MSCI ( MSCI Quick Quote MSCI - Free Report) recently announced the launch of Risk Insights, the first module of its new analytics platforms MSCI Insights. The platform offers varied risk measures to help investors identify market trends and respond accordingly to the rapidly-increasing volatile market.
MSCI Risk Insights aids institutional investors access index data, Environmental, Social and Governance data and climate data modules. Additional modules of MSCI Insights are slated to release in the fourth quarter of 2022 and in 2023.
The current global macro-economic situation made financial markets extremely volatile, inducing difficulty in decision-making processes for investors and traders. To address this issue, MSCI Risk Insights is utilizing automation and cloud solutions to automate various reporting tasks performed manually by analysts. This, in turn, helps investors understand the risk levels looming on their portfolios and effectively mitigate those.
MSCI’s recent decision to build the Risk Insights Module helps it remain competitive by providing enhanced analytics products, which will make its services stand out from its rivals.
MSCI Expands Analytics Platform Offering to Offset Competition
MSCI is facing acute competition from many industry participants who are providing one or more indexes and analytics platforms in similar categories. Some of the major competitors of MSCI are
S&P Global ( SPGI Quick Quote SPGI - Free Report) , BlackRock Solutions, Bloomberg Finance and Qontigo.
Many major investment banks and large broker-dealers developed their own proprietary analytics tools for their traders, which are mandatory for them to use to lower risks and run specific trading strategies.
MSCI’s primary rival in the index business segment, S&P Global, collaborated with CME Group to form S&P Dow Jones Indices, which contends with MSCI to capture a significant market share. It is used by retail investors and big institutional traders alike.
S&P Global is a leading provider of transparent and independent ratings, benchmarks, analytics and data for the capital and commodity markets worldwide. SPGI is continuously benefiting from rising demand among investors for its analytics solutions owing to constant expansion of data volume.
To fend off rising competition, MSCI is offering new varied analytics solutions through cloud delivery. This will provide institutional investors with a plethora of risk-reducing solutions through its MSCI Insights platform. MSCI is expected to launch two risk analytics models in the second half of 2022.
To offer investors its analytics solutions via cloud, MSCI formed strategic partnerships with companies like
Snowflake ( SNOW Quick Quote SNOW - Free Report) and MarketAxess ( MKTX Quick Quote MKTX - Free Report) .
MSCI is leveraging Snowflake’s Data Cloud as a third-party partner to help provide MSCI’s MSCI Equity Factor Models. SNOW is also helping MSCI with its client-onboarding process.
MSCI also entered into a strategic collaboration with MarketAxess to create portfolio analytics solutions and co-branded fixed income indexes.
Strategic alliances are helping MSCI deliver growth in robust analytics business solutions. In the second quarter of 2022, net new sales of its analytics platform increased 68% year over year, driven by equity factor models and risk-management solutions.
For the third quarter of 2022, the Zacks Consensus Estimate for sales is pegged at $564.17 million, indicating 9.21% growth from the year-ago reported figure.
MSCI currently carries a Zacks Rank #3 (Hold). The stock has fallen 19.8% in the year-to-date period compared with the Zacks
Business - Software Services industry decline of 31.1%. You can see . the complete list of today's Zacks #1 Rank (Strong Buy) stocks here