Fundsmith 13F: Cuts MSCI Stake by $61M

Fundsmith dramatically scaled back its investment in MSCI Inc. (NYSE: MSCI) during the first half of the year. According to its latest Form 13F filing with the SEC for the period ending May 15, 2026, the London-based investment firm trimmed its stake by 61.12%, selling 101,831 shares of the financial data and index provider.

This major reduction leaves Fundsmith with 64,788 shares of MSCI, down from its previous holding of 166,619 shares. The remaining stake is valued at approximately $38.82 million. It is worth noting that 13F filings are backward-looking and show holdings as of the end of the reporting period, meaning they might not reflect Fundsmith's current strategy today.

Other Institutional Moves in MSCI

While Fundsmith was backing away from the company, other prominent institutional investors were moving in the opposite direction. Just one day before Fundsmith's filing, on May 14, 2026, Generation Investment Management reported that it had significantly increased its own stake in MSCI. Generation added 274,917 shares, growing its position by 120.98% to build a much larger exposure to the index provider.

MSCI Stock Trades Near Its 50-Day Moving Average

On Saturday, MSCI stock closed near $599.12. The stock has been trading comfortably above its 50-day moving average of $570.86 and its 200-day moving average of $572.67. Over the last year, the stock has traded as low as $501.08 and as high as $644.77, putting the current price closer to the top end of its 52-week range. The company currently trades at a price-to-earnings (P/E) ratio of 30.54.

Recent Earnings and Profit Margins

MSCI remains highly profitable, supported by strong recurring revenue from its subscription-based tools. The company reported annual revenue of $3.33 billion, representing 12.2% year-over-year growth. The firm maintains an exceptionally high net margin of 40.74% and an earnings per share (EPS) of $18.30. Investors are looking forward to the next earnings release, scheduled for October 20, 2026.

MSCI's Dividend and Payout Ratio

Beyond share price appreciation, MSCI offers regular income to its shareholders. The company pays an annual dividend rate of $8.20 per share, which translates to a dividend yield of 1.48%. This payout is supported by a healthy dividend payout ratio of 42.10%, showing the company retains plenty of earnings to fund its future growth and research.

Wall Street Analysts Maintain Bullish Targets on MSCI

Wall Street analysts remain largely optimistic about MSCI's prospects. On October 14, 2026, JP Morgan maintained its Overweight rating on the stock with a price target of $685. A day earlier, on October 13, 2026, Morgan Stanley also kept its Overweight rating, setting a price target of $662. Earlier in the summer, Jefferies initiated coverage on July 17, 2026, with a Buy rating and a $760 price target. Across 17 analyst opinions, the consensus price target stands at $692.06, suggesting upside from recent trading levels.

Behind the Business of MSCI

MSCI provides critical research, data, analytics, and stock market indexes to institutional investors around the world. Its indexes are widely used as benchmarks for exchange-traded funds (ETFs) and mutual funds, making the company a central player in the global investment ecosystem.

What to Watch at MSCI

Keep an eye on MSCI's upcoming earnings report on October 20, 2026, to see if the company can maintain its double-digit revenue growth. While Fundsmith's sharp reduction is notable, investors should remember that 13F filings represent a snapshot in time and may not reflect recent portfolio changes.