富蘭克林資源 (BEN) 2019 Q2 法說會逐字稿

Good morning, and welcome to Franklin Resources Earnings Conference Call for the Quarter Ended March 31, 2019.

早安，歡迎參加富蘭克林資源公司（Franklin Resources）截至2019年3月31日季度的財報電話會議。

Statements made in this conference call regarding Franklin Resources Inc., which are not historical facts, are forward-looking statements within the meaning of Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from any future results expressed or implied by such forward-looking statements. These and other risks, uncertainties and other important factors are described in more detail in Franklin's recent filings with the Securities and Exchange Commission, including in the Risk Factors and MD&A sections of Franklin's most recent Form 10-K and 10-Q filings.

本次電話會議中關於富蘭克林資源公司（Franklin Resources Inc.）且非歷史事實之陳述，均屬於1995年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）所定義的前瞻性陳述。此等前瞻性陳述涉及若干已知與未知之風險、不確定性及其他重要因素，可能導致實際結果與該等前瞻性陳述所明示或暗示之任何未來結果存在重大差異。上述及其他風險、不確定性與其他重要因素，已在富蘭克林近期向美國證券交易委員會（SEC）提交之文件中更為詳盡地說明，包括富蘭克林最新Form 10-K與10-Q申報文件中的「風險因素」及「管理層討論與分析（MD&A）」章節。

Good morning. My name is Jessie and I'll be your call operator today. (Operator Instructions) As a reminder, this conference is being recorded.

早安。我叫Jessie，今天將擔任本次電話會議的接線員。（接線員指示）提醒各位，本次會議將被錄音。

At this time, I would like to turn the call over to Franklin Resources Chairman and CEO, Mr. Greg Johnson. Mr. Johnson, you may begin.

現在，我想把電話交給富蘭克林資源公司董事長兼執行長Greg Johnson先生。Johnson先生，您可以開始。

Good morning, and welcome to our second quarter earnings conference call. Joining me for his final earnings call as CFO is Ken Lewis. We also have Jenny Johnson, our President and Chief Operating Officer, with us today.

早安，歡迎參加我們第二季財報電話會議。與我一同出席、並作為財務長（CFO）參與最後一次財報電話會議的是Ken Lewis。今天我們也有總裁兼營運長Jenny Johnson與會。

Importantly, strong investment performance translated to better flows from many of our flagship funds. Retail sales and redemptions improved significantly, particularly for global fixed income that once again attracted inflows as did Franklin income.

重要的是，強勁的投資績效帶動我們多檔旗艦基金的資金流向改善。零售端的銷售與贖回明顯改善，尤其是全球固定收益再次吸引資金流入，Franklin Income亦同樣出現淨流入。

Earnings per share improved to $0.72, a 33% increase from last quarter. Higher investment income more than offset the initial impact of the cost structure optimization initiatives intended to increase operational efficiencies and streamline the organization.

每股盈餘提升至0.72美元，較上季增加33%。較高的投資收益，足以抵銷成本結構優化措施的初期影響；該等措施旨在提升營運效率並精簡組織。

We'd now like to open the line for your questions.

現在我們想開放電話線供各位提問。

(Operator Instructions) Our first question is from the line of Glenn Schorr with Evercore ISI.

（接線員指示）我們的第一個問題來自Evercore ISI的Glenn Schorr。

I'm curious to see what you think what's behind the lowest redemptions since 2011. Obviously the market got better and we're coming off a crap fourth quarter. Your performance is better. There is a lot of interesting things in there. But to be lowest level since 2011, I'm curious on how much environmental versus Franklin-specific. And are you doing anything to, obviously, bring that on in the retail channel?

我想了解您認為造成自2011年以來最低贖回量的原因是什麼。顯然市場變好了，而且我們是從一個很糟的第四季走出來。你們的績效也更好。裡面有很多有意思的因素。但贖回量能降到2011年以來最低，我想知道其中有多少是環境因素、又有多少是富蘭克林自身因素。另外，你們是否有做任何事情，來在零售通路上進一步推動這樣的改善？

Well, I think partly sometimes coming off a volatile quarter, it does slow down redemption activity. We've seen that in the past. But I think nothing else other than better performance comes to mind.

我想部分原因是，有時在經歷一個波動很大的季度之後，贖回活動確實會放緩。我們過去也看過這種情況。但除此之外，我能想到的就是績效變得更好。

And certainly the pickup and focus on some of the flagship funds where we've had larger redemptions and then had better performance, I'm sure has helped as well.

而且我們確實加強聚焦在一些旗艦基金上，這些基金先前贖回較多、但後來績效改善，我相信這也有所幫助。

And I'll just add that I think some of the investments we've made on adding talent to the distribution channels, we've seen upticks in our New York Stock Exchange channel and had some additional placements with gatekeepers and things and, most recently, hires in the private wealth and the SMA channels. So I think that that's probably also helping.

我再補充一下，我認為我們在通路端增聘人才的投資已見成效；我們在紐約證券交易所通路看到一些回升，也在把關人（gatekeepers）等方面取得更多上架／配置機會；最近也在私人財富與SMA（分別管理帳戶）通路進行招募。所以我認為這可能也在發揮作用。

And have we seen a slowing in the list consolidations that went on around the retail channel?

那我們是否看到零售通路中名單整併（list consolidations）的速度放緩？

You're still seeing some of that. I mean, obviously, is -- firms are rationalizing it, but we're also, in some cases, winning in those channels.

