富蘭克林資源 (BEN) 2024 Q3 法說會逐字稿

Welcome to Franklin Resources earnings conference call for the quarter ended June 30, 2024. Hello, my name is Sylvie, and I will be your call operator today. As a reminder, this conference is being recorded and at this time, all participants are in a listen-only mode.

歡迎參加富蘭克林資源公司截至 2024 年 6 月 30 日的季度財報電話會議。提醒一下，本次會議正在錄製中，此時所有與會者都處於只聽模式。

And I would like to turn the conference over to your host, Selene Oh, Chief Communications Officer and Head of Investor Relations for Franklin Resources. You may begin.

我想將會議交給主持人、富蘭克林資源公司首席傳播官兼投資者關係主管 Selene Oh。你可以開始了。

Good morning, and thank you for joining us today to discuss our quarterly results. Statements made on this conference call regarding Franklin Resources Inc, which are not historical fact are forward-looking statements within the meaning of the 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.

早安，感謝您今天加入我們討論我們的季度業績。本次電話會議中有關富蘭克林資源公司的聲明並非歷史事實，而是1995 年《私人證券訴訟改革法案》含義內的前瞻性聲明。不確定性。

These and other risks, uncertainties and other important factors are just described in more detail in Franklin's recent filings with the Securities and Exchange Commission, including the Risk Factors and the MD&A sections of Franklin's most recent Form 10-K and 10-Q filings.

這些和其他風險、不確定性和其他重要因素在富蘭克林最近向美國證券交易委員會提交的文件中進行了更詳細的描述，包括富蘭克林最近提交的10-K 表格和10-Q 表格中的風險因素和MD&A 部分。

Now I'd like to turn the call over to Jenny Johnson, our President and Chief Executive Officer.

現在我想將電話轉給我們的總裁兼執行長珍妮·約翰遜 (Jenny Johnson)。

Thank you, Selene. Hello, everyone, and thank you for joining us today to discuss Franklin Templeton's results for the third fiscal quarter of 2024. I'm joined by Matt Nicholls, our CFO and COO; and Adam Spector, our Head of Global Distribution. We'll answer your questions in a few minutes, but first, I'd like to review some highlights from the quarter.

謝謝你，塞琳娜。大家好，感謝您今天加入我們討論富蘭克林鄧普頓 2024 年第三財季的業績。以及我們的全球分銷主管 Adam Spector。我們將在幾分鐘內回答您的問題，但首先，我想回顧一下本季的一些亮點。

During our third quarter, investors continued to be faced with a complex investment landscape due to dynamic financial markets amidst macroeconomic, geopolitical and election uncertainty. Starting with public equity markets, the S&P 500 reached an historic milestone earlier this month, closing above 5,500 for the first time and continuing its streak of strong performance in 2024.

在第三季度，由於宏觀經濟、地緣政治和選舉的不確定性，金融市場充滿活力，投資者繼續面臨複雜的投資環境。從公開股票市場開始，標準普爾 500 指數本月稍早達到了歷史性里程碑，首次收於 5,500 點上方，並在 2024 年繼續保持強勁表現。

Likewise, the NASDAQ 100 also hit record levels surpassing the 20,000 mark. However, we've seen a pullback in late July as big tech earnings have disappointed and value has outperformed growth stocks month to date. The two big themes of artificial intelligence and inflation drove growth stocks to outperform value stocks in the first half of the calendar year.

同樣，納斯達克 100 指數也突破 20,000 點大關，創歷史新高。然而，我們在 7 月底看到了回調，因為大型科技股的獲利令人失望，而且價值股本月迄今的表現優於成長股。人工智慧和通膨兩大主題推動成長股上半年跑贏價值股。

AI is impacting companies well beyond mega cap tech companies everyday companies and governments are examining how AI will improve or disrupt their respective operations and business models. Inflationary trends continued to moderate, which is supportive of markets. But because stock market returns have been so highly concentrated, equity allocations are poised to broaden as we've seen in the last few weeks, which could provide a sustained boost to sectors and regions that have been overlooked. This trend will likely create investment opportunities favoring active managers.

人工智慧正在影響的公司遠遠超出了大型科技公司的範圍，每天公司和政府都在研究人工智慧將如何改善或顛覆其各自的營運和商業模式。通膨趨勢持續溫和，這對市場有利。但由於股市回報高度集中，正如我們在過去幾週所看到的那樣，股票配置有望擴大，這可能會為被忽視的行業和地區提供持續的提振。這一趨勢可能會創造有利於主動型基金經理人的投資機會。

Meanwhile, on interest rates, consensus estimates currently expect to rate cuts by the Federal Reserve in the remainder of the year, which looks broadly at appropriate to us. Recent Fed speak signals greater comfort with the latest progress on disinflation and acknowledges some signs of weakening growth momentum.

同時，在利率方面，目前普遍預期聯準會將在今年剩餘時間內降息，這對我們來說大致是合適的。聯準會最近的演講表明，人們對通貨緊縮的最新進展感到更加放心，並承認一些成長勢頭減弱的跡象。

As we get closer to the Fed's rate cutting cycle, we expect traditional fixed income sectors to regain their place as a primary source for yield as cash begins to look less attractive. While spreads are tight at their current levels, we are not anticipating a sharp deceleration in activity, and our fixed income managers continue to find opportunities at attractive yields.

隨著聯準會降息週期的臨近，我們預期傳統固定收益產業將重新獲得主要收益來源的地位，因為現金的吸引力開始下降。儘管利差處於當前水平，但我們預計活動不會急劇減速，我們的固定收益經理將繼續尋找收益率有吸引力的機會。

Private markets continue to thrive, and our specialist investment managers are seeing very attractive yields in the private credit space and secondary private equity has seen near unprecedented levels of pricing power. As investors weigh the impact of these trends, we're seeing a pickup in money in motion and investors becoming more active with alternatives, fixed income and select equity sectors as top priorities.

私募市場持續蓬勃發展，我們的專業投資經理在私募信貸領域看到了非常有吸引力的收益率，而二級私募股權的定價能力也達到了前所未有的水平。當投資者權衡這些趨勢的影響時，我們看到流動資金增加，投資者變得更加積極，將另類投資、固定收益和精選股票行業作為首要任務。

We also continue to see the trend of clients wanting to work with fewer managers given the dynamic complex nature of current markets. In addition, we continue to have success engaging more and more in a consultative way with large clients leveraging the full strength of our firm.

鑑於當前市場的動態複雜性，我們也繼續看到客戶希望與更少的經理合作的趨勢。此外，我們繼續利用我們公司的全部實力，以諮詢方式與大客戶進行越來越多的成功接觸。

One of the benefits of partnering with Franklin Templeton is the breadth of capabilities we offer through a single global platform, making us a true partner for clients around the world. We offer access to specialist investment managers across public and private markets and asset classes and continue to broaden our investment capabilities to help clients achieve better outcomes.

與富蘭克林鄧普頓合作的好處之一是我們透過單一全球平台提供廣泛的功能，使我們成為世界各地客戶的真正合作夥伴。我們提供跨公共和私人市場以及資產類別的專業投資經理的服務，並繼續擴大我們的投資能力，以幫助客戶取得更好的成果。

Now turning to the highlights from the quarter. Ending AUM was $1.65 trillion, flat from the prior quarter and an increase of 15% from the prior year quarter, primarily due to the addition of Putnam as well as positive markets. Average AUM increased by 3% from the prior quarter to $1.63 trillion and increased by 15% from the prior year quarter.

現在轉向本季的亮點。期末資產管理規模為 1.65 兆美元，與上一季持平，但比去年同期成長 15%，這主要是由於 Putnam 的加入以及積極的市場。平均資產管理規模較上一季成長 3%，達到 1.63 兆美元，較去年同期成長 15%。

In terms of investment performance, our investment teams have remained true to their distinct disciplines and time-tested approaches. Investment performance remained consistent across the one, three, five and 10-year periods. This quarter 53%, 49%, 52% and 70% of our strategy composite AUM outperformed their respective benchmarks on a one, three, five and 10-year basis.

在投資績效方面，我們的投資團隊始終恪守其獨特的紀律和經過時間考驗的方法。一年、三年、五年和十年期間的投資績效保持一致。本季度，我們的策略綜合資產管理規模中有 53%、49%、52% 和 70% 在一年、三年、五年和十年的基礎上跑贏了各自的基準。

Turning to flows, long-term net outflows were $3.2 billion. Reinvested distributions were $3.6 billion compared to $3.1 billion in the prior quarter and $3.5 billion in the prior year quarter. $5.9 billion was funded out of the previously announced $25 billion allocation from Great-West Lifeco, bringing the total funded to $20.2 billion.

