{ "docId": "019dd923-622c-750b-8b99-781d6376c0a8", "docSlug": "9250edf61831", "documentTitle": "MSCI Inc. (MSCI)", "authorId": "54_Spruce_Point_Capital", "authorName": "Spruce Point Capital Management", "documentKindSlug": "activist-deck", "documentKindLabel": "Activist deck", "sourceTypeSlug": "short_seller", "sourceTypeLabel": "Short seller", "presentationDate": "2024-01-17 00:00:00", "orientation": "landscape", "aspectRatio": 1.3333334, "pageNumber": 36, "pageCount": 123, "prevPage": 35, "nextPage": 37, "slideType": "testimonial", "function": "expose_contradiction", "density": "dense", "nDataPoints": 0, "notes": "The slide uses a Q&A format to present qualitative evidence of business maturity and client friction.", "elementsJson": [ "headline_text", "callout_box", "comparison_table" ], "metadataConfidence": 1, "imagePath": null, "slideHref": "/slides/019dd923-622c-750b-8b99-781d6376c0a8/36", "deckHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8", "deckJsonHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8.json", "deckAnchorHref": "/decks/019dd923-622c-750b-8b99-781d6376c0a8#slide-36", "components": [ { "bbox": null, "kind": "callout", "text": "So I could hear and their challenges and obviously I am not an expert in that specific area, but they saturated the market pretty well and it was very, very hard to get really new customers.", "attrs": null, "subkind": null, "toolName": "Visual emphasis", "toolSlug": "visual-emphasis", "confidence": null, "componentId": "019dd953-1ac4-74a6-be23-15be8dbc9e46", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.96, "x": 0.02, "y": 0.17 }, "kind": "paragraph", "text": "Spruce Point asked a former employee who worked on the ESG side of the business, their impression of what is happening on the index side. MSCI sells ESG indices, so the former employee provided some insights from their interaction with the people from MSCI's Index segment.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "35d62004-8453-4367-ad56-c0f8286d862b", "frameworkName": null, "frameworkSlug": null }, { "bbox": null, "kind": "quote", "text": "Absolutely. So they've at some point invented the asset-based fees coming in business. I don't know they invented it or basically acquired this idea. And it helped tremendously growth in the index business because this is lumped into the index business and as the market grows, which typically the case, obviously it just gets integrated into the spy. On the index side, I worked very closely with, well was on the same floor both in New York and San Francisco with my index colleagues. So I could hear and their challenges and obviously I am not an expert in that specific area, but they saturated the market pretty well and it was very, very hard to get really new customers. A lot of work that's been done on that side was on raising fees and as you can imagine, it's not a very pleasant conversation with all of the clients. — Former MSCI Employee", "attrs": null, "subkind": null, "toolName": "Authority citation", "toolSlug": "authority-citation", "confidence": null, "componentId": "019dd953-1ac4-74a6-be23-1b77f0fd612a", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.02, "w": 0.2, "x": 0.02, "y": 0.97 }, "kind": "source-note", "text": "Source: Spruce Point Research Interview", "attrs": null, "subkind": null, "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6cf422cd-5261-454f-bd9c-41b7003a2688", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.55, "w": 0.96, "x": 0.02, "y": 0.34 }, "kind": "table", "text": "Question: Is your impression that that business is becoming any more challenging for them or mature? I mean did you get a sense from being there that the Company eventually sees some maturity or more difficulties on the index side of the business? Answer: Absolutely. So they've at some point invented the asset-based fees coming in business. I don't know they invented it or basically acquired this idea. And it helped tremendously growth in the index business because this is lumped into the index business and as the market grows, which typically the case, obviously it just gets integrated into the spy. On the index side, I worked very closely with, well was on the same floor both in New York and San Francisco with my index colleagues. So I could hear and their challenges and obviously I am not an expert in that specific area, but they saturated the market pretty well and it was very, very hard to get really new customers. A lot of work that's been done on that side was on raising fees and as you can imagine, it's not a very pleasant conversation with all of the clients.", "attrs": null, "subkind": "data", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "f7093477-bd27-4f4f-b264-35bd33d1ec30", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.08, "w": 0.5, "x": 0.33, "y": 0.03 }, "kind": "title", "text": "Spruce Point Research Interview On Index Challenges", "attrs": null, "subkind": "headline", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "6e37f5f4-a981-42ad-a889-b944357a6f59", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [], "frameworks": [], "arcBeats": [ { "to": 123, "from": 8, "beatId": "d662b123-aabd-40a9-9b1e-07f3af79864c", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Expose Contradiction", "beatSlug": null, "evidence": "Most slides aim to reveal contradictions or issues with MSCI's reporting, strategy, or performance.", "position": 0, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null }, { "to": 76, "from": 4, "beatId": "5c97492b-d3b4-46d9-8bf6-e685ece94ea2", "arcName": "Overcoming the Monster", "arcSlug": "overcoming-monster", "beatName": "Cite Precedent", "beatSlug": null, "evidence": "Spruce Point cites its track record and various precedents to support its claims.", "position": 1, "confidence": 0.8, "parentBeatName": null, "parentBeatSlug": null } ], "loops": [ { "to": 123, "from": 1, "name": "Cost Of Inaction", "slug": "27-cost-of-inaction", "bestFor": "Urgent budget requests, compliance, risk mitigation", "matchId": "96af0651-6de6-4b30-ba3b-77cee8001437", "evidence": "The loop is implicit, as the document builds a case for selling MSCI shares.", "position": 0, "objective": "Highlight the cost of inaction for investors not selling MSCI shares", "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point", "confidence": 0.7, "description": "Quantify what happens if the audience does nothing" }, { "to": 66, "from": 14, "name": "Iceberg", "slug": "10-iceberg", "bestFor": "Consulting, complex problem solving, organizational change", "matchId": "135dbc3a-3938-4134-b2a9-cd049699de43", "evidence": "The document uncovers potential issues beneath the surface of MSCI's deals.", "position": 1, "objective": "Reveal hidden issues with MSCI's acquisitions and alliances", "structure": "The Symptom (Visible) -> The System (Hidden) -> The Root Cause", "confidence": 0.6, "description": "Reveal that the visible problem is merely a symptom of a deeper root cause" } ], "imagePathAlt": null, "thumbSrc": null, "thumbSrcAlt": null, "locked": true }