仍然有看到一些。我的意思是，顯然各家公司正在進行合理化，但同時我們在某些情況下也在那些通路中勝出。

Got you. Okay. And just one other follow-up, if I could on -- just curious on I know we're not there yet on Benefit Street, but what's going on behind-the-scenes to start driving growth so can hit the ground running? What's the overall plan once you're closed and out the door?

了解。好。另外我還有一個追問，如果可以的話——我知道Benefit Street還沒到那一步，但在幕後你們正在做什麼來開始推動成長，以便能在交易完成後立刻展開？一旦完成交割、正式啟動後，整體計畫是什麼？

Well, I think the plan is to, first, get Benefit Street -- I mean, get our distribution comfortable with the investment process and team and then really go tackle. And that's really what they've done, I'd say, in the early months, and now we're going out with roadshows around the globe to introduce Benefit Street to our -- many of our global clients.

我想計畫是，首先讓Benefit Street——也就是讓我們的銷售通路對其投資流程與團隊感到熟悉，然後再真正去開拓。我會說，這正是他們在前幾個月所做的事；而現在我們正透過全球路演，向我們許多全球客戶介紹Benefit Street。

We're also looking at expanding the retail part of the equation and developing some products there. But it's still early stage, but the focus has really been on making sure that our entire team is up to speed on Benefit Street and then attacking the clients in an optimal way.

我們也在評估擴大零售端的布局，並在那裡開發一些產品。不過仍屬早期階段，重點一直是確保我們整個團隊都充分了解Benefit Street，然後以最佳方式去開拓客戶。

Our next question is from the line of Bill Katz with Citigroup.

我們的下一個問題來自花旗集團（Citigroup）的Bill Katz。

And it's Ben Herbert on for Bill. I just wanted to follow-up on the expense commentary '20 versus '18. Are you still expecting to potentially be able to bend it a little bit lower than '18? Or is that maybe pushed out a bit further?

我是代Bill提問的Ben Herbert。我想追問一下關於費用的評論：2020年相較於2018年。你們是否仍預期有可能把費用水準壓得比2018年再低一些？還是這個目標可能會往後延？

Thanks, Bill. Our guidance, we're pretty confident that we can get the run rate expenses to be at the 2018 levels. That's as a result of all the cost-savings initiatives that we're doing right now.

謝謝，Bill。就我們的指引而言，我們相當有信心能把費用的運行率（run rate）降到2018年的水準。這是我們目前正在推動的各項節省成本措施所帶來的結果。

And so we're not expecting to may be come in a little bit lower in '20 or just a touch?

所以你們不預期在2020年可能會比那個水準再低一點點，或是略低一些嗎？

In '20, yes. In '20 -- I'm sorry, in 2020, we expect 2020 expenses to be at the 2018 level.

在2020年，是的。在2020年——抱歉，我是說在2020年，我們預期2020年的費用會在2018年的水準。

Great. But any opportunity to come in a bit lower?

了解。但是否有機會再低一些？

Hopefully. Yes. Working on it.

希望如此。是的。我們正在努力。

And then maybe just one unrelated follow-up would be, any change in capital management priorities with the CFO change?

另外一個不相關的追問是：隨著財務長更替，資本管理的優先順序是否會有任何改變？

No. I think we all worked with the Board on the strategy around optimizing the capital management and certainly you'll have a new input to that, but nothing at this stage to really speak about.

不會。我想我們一直與董事會一起就資本管理最佳化的策略合作；當然新任財務長會帶來新的意見，但目前沒有什麼可以特別說明的變化。

Our next question is from the line of Brian Bedell with Deutsche Bank.

我們的下一個問題來自德意志銀行（Deutsche Bank）的Brian Bedell。

Maybe, Greg, can you talk a little bit about your views on the approval of the active nontransparent ETF, whether it's something that you would look to license for your -- some of your active strategies? Maybe how that would potentially fit with your Liberty shares effort right now that, I think, spans both passive, smart beta and active?

Greg，也許你可以談談你對主動式非透明ETF獲准的看法？你們是否會考慮為你們的某些主動式策略取得授權（license）？另外，這可能會如何與你們目前的Liberty shares計畫相契合？我認為那個計畫涵蓋被動、智慧貝塔以及主動策略。

And then also whether you'd be interested in accelerating the ETF effort with any acquisitions, say, in the smart beta space?

然後，您是否也會有興趣透過任何收購來加速 ETF 的推進，例如在智慧貝塔（smart beta）領域？

Well, I will turn that over to Jenny who is a Liberty Share Board Member.

好，我把這個問題交給 Jenny，她是 Liberty Share 的董事會成員。

We obviously have been paying close attention to the various blind trusts that are coming through the SEC. And with the most recent approval, the Presidian, it's limited in that it's really U.S.-listed equities. So -- and you're talking about ones that can be replaced.

我們顯然一直密切關注提交至 SEC 的各種盲信託（blind trust）。而在最近一次核准中，Presidian 的方案有所限制，因為它基本上只涵蓋在美國上市的股票。所以——而您談的是那些可以被替換的標的。

So it's tended to be mid- and large-cap. So in that space, if we have an active product that we think that makes sense, we would certainly consider it. We have active fixed income that are performing very well, and they don't need that kind of blind trust.

因此它往往偏向中型與大型股。所以在那個領域，如果我們有一個我們認為合理的主動式產品，我們當然會考慮。我們的主動式固定收益表現非常好，而且它們不需要那種盲信託。

And so it just depends. We're open and looking at all of them. And right now, we're seeing some good growth that we're about to just to hit $4 billion in ETFs with -- this quarter, we had 1 -- our FLQL, which is our liberty shares of U.S. equity ETF that is now $1.1 billion.

