MSCI Inc. (NYSE:MSCI) Q1 2023 Earnings Call Transcript

Baer Pettit: Sure. So look, we are actively – have quite a few projects going in AI across everything from client service, where we think it has great applications in reading our enormous amounts of methodology books and complex formulas and etcetera and giving clear answers. We are working on it – with it in ESG and all of the data applications that can go there. I mean there is a whole list of it, but we are extremely focused on it. And we would love to tell you more clearly in a slightly different context, but we are definitely very focused on the use of AI across the business.

Greg Simpson: Great. Thank you. And it seems like fixed income is an asset class that you are seeing a lot more interest from investors in this higher rate environment. I think you got $79 million in run rate. Can you just talk about which parts of MSCI that comes into? And are there opportunities to add more scale here since it’s growing past its relatively small part of your total business?

Baer Pettit: Yes, for sure. So, it’s both a very important part in our analytics story, both on a standalone basis and as part of multi-asset class risk. And we are really doing a lot of innovation in index. We are clearly starting from a tiny base, but we have got some really exciting things going on there related to ESG and climate, relating to liquidity. I am actually seeing a client this evening for dinner related to some credit and fixed income opportunities. So, we think it’s an area where people are very excited to see us bringing things forward, and I think it will be important part of our growth story going forward.

Greg Simpson: Alright. Thank you.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Henry Fernandez for any closing remarks.

Henry Fernandez: Thank you for joining us this morning. As you heard us say, our all-weather franchise continued to perform well in this challenging operating environment. These are times when companies differentiate themselves, these are times of opportunity, sometimes more than risk. And that’s what we are fully intending to capitalize on, and we will be more than happy to keep you abreast of all of that in future calls. Thank you very much again and have a great day.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may all now disconnect.