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  "documentTitle": "MSCI Inc. (MSCI)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2024-01-17 00:00:00",
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  "notes": "The slide uses a combination of a line chart for market share trends and a table for revenue growth comparison to illustrate the competitive threat to MSCI's primary client.",
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      "text": "MSCI's biggest customer is BlackRock at ~10% of revenue with ~95% coming from fees based on assets in BlackRock's ETFs based on MSCI indices.",
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      "text": "ETF US Market Share",
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      "text": "MSCI's biggest customer is BlackRock at ~10% of revenue with ~95% coming from fees based on assets in BlackRock's ETFs based on MSCI indices. BlackRock has been steadily losing share in the ETF market, specifically in the U.S. where Vanguard has marketed ultra low-cost ETFs. In years past, Vanguard moved its target benchmarks away from MSCI. Market observers expect Vanguard to ultimately be the market share leader within a few years while other ETF providers outside of Vanguard and BlackRock grow at an unprecedented rate. BlackRock's global head of iShares and index investments Salim Ramji recently departed.",
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      "text": "And while BlackRock and Vanguard still make up the bulk of all ETF assets, an unprecedented 45% of the new money flowing into the industry this year has gone to issuers outside of the big two, Bloomberg Intelligence data show.",
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      "text": "That setup has enabled Vanguard to charge clients next to nothing across its largely passive ETF lineup, sucking in hundreds of billions of dollars of inflows per year and fueling an almost-continuous fee war as issuers big and small slash costs to compete.",
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      "text": "And while BlackRock and Vanguard still make up the bulk of all ETF assets, an unprecedented 45% of the new money flowing into the industry this year has gone to issuers outside of the big two, Bloomberg Intelligence data show. — Bloomberg Intelligence",
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      "kind": "source-note",
      "text": "Source: Bloomberg Intelligence; 2023 figure as of Dec. 11. Source: \"Vanguard Is Closer Than Ever to Ending BlackRock's ETF Reign,\" Bloomberg, Dec 13, 2023; \"Blackrock names Cohen, Lord to Top Posts, Ramji to Step Down\", Yahoo!Finance, Jan 12, 2023. Source: MSCI 10-K and Proxy Statement. 1) MSCI said in November 2022 these two clients represent 75% of ETF fees.",
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      "text": "BlackRock and Vanguard Revenues",
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      "text": "MSCI's Largest ETF Client Keeps Losing Market Share And Replaced Its Leader",
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