MSCI (MSCI) Bernstein 42nd Annual Strategic Decisions Conference summary

Growth drivers and industry trends

• Growth acceleration since Q3 2025 is fueled by new product development and industry shifts toward systematic investing, indexation, custom indexing, and private asset investing.

• Index subscription run rate growth has exceeded 10%, driven by custom indexes and systematic investing trends.

• Private assets and PCS segments are seeing early but accelerating momentum, with clients seeking better risk and performance measurement.

• Significant growth in hedge funds, trading firms, and broker-dealers, supported by tailored tools and innovations.

• New products are contributing a higher percentage of overall sales, with AI accelerating product development and reducing costs.

AI implementation and impact

• AI is integrated across all workflows, with every employee trained and mandated to use AI tools to reinvent daily processes.

• AI enhances efficiency in data ingestion, analytics, and product delivery, lowering operational costs and enabling reinvestment in innovation.

• AI-powered offerings like IndexAI Insights and Basket Builder provide clients with deeper, more accessible insights and custom solutions.

• AI enables rapid extraction and standardization of private credit data, geospatial analysis, and creation of new, AI-native investment tools.

• Margin improvements from AI are reinvested into growth and innovation rather than passed directly to the bottom line.

Capital allocation and acquisitions

• Capital allocation remains focused on organic growth, with share repurchases and targeted bolt-on acquisitions as accelerants.

• Acquisitions are aimed at reinforcing the core franchise, especially in custom index, digital asset indexes, and private market data.

• Recent acquisitions include Compass (digital asset indexes), PM Insights (private market pricing), and Vantager (AI-native pre-investment analysis).

• Financial discipline is emphasized, with acquisitions required to reinforce competitive advantages and generate attractive returns.