Financial Data and Key Metrics Changes - MSCI reported organic revenue growth of 9%, adjusted EBITDA growth of 10%, and adjusted earnings per share growth of over 15% in Q3 2025 [6] - The company repurchased $1.25 billion worth of shares in Q3, bringing year-to-date repurchases to over $1.5 billion, with an additional $3 billion authorized for future repurchases [6] Business Line Data and Key Metrics Changes - The Index franchise achieved recurrent net new subscription sales growth of 27%, with 43% growth in the Americas [7] - Total AUM in investment products linked to MSCI indices reached $6.4 trillion, including $2.2 trillion in ETFs and $4.2 trillion in non-ETFs [7] - Analytics saw recurrent net new sales growth of 16%, driven by strong adoption of risk tools and equity models by hedge funds [8] - Subscription run rate growth was 9% for asset owners, 11% for wealth managers, and 9% for banks and broker dealers [10][12][14] Market Data and Key Metrics Changes - MSCI's ETF run rate hit a record high of nearly $800 million, driven by record AUM levels in both ETF and non-ETF products linked to MSCI indices [6][7] - Equity ETFs linked to MSCI indexes captured $46 billion of inflows during Q3 [17] Company Strategy and Development Direction - MSCI is focusing on expanding its presence in newer client segments while deepening penetration in established segments [9] - The company is leveraging AI to enhance existing products and develop new capabilities, aiming to unlock significant value for clients and shareholders [9][41] - MSCI is committed to becoming a leading provider of transparency tools in the private credit space, with a focus on innovation and product development [25][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term opportunities and growth potential from recent innovations and investments [16] - The company is optimistic about the recovery of the active asset management industry and aims to help clients develop new products [31][60] - Management acknowledged challenges in the sustainability and climate segment but emphasized ongoing efforts to monetize climate-related indices [53][55] Other Important Information - MSCI launched a Private Credit Factor Model and a new global taxonomy for private assets, enhancing transparency and standardization in private markets [8][9] - The retention rate for sustainability and climate solutions was nearly 94%, reflecting the essential nature of MSCI's tools [20] Q&A Session Summary Question: Strategy around private credit - Management is bullish on private credit, emphasizing the need for transparency tools and credit assessments to attract institutional capital [24][25][28] Question: New products and marketing efforts - The strategy includes helping the active asset management industry create new products, particularly in the active ETF space [31][60] Question: AI opportunities and cost savings - AI is expected to dramatically increase margins by enabling faster product development and reducing operational costs [63][64] Question: Pipeline and sales cycle for Q4 - The overall environment is stable, with a healthy product pipeline supporting strong client engagement [46][48] Question: Non-ETF and fixed income business performance - Non-ETF revenue growth can be affected by lumpiness, while fixed income AUM is around $90 billion, with ongoing focus on innovation [52][55] Question: Active ETFs economics and competitive advantages - Active ETFs are seen as a new revenue opportunity, with significant growth potential without cannibalizing existing business [58][60] Question: Competitive moat against new entrants - MSCI's proprietary data and trusted reputation create significant barriers to entry for potential competitors [72][75] Question: Performance of net new sales in EMEA - There was a decline in net new sales in EMEA, with ongoing product innovation aimed at addressing client needs [78]