Alex Kram

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.