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  "documentTitle": "MSCI Inc. (MSCI)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2024-01-17 00:00:00",
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  "notes": "The chart shows a clear downward trend in average fees from 2016 to Q3'23.",
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      "text": "Spruce Point believes that when customers cut fees, suppliers and partners are typically expected to make concessions. We observe that MSCI's fees linked to equity ETFs have been in perpetual decline with further risk to the downside over time.",
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      "kind": "chart",
      "text": "MSCI's Period-End Average Fee (bps) From AUM Linked To Equity ETFs",
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      "text": "Period-End Average Fee (bps): 2.51%",
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      "text": "MSCI reports AUM linked to MSCI equity indices along with the period-end fees in basis points. There is a fee war and BlackRock, which is losing market share notably in the U.S. is cutting fees. For example, recently in December 2022, BlackRock cut fees on eight ETFs, with the iShares MSCI Emerging Markets Multifactor ETF (EMGF) seeing the biggest expense-ratio cut from 0.45% to 0.25% basis points. BlackRock is ~17% of Index segment revenue. Spruce Point believes that when customers cut fees, suppliers and partners are typically expected to make concessions. We observe that MSCI's fees linked to equity ETFs have been in perpetual decline with further risk to the downside over time.",
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      "kind": "source-note",
      "text": "Source: MSCI Earnings Releases and Spruce Point analysis 1) “BlackRock Cuts Fees on 8 iShares ETFs,” Yahoo Finance",
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