所以就看情況而定。我們保持開放並且在檢視所有方案。而目前我們看到一些不錯的成長，我們即將在 ETF 規模上達到 40 億美元——本季我們的 FLQL（我們的 Liberty Shares 美國股票 ETF）目前已達 11 億美元。

And one of the key things with ETF is just scale, attracts more institutional players and our smart beta performed very well through this volatile market.

而 ETF 的一個關鍵點就是規模，規模會吸引更多機構投資者；而我們的智慧貝塔在這個波動市場中表現非常好。

And I would just that, I think, as we've always said in M&A, if we see something accelerates our ETF and potentially complements the offerings and things, we're certainly still looking at that as well.

我也想補充一點，我想，正如我們在併購（M&A）上一向所說，如果我們看到某些交易能加速我們的 ETF 發展，並且可能與我們的產品供給互補等，我們當然也仍在持續尋找這類機會。

Okay. Great. And then maybe just on that M&A theme. Obviously, the Invesco-Oppenheimer deal is about to close and it's a fairly sizable one. If that is -- ends up being successful in terms of -- sort of rekindling organic growth and obviously getting the cost saves, do you think that would potential spur more industry consolidation for these types of properties? And would that lead you to think potentially it might make sense for you to even consolidate more on a sort of -- on a sort of a scale basis? And maybe just any updated thoughts on, I think, you had mentioned the distribution agreements potentially in Europe in some past calls. Any updated thoughts on that?

好的。很好。那接著也許談談併購這個主題。顯然 Invesco-Oppenheimer 的交易即將完成，而且規模相當大。如果它——最終在重新點燃有機成長以及當然實現成本節省方面——是成功的，您認為這是否可能促使同類資產管理業務出現更多產業整併？而這會不會讓您覺得，從規模角度來看，您可能也更有必要進一步整併？另外，也想請教您對於我想您在過去幾次電話會議中提到的、可能在歐洲的通路分銷協議，有沒有任何最新想法？對此有什麼更新嗎？

Yes, I mean, I think we just pointed that it's not -- it's a challenge to combine entities of that size. But certainly there is a huge opportunity for cost savings and synergies there. And I don't think we have that strong opinion one way or another, other than if we have the right fit and right culture and right complement, we would certainly take that on.

是的，我的意思是，我想我們只是指出，整合那種規模的實體並不——是一項挑戰。但那裡確實存在巨大的成本節省與協同效益機會。而我們對此並沒有特別強烈的立場；只要有合適的契合度、合適的文化、以及合適的互補性，我們當然會承擔並推進。

I just pointed to how disruptive it can be and difficult. But certainly there is opportunity if executed well on that. That's something that every firm, I think, has to be open to when looking at margins and other ways to reduce expenses in a challenged revenue environment.

我只是想指出，這可能非常具破壞性且困難。但如果執行得當，確實存在機會。我想每家公司在面對利潤率以及在營收環境受壓時尋找其他降低費用的方法時，都必須對此保持開放。

The other -- I don't think there is much new to report, and Jenny can add maybe, but on looking at distribution plays and M&A. I think that's certainly something that, as we have said on past calls, that we're more open to doing in certain markets and that we will continue to look, but there is nothing new really new to say there.

另外——我認為沒有太多新的內容可以報告，Jenny 也許可以補充——但在通路布局與併購方面。我想這確實是我們在過去幾次電話會議中所說的：在某些市場我們更願意去做，而且我們會持續尋找，但目前沒有什麼真正新的進展可說。

Our next question is from the line of Michael Carrier with Bank of America Merrill Lynch.

我們的下一個問題來自美國銀行美林（Bank of America Merrill Lynch）的 Michael Carrier。

First on some of the efficiency initiatives. Can you just provide -- I need a little detail on where you're pursuing those? You mentioned outsourcing, but any other areas?

首先談一些效率提升的措施。您能否提供——我需要更細一點的說明，您們主要在哪些方面推動？您提到外包，但還有其他領域嗎？

And then in terms of redirecting those savings, you guys have talked about either the multi-asset solutions, distribution, but just specifically, over the next 2 years, as you're getting those efficiencies, what are some of those priorities?

另外，就把這些節省下來的成本重新投入而言，你們談到可能投入多元資產解決方案、通路分銷；但更具體地說，在未來兩年，隨著你們取得這些效率提升，你們的優先事項會是哪些？

Okay. I'll start with the cost savings. It is a enterprise-wide effort. So essentially, all the business units participated in it. So it's difficult. And I will point out that the outsourcing announcement is just in the early stages. So there's going to be more to come on that in 20 -- in the year 2020.

好的。我先從成本節省談起。這是一項全企業（enterprise-wide）的努力。所以基本上，所有業務單位都參與其中。所以這很不容易。我也要指出，外包的公告目前仍在初期階段。因此在 20——在 2020 年還會有更多相關內容。

But the cost-savings initiatives that we're referring to in the text and on this call relate to just the -- all the -- every department in the company looking at their operations and finding ways to become more efficient.

但我們在文字稿與本次電話會議中所提到的成本節省措施，主要是指——公司內所有部門都在檢視其營運，並找出提升效率的方法。

Maybe it's a leverage or low-cost jurisdictions and maybe just to eliminate processes that we're not doing. So it's enterprise-wide. And you -- do you want to handle what we're going to invest the money on?

