an examples it. Henry, even Got to can

partnership very this So you in that. is company, protocols look, or the numeric all of and Google is need analysis at that. and technologies us give large with we most revenue use give that us any building of I tell. a point, Too early What this and to very methods that profit and any the data of will becoming can't, advanced to or key

right locations. focused And one asset on area that we're for is now example, specific

us of the for company to be every the or world, office order manufacturing single to company. mine, climate, in it's private in have understanding best, public undisputed in So every we every of every need whether leader facility

one geospatial and able advantage that Google be being us maps work significant to example gathering That a there. of Google's in Google and at the information with services So that. through put will would clearly like

in LPs need of the there we're that and data the organize all data, we of we're is assets, and clearly it how collecting lot work private in and to index that, and GPs we example a is Another - from the the out figure that doing the like.

Google, want think that So the if that to focuses obviously, - top. us, to to to the compare on right? everyone is way us does you that's of about the work engine search at Google And the

But the data. is clearly engine on - search

they the indices that, own base And underneath build our and data trying that ratings we're large, that. what have that third-party stress equivalent the investment that, then is to methodologies with So and it's whether to data tools, testing like and be equivalent models a all whether and models our search about think that's it's of of risk and or data large, is of algorithms. engines, the

it. you Thank very Got much.

a from Goldman George Sachs. ahead. go from please Tong have question we now George, And

Hi, morning. thanks. Good

macro You elaborate the conversely, volatility. where longer higher most businesses of see resilience? sensitivity mentioned cycles environment periods in you where during to and, Can you're your possible you're you'll market seeing most seeing and sales subscription cancels it's on protracted

very general it's mean comment made. I Yes. much a that I

quite resilient. the in in our with see rates remained saw can Analytics that, retention You retention the the lumpiness of in the we rates exception quarter, actually, have fourth

in sales - I think particularly ESG. and slowdown you've last cycle heard quarter, saw us some we in make in that comments

that I I'd the underscore going board. point would is it's say be dynamic to the across that

concentrated in just or and start these choppy across region Board. one financial be are I volatile that or things large but don't client necessarily remains to can segment, environment implement the product as controls, cost slowdowns organizations area will the cause it So it think and

and we having cautious that we've pipeline are with discussion here, commentary in - our in size color pipeline and we're healthy outlook. an do caution, our a it overall although cycles and to is our healthy baking clients. we in large, past so the our engagement quite I And and just and our the just seen degree remains and active of prudent underscore dialogue It's is want quite of should be that

helpful. That's it. Got

your taken your much you head runway recalibrate kind the have as playbook. talk you expenses majority further part now count what rightsizing say downturn would actions of you of for how remaining? behind levers You've of about Can to are reduction, have cost And expense actions and you you?

really taking actions investment. and Yes. this I tough important are would a to question, enable the to that really we've prior I in to say, underscore alluded it's been

at going in year. as key continue intense to And rate focus on I we're continue a an to throughout invest and we to healthy those alluded so have areas, plan investment to pretty the efficiencies to,

in and we past, continued the Beyond and in the to alluded we've the that critical actions hiring I front, less in areas. proactive certain down even slow took on this stop - severance to

playbook. it our selective been to the we're people about where guidance in reflect like we disposal, very that flexed and T&E are nor underscore, adding the But areas levers expense our does controls and other fees. have We've is we've flexing imposed areas we haven't fully our certain important downturn professional downturn we numerous at fully playbook

We stop in can closing areas, backfills. hiring hiring implement freeze is certain

on side. the freedom of non-comp degrees have We

compensation As performance with business. incentive know, you the move of will our the

slowing but help going cost we we many manage including more So something investment, it if we levers continue manage. that calibration But proactively clearly to to do we're need don't have us cautious constant further, hopefully being and we that controls, do, is but down down are expenses. which implementing a can have to Very to flex in

helpful. Very you. Thank

Now ahead. a Faiza, go question Faiza please Deutsche Bank. Alwy from from have we

morning. you. hi. Good Yes, Thank

And about talk the a that sense of signed your wanted you last things I those is quarter. little that so And XQ further little on as to How just that sales you are had Or from much a XQ? us you alluded sort Or to sales sales perspective? of seeing cycles? Are Give you ESG. quarter acceleration from sort seeing of to, seasonal a more this subscription a those normalizing in increase increased the are bit cycles? bit. of new