就流量而言，長期淨流出為 32 億美元。再投資分配額為 36 億美元，而上一季為 31 億美元，去年同期為 35 億美元。 Great-West Lifeco 先前宣布的 250 億美元撥款中提供了 59 億美元的資金，使資金總額達到 202 億美元。

We continue to make progress executing on our long-term plan of diversification across asset classes, investment vehicles and geographies. Quite demand led to positive net flows in multi-asset and alternative strategies during the quarter. Multi-asset net inflows were $1.8 billion and driven by positive net flows into Cansas, Franklin Income Fund, Fiduciary Trust International and Franklin Templeton investment solutions. The Investment Solutions team takes Franklin Templeton's best thinking and leverages our firm-wide capabilities across public and private asset classes to help provide solutions tailored to our client’s needs.

我們在跨資產類別、投資工具和地理的多元化長期計劃上繼續取得進展。相當大的需求導致本季多元資產和另類策略的淨流量為正。多資產淨流入為 18 億美元，主要受到流入 Cansas、富蘭克林收入基金、信託國際信託和富蘭克林鄧普頓投資解決方案的正淨流入的推動。投資解決方案團隊採用富蘭克林鄧普頓的最佳思維，並利用我們公司範圍內跨公共和私人資產類別的能力，幫助提供適合客戶需求的解決方案。

Investment Solutions ended the quarter with AUM of nearly $80 billion across the firm. Alternative net inflows were $1.4 billion, driven by growth into private market strategies. Our three largest alternative managers, Benefit Street Partners, Clarion Partners, and Lexington partners, generated a combined total of $1.1 billion of net inflows, and Franklin Venture Partners generated net inflows of over $300 million.

截至本季末，投資解決方案公司的資產管理規模接近 800 億美元。在私人市場策略成長的推動下，另類淨流入為 14 億美元。我們最大的三家另類投資管理公司 Benefit Street Partners、Clarion Partners 和 Lexington Partners 總共產生了 11 億美元的淨流入，而 Franklin Venture Partners 則產生了超過 3 億美元的淨流入。

Benefit Street Partners continued to raise funds and alternative credit. In May, we announced the final close of its BSP Special Situations Fund II with $850 million of total capital commitments exceeding its targets. Interest from clients to diversify private debt portfolios beyond direct lending into areas like real estate debt has attracted significant high-quality engagement with investors.

Benefit Street Partners 繼續籌集資金和替代信貸。 5 月份，我們宣布最終關閉 BSP 特別情況基金 II，其資本承諾總額達 8.5 億美元，超出了其目標。客戶有興趣使私人債務投資組合多樣化，超越直接貸款，進入房地產債務等領域，這吸引了投資者的大量高品質參與。

Traded secondary private equity, Lexington Partners announced a dedicated strategy and highly experienced team focused on leading single asset continuation vehicle transactions in response to increased investor demand. Lexington has invested approximately $6 billion in CV transactions to date, and the new team will be focused on increasing its participation in CV transactions with a differentiated approach.

作為二級私募股權交易公司，Lexington Partners 宣布成立專門的策略和經驗豐富的團隊，專注於領先的單一資產延續工具交易，以滿足不斷增長的投資者需求。迄今為止，列剋星敦已在 CV 交易上投資了約 60 億美元，新團隊將專注於以差異化方式增加對 CV 交易的參與度。

In secondary private equity, the largest most established managers continue to see the most interest and flows, reflecting a clear bias toward them in the market. Lexington has been a beneficiary of this trend. Clarion Partners has three open-end funds that perpetually fundraise in the US, and this year launched a fourth open-end fund in Europe, focusing on the logistics sector.

在二級私募股權領域，最大、最成熟的管理人繼續獲得最多的興趣和資金流量，反映出市場對他們的明顯偏見。列剋星敦是這一趨勢的受益者。 Clarion Partners在美國擁有三隻永久募資的開放式基金，今年又在歐洲推出了第四隻開放式基金，專注於物流領域。

Clarion continues to be well positioned with over half of AUM in the industrial and logistics sectors and less than 8% of AUM in the office sector. With regard to the wealth management channel, we continued to make strides and open new opportunities for investors given our strength in global retail distribution and dedicated specialist sales team with a focus on investor education.

歌樂持續保持領先地位，超過一半的資產管理規模來自工業和物流領域，不到 8% 的資產管理規模來自辦公室。在財富管理通路方面，憑藉我們在全球零售分銷方面的實力以及專注於投資者教育的專業銷售團隊，我們不斷取得進步，為投資者帶來新的機會。

This quarter, we announced the expansion of our retail alternatives initiatives with a dedicated team in the EMEA region. Looking ahead, we remain focused on product development, including new products in secondary private equity and real estate private debt. Just as a reminder, at the start of our fiscal year, we anticipated raising $10 billion to $15 billion in fund raising and alternatives.

本季度，我們宣佈在歐洲、中東和非洲地區設立專門團隊，擴大我們的零售替代方案。展望未來，我們仍專注於產品開發，包括二級私募股權和房地產私募債的新產品。提醒一下，在本財年開始時，我們預計透過募款和替代方案籌集 100 億至 150 億美元。

And as of this quarter, we are well on our eight to reaching the top end of that range, having raised over $12 billion fiscal year to date. It's worth noting that since being part of Franklin Templeton's platform, each alternative asset manager has increased AUM and continued to grow and diversify across strategies, products vehicles, and client types.

截至本季度，我們已經在第八個季度達到了該範圍的上限，迄今已籌集了超過 120 億美元的財年資金。值得注意的是，自從成為富蘭克林鄧普頓平台的一部分以來，每家另類資產管理公司的資產管理規模均有所增加，並在策略、產品工具和客戶類型方面持續成長和多元化。

Fixed income net outflows were $4.8 billion, excluding inflows from Great-West inflows improved approximately 5% from the prior quarter. As we said on previous calls, we benefit from our broad range of fixed income strategies with non-correlated investment philosophies. Despite mixed performance in certain US taxable strategies, we saw client interest reflected in positive net flows into highly customized, multi-sector and global sovereign strategies.

固定收益淨流出為 48 億美元，不包括 Great-West 流入，較上一季增加約 5%。正如我們在先前的電話會議中所說，我們受益於我們廣泛的固定收益策略和不相關的投資理念。儘管某些美國應稅策略的表現參差不齊，但我們看到客戶的興趣反映在高度客製化、多部門和全球主權策略的正淨流入中。

Additionally, we continue to benefit from vehicle diversification with cross-border funds, ETFs and SMAs and fixed income, all in positive net flows. Notably, we saw increasing interest from clients and multi-sector credit strategies, which capitalize on our team's ability to offer multiple credit sector exposure in one strategy in a highly dynamic environment.

此外，我們繼續受益於跨境基金、ETF、SMA 和固定收益等工具的多元化，所有這些都實現了正淨流量。值得注意的是，我們看到客戶和多部門信貸策略的興趣日益濃厚，這充分利用了我們團隊在高度動態的環境中透過一項策略提供多個信貸部門敞口的能力。

Equity net outflows were $1.6 billion, significantly improving from outflows of $5.3 billion in the last quarter and gross sales improved by 16%. Equity net inflows were driven by large-cap value and All Cap Core strategies and our single country ETFs, or single country ETFs now totaled $10 billion in AUM. With a broad lineup of capabilities, we are able to deliver investment expertise across vehicle types.

股票淨流出為 16 億美元，較上季的 53 億美元流出大幅改善，總銷售額成長 16%。股票淨流入是由大盤價值和全盤核心策略推動的，我們的單一國家 ETF 或單一國家 ETF 目前的資產管理規模總計為 100 億美元。憑藉廣泛的能力，我們能夠提供跨車輛類型的投資專業知識。

We saw another strong quarter of positive net flows across our retail SMAs, Canvas and ETF offerings. We are a leading franchise in retail SMAs with $140 billion in assets under management. This quarter, we generated positive net flows of $500 million, the fifth consecutive quarter of net inflows. Through innovative technologies we are continuing to enable personalized portfolio solutions and improved outcomes for investors.

我們看到零售 SMA、Canvas 和 ETF 產品的淨流量又一個強勁的季度。我們是零售 SMA 領域的領先特許經營商，管理著 1,400 億美元的資產。本季度，我們實現了 5 億美元的正淨流入，這是連續第五個季度實現淨流入。透過創新技術，我們將繼續為投資者提供個人化的投資組合解決方案並改善結果。

Is an example is Canvas, our custom indexing solution platform. Canvas generated net inflows of $800 million in the quarter. AUM increased by 13% from the prior quarter to $8.2 billion and continues to have a robust pipeline. Meanwhile, our ETF business continued to see strong growth and generated net inflows of approximately $3.3 billion, doubling the prior quarter's net flows and was the 11th consecutive quarter of positive net flows.