也許是利用槓桿或低成本司法管轄區（low-cost jurisdictions），也許只是要刪除我們不再進行的流程。所以這是全企業範圍的。而你——你要不要說明一下我們打算把這些資金投資到哪些地方？

Sure. Yes. No, obviously, multi-asset solutions and distribution are 2 big areas. And in that, in distribution, it's both in people, so we've added key talent in important areas, as well as technology, technologies that support the distribution channels whether we're partnering or developing some capabilities on our own.

當然。是的。不過顯然，多元資產解決方案與通路分銷是兩個重點領域。而在通路分銷方面，包含人員面——我們在重要領域增聘了關鍵人才——以及科技面，亦即支援分銷通路的技術：不論是我們與夥伴合作，或是自行開發一些能力。

And then, of course, data science. Data science that supports our distribution so that we could be smarter at providing the right products through the distribution channels and, of course, on the investment management side.

然後，當然還有資料科學。用以支援我們通路分銷的資料科學，讓我們能更聰明地透過分銷通路提供合適的產品；當然也包括投資管理端。

We believe that active managers need to be -- need to have the ability to leverage AI and machine learning and data science to gain insights. And that's really nascent, but it's important. We think it's very important over the long run. And so developing capabilities around that is critical.

我們相信主動式管理人需要——需要具備運用 AI、機器學習與資料科學來取得洞見的能力。而這確實仍在萌芽階段，但很重要。我們認為從長期來看非常重要。因此，圍繞這方面建立能力至關重要。

Okay. And then just to sort of follow up on the flows. You guys had some good pockets of improvement. Greg, you mentioned the global bond and international retail.

好的。那接著就資金流向（flows）再追問一下。你們在某些領域看到不錯的改善。Greg，你提到了全球債券與國際零售。

So on the institutional side, it seems that continues to be a bit of a headwind. I think you mentioned during the quarter some items that impacted you, but just maybe little color there and then just on the outlook what you're seeing in that channel.

所以在機構端，看起來仍然有點逆風。我想你提到本季有一些事項對你們造成影響，但能否稍微補充一些背景，另外也談談你們對該通路的展望、目前看到的情況？

Yes, I think -- it -- we do -- I think, you're correct in saying that there's -- that's where we had some headwinds continuing. And I think the majority of our assets historically have been on the Templeton side and institutional and another -- as the markets have rebounded, they -- value trailed growth by about 400 basis points over the quarter, so that hasn't helped the relative numbers there.

是的，我想——我們確實——我想你說得對，那裡是我們持續面臨一些逆風的地方。而我想我們歷史上大多數資產都在 Templeton 端，且以機構為主；另外——隨著市場反彈，本季價值股相對成長股落後約 400 個基點，因此這也不利於那邊的相對表現數據。

And as we enter our 10th, 11th year of this cycle, it's just -- you still have pressure on redemptions and certainly not new sales to support that. So that's where we saw some global equity accounts go as well as some variable annuity, that's been a continued headwind.

而當我們進入這個循環的第10年、第11年時，情況就是——你仍然面臨贖回壓力，當然也沒有新的銷售來支撐。因此，我們看到一些全球股票帳戶以及一些變額年金資金流出，這一直是持續的逆風。

We probably have another $1 billion next quarter coming, and that'd be a business that some of it's going passive, a lot of it's just they've gotten out of the business and are looking whether it's low vol or or other type of fund managers or indexing. We've seen a lot of that. And that represented a large number of the redemptions as well for the past quarter.

我們可能在下個季度還會有另外約10億美元到期，這部分業務有些會轉向被動式，更多則是他們已退出該業務，並在尋找低波動或其他類型的基金經理，或改採指數化。我們看到很多這種情況。而這也在過去一季的贖回中占了很大比例。

So those are the 2 that continue, I think, to put pressure on the net numbers. And overall, retail would have been just about breakeven or positive if it wasn't for the institutional side where we see some of the larger redemptions. The good news is they're in lower cost fund -- separate accounts or funds.

所以我認為，這兩項仍然持續對淨數字造成壓力。整體而言，如果不是因為機構端出現一些較大的贖回，零售端本來大致持平或為正。好消息是，這些贖回發生在較低成本的基金——獨立帳戶或基金。

Our next question is a from the line of Ken Worthington of JP Morgan.

我們的下一個問題來自摩根大通（JP Morgan）的Ken Worthington。

This is Will Cuddy filling in for Ken. Turning to questions. Franklin has been investing in its RIA and advisory distribution.

我是Will Cuddy，代替Ken提問。接下來進入問題。Franklin一直在投資其RIA與顧問式通路的分銷。

Could you please update us on your progress on those investments? And within retail, how much of the retail flows are coming from RIAs and advisory? Are we beginning to see your investments in those channels pay off?

能否請您更新一下這些投資的進展？以及在零售端，零售資金流入中有多少是來自RIA與顧問式通路？我們是否開始看到你們在這些通路的投資開始見到成效？

We are beginning to see it pay off. We actually had a good uptick this quarter, but it is still a much smaller part of our U.S. retail distribution and one that we're very focused on growing. And there's a lot of different ways to be able to attack that market.

我們開始看到成效。本季其實有不錯的增長，但它仍然只占我們美國零售分銷中很小的一部分，而我們非常專注於把它做大。而且有很多不同的方法可以切入那個市場。

We have -- our multi-asset solutions has launched the models that we think will be appealing to that market. We also have come up with sleeves that can be incorporated into more of open-architecture models. We look at strategic investments in tools that RIAs use because they tend to be more independent in some of the technology that they use.