is across case does as quarter this see a and past, rate we've it, areas. an strong incredible Climate you could had to growth tend drill alluded in contribution I Yes. And quarter I a the to meaningful most alluded there But within a more and and the the would year for the be making to, you very overall at that you when to us. underscore to product is grow fourth And segment. think into ESG overall. and this, climate strong continues this

is some that so momentum. is And helping fuel something to that

at that, finer is a million $XX and segment, put of and to of to run point on close Just million is that within the $XX growing climate XX%. actually the Climate rate ESG

So of that's drive we've the helping seen. momentum some to

many alluded of serving range growth and ESG range are a wide Henry to use earlier, climate cases. layers across wide in objectives solutions and dimensions As of and various of there a

more are ESG buying And continues evolve. we're result, around decisions. their in seeing to in a integrate as to thinking that regulations to The And the evolve. how continue investors spots being measured

of that in element some that. to contribute the to. is market and all the those And to There's climate based likely and so backdrop is alluded helping some that I fact pace I on that think element to are there ESG up sales dimensions of of fluctuate the down

last will a highlight reasons, healthy those quarter-to-quarter. growth that of the you I demand. would within we we the it, were that, those successfully to think asked sales could from some about close dynamic little Overall, slip But bit we a had dynamic the to and for growth EMEA. call, continue those, because little strong strength sales and see on able we and third did a very of we rate the alluded be lot bit be we that to quarter see particular

of our with overall very, fluctuate be and over It's time. engagement very overall, I encouraged that to those about products. some very speaks we clients. continue up think just a that for to But the just demand and down dynamics will discussion the dynamic

Understood. relates And maybe follow-up what's expense on, guide free to is bit cash expecting shares. assuming higher Thank back little debt guide flow curious I in just allocation. capital higher Or allocation? if think buy then embedded to your a Are capital it of sort I interest a I I'm than was you're as guess, anticipating. incur - And you. you to your

Yes.

So A. driving assume our thing financings floating does the any interest is slightly interest for One not loan rate expense that year. incremental expense the guidance the is higher term

million $XXX a which floating rate. we So is loan have A, term

for so rate And into which some rates we year, of have increases expense guidance. and the factors interest expectation do higher that

embedded what's say, capital So to no to approach I'd our guidance. But that's our in broadly, more allocation. change

the of overall market financing rate We are mindful market. and

capital. think our to the And position continue so market. starts leverage not be raise do over rates in front be as MP&A look now, well the as opportunities we down, a to in as But where right very we come in opportunistic repurchase to if on will, to a that. strong we're to capital continues for are volatility on we're given rush there front the And to time,

so Thank you Great. much.

ahead. please have Partners. Research Craig, question from from We Craig Huber Huber a go

is that subscription client maybe Obviously, But about indexes. cycle? business a Great, thank your extremely sales cycles the you're a in there recurring numbers continue if you little there. positive on to little I be the part there to pipeline you. sales wanted if just focus less the your feeling sales further, strong talk could, there, I we first particularly anything budgets? would, about mean, stuff, of

say actually our the line. asset very we've subscription owners having It's and like point, would constructive revenue on I with index the remarkable segments more been encouraging the within index that established strength quite business managers. where to been subscription seen discussions we client you've backdrop, have given asset Yes. your

that we've growth seen alluded mentioned strong hedge that with that quite engagement within I I to saw And subscription broker-dealers, to. XX%, saw we healthy. run dialogue and segment wealth rate is also we of elevated continue managers, growth where - see And funds, which

product Similarly, within momentum standpoint, lens our from having cap modules. a are market we strong

we growth modules had non-market market saw that. some about our to subscription cap relative our XX% cap in outsized growth run So rate. of within modules strong actually And of

with And not a high-growth dialogue so momentum. more healthy seen clients. it's existing we've the newer doing board, only And for and these but across segments

although And we that of so to we this shorter are segment the environment, a impact at conscious lot have point, cycle. sales tends from index seen a haven't the

could very, impact. very there so right be a But it's overall And dialogue. now, healthy some

talked you analytics you a lot question. enhancement made My guys Great. about products. the in the follow-up

the of guys fixed area, are So hear you income please? the within on investor further is you the in things, - I'd like to fixed really side there, focused on to what income spending do were