Canvas 就是一個例子，我們的自訂索引解決方案平台。 Canvas 本季淨流入 8 億美元。資產管理規模較上一季成長 13%，達到 82 億美元，並且持續擁有強勁的通路。同時，我們的ETF業務持續強勁成長，產生約33億美元的淨流入，是上一季淨流量的兩倍，並且是連續第11季淨流量為正值。

Our platform provides solutions for a range of market conditions and investment objectives through active smart beta and passively managed ETFs. Just five years ago, our ETF AUM was $4 billion. AUM stood at $27 billion at quarter end across more than 100 strategies. As a result of our regionally focused sales model, we continue to deepen our presence across the globe.

我們的平台透過主動 smart beta 和被動管理 ETF 為一系列市場狀況和投資目標提供解決方案。就在五年前，我們的 ETF 資產管理規模為 40 億美元。截至季末，100 多個策略的資產管理規模達到 270 億美元。由於我們以區域為中心的銷售模式，我們不斷深化在全球的影響力。

Our non-US business saw its fifth consecutive quarter of positive net flows and finished the quarter with approximately $492 billion in assets under management. Our institutional pipeline of one but unfunded mandates was $17.8 billion, not including the remaining allocation from Great-West. We continue to expand our private wealth management business and Fiduciary Trust International AUM has more than doubled in the past five years from $17 billion to $38 billion.

我們的非美國業務連續第五個季度實現正淨流量，本季結束時管理的資產約為 4,920 億美元。我們的機構管道中一項但尚未獲得資助的任務為 178 億美元，不包括 Great-West 的剩餘撥款。我們繼續擴大私人財富管理業務，Fiduciary Trust International 的資產管理規模在過去五年中成長了一倍多，從 170 億美元增加到 380 億美元。

Athena Capital and Pennsylvania Trust acquired in 2020 have grown almost 40% since acquisition. One of our priorities is to further accelerate the growth of our wealth management business through organic investments and acquisitions. Our commitment to innovation, artificial intelligence, blockchain and machine learning positions us to enhance client outcomes across the rapidly changing technology enabled investment landscape.

2020 年收購的雅典娜資本 (Athena Capital) 和賓州信託 (Pennsylvania Trust) 自收購以來已成長近 40%。我們的首要任務之一是透過有機投資和收購進一步加速財富管理業務的成長。我們對創新、人工智慧、區塊鏈和機器學習的承諾使我們能夠在快速變化的技術驅動的投資環境中提高客戶的成果。

As various aspects of the asset management industry evolve, we continue to make investments in technology across distribution, investment management and operations. Earlier this quarter, we announced that we are working with Microsoft to build an advanced financial AI platform, which will help embed artificial intelligence into our sales and marketing processes to create more personalized support for clients.

隨著資產管理行業各個方面的發展，我們繼續在分銷、投資管理和營運方面進行技術投資。本季度早些時候，我們宣布正在與微軟合作建立先進的金融人工智慧平台，這將有助於將人工智慧嵌入到我們的銷售和行銷流程中，為客戶提供更個人化的支援。

We also announced plans to make a strategic minority investment in investment, a significant industry platform. And earlier this week, we announced the selection of a single platform to unify our investment management technologies across public market asset classes. This will support the simplification of our operation and reduced long-term capital expenditures.

我們也宣布了對投資重要產業平台進行策略性少數股權投資的計畫。本週早些時候，我們宣布選擇一個單一平台來統一我們跨公開市場資產類別的投資管理技術。這將有助於簡化我們的營運並減少長期資本支出。

Formed in 2018, our Franklin Templeton digital assets group has directly witness the revolutionary impact of blockchain technology. The digital asset space has experienced significant growth in recent years, much like the proliferation of new technology decades ago. Capitalizing on this trend, we launched our second digital asset backed ETFs earlier this week, the Franklin [Affinium] ETF to give our clients additional access to this emerging asset class.

我們的富蘭克林鄧普頓數位資產團隊成立於 2018 年，直接見證了區塊鏈技術的革命性影響。近年來，數位資產領域經歷了顯著成長，就像幾十年前新技術的擴散一樣。利用這一趨勢，我們在本週稍早推出了第二個數位資產支持的 ETF，即富蘭克林 [Affinium] ETF，為我們的客戶提供了進入這一新興資產類別的更多機會。

Earlier today, we were pleased to announce our collaboration with SBI Holdings, a leading online financial conglomerate in Japan. The proposed joint venture will focus on ETFs and emerging asset classes, including digital assets and cryptocurrencies. The extensive reach of SPI branded Japan aligns well with our commitment to help new generations of investors achieve their financial goals through innovative strategies.

今天早些時候，我們很高興地宣布與日本領先的線上金融集團 SBI Holdings 合作。擬議的合資企業將專注於 ETF 和新興資產類別，包括數位資產和加密貨幣。 SPI 日本品牌的廣泛影響力與我們透過創新策略幫助新一代投資者實現財務目標的承諾不謀而合。

Turning briefly to financial results. Adjusted operating income was $424.9 million, an increase of 1.3% from the prior quarter and a decrease of 10.9% from the prior year quarter. Looking ahead, we will continue to invest in the business to support our strategic priorities and asset management and wealth management.

簡要談談財務業績。調整後營業收入為 4.249 億美元，季增 1.3%，季減 10.9%。展望未來，我們將繼續投資該業務，以支持我們的策略重點以及資產管理和財富管理。

Finally, in June, investment news recognized Franklin Templeton as asset manager of the year. This is a true testament to all of our employees around the world and their commitment to being the ideal partner in helping both individuals and institutions achieve their key financial goals and objectives. I would like to thank our employees for always putting clients first.

最後，六月，投資新聞將富蘭克林鄧普頓評為年度最佳資產管理公司。這是對我們世界各地所有員工的真實證明，也是他們致力於成為幫助個人和機構實現關鍵財務目標的理想合作夥伴的承諾。我要感謝我們的員工始終將客戶放在第一位。

Now let's open it up to your questions. Operator?

現在讓我們來解答您的問題。操作員？

(Operator Instructions)

（操作員說明）

Alex Blostein, Goldman Sachs.

亞歷克斯·布洛斯坦，高盛。

Hey, good morning. Thank you for taking the question. I was hoping we could start with the Aladdin announcement. I know it's been sort of speculated for the last couple of quarters and that's to get it out there. But can you talk about the operational benefits and both expense benefits and operating margins ultimately. Do you expect the platform to deliver how long it's going to take to get fully implemented, et cetera? And as part of that meeting that you can just hit on the expense items for the rest of the year as well? Thanks.

嗨，早安。感謝您提出問題。我希望我們可以從阿拉丁的公告開始。我知道過去幾個季度有人對此進行了猜測，而這就是為了將其公佈。但您能否最終談談營運效益以及費用效益和營運利潤率。您預計該平台需要多長時間才能完全實施等等？作為會議的一部分，您還可以討論今年剩餘時間的費用項目嗎？謝謝。

Yeah, thank you, Alex. Good morning. A couple of background first, why have we done this? What we expect to get out of it? And then I'll talk a little bit about the implementation costs and timeline and so on, as you've asked. So first of all, why have we done this? We've done this because it unifies our investment management technology across all of our public market businesses, which as you know, extensive amount of specialist investment managers.

是的，謝謝你，亞歷克斯。早安.首先介紹一下背景，我們為什麼要這樣做？我們期望從中得到什麼？然後我會根據您的要求談談實施成本和時間表等問題。首先，我們為什麼要這樣做？我們這樣做是因為它統一了我們所有公開市場業務的投資管理技術，如您所知，這是大量的專業投資經理。

This importantly was a decision that was made collectively across all of our specialist investment managers and has taken us no less than 18 months to two years to make this decision. In terms of the benefits, it brings several things, including most of what you'd expect, candidly, but most importantly, in the form of one platform versus multiple vendors.

重要的是，這是我們所有專業投資經理集體做出的決定，我們花了至少 18 個月到兩年的時間才做出這個決定。就好處而言，它帶來了許多好處，包括您所期望的大部分好處，坦白說，但最重要的是，以一個平台而不是多個供應商的形式。

I'll just go through a few that the work portfolio, construction and risk management tools, a single investment book of records, integrated order management systems and connectivity, importantly consistent reporting across the firm and this is good for both clients and for internal reporting purposes. And it assists in developing cross team, cross specialist investment manager, multi-asset solutions. And also, as you know, we've been active strategically in the business, adding companies over time. And with a single platform like this, it's easier to add new business. It's easier because it's faster and lower cost to integrate.