我們的多元資產解決方案已推出我們認為會吸引該市場的模型。我們也設計了可納入更多開放式架構（open-architecture）模型的「模組／配置區塊（sleeves）」。我們也在評估對RIA使用的工具進行策略性投資，因為他們在所使用的技術上往往更為獨立。

And so whether we do strategic investments or whether we support those applications through our own models and content. So all of those things are focused for us on the RIA channel. Obviously, the ETFs. We're getting some good traction on the ETF space in the RIA channel. They tend to like ETFs, but we definitely see it as a very important strategic focus going forward.

因此，不論是我們進行策略性投資，或是透過我們自己的模型與內容來支援那些應用。所有這些對我們而言都聚焦在RIA通路。當然還有ETF。我們在RIA通路的ETF領域取得了一些不錯的進展。他們通常喜歡ETF，但我們確實認為這將是未來非常重要的策略重點。

Great. Turning to tax prefixed income. There has been a commentary on impact of tax reform on the [MENA] market. Have you seen changes in broker sales patterns that's [contributed] to tax reform broadly?

很好。接著談到免稅固定收益。市場上有評論提到稅改對[MENA]市場的影響。就整體而言，你們是否看到券商銷售模式的變化，並且這些變化是否與稅改有關、進而有所[貢獻]？

And more recently, we're coming off of tax season. Have you seen a change in behavior as a result of tax season and some of the speculation about lower refunds this year for the tax rate and fixed income bonds?

另外，最近我們剛過完報稅季。你們是否看到因報稅季，以及今年因稅率而可能退稅較少的推測，導致行為改變，並影響固定收益債券？

Yes. I just would say in general, I mean, it was a stronger quarter for tax-free flows, and for us a positive inflow, which it hasn't been in a while, so that was good. I think the -- everybody becomes more aware of taxes and especially in those states that no longer have the state deduction, the tax -- the double tax-free is very attractive and our Cal tax-free has done pretty well in performance on top of that.

是的。我想整體來說，本季免稅資金流向較強，對我們而言也出現正向淨流入，而這種情況已經有一段時間沒有發生了，所以這是好事。我認為——大家對稅務的敏感度提高了，尤其是在那些不再能扣抵州稅的州，「雙重免稅」就非常有吸引力，而我們的加州免稅基金在此之外，績效表現也相當不錯。

So I think it's an area that clearly had improved gross sales and flows, and hopefully that will continue as people have to pay up more on their estimated taxes and things to make up the difference of not having that the state deduction.

所以我認為這個領域的總銷售與資金流向確實有所改善，希望隨著人們必須在預估稅等方面多繳一些、以彌補無法扣抵州稅的差額，這樣的趨勢能夠延續。

Our next question is from the line of Patrick Davitt with Autonomous Research.

我們的下一個問題來自Autonomous Research的Patrick Davitt。

On the expense guidance, I just want to make sure I'm thinking about it right. So you kept the guide -- the 2020 guide basically flat with 2018, excluding Benefit Street. So is the 15% to 16% 2019 comp guidance excluding Benefit Street as well? And through that lens, that was -- pardon me? Yes?

關於費用指引，我只是想確認我的理解是否正確。你們把2020年的指引——在排除Benefit Street之後——基本上維持與2018年持平。那麼2019年15%到16%的同比指引也同樣是排除Benefit Street嗎？而從這個角度來看，那——不好意思？是嗎？

I'm sorry. I didn't hear the sentence. I cut you off there.

抱歉。我沒有聽清楚那句話。我剛剛打斷你了。

Go ahead.

你繼續。

It includes Benefit Street. This year includes Benefit Street, but...

它包含Benefit Street。今年包含Benefit Street，但……

Right. I guess it still would suggest the vast majority -- sorry? Okay. There's -- do the -- is just the vast majority of that guidance basically severance? Could you kind of separate out how much it would be up without kind of one-time or severance-type item?

對。我想這仍然意味著絕大部分——抱歉？好的。那——這個指引中的絕大部分基本上是資遣費嗎？你能否拆分一下，如果不含一次性或資遣費類項目，費用會增加多少？

You're right, it is severance. I think we can give you perhaps a range for what we think the execution cost for all this cost savings are. We think it's about 2% increase. 2% of the increase is related to the execution costs under cost initiatives.

你說得對，確實是資遣費。我想我們或許可以給你一個區間，說明我們認為為了實現這些成本節省所需的執行成本是多少。我們認為大約是增加2%。這2%的增幅與成本計畫下的執行成本有關。

Including severance?

包含資遣費嗎？

Yes.

是的。

Okay. cool. On Benefit Street again. Was -- were they -- did they add to the $60 million performance fee at all? And do you have any updates on your views of timing of potential accretion from the deal?

好的。了解。再回到Benefit Street。他們是否對那6,000萬美元的績效費有任何貢獻？另外，你們對該交易可能帶來增益（accretion）的時間點看法，有沒有更新？

I do. Performance fees were minimal in total and inclusive of Benefit Street this quarter. And I think we are still pretty confident in our projections that this year it was -- as we said, it's going to be neutral. Next year slightly accretive and then as a result, the revenue growth accretive after that.

有的。本季的績效費整體而言很少，且已包含Benefit Street在內。我想我們仍然相當有信心維持我們的預測：今年——如我們所說——將是中性影響。明年會略為增益，之後則因而在營收成長上帶來增益。

Great. And any update on the potential noncash expense that's in numbers from that deal?

