Client RelationsMSCI expects tight budgets and elevated cancels to continue in 4Q, though retention rates are expected to be down not as much as -120bp reported in 3Q.
Market ChallengesIf the market environment remains challenging and client budgets do not improve, there is a risk of lower demand for MSCI’s subscription-based products.
Regulatory RisksPotential actions against ESG investing by Trump/GOP could lead to increased U.S. sustainable fund outflows, creating more headwinds for MSCI.