我將只介紹一些工作組合、建造和風險管理工具、單一投資記錄簿、整合訂單管理系統和連接性、重要的是整個公司的一致報告，這對客戶和內部報告都有好處目的。協助開發跨團隊、跨專業投資經理、多元資產解決方案。而且，如您所知，我們一直在業務中積極開展策略活動，隨著時間的推移不斷增加公司。有了這樣的單一平台，就可以更輕鬆地新增業務。它更容易，因為整合速度更快且成本更低。

Thirdly, in terms of implementation costs, so implementation costs are expected to be approximately $100 million over the next three to five years. The peak of these costs would be fiscal '26 and '27, where we expect about 60% of these expenses to be assumed. Importantly, though, we expect to absorb between 50% and 100% of the implementation costs, meaning on a quarterly basis over the next several years, we expect this to be close to neutral from an operating income perspective.

第三，在實施成本方面，預計未來三到五年的實施成本約為1億美元。這些成本的高峰將是 26 財年和 27 財年，我們預計將承擔這些費用的約 60%。但重要的是，我們預計將吸收 50% 至 100% 的實施成本，這意味著未來幾年按季度計算，從營業收入的角度來看，我們預計這將接近中性。

That or around fiscal 2028, we expect to begin to realize savings of about $15 million per annum. And then in '29, we expect that to raise to $25 million at least. Next quarter, we will add approximately $3 million of additional cost to IST associated with the start of this implementation. But again, we've got several things going on. That should mean that we can absorb that based on other expense initiatives we have in the firm.

到 2028 財年左右，我們預計每年將開始節省約 1,500 萬美元。然後到 29 年，我們預計該金額至少將達到 2,500 萬美元。下個季度，我們將為 IST 增加約 300 萬美元的額外成本，與此實施的開始相關。但同樣，我們有幾件事正在發生。這應該意味著我們可以根據公司的其他費用計劃來吸收這項費用。

So as mentioned, you know, given other initiatives, the impact per quarter should be quite modest, if any. But if anything is important to call out, we will obviously do that per quarter, Alex, and we're most likely going to be able to do that in advance in our quarterly guidance. But as I said, the most important message here is even though this is an expensive implementation, exercise, we're going to absorb most of those expenses due to the other efforts that we have going on across the company.

如前所述，您知道，考慮到其他舉措，每季的影響（如果有的話）應該相當適度。但如果有什麼重要的事情需要指出，我們顯然會在每個季度這樣做，亞歷克斯，我們很可能能夠在我們的季度指導中提前這樣做。但正如我所說，這裡最重要的訊息是，儘管這是一項昂貴的實施、練習，但由於我們在整個公司所做的其他努力，我們將吸收大部分費用。

In terms of the guide for the next quarter, we expect our effective fee rate to remain stable at 37.5 basis points, and we expect comp and benefits to be $825 million very stable from where we were this quarter. This assumes $50 million of performance fees. We expect IST to be between $150 million and $155 million this includes the $3 million that I mentioned earlier, with respect to the beginning of our implementation around the investment management platform. Occupancy, we expect to be in the high 70s, around $77 million, $78 million. And G&A we expect to be between $175 million and $180 million.

就下一季的指導而言，我們預計有效費用率將穩定在 37.5 個基點，我們預計薪資和福利將達到 8.25 億美元，與本季的水平相比非常穩定。假設績效費為 5000 萬美元。我們預計 IST 的規模將在 1.5 億至 1.55 億美元之間，其中包括我之前提到的與我們開始實施投資管理平台相關的 300 萬美元。我們預計入住率將在 70 多歲左右，約 7,700 萬美元、7,800 萬美元。我們預計一般管理費用將在 1.75 億美元到 1.8 億美元之間。

Great. Thank you. For all that comprehensive as always.

偉大的。謝謝。對於一切一如既往的全面。

Brennan Hawken, UBS.

布倫南霍肯，瑞銀集團。

Good morning. Thanks for taking my question. The couple of questions on Lexington. So curious on an update about how much of Lexington 10 has been deployed. And then when we think about the threshold for deployment, where Lexington would start to look to kick off fundraising for the next flagship, where does that typically happen?

早安.感謝您提出我的問題。關於列剋星敦的幾個問題。我很好奇列剋星敦 10 號的部署情況的最新情況。然後，當我們考慮部署的門檻時，列剋星敦將開始尋求為下一個旗艦籌集資金，這通常發生在哪裡？

So in first of all, Lexington fundraising focuses this year just to cover a little bit of that has been middle market and co-investment, and that's gone well. Meanwhile, they've been obviously deploying front-end. And basically the message is that they have been deploying it faster and at higher discounts than historical. So it's looking very good.

首先，列剋星敦今年的募款重點只是涵蓋中間市場和共同投資的一小部分，而且進展順利。與此同時，他們顯然一直在部署前端。基本上，資訊是他們的部署速度比歷史更快，折扣也更高。所以看起來非常好。

We don't have a specific date, but it is quite possible that they will enter the market sooner than they anticipated just because of the ability to deploy capital faster. And I think we all see it right, the liquidity that's needed in this space.

我們沒有具體的日期，但他們很可能會比預期更早進入市場，因為他們能夠更快地部署資本。我認為我們都認為這個領域所需的流動性是正確的。

They also interestingly, we mentioned in the opening remarks about their continuation vehicle today at about $6 billion. They've done where these GPs have particular holding that they want to retain, but some of the LPs want liquidity as they spin it out into a new vehicle, Lexington hired a market leader and that they actually think that there's opportunity to even create a fund in that instead of having it be part of their traditional funds. So I think that's going to be another opportunity for Lexington.

有趣的是，我們今天在開場白中提到了他們的延續工具，規模約為 60 億美元。他們已經完成了這些普通合夥人想要保留的特定持股，但一些有限合夥人在將其分拆成新工具時希望獲得流動性，列剋星敦聘請了一位市場領導者，他們實際上認為甚至有機會創建一個為其提供資金，而不是將其作為傳統基金的一部分。所以我認為這對列剋星敦來說將是另一個機會。

And Jenny, the only piece I would add to that is that while Lexington historically has been focused on the institutional market, there are significant efforts underway to ensure that they can better tap the wealth management channel by offering perpetual vehicles in wealth management in both the US and non-US markets, and that's something we're very actively engaged in developing.

珍妮，我唯一要補充的是，雖然列剋星敦歷史上一直專注於機構市場，但目前正在做出重大努力，以確保他們能夠透過在兩個領域提供財富管理的永久工具來更好地利用財富管理通路。

Thanks for that. And just, Jenny, the discounts that you referred to, we had heard that those discounts have actually begun to narrow. Are they still seeing those wide discounts in the marketplace or --

感謝那。只是，珍妮，你提到的折扣，我們聽說這些折扣實際上已經開始縮小。他們是否還在市場上看到大幅折扣，或者——

They are definitely starting to narrow, but they are still seeing robust discount versus historical discounts, it's still better than historical discounts.

他們肯定開始縮小，但他們仍然看到與歷史折扣相比強勁的折扣，它仍然比歷史折扣更好。

Yes. So still at attractive levels, I guess, even though that there?

是的。我想，儘管如此，仍然處於有吸引力的水平？

Yeah

是的

Thanks.

謝謝。

Craig Siegenthaler, Bank of America.

克雷格·西根塔勒，美國銀行。

Good morning, everyone. So my question is on the $25 billion AUM allocation from Great-West. So you're about $5 billion away after this reach probably in a few months. Can you talk about the incremental upside to this relationship over time beyond the '25?

大家，早安。我的問題是關於 Great-West 的 250 億美元資產管理規模分配。因此，在幾個月內達到這一目標後，您可能還需要約 50 億美元。您能談談這種關係在 25 世紀之後隨著時間的推移所帶來的增量好處嗎？

Adam, do you want to take that or --

亞當，你想接受這個還是——

Yeah, sure. So you know, with any client, I think you see a relationship grows over time. So the first $25 billion was really something that was more contractually oriented. Throughout that process, we have been able to meet many Great-West Lifeco executives as well as the related power company. We are in the midst of product development with them.

好，當然。所以你知道，我認為與任何客戶的關係都會隨著時間的推移而發展。因此，前 250 億美元實際上是更多以合約為導向的資金。在整個過程中，我們見到了許多 Great-West Lifeco 高層以及相關電力公司的高階主管。我們正在與他們一起開發產品。

So the initial allocation has really been based on the types of products that insurance companies generally are interested in. And I think if you look at most insurance companies, you'll see significant allocations to some core fixed income as well as a tail that goes to alternatives. That hasn't been the allocation we've received so far.

因此，最初的分配實際上是基於保險公司普遍感興趣的產品類型。這還不是我們迄今為止收到的撥款。

But what we've been able to do since acquisition is to work with greatness of Great-West Lifeco as well as other power companies to develop newer products, both for the retirement platform as well as doing things on JV venture on the insurance side. So we are not at a point yet where we can pinpoint what those will be. But there is significant product development going on with Great-West and we think that we will continue to see the allocations and broaden out from the core fixed income that has been the basis of things so far.