很好。那關於該交易帶來、已反映在數字中的潛在非現金費用，有沒有任何更新？

Yes. The cash -- you could see the cash went down this quarter, though it's pretty much related to Benefit Street and a couple of other things. But...

有。現金——你可以看到本季現金下降了，雖然這幾乎都與Benefit Street以及其他幾件事有關。但是……

No. I meant like noncash...

不是。我的意思是像非現金……

We just disclosed the purchase price and other cash price of that.

我們只是披露了該項的購買價格以及其他現金價格。

Our next question is from the line of Robert Lee with KBW.

我們的下一個問題來自 KBW 的 Robert Lee。

Could you maybe just go back to Patrick's -- your answer to Patrick's question on the 2% increase. Did you mean 2% increase in total expense, excluding sales spend?

你能否回到 Patrick 的——你對 Patrick 關於 2% 增加那個問題的回答。你指的是總費用增加 2%，不含銷售支出嗎？

Yes. I'll simplify that even more. Our estimate is like between $50 million -- for the remainder of this fiscal year between $50 million and $60 million of execution costs.

是的。我再把它簡化一點。我們的估計是，在本財政年度剩餘期間，執行成本大約在 5,000 萬美元到 6,000 萬美元之間。

Great. And then obviously that includes severance and whatnot?

很好。那顯然這包括遣散費之類的？

That's right. Exactly. That's right.

沒錯。完全正確。是的。

Right. Okay. Perfect. Maybe shifting gears. I'm just kind of curious how you're seeing the rebound in demand for global fixed and, in particular, both in the U.S. and outside the U.S. I'm just kind of curious outside the U.S. where you're seeing some of the best traction. I know in years past, it was Italy, for example, is a big market for you. Are using it -- is it relatively concentrated in a couple of places? Are you seeing spread out? Just trying to get some color on that.

好的。好。完美。也許換個話題。我只是有點好奇，你們如何看待全球固定收益需求的回升，特別是在美國以及美國以外的情況。我也想了解在美國以外，你們在哪些地方看到最好的動能。我知道過去幾年，例如義大利對你們來說是一個大市場。現在——它是否——相對集中在幾個地方？還是你們看到更分散？只是想多了解一些細節。

Yes. I just -- I actually just returned from Asia yesterday and spent 9 days traveling around. And we're actually seeing most of the growth in -- or rebound in sales coming from Asia. And if you look at Hong Kong, Singapore, in particular, Europe secondarily. But as we said before, a lot of these type of retail sales are driven from the home office and the platform and putting it back on. And we're really seeing a renewed interest in the global bond fund. And I think part of that is just the fear of retail investors right now having gone through December. And even with the rebound, there's just a lot of caution out there. And this fund had a positive return in December, which I think just highlighted how it can lower the overall risk in a portfolio and people looking for alternatives that are not as beta- and duration-related. So we just had a strong renewed interest there and very optimistic that, that will continue as markets reach new highs as well. So it's really been more Asia, then Europe and then the U.S.

是的。我——我其實昨天才從亞洲回來，出差走訪了 9 天。我們目前看到大部分的成長——或銷售回升——都來自亞洲。如果看香港、尤其是新加坡，其次是歐洲。但如我們之前所說，這類零售銷售很大程度上是由總部與平台所驅動，把它重新推回市場。我們確實看到市場對全球債券基金重新燃起興趣。我認為其中一部分原因，是零售投資人經歷了 12 月之後的恐懼情緒。即使出現反彈，市場上仍然相當謹慎。而這檔基金在 12 月取得正報酬，我認為這凸顯了它如何降低投資組合的整體風險，也讓人們尋找不那麼與 beta 和存續期間相關的替代方案。因此我們看到非常強勁的重新關注，也很樂觀這種趨勢會持續，尤其是當市場也再創新高時。所以主要是亞洲，其次是歐洲，再來是美國。

Okay. And then maybe going back -- the one last question. Going back to capital management from earlier, and I apologize if you had addressed this, but share repurchases. You had the lowest levels it's been at in a while. Understanding it did Benefit Street this quarter, but with the cash investment levels now having come down as you've used it and returned it, I don't know to what extent the change in CFO and clearly someone who has background in M&A. Is that at all kind of impacting how you think about the level of excess cash you want -- you're willing -- you prefer to keep on hand versus what you may have done otherwise? I mean, just trying to see if that -- maybe I'm reading too much into it, but I'm just to trying to get your take on that.

好的。那最後一個問題。回到先前談到的資本管理，若你們已經回答過我先致歉，但關於庫藏股回購。你們的回購水準降到一段時間以來的低點。我理解本季有 Benefit Street 的因素，但隨著現金投資水位現在已經下降，因為你們已經動用並回收返還，我不確定 CFO 的更替，以及顯然新任者有併購背景，在多大程度上會影響你們對於希望保留在手上的超額現金水準——你們願意——你們偏好保留在手上的現金，相較於原本可能會做的。我的意思是，只是想看看那是否——也許我解讀過度，但我想聽聽你們的看法。

Yes. I don't think, as I said before, that the change in the CFO has a whole lot to do with the buybacks. I think you had a very choppy December period and redemptions and you had the acquisition. And we've been pretty aggressive in buying back and we -- if you're opportunistic, you really don't want to set the given level at any time. And also there was much lower volume in the stock through that period.

