MSCI (MSCI) Bernstein 41st Annual Strategic Decisions Conference 2025 summary

Key growth drivers and industry trends

• Personalized, systematic portfolios and indexation are fueling demand for index products, with strong growth in hedge funds (22%), wealth managers (16%), asset owners (10%), and broker-dealers (11%).

• Custom indexes, new content sets, and expansion into fixed income and additional asset classes are opening new opportunities for double-digit growth.

• Upselling and cross-selling to existing clients, rather than aggressive price hikes, are central to the growth strategy, with pricing increases tied to added value and client health.

• The shift from active to passive investing continues, with indexed assets now around 50% of global equity assets, and further growth expected, especially in Europe and Asia.

• Custom indexes, including climate and factor-based products, are a major growth area, with non-market cap, non-ETF mandates growing at 37% in Q1, often commanding higher fees.

Market dynamics and competitive landscape

• Market share remains strong, especially in institutional and international mandates, with healthy capture in new ETF launches, particularly in Europe.

• The competitive landscape for custom indexes is broad, including major index providers, broker-dealers, and low-cost providers, but the focus is on institutional-grade, value-added solutions.

• Custom index products require more intensive setup but offer attractive margins and higher pricing compared to standard market cap products.

• Active ETFs are a neutral revenue event when assets shift from mutual funds, but broader adoption can drive upselling opportunities.

Product innovation and strategic focus

• Fixed income analytics and indexes are a strategic focus, with investments in analytics driving growth and credibility for differentiated fixed income index offerings.

• Analytics growth is driven by fixed income, equity risk models, and integration with platforms like Snowflake, with multi-strat hedge funds as key clients.

• ESG and sustainability remain critical, especially in Europe, despite regulatory uncertainty; the focus is on financial materiality and helping clients navigate evolving standards.

• Private assets represent a long-term growth opportunity, leveraging unique data sets and developing tools for risk, liquidity, and performance analysis.