但自收購以來，我們能夠做的是與 Great-West Lifeco 以及其他電力公司合作開發更新的產品，既用於退休平台，也用於保險方面的合資企業。因此，我們還不能確定這些內容是什麼。但 Great-West 正在進行重大的產品開發，我們認為我們將繼續看到分配並擴大核心固定收益的範圍，這是迄今為止的基礎。

And the other thing I'd just add to that, Adam and Craig is just for context. Obviously, we're delighted with the $25 billion arrangement and the $20 billion we've got in so far, but relative to other clients and investment management firms that the power group of companies does business with, it's still fairly modest, candidly.

我要補充的另一件事是，亞當和克雷格只是為了提供背景。顯然，我們對 250 億美元的安排和迄今為止已獲得的 200 億美元感到高興，但坦白說，相對於與電力集團有業務往來的其他客戶和投資管理公司來說，這仍然相當溫和。

So we have a way to go with that relationship. And we think of this as a multiyear exercise of building the relationship further versus just something has happened as a consequence of a transaction. But I think it's important to note that obviously, we expect assuming the power group of companies have very significant relationships with other investments that's going to continue. What we're doing is pitching for our fair share of it.

所以我們有辦法維持這種關係。我們認為這是進一步建立關係的多年努力，而不是僅僅因為交易而發生了一些事情。但我認為值得注意的是，顯然，我們預期假設電力集團與其他將繼續進行的投資有非常重要的關係。我們正在做的就是爭取我們應得的份額。

Thank you, Matthew.

謝謝你，馬修。

Dan Fannon, Jefferies.

丹‧範農，傑弗里斯。

Thanks. Good morning, Matthew. I was hoping you could clarify or expand upon what you guys are doing to offset the implementation costs with the new tech projects. So curious what those initiatives are. Can you be more specific? And is there some phasing of that or are those ongoing now so we shouldn't think about any kind of catch-up period between the or missed timing of some of the implementation costs versus the ongoing savings?

謝謝。早上好，馬修。我希望你們能夠澄清或擴展你們正在做什麼來抵消新技術專案的實施成本。很好奇這些舉措是什麼。你可以說得更詳細點嗎？是否有一些分階段或正在進行中，因此我們不應該考慮在某些實施成本的實施或錯過的時間與持續節省的時間之間存在任何形式的追趕期？

Yeah. No, I don't think there should be any missed timings, but as I said, then if these things are quite complex, we're not underestimating at all the implementation complexity of a project like this with Aladdin. I should say, though, that we've -- this is an understatement to say we've done extensive planning around this, both the planning with our partners that serve both over the Aladdin and delight the consultant that we've hired to work with us on implementation.

是的。不，我不認為應該有任何錯過的時間，但正如我所說，如果這些事情相當複雜，我們根本不會低估像阿拉丁這樣的專案的實施複雜性。不過，我應該說，我們已經——這是一種輕描淡寫的說法，我們已經圍繞這個問題做了廣泛的規劃，既與我們的合作夥伴一起進行規劃，既為阿拉丁提供服務，又讓我們聘請的顧問感到高興與我們一起討論實施。

We've done extensive due diligence, we've built in contingencies and we have very significant resources at both Aladdin and delight and of course, our own team. But I don't so I think we've done a ton of work to sort of determine and how the implementation expenditures will work extremely focused on this, if there is anything to call out as I said, I will do that. But we don't want to jinx ourselves, but we don't expect that to happen in terms of how we're able to absorb it.

我們已經進行了廣泛的盡職調查，我們已經制定了應急措施，並且我們在阿拉丁和喜悅方面都擁有非常重要的資源，當然還有我們自己的團隊。但我不這麼認為，所以我認為我們已經做了大量的工作來確定實施支出將如何運作，並且非常關注這一點，如果有什麼需要像我說的那樣，我會這樣做。但我們不想為自己帶來厄運，但我們不希望這種情況發生在我們如何吸收它的方面。

One of the tangential benefits like referenced in previous calls of acquiring being so acquisitive over the last five years, notwithstanding all the additional work and complexity around acquisitions. And it does lead to future opportunities to integrate and to be more effective and efficient across the different platforms and providers we have and a large portion of the savings is going from multiple providers down to one.

儘管圍繞著收購進行了所有額外的工作和複雜性，但在過去五年中，收購的規模如此之大，帶來的間接好處之一就是先前的收購呼籲中提到的。它確實帶來了未來的機會，可以在我們擁有的不同平台和提供者之間進行整合，並變得更加有效和高效，並且很大一部分成本節省將從多個提供者減少到一個。

Of course, we're going to have other relationships still on the technology side that complement our relationship with Aladdin, but we'll have less than that. We also have a much larger scaled relationships across the pricing benefits that we have are very meaningful in that regard. The amount of resources we have externally from the Aladdin platform and our partners there and Deloitte on more than we could afford ourselves and frankly absorb some of the costs that otherwise we would have we would have if we were modernizing our own platform, for example.

當然，我們在技術方面仍然會建立其他關係來補充我們與阿拉丁的關係，但我們的關係會比這個少。我們也擁有更大規模的關係，在這方面我們擁有的定價優勢非常有意義。我們從阿拉丁平台、我們的合作夥伴以及德勤那裡獲得的外部資源數量超出了我們自己的承受能力，並且坦率地說，我們承擔了一些成本，例如，如果我們對自己的平台進行現代化改造，我們就會承擔這些成本。

It's all of those things sort of combined we have we have multiple middle offices. We have multiple systems that are quite complex technologies, all good and it works fine, just to be clear, but this is coming boiling down into one platform this way, less vendors, more efficiency across our whole firm, which is needed anyway in terms of where the industry is heading. It's how we're able to afford to do this in an effective way, as I've described.

所有這些東西綜合起來，我們擁有多個中台。我們有多個系統，都是相當複雜的技術，都很好，運作得很好，但要以這種方式歸結為一個平台，更少的供應商，整個公司的效率更高，無論如何，這都是需要的該行業的發展方向。正如我所描述的，這就是我們能夠以有效的方式做到這一點的方式。

Thank you.

謝謝。

Michael Cyprys, Morgan Stanley.

麥可‧賽普里斯，摩根士丹利。

Great, thank you. I just wanted to circle back to the JV that you announced this morning in Japan with SBI. I was just hoping maybe you can remind us of your footprint in Japan today, certainly a lot of changes in that market. Just curious how you're seeing that opportunity set evolving. Where do you see some of the biggest opportunities there in Japan?

太好了謝謝。我只是想回顧一下您今天早上在日本宣布與 SBI 成立的合資企業。我只是希望您能提醒我們您今天在日本的足跡，當然該市場發生了很多變化。只是好奇您如何看待該機會集的演變。您認為日本最大的機會在哪裡？

And how does this JV help in terms of tapping into the opportunity set in that market? And maybe you could touch upon what the economics will be and how you sort of envision this JV working overtime and what success might look like?

該合資企業如何幫助我們抓住該市場的機會？也許您可以談談經濟狀況，您對這家合資企業加班加點的設想如何，以及成功會是什麼樣子？

Yeah. So I mean, we've been in Japan for a long time. Fortunately, Putnam actually has great relationships and it depends it has more effect. And this quarter, I think we had $3.2 billion in net inflows in Japan. A big part of that was institutional business, some with Putnam. Japan on the retail side, it's been a little bit more difficult, and it is a market that is beginning to launch ETFs and starting to talk about digital assets.

是的。所以我的意思是，我們已經在日本待了很久了。還好普特南其實人脈關係很好，要看效果比較大。本季度，我認為日本的淨流入為 32 億美元。其中很大一部分是機構業務，其中一些是與普特南合作的。日本在零售方面，情況有點困難，這是一個開始推出 ETF 並開始談論數位資產的市場。

And honestly the foreign investment shop that could be difficult to penetrate that. So here with SBI they have a tremendous reach. I mean, they're probably the largest digital financial conglomerate. And so it's up 51% owned SBI 49% of Franklin Templeton, and we'll be launching a joint ETFs. And as the digital market opens up, we'll be able to launch products there in the crypto space as well.

老實說，外國投資商店可能很難滲透到這一點。因此，SBI 在這裡擁有巨大的影響力。我的意思是，他們可能是最大的數位金融集團。因此，SBI 持有富蘭克林鄧普頓 51% 的股份和 49% 的股份，我們將推出聯合 ETF。隨著數位市場的開放，我們也將能夠在加密領域推出產品。

And our footprint now in Japan really is not that different than anywhere else in the marketplace. It's nice to be able to have a significant local base there because of that, we have a strong institutional business. We've seen the result of that of flows this quarter. We've been able to really accelerate some of the great performance that Putnam has and won some assets there in the retail space, we have a relationship with a number of different distributors.

