(Reuters) - Index provider MSCI on Tuesday reported a rise in its third-quarter profit helped by robust demand for its products and services.
WHY IT'S IMPORTANT
The Federal Reserve's recent decision to cut the benchmark interest rate for the first time in four years has encouraged investors to increase spending on risk-hedging and research products.
The anticipation of further rate cuts, which has fueled a market rally, has also boosted demand for data and products from companies like MSCI.
KEY QUOTE
"We posted our best-ever Q3 for recurring sales in Index and Analytics, along with nearly 20% growth in asset-based-fee revenue, which was driven by record AUM balances in financial products linked to our indexes," CEO Henry Fernandez said.
BY THE NUMBERS
Total recurring subscriptions revenue for the third quarter rose 15.4% to $536.6 million, while its index segment total operating revenue gained nearly 12% to $404.9 million.
On an adjusted basis, MSCI earned $3.86 per share, an 11.9% increase from $3.45 a share in the previous year.