是的。我認為，如我之前所說，CFO 的更替與回購並沒有太大關係。我認為你們在 12 月經歷了一段非常震盪的期間，有贖回情況，也有收購案。而我們一直相當積極地回購——如果你是機會主義式的操作，你其實不想在任何時點設定一個固定水準。而且那段期間股票的成交量也低很多。

So we don't like to be the market in the stock as well and just back up a little bit. But I don't think it should indicate any think going forward other than we're going to continue to be opportunistic and use the cash and then have -- as we said before, we think the balance sheet provides us with a lot of options. And we're going to continue to look at, whether it's alternatives or other things that we think can add shareholder value over time.

所以我們也不希望自己成為該股票的主要買盤，因而稍微收斂一些。但我不認為這代表未來有任何其他含意，除了我們會持續把握機會、運用現金；並且如我們之前所說，我們認為資產負債表給了我們很多選項。我們也會持續評估，不論是另類投資或其他我們認為能隨時間為股東創造價值的事情。

And there are market issues too. Like, for example, this quarter, our 10(b)-18 volume dropped more than 40% versus last quarter. So there's -- those execution issues as well.

而且也有市場面的因素。例如本季，我們依 10(b)-18 規則可回購的成交量，相較上季下降了超過 40%。所以也有這些執行層面的問題。

Our next question is from the line of Alex Blostein with Goldman Sachs.

我們的下一個問題來自高盛的 Alex Blostein。

A question around -- another one around expenses. So I guess, in the written marks, you guys highlighted the decision to outsource a portion of the fund admin business. Can you walk us through what percentage of AUM and then what products will be outsourced? Who are you guys outsourcing to? And whether or not there's going to be an opportunity to outsource more over time?

有一個關於——另一個關於費用的問題。我想在書面說明中，你們強調了將部分基金行政管理業務外包的決定。你能否說明將外包的資產管理規模（AUM）占比，以及哪些產品會被外包？你們是外包給哪一家？以及未來是否有機會隨時間外包更多？

I don't -- we're not looking at the -- we don't look at the outsourcing decision on a product basis. It's more of a process basis. And so I think, specifically, we're talking about aspects of the fund accounting, fund reporting process.

我不——我們不會以產品為基礎來看外包決策。它更偏向以流程為基礎。因此我想，具體來說，我們談的是基金會計、基金報告流程的某些環節。

The decision to outsource, we feel, brings it more in line with our peers. And it's part of a broader effort to kind of advance our capabilities. And I think one of the things that's changed for the providers is that they've reached a scale where they can meet our global and unique needs on a cost efficient basis and that wasn't the case before. I guess that's it.

我們認為外包的決定，能讓我們更貼近同業的做法。這也是更廣泛努力的一部分，用以提升我們的能力。我認為供應商方面改變的一點是，他們已經達到一定規模，能以具成本效率的方式滿足我們全球性且獨特的需求，而以前並非如此。我想就這些。

And it would cover most of our funds, I would guess.

而且我猜會涵蓋我們大多數的基金。

Yes, it covers -- yes. exactly. It's not product specific. It's across the all the funds processed.

是的，涵蓋——是的。沒錯。這不是針對特定產品。而是涵蓋所有被處理的基金。

Got it. Okay. And I guess when you guys look out beyond 2020, and that guidance is fairly clear. But, I guess, once you get through these cost-cutting initiatives and it sounds like you have the program, but the cost initiatives might end up being ongoing over time. How should we think about the organic kind of net expense growth for the business taking account kind of the initiatives you guys have in place both on the cost side and the growth side?

了解。好的。那我想當你們展望 2020 年之後，相關指引相當清楚。但我想，一旦你們完成這些成本削減措施——聽起來你們有一套計畫，但成本措施可能也會隨時間持續進行——我們應該如何看待在考量你們在成本端與成長端所推動的各項措施後，業務的有機淨費用成長？

One thing I think it's important to point out is we will continue to -- while we continue to invest in the strategic initiatives that Jenny mentioned, there was some frontloading of that last year. Some investments we made last year. And so you did see an increase in expenses there and that were kind of if you were backfilling or kind of normalizing the expense base as the rails of that. So we'll continue to make those investments.

我認為有一點很重要需要指出的是，我們將會持續——在我們持續投資於 Jenny 提到的策略性計畫的同時，去年其中有部分投資是提前投入的。我們去年做了一些投資。因此你確實看到費用有所增加；如果你把費用基礎回填或做某種常態化處理，這些就屬於那一部分的軌道成本。所以我們會持續進行這些投資。

I think that this process that we're going through makes us more efficient and more scalable. So normally, we might have seen a certain growth rate as the business grows -- I think certain growth rate of expenses as the business grows. I don't think we'll see that in the future because of our -- we're increasing our scale. So I think inflation is a good guideline to think about expense growth, but we will try to keep it under that.

我認為我們正在推進的這個流程，讓我們更有效率、也更具可擴展性。因此通常，隨著業務成長，我們可能會看到某個成長率——也就是費用隨著業務成長而有一定的成長率。我不認為未來還會看到那樣的情況，因為我們——正在提升規模。所以我認為通膨是一個思考費用成長的良好指引，但我們會努力把它控制在通膨之下。

We do have a follow-up question from the line of Patrick Davitt with Autonomous Research.

我們有一個追問，來自 Autonomous Research 的 Patrick Davitt。

You mentioned $1 billion coming out from the VA. Could you scale that relative to what you saw last quarter and remind us how much is left in that bucket?

