The US finance company and global index provider led by Henry Fernandez (pictured) delivered a ‘robust’ performance in Q4 2020 as its revenues increased by nine percent year-on-year.

MSCI reported operating revenues of US$443.7m for the fourth quarter of 2020, up 9.1% from the prior year quarter.

Assets in equity exchange-traded funds (ETFs) linked to MSCI indices surged past US$1 trillion for the first time, registering at US$1.1 trillion on 31 December 2020, compared to US$934.4 billion at year-end 2019.

Some 169 structured products with estimated sales of US$525m were linked to ETFs on MSCI indices in Q4 2020, according to SRP data. The vast majority were issued in the US, which registered 143 products worth US$453.8m on such ETFs, of which structures on the iShares MSCI Emerging Markets ETF (US$293.85 from 69 products) and iShares MSCI EAFE ETF (US$165.14m from 64 products) collected the highest sales. They were followed, at some distance by iShares Core MSCI Emerging Markets ETF (US$7.43m from three products), iShares MSCI Brazil ETF (US$4.44m from 17 products), and iShares MSCI EAFE Small-Cap ETF (US$2.39m from one product).

In Mexico, 10 products with combined sales of US$38.8m were tied to ETFs on MSCI indices, including iShares MSCI China ETF, iShares MSCI Turkey ETF, and iShares MSCI Germany ETF, while 11 products (US$23.2m) were targeted at investors in Brazil. The latter included six structures on the iShares MSCI KLD 400 Social ETF that were distributed via XP Investimentos.

A further 155 products across eight different jurisdictions were linked to MSCI indices. Once again the bulk of the volumes, at US$493.1, was accumulated from 129 products issued in the US market, where the MSCI Emerging Markets and the MSCI EAFE were the standout indices, collecting US$352.6m (from 70 products) and US$140.31 (from 59 products), respectively.

Asset-based fees growth of 15.8% reflected increases in revenues from ETFs linked to MSCI indices, from exchange-traded futures and options contracts linked to MSCI indices and from non-ETF indexed funds linked to MSCI indices. The increase in revenues from ETFs linked to MSCI indexes was driven by a 15% increase in average assets under management (AUM) in equity ETFs linked to MSCI indices, partially offset by lower fees resulting from the impact of changes in product mix.

Index operating revenues for fourth quarter 2020 were US$268.6m, up 10.5%. The US$25.5m increase was primarily driven by US$14.8m in higher asset-based fees and $11.0 million in higher recurring subscription revenues. The increase in recurring subscription revenues primarily reflected growth in market cap-weighted products.

Total index net sales in the three months ending 31 December 2020 stood at US$30.3m compared to US$25.4m in the prior year period. Index net sales in full year 2020 registered at US$99.5m (FY2019: US$86.8m).

Click the link to view the MSCI fourth quarter and full year 2020 results.