Sure.

everything effort go fixed names it's had where a income individual doing, clearly, has we're can't been not this we last we here wins that have look, multiyear clearly do. some where in quarters. because into continuously client we we've So what important And improved the on few

done think, ones become kind I significant hope which hopefully should for they inflection in deals But get have really if we a we some those a at deals can pretty are a in have virtuous circle. we our few really the and this and positive we're, important knock-on pipeline, of where point effects credibility then them of asset class

today income. doing have teams, than people felt never across that, say we're about would fixed positive what in I So more the

of the over progress should we win income some serious this coming of and know, boat. and this fixed be that a course I've tanker really you our As got in that thing. I This starting think analytics. for speed year, lot a to to has has more to during been a hope, good believing really able show than fast of fixed grounds oil not making an But been so, we're I pretty income investors

in one I thing. think don't So it's short,

a asset classes analytics. income, I think it's different fixed various in sub of compound over types

the to income. a year XXXX have fixed I for board. doing a we're in place across And think So it's what really great strong we're in do

Thank Great. you.

Partners. Redburn comes Quelch question from from Russell go please Our next Russell, ahead

thank Yes, you gen.

business heighten it back come you growth know driven exactly in the analytic already, it pricing? pin to Is last it what's the couple quarters? can is to but products? comments the existing you've start, tech wanted of to to to this products? few made enhancements down Just a I Is new

as decided if I in to in flattering in booked ESG allocation, there's and it climate is shift kind to cyclical analytics of to, climate-related want segment? analytics? the So just to of get no bit or And product how get that, this does a get or sense is structural a just growth. trying revenues I'm growth which the check, been revenue linked the

And product along they have One make we been we're line, three continued in dramatically growth the the that so different Baer towards. portfolio mentioning. Look, office front analytics equity analytics fixed areas some, on on elements lines pivoting the hub what in and core strategy. growth were and of income progress are before. analytics their than enterprise there, is risk are the the The not was work rates is And but we the revamping performance. some good portfolio

Those high growth us. for areas are

whole with of insights which we more Second third risk And We a the and launched area, is Lab Enterprise. protocol the content. a just bunch is like. launched products, climate Climate

And so, of central those pivots the is will we're I acceleration which continues but that three come the hoping of mentioned. run that rate, the growth from reasonable risk, at pace, the XX% a grow to

our and no run ESG There of have ESG and reporting Climate are some analytics not there. there's the Those showing ESG tools those the segment from Enterprise analytics of shifting. and are segment. that Russell, capabilities, tools climate but rate Lab some up in that And are climate our focus like always are to shifting been

on the previous notably just basis again versus was thank you. okay to follow-up, then business Index point AUM wondering, lagged stays QX? effect QX just QX in the that in fee that expect AUM And that a in should fall short quarters? higher in Is as a we Okay, to lower AUM the X.XX. charge from up as I'm

it of fee I by flows out products. impacted was Yes, say lower would

to I underscore the a positive over was there steadiness Despite the expect as seen want that impact well. adjustment impact. that a over that saw to you've do fee mix average points basis gradually small So time. the from very We year, do continue last to we decline

about do years assets down we seen to we've time. front. ETF to the it, XX But to eight fees the bullish call we a the or As over rate so, gradually continue faster do increase expect and last, in over expect come at although growth growth the be to

much. so thanks it, Got

from ahead. please Paribas. We have a Greg, from Greg BNP question Simpson go

Hi, thank you.

similar increases you quarter. subscription your in mentioned impression increasing or price you're the Do history? fourth more some you in you new get sales competitors compares color less think versus that being and around firm-wide to the this I to some Index XX% Could of of or pricing ESG? provide XX% how

to about have what I I to would The we say we past. that, generally from from and don't XX% we've we competitors in contribution those pricing higher increasing our Index, XX% are yes. subscription Index on doing. Sure the contribution want that within sales what seeing than are But in seen in the prices the new five-plus base comment are more past. the recent subscription price points yes, the plus than percentage increases, are across