你提到有 10 億美元從 VA 流出。你能否把這個數字相對於上季所見的情況做個量化比較，並提醒我們那個項目裡還剩多少？

It's probably similar to this quarter where we -- I can -- I had about $1.1 billion as well go out this quarter and just in -- we've identified another $1 billion next quarter. And I don't have the assets that -- we'll get back on that. But there's nothing, I think, any of the older assets you could put at risk just because that they are at change, but nothing beyond that $1 billion as far as visibility for the quarter -- the next quarter that we are aware of.

這大概與本季相近；我們——我可以——我這季也大約有 11 億美元流出，而且——我們已經辨識出下季還會有另外 10 億美元。至於資產部分我——我們會再回覆你。但我認為沒有任何——就那些較舊的資產而言，你不會因為它們正在變動就把它們視為有風險；不過就我們目前對本季——下季的可見度而言，除了那 10 億美元之外，我們沒有看到其他超出部分。

Our next question is from the line of Dan Fannon with Jeffries.

下一個問題來自 Jeffries 的 Dan Fannon。

This is actually James Steele filling in for Dan. Sorry, just one more on the outsourcing of the funds administration. Is this going to entail any sort of a different ongoing fund admin cost just sort of outside of the one-time cost associated with it?

我其實是 James Steele，代 Dan 提問。抱歉，再追問一個關於基金行政管理外包的問題。這是否會帶來任何不同的持續性基金行政成本，還是僅僅是與此相關的一次性成本？

I'll just ask -- answer a couple of things. I think that, no, you wouldn't see a dramatic reduction, but there will be some reductions to the fund's expenses. So there is some savings to the individual funds.

我先——回答幾點。我認為不會看到大幅下降，但基金費用會有一些降低。因此個別基金會有一些節省。

And if anything, it's as much as a risk. And as Ken mentioned, just historically, one of the reasons that we had it in-house is that the providers just didn't have the global footprint that we had to be able to do it.

而且如果說有什麼的話，這更多也是風險面的考量。正如 Ken 提到的，從歷史上看，我們之所以把它放在內部做，其中一個原因是供應商過去沒有我們那樣的全球佈局，無法勝任。

Now they can and they have a scale that can meet our cost level. And for us, it's also as much a risk mitigation as they are able to continue to invest in the technology.

現在他們可以了，而且他們的規模也能符合我們的成本水準。對我們而言，這同樣也是風險緩解，因為他們能夠持續投資於科技。

Okay. And is there -- if you -- could you size the difference in the all-in fund expense?

好的。那如果你——你能否量化一下整體基金費用的差異？

I mean, it's...

我的意思是，這……

Yes, let me just say that this is -- there'll be more to come on this next year. It's kind of -- it is a pretty early announcement on this. And so even the execution of it will take us -- the beginning of the execution will take us into 2020.

是的，我先說一下，這件事——明年會有更多資訊。這算是——目前仍是相當早期的宣布。因此即便是執行層面，我們——開始執行也會延伸到 2020 年。

And so it's really a 10-year cost benefit analysis on that. So there'll be more to come on that in the future.

所以這其實是一個為期 10 年的成本效益分析。未來我們會再提供更多資訊。

It appears we have no further questions at this time, so I'd like to pass the floor back over to Mr. Johnson for any additional concluding comments.

看起來目前沒有其他問題，因此我想把時間交回給 Johnson 先生，請他做任何額外的結語。

Well, thank you very much, everyone, for attending and I want to thank Ken Lewis for his tremendous service to our organization over his career. He will still be with us through the transition here, but I just want to thank him on behalf of all of us.

好的，非常感謝各位今天的參與；我也要感謝 Ken Lewis 在其職涯中對我們組織所做的卓越貢獻。他在這段交接期間仍會與我們同在，但我想代表我們所有人向他致謝。

Thanks. Thanks, Greg. Just a few words. Yes, so it's been over 30 years and over 50 earnings calls here. As Greg said, I'll stay in advisory capacity until September 30. The march has felt like -- the 30-year march has felt like a good time to try to make a change and including a little R&R before the next opportunity.

謝謝。謝謝你，Greg。我簡單說幾句。是的，已經超過 30 年、也參與了超過 50 次的財報電話會議。如 Greg 所說，我會以顧問身分留任到 9 月 30 日。這段行軍般的——30 年的行程，感覺是個嘗試做出改變的好時機，也包括在下一個機會之前稍作休息與調整。

There's no shortage of opportunities in the Bay Area, as I'm sure you can guess. But I do want to say I feel very confident that I leave you in good hands. I know the executive team here and will be successful. One of the reason that I worked for so long is the company's deep culture of honest -- honesty and integrity.

灣區從不缺機會，這點我想你們也能猜到。但我確實想說，我非常有信心我把各位交到很好的團隊手上。我了解這裡的管理團隊，而且他們會成功。我之所以在這裡工作這麼久，其中一個原因是公司深厚的文化——誠實、正直。

I know they'll -- those values will serve them. And I want to thank all of you for your thoughtful and thought-provoking questions over the past 13 years. I'm sure I'll miss that quarterly challenge. So hopefully our paths will cross in the future. So thanks a lot, everyone.

我知道——這些價值觀會成為他們的助力。也感謝各位在過去 13 年裡提出深思且發人深省的問題。我想我會想念那種每季一次的挑戰。希望未來我們還有機會再相遇。非常感謝各位。

Ladies and gentlemen, this does conclude today's teleconference. Again, we thank you for your participation, and you may disconnect your lines at this time.

各位女士、先生，今天的電話會議到此結束。再次感謝各位的參與，現在您可以掛線。