我們現在在日本的足跡確實與市場上其他地方沒有什麼不同。很高興能夠在那裡擁有重要的本地基地，因為我們擁有強大的機構業務。我們已經看到了本季的流量結果。我們已經能夠真正加速 Putnam 的一些出色表現，並在零售領域贏得了一些資產，我們與許多不同的經銷商建立了關係。

We also have a very strong insurance business in Japan. The only other thing I would note about SBI is that Japan is not a market that is always recognized for its innovation and SBI is an exception to that. It's one of the first significant firms to really be breaking through on the digital side in terms of client engagement. And we think partnering with them will allow us to be one of the first asset managers to have more of that direct consumer digital engagement model in Japan. And the asset base in Japan now is close to $50 billion for us.

我們在日本也擁有非常強大的保險業務。關於 SBI 我要指出的另一件事是，日本並不是一個始終因其創新而受到認可的市場，而 SBI 是一個例外。它是第一批在客戶參與度方面真正在數位方面取得突破的重要公司之一。我們認為，與他們合作將使我們成為第一批在日本擁有更多直接消費者數位參與模式的資產管理公司之一。現在我們在日本的資產基礎接近500億美元。

Thank you.

謝謝。

Brian Bedell, Deutsche Bank.

布萊恩·比德爾，德意志銀行。

Great, thanks. Good morning, folks. Can you just circle back on the ETF strategy, basically $27 billion, like you said, but given a very wide range of products, you have any strategies you have across the entire complex. What's the desire to your more substantially expand that ETF franchise. Is there an ability to clone at more a more active product or is it more of a two-pronged strategy of doing that and rolling out passive product. And then if you could just talk about connecting that would be how easy it is to do that with the new Aladdin, our platform, realizing it will take some time, of course.

萬分感謝。早安，夥計們。您能否回過頭來談談 ETF 策略，基本上是 270 億美元，就像您所說的那樣，但考慮到產品範圍非常廣泛，您可以在整個綜合體中擁有任何策略。您希望進一步擴大 ETF 業務範圍嗎？是否有能力複製更主動的產品，或者更多的是一種雙管齊下的策略，即做到這一點並推出被動產品。然後，如果您可以談論連接，那麼使用我們的新阿拉丁平台實現連接是多麼容易，當然，意識到這需要一些時間。

So from an EPS standpoint, I mean, actually our largest category of ETFs over 40% is active. And then the next category is passive and smart beta and then digital. So our focus on ETFs is as a firm we view ourselves as vehicle agnostic. So whatever the market is interested in having us deliver our capabilities we'll deliver whatever vehicle they like.

因此，從 EPS 的角度來看，我的意思是，實際上我們最大類別的 ETF 超過 40% 是活躍的。下一個類別是被動和智慧測試版，然後是數位化。因此，我們對 ETF 的關注是作為一家公司，我們認為自己與投資工具無關。因此，無論市場對我們提供的功能感興趣，我們都會提供他們喜歡的任何車輛。

And there is a strong demand of advisors, particularly in the US who are interested in ETFs. And I think it's driven a lot by the shift to fee based. And so it's been important for us to be able to launch products. I think we have over 100 ETFs today and to be able to launch products that are appropriate.

對顧問的需求也很強烈，特別是在美國，對 ETF 有興趣的顧問。我認為這在很大程度上是由向收費的轉變所推動的。因此，能夠推出產品對我們來說非常重要。我認為我們現在有超過 100 隻 ETF，並且能夠推出合適的產品。

There has been some feedback about a concern of launching close between a traditional mutual fund and ETF because it can bring suitability issues to the distribution platforms themselves. We like to either look at existing, say, mutual funds and potentially convert them if an ETF is a better way to deliver it or launch some sort of ETF. It is a slightly different approach.

有人反饋稱，人們擔心在傳統共同基金和 ETF 之間推出封閉式基金，因為這會為分銷平臺本身帶來適用性問題。我們喜歡要么關注現有的共同基金，如果 ETF 是更好的交付方式，則可能會轉換它們，或者推出某種 ETF。這是一種略有不同的方法。

Now, interestingly, we're getting a lot of demand from Latin America pensions that are interested in our single country ETFs, which are, I believe the lowest price in the market. And so we've been getting good strong flows there. We're getting flows from Europe as well as Japan. And so it's really global. Our view is in a lot of these markets, ETFs are becoming the vehicle choice and so we need to be able to support that. I don't know, Adam, you want to add anything to that.

現在，有趣的是，我們收到了來自拉丁美洲退休金的大量需求，他們對我們的單一國家 ETF 感興趣，我認為這是市場上最低的價格。因此，我們在那裡獲得了強勁的資金流。我們從歐洲和日本獲得資金。所以它確實是全球性的。我們的觀點是，在許多此類市場中，ETF 正在成為投資工具的選擇，因此我們需要能夠支持這一點。我不知道，亞當，你還想補充什麼嗎？

Yes, I'd add a few things, Jenny. The flow there has been quite strong for us at 3.3 in net flow this quarter, and that's seven quarters in a row where we've had about $1 billion or more in flow, as Jenny said, that flow is coming from a geographically diverse base where we saw about $900 million coming in from EMEA and about $0.5 billion coming in from the Americas region.

是的，我想補充一些東西，珍妮。對我們來說，本季的淨流量非常強勁，為 3.3，這已經是連續七個季度我們的流量約為 10 億美元或更多，正如 Jenny 所說，該流量來自不同地理位置的基礎我們看到約9 億美元來自歐洲、中東和非洲地區，約5 億美元來自美洲地區。

I'd also just follow up with Jenny's point on being agnostic in terms of vehicles. Our most significant and longest tenured mutual fund -- US mutual fund at the income fund. But if we look at the income fund for this quarter, just as an example, we saw very slight outflows in the mutual fund, but positive flows in the related SMA, positive flows in the cross-border funds, positive flows in the ETF.

我也想跟進珍妮關於車輛方面不可知論的觀點。我們最重要、任期最長的共同基金—美國共同基金收益基金。但如果我們看一下本季的收益基金，僅舉個例子，我們看到共同基金的資金流出非常輕微，但相關的 SMA 為正資金流，跨境基金為正資金流，ETF 為正資金流。

So by offering for different vehicle types there category for the income strategies in general, with net flow positive and as investor demand becomes more global and shifts away from mutual funds, having multiple vehicles allows us to capture that flow.

因此，透過提供不同的工具類型，整體上可以對收入策略進行分類，淨流量為正，並且隨著投資者需求變得更加全球化並從共同基金轉移，擁有多種工具使我們能夠捕獲該流量。

And actually, I'm just going to say one thing on that. It's often viewed that ETFs are a potentially lower margin, and I think that comes out of the history, but being sort of early on passive. Honestly, it depends on kind of the strategy in the case of the income fund where we're having so much success in those other vehicles the pricing is actually very much in line with what the mutual fund is.

事實上，我只想就此說一件事。人們經常認為 ETF 的利潤率可能較低，我認為這已經是歷史事實，但在早期就處於被動狀態。老實說，這取決於收益基金的策略類型，我們在其他工具上取得瞭如此大的成功，定價實際上與共同基金非常一致。

And arguably, over time, the cost to us will be less with the ETF and the SMA because you don't have the transfer agency and the fund administration costs in the same way that you do with the mutual fund. That actually was one of the drivers in our decisions to outsource those things because it allows us as the business shifts to have greater flexibility in the expense supporting the business.

可以說，隨著時間的推移，ETF 和 SMA 為我們帶來的成本將會更低，因為你不需要像共同基金那樣的轉讓機構和基金管理成本。這實際上是我們決定外包這些事情的驅動因素之一，因為它使我們能夠隨著業務的轉變在支援業務的費用方面擁有更大的靈活性。

That's great color. Thank you for all that detail.

那顏色真棒。謝謝你提供的所有細節。

Ken Worthington, JPMorgan.

肯‧沃辛頓，摩根大通。

Hi. Thanks for taking the question. As we think about possible extension of duration by investors, if the Fed acts later this year, what's your fixed income products you think are best positioned to benefit with better sales? And then along the same lines, some of the big flagship Western funds are still struggling with performance in outflows picked up this quarter, both gross and net. What are the issues sort of weighing on those funds?

你好。感謝您提出問題。當我們考慮投資者可能延長期限時，如果聯準會在今年稍後採取行動，您認為您的哪些固定收益產品最有可能受益於更好的銷售？同樣，一些西方大型旗艦基金仍在努力應對本季資金流出總額和淨資金流出的表現。這些基金面臨哪些問題？

So first of all, you know, add if rates go down, I think we probably are guessing to cut this year, obviously cash becomes less interesting as your fixed income allocation and you're going to probably see people move into other fixed income. We've had two of our three seems in positive net flows in fixed income. As matter of fact, you know, frankly, the performance is excellent, with 71% of AUM outperforming peers in the one three and five years.