And price the value in focused I on increases. past. delivering we heavily with so more price yes, it than together that has in the - underscore are our contributing would increases, is just are we price

clients, continuing to enhance we're they deliver client service that getting. so the functionality our the And the overall are capabilities, to and content we the that

the We do in and overall recognize we increasing more are in from constructive past. cost a pricing environment, we given that But it we than existing the come going to our fashion. prices want growth and to is have do environment heavily our clients

estate Great, quickly real the And just thank on you. then business.

there is And a out New anything RCA backdrop year-over-year. estate? to for more sales maybe down since in were what how acquisition? particular real Is in call broadly, progressing trickier your is

the Yes, I of in of services getting Investors, mean a in would - understanding and is which what focused message particular, portfolios. of a interest. progressing the and seen some on traction to our things lot what their is past, portfolio well similar are are our that I performance its in risk highlight the the segment. lot are we've in driving

so, And engagement there. strong seeing we're

business transaction space. RCA and of data some aspects data RCA part have have do pressure your There the we in are the we the the as used of are to real from transactions volumes across estate including in data, we see that a side, and the the point. space, that slowdown seen the On backdrop,

XX% quite there. there backdrop an think in continue But to be some estate pretty you space, still growth rate given at are environmental real the we going can see and on the the good, the but impacts about on we overall is basis organic encouraged long-term opportunity

you. Thank

And Clinch Atlantic we question ahead. go please from Simon, have Simon a Equities. from

risk. question. And about here times it on, taking to should perspectives, the and have? the we get larger a growth in your your opportunity everyone still how for the options just I see to you'll in they're of I mean today imagine guess, quite that's business. opportunity desirable Hi, think overall Thanks. thanks futures context structural for I small thing I the which during the benefits that? Index wanted of line, is, my relatively more the Obviously, diversified please

managers, there the are to of management; all large legs three Yes, the what subscription is And the successful fees business; passive the that licensing active leg proper third active business, any passive any to products. derivative so of of we charge call the fees some both and Index into we funds. the or charge owning or sorts ETF we mutual managers, institutional in indices that

investment them such swaps unlisted as structured are and banks are and that futures options, lifted and of products Some options make. some and like them of

runway and and futures We listed comment third is you and are see continue grow What there's leg. that building very, the lot in for intent that still on a on to us of to very focused we new options, products. and

focused a to are front, come on options new pushing lot and that initiatives more our have listed futures. now of listed We in franchise We're on that.

don't forms are of still earlier you the structured And ground achieve and other it. there us hear we where derivatives. there's those often, today is - while the And and on products can growing OTC although were nicely, very floor that this, the comments is

of just And useful. sense then environment just have you And changing? of just acquisitions, really could for give us I that's guess, M&A rapidly a lastly, the bolt-on ahead guess, a how I on give Okay, that's and the thus, opportunities you? us of sense you

Yes, yes.

contrarian are So and listen, the you repurchase you opportunistic. know we an be - this organization that likes front, on to see and

environments, these opportunities potentially to acquire there wouldn't are in companies that available. otherwise so be And

past. in expensive we companies They're tougher is capital so, early-stage finding seeing that some more to find growth growth was the need are the capital. that And or it than

open so result, as instances. even partnerships, are they in a certain to investments, acquisitions And

be broader they helping talked like so, for areas key data income, And those capabilities. can technology instrumental those in very that opportunities and climate, being proactive in we're our in looking to assets, think in ESG, areas focus opportunities accelerate we've about strategic private fixed and

So yes, it's an now. intense focus for us right

question-and-answer session. Please conference This ahead. to you. like and CEO, I our turn over Thank Mr. would MSCI's concludes to the back Henry Chairman Fernandez. go

everyone, you, for thank Well, joining.

for As to our strong see commentary, in demand you can our we continue solutions. hear

very excited ahead and us We leader. especially invest are and we growth and the with profitability climate, momentum, such in become large the opportunities areas of you, company. are undisputed like growth dialogue preserve where determined everyone, to you. continued this continue forward that we of a enhance about significantly all to We're to in in Thank look

presentation. has attending concluded. Thank you today's conference for you. Thank now The

You disconnect. may now