Alex Kram

Alex Kram requested more specific details on the 2026 services guidance, including organic and non-organic components, and highlighted areas of excitement within the services segment, such as project management.

Answer

CFO Neil Johnston reiterated that service line growth trends for 2026 are expected to be very similar to 2025, with 6% organic growth in 2025 and expectations for mid- to high-single-digit growth. He noted strong momentum from new wins, particularly in project management outside the U.S., and a growing pipeline in asset services. Regarding a follow-up on margins, Neil Johnston stated that most heavy lifting on the cost side is done, but cost discipline is maintained, with the primary focus now on profitable growth.

Alex Kram requested more specific details on the services side of the 2026 guidance, including organic growth and areas of excitement, and subsequently asked about the biggest areas of investment and the status of efficiency efforts on the margin side.

Answer

CFO Neil Johnston reiterated that service line growth trends for 2026 are expected to be similar to 2025, with services achieving 6% organic growth in 2025 and projected mid-to-high single-digit growth. He highlighted strong momentum in project management, especially outside the U.S., and a growing pipeline in asset services. Johnston added that most heavy lifting on the cost side is complete, but cost discipline is maintained, with the primary focus now on profitable growth.

Alex Kram inquired about the financial implications and pipeline behind Broadridge's success in the proxy advisory space, specifically mentioning J.P. Morgan and Wells Fargo, and the potential TAM and ramp-up speed for this opportunity.

Answer

CEO Tim Gokey stated that the collective opportunity in shareholder engagement, including the custom policy engine and vote execution, represents a multi-hundred million dollar market. He believes it could add as much as a point of growth to the governance business over the next few years by increasing revenue per position. He described it as the 'next generation of shareholder engagement,' deepening Broadridge's role by addressing industry issues like concerns about proxy advisory firms, concentration of power with passive asset managers, and lower retail participation.

Alex Kram inquired about MSCI's recent actions in expanding into new client segments, new product introductions, and the expected timeline for these initiatives to materially impact results.

Answer

Henry Fernandez (Chairman and CEO, MSCI) outlined a two-pronged strategy: helping active asset managers create new products (e.g., active ETFs like the Goldman Sachs private equity tracker fund) and expanding into segments like hedge funds, market makers, broker-dealers, asset owners (Private Capital Solutions), and wealth managers, leveraging AI and new product development to solve client problems.

Alex Kram inquired about MSCI's efforts to expand into new client segments beyond traditional asset managers, focusing on recent product innovations, marketing and sales strategies, and the expected timeline for these initiatives to materially impact financial results.

Answer

Henry Fernandez, Chairman and CEO, MSCI, outlined a two-pronged strategy: helping active asset managers create new products (e.g., active ETFs) and expanding into other client segments like hedge funds, market makers, broker-dealers, asset owners, and wealth managers. He cited examples like the Goldman Sachs Asset Management Private Equity Tracker Fund and increased focus on Private Capital Solutions (PCS) for asset owners. He expressed optimism that new solutions would drive growth despite challenging market budgets.