所以首先，你知道，如果利率下降，我想我們可能會猜測今年會削減，顯然現金變得不那麼有趣，因為你的固定收益配置，你可能會看到人們轉向其他固定收益。我們的三個固定淨收益流量中，有兩個似乎為正。其實大家知道，坦白說，業績非常好，過去三年、五年的AUM有71%跑贏了同行。

Brandywine at 92% of their AUM outperforming peers in the five-year category and in five out of our top 10 gross selling strategies are in fixed income. And that actually includes several Western strategies, either we have positive flows in, a lot of different vehicles. So our cross border are your short duration is in positive flows are ETFs and fixed income are positive flows.

Brandywine 的 92% 的 AUM 在五年類別中表現優於同行，而我們的十大銷售策略中有 5 個屬於固定收益策略。這實際上包括一些西方策略，要么我們有積極的資金流入，有很多不同的工具。所以我們的跨國是你的短期久期是正流量，ETF 和固定收益是正流量。

Our retail SMAs are in positive flows, and we had positive flows in our closed-end funds. Interest and actually the largest portion of our institutional pipeline is fixed income. And again, that does not include Great-West Lifeco. Interestingly, if you think about passive and how it potentially impacts fixed income.

我們的零售移動平均線出現正流量，我們的封閉式基金也出現正流量。利息，實際上我們機構通路的最大部分是固定收益。再說一遍，這不包括 Great-West Lifeco。有趣的是，如果您考慮被動及其對固定收益的潛在影響。

It's been the area that passive does actually cannibalize to some extent has really been in that core and core plus space. And so in multi-sector, the highly customized muni's, Adam help me out on the other strategies. You're not seeing that kind of cannibalization from the passive. And then Western, as we've talked about their positioning has been longer duration. So right about that actually, you know, is potentially a benefit as far as the positioning and we've seen it in kind of one month's performance has improved a lot.

被動實際上在某種程度上蠶食了核心和核心加空間的領域。因此，在多部門、高度客製化的市政方面，亞當幫助我制定了其他策略。你不會看到這種被動的蠶食。然後是西方，正如我們所討論的，他們的定位持續時間更長。因此，事實上，您知道，就定位而言，這可能是一個好處，我們已經看到一個月的業績已經有了很大改善。

Yeah, I would add a few things. We didn't really talk about the muni franchise and that Jenny, the muni performance is really strong. We have about 90% of assets outperforming on the one year period and about 75% outperforming on the three and five, we think we'll see significant growth in muni's and the fact that we had a strong SMA franchise there as well as mutual funds it's really helping us. In terms of the shift in rates with a steeper yield curve, we think we will see money coming out of cash into longer-term fixed income, which should benefit us.

是的，我想補充一些東西。我們並沒有真正談論市政特許經營權，珍妮，市政表現非常強勁。我們大約90% 的資產在一年期間表現出色，大約75% 在三年和五年期間表現出色，我們認為我們將看到市政債券的顯著增長，而且我們在那裡擁有強大的SMA 特許經營權以及共同基金這確實對我們有幫助。就殖利率曲線陡峭的利率變化而言，我們認為我們將看到資金從現金轉向長期固定收益，這應該會使我們受益。

The other thing we've seen is that in a market with fairly tight credit spreads, we see allocations going more and more to managers who have the ability to be multi sector or multi credit exposures and to have the ability to allocate across those different sleeves. And that bodes well for us as well as we are very strong in those areas.

我們看到的另一件事是，在信用利差相當緊張的市場中，我們看到配置越來越多地分配給有能力進行多部門或多信用敞口並有能力在不同袖子上進行分配的管理者。這對我們來說是個好兆頭，而且我們在這些領域非常強大。

The final thing I would note is that our insurance capabilities are highly specialized, and we've seen real growth in fixed income coming from insurance specific mandates where the regulatory reporting compliance aspect of managing those accounts is as or more important than the alpha generation.

我要指出的最後一件事是，我們的保險能力是高度專業化的，我們已經看到固定收益的實際增長來自於保險的特定要求，其中管理這些帳戶的監管報告合規方面與阿爾法一代一樣重要或更重要。

And just to add on one thing on cash management, because a lot of people are looking at all the dollars in money market funds and think that that's going to move out. But the our money market funds Westerns tens at sovereign wealth and corporate treasurers who are allocating the temporary in-between may affect Western had $2 billion in net flows, which really came from a product that was very competitively priced and attracted money from corporate treasurers.

在現金管理上補充一件事，因為很多人都在關注貨幣市場基金中的所有美元，並認為這些資金將會被撤出。但我們的貨幣市場基金西方人在主權財富和企業財務主管中分配的數十億美元可能會影響西方國家20億美元的淨流量，這實際上來自一種定價非常有競爭力的產品，並吸引了企業財務主管的資金。

And then actually Franklin product, which was is a Luxembourg product had $800 million in flows. I think that was the fastest growing money market fund from some lists that I saw, which was really offshore clients who wanted to take advantage of the yields in the US. And I think that product now is a Luxembourg US dollar short term money market fund, and it's now $1.1 billion in AUM.

實際上，富蘭克林產品（盧森堡產品）的流量為 8 億美元。我認為這是我看到的一些名單中成長最快的貨幣市場基金，這些基金實際上是想要利用美國收益率的離岸客戶。我認為現在的產品是盧森堡美元短期貨幣市場基金，現在的資產管理規模是 11 億美元。

Great. Thank you.

偉大的。謝謝。

Bill Katz, TD Cowen.

比爾·卡茨，TD·考恩。

Great. Thank you very much taking the question. So there's a lot of ins and outs to the franchise right now. And just maybe stepping back for a moment, I guess where I'm struggling a little bit on the storyline is how do you drive both top line and bottom line growth here? Because when I adjust for where your flows are coming in versus where they're going out, it would seem to me that the fee rate may go lower. So I'm curious your thoughts on that.

偉大的。非常感謝您提出問題。所以現在這個系列有很多細節。也許退後一步，我想我在故事情節上有點掙扎的地方是你如何推動這裡的頂線和底線增長？因為當我根據流量的流入和流出位置進行調整時，在我看來，費率可能會降低。所以我很好奇你對此的想法。

And then given now the any incremental savings that you think you can do with sort of supplement the growth for the Aladdin platform, it would seem that you more of a top-line story than a top line plus expense leverage, but then I worry the fee rate, Michael, lower because of the mix. So how do we think about how do you get revenue growth from here and then how you turn that into operating leverage? Thank you.

然後考慮到現在您認為可以補充阿拉丁平台增長的任何增量節省，看起來您更像是一個頂線故事，而不是頂線加上費用槓桿，但我擔心邁克爾，由於混合，費率較低。那麼我們如何考慮如何從這裡獲得收入成長，然後如何將其轉化為營運槓桿？謝謝。

So I'd start and then Matt, have you kind of jump onto some of the EFR and some of the other things. Look, I think that one of the things that the either the pivot into adding alternatives. Obviously, one of the benefits of that is that's just a much higher fee, even excluding performance fees as a baseline investment management fee.

所以我先開始，然後 Matt，讓你跳到一些 EFR 和其他一些東西上。聽著，我認為其中之一就是轉向添加替代方案。顯然，這樣做的好處之一是費用要高得多，甚至不包括績效費作為基準投資管理費。

And this year, if you -- we guided to $10 billion to $15 billion. We're going to end out up close to $15 billion and yet the AUM is pretty flat. And that's really because of inflows plus market is sort of offset by some outflows and really realizations and distributions, but it was a year where we weren't in the market with a flagship secondary PE fund from Lexington and frankly, real estate's been really soft.

今年，如果你——我們指導的金額為 100 億至 150 億美元。我們最終的收入將接近 150 億美元，但資產管理規模卻相當穩定。這實際上是因為流入加上市場在某種程度上被一些流出以及真正的變現和分配所抵消，但那一年我們沒有在市場上擁有來自列剋星敦的旗艦二級私募股權基金，坦率地說，房地產非常疲軟。

So while Clarion Partners has three of the largest funds are open-ended and there is perpetual fund raising, you know, there just hasn't been huge allocations to real estate. So we had a couple of those because I do think there's opportunity for that pipeline to expand.

因此，雖然 Clarion Partners 旗下最大的三隻基金都是開放式的，並且有永久的資金籌集，但你知道，房地產方面並沒有大量的配置。所以我們有幾個這樣的項目，因為我確實認為該管道有機會擴展。

Let me start with real estate. I think there's a feeling that this market has really bottomed, and that's driven by two things. One is more clarity on where rates are as well as probably more realistic marks that the bid-ask spreads are coming closer. And in talking to folks at Clarion, you don't think about it often used to be 35% of the index it's now down to 17.

讓我從房地產開始。我認為有一種感覺，這個市場確實已經觸底，這是由兩件事驅動的。一是更清楚了解利率水平，也可能更現實地表明買賣價差越來越接近。在與 Clarion 的員工交談時，你不會想到它通常佔該指數的 35%，而現在已降至 17。

So finally, maybe there's more to go on offices dropping in the marks and Clarion only as 8% allocated to office, but you've had a huge adjustment in pricing as mayor affect period, seeing RFP volumes go up a little bit you're starting to see rescissions in redemption queues. And more importantly, some of the properties that they sold in like logistics have sold for above the appraised value and on some of the multifamily above where the marks were.

所以最後，也許辦公室的分數會下降，而歌樂只分配給辦公室的 8%，但隨著主要影響時期，您對定價進行了巨大調整，看到 RFP 量略有上升，您開始在贖回隊列中看到撤銷。更重要的是，他們出售的部分房產（例如物流）的售價高於評估價值，有些多戶住宅的售價也高於評估價格。

So that's kind of a sign that the real estate markets getting healthy again and I think the feeling is by the end of '24, we're going to start to see managers allocating back to real estate. And I already mentioned about Lexington where they've been deploying fund 10 faster. And so hopefully we'll be in the market sooner for their next fund.

因此，這是房地產市場再次健康發展的跡象，我認為到 24 年底，我們將開始看到管理者重新配置房地產。我已經提到過列剋星敦，他們在那裡部署資金的速度快了 10 倍。因此，希望我們能夠更快地進入市場購買他們的下一檔基金。

And again, this is just a supply and demand issue, which is so much has been deployed in the alternative space and there's a need for liquidity for a variety of reasons. And we do see M&A starting to pick up on their needs for that liquidity and there's only a handful of large secondary managers. They can buy big LP positions when needed.

再說一次，這只是一個供需問題，在替代領域已經部署了很多東西，並且出於多種原因需要流動性。我們確實看到併購開始滿足他們對流動性的需求，而且只有少數大型二級管理公司。他們可以在需要時購買大量的有限合夥人部位。

And so that's been where we've been able to have true pricing power in the secondaries. And then you had mentioned on BSP we think that's real estate debt. There's some parts of private credit that have been pretty tight, but real estate debt, because of the retrenchment of regional banks, has made this just a fertile ground for a real opportunity, both from institutional clients interested in and really great conversations were happening with distributors who are interested in the wealth channel and offering products they're. So we think that we've been kind of if you just look at this year for alternatives, you're kind of at a baseline.

這就是我們能夠在二級市場擁有真正定價權的地方。然後您在菲律賓央行提到我們認為這是房地產債務。私人信貸的某些部分一直相當緊張，但由於地區銀行的緊縮，房地產債務已成為真正機會的沃土，無論是來自感興趣的機構客戶，還是正在進行的真正精彩的對話對財富渠道和提供他們所提供的產品有興趣的經銷商。所以我們認為，如果你只看今年的替代方案，你就處於基線水平。

And I think there's a lot more opportunity. We've looked at some of this gets healthy and that right there carries some of the fees up. I didn't mention the reduction in our fees. A lot of the EFR was adjustment because we added Putnam. And so it's not just the asset mix of fixed income takes a much bigger percentage than equity. Of course, you're going to have it, but you're not seeing the degradation because of vehicles as much as I think people are thinking that's happening we're not seeing that same level.

我認為還有很多機會。我們已經看到其中一些變得健康並且會帶來一些費用。我沒有提到我們的費用減少。很多 EFR 都是調整，因為我們加入了普特南。因此，不僅是固定收益資產組合所佔的比例比股票大得多。當然，你會遇到它，但你不會看到由於車輛而造成的退化，就像我認為人們認為這種情況正在發生一樣，我們沒有看到同樣的水平。

Matt you want to cover anything?

馬特你想報道什麼嗎？

Yeah, I think, Jenny, you cover most, that I mean, there's differences from last quarter, Bill, on the EFR, for example, the business mix was probably a little bit under 0.1 basis points. Putnam was 0.9. Now a lot of that's to do with the calculation of the EFR itself. But we thought the 0.9 would be a little bit less than that. Hence, the slight difference from the guide that I gave the reason why it ended up being as much as 0.9 is because, frankly, partly this has grown faster than we anticipated is grow faster.

是的，我認為，珍妮，你涵蓋了大部分內容，我的意思是，比爾，在 EFR 方面與上季度有所不同，例如，業務組合可能略低於 0.1 個基點。普特南是 0.9。現在，這很大程度上與 EFR 本身的計算有關。但我們認為 0.9 會比這個少一點。因此，與我給出的指南中的細微差別導致它最終達到 0.9 的原因是，坦白說，部分原因是它的成長速度比我們預期的要快。

Now projections every month. It's growing faster than we thought from perspective partners AUM is 23% higher than when we announced the transaction and 13% higher than when we close the transaction, and they've been in positive flows every month since for both quarters since then. So what that's meant is because they're at a lower effective fee rate and the averaging in the calculation, everything it means that the files come down a bit.

現在每個月都有預測。它的成長速度比我們想像的要快，從合作夥伴的角度來看，AUM 比我們宣布交易時高出23%，比我們完成交易時高出13%，並且自那時以來的兩個季度，他們每個月都處於正流量。所以這意味著因為它們的有效費率和計算平均值較低，這意味著文件會減少一些。

If you take that into account and then you take into account previous quarters where we've had episodic boosts to EFR of such as Lexington's catch-up fees. Our EFR has actually been fairly stable. I mean it has come down a little bit, but it's normally by 0.1 here and there. And that's that, as Jenny mentioned, is largely due to a little bit of a mix and frankly, the growth in ETFs, a Canvas SMA solutions.

如果你考慮到這一點，然後再考慮到前幾個季度，我們的 EFR 曾有過間歇性的增長，例如列剋星敦的追趕費。我們的 EFR 實際上相當穩定。我的意思是它已經下降了一點，但通常到處都是 0.1。正如 Jenny 所提到的，這很大程度上是由於一些混合因素，坦白說，是 ETF（Canvas SMA 解決方案）的成長。

And we expect that, that group of things to be growing. It's very hard when it to have all of the things flowing that we've invested in one quarter. One day, we will actually get, yes, alternatives, ETFs, Canvas, SMA solutions all coming together at once we get the fund raising in ops lined up with all those other more organic more ongoing growth there as those vehicles. When we do that, we've got a good shot at offsetting the areas of shrinkage that you referenced.

我們預計這組事情將會不斷增長。當我們在一個季度內投資的所有東西都流動起來時，這是非常困難的。有一天，我們實際上會得到另類投資、ETF、Canvas、SMA 解決方案，所有這些解決方案都會同時匯集在一起，我們將運營中的資金籌集與所有其他更有機、更持續的增長作為這些工具相結合。當我們這樣做時，我們可以很好地抵消您提到的收縮區域。

I'll also point out that if you take out some of the larger sort of taxable fixed income areas that you've pointed to and others have pointed to, we've seen positive flows in the business right now.

我還要指出，如果你去掉你和其他人指出的一些較大類型的應稅固定收益領域，我們現在已經看到了業務的積極流動。

So anyway, just to give you a little bit more information on EFR.

無論如何，只是為了向您提供有關 EFR 的更多資訊。

And Bill, the final thing I would add is Jenny talked a lot about alternatives and wealth management. It's something obviously we're focusing on that, I think is very positive from an EFR perspective. And the final thing I would note is that our core sales and we think about that as sales that are less than $100 million are up at about 14% of that tends to often be higher fee business. And we see very significant continued growth in core sales.

比爾，我要補充的最後一件事是珍妮談論了很多關於另類投資和財富管理的內容。顯然，我們正在關注這一點，我認為從 EFR 的角度來看，這是非常積極的。我要指出的最後一件事是我們的核心銷售額，我們認為低於 1 億美元的銷售額成長了約 14%，其中往往是收費較高的業務。我們看到核心銷售額持續顯著成長。

Thank you for the very comprehensive answer.

感謝您非常全面的回答。

Patrick Davitt, Autonomous Research.

派崔克戴維特，自主研究。

Good morning, everyone. I have a follow up on your answer on the Aladdin expense absorption, a lot of what you described sounds like you would have to come through after implementations. So just to clarify, you're expecting that absorption to be in lockstep with the implementation expense? And if so, how do you turn off all of those extra vendor costs, if Aladdin isn't live yet to fill in that capability? Thank you.

大家，早安。我對您對阿拉丁費用吸收的回答進行了跟進，您所描述的許多內容聽起來像是您在實施後必須完成的。因此，澄清一下，您是否期望吸收與實施費用保持同步？如果是這樣，如果阿拉丁尚未上線以填補該功能，您如何關閉所有這些額外的供應商成本？謝謝。

It's inclusive of that. So there will be periods of time where we're paying for both Aladdin and we're paying for other vendors. But the quarterly kind of view or vision that I provided to you includes that assumption. So we still think that would be very modest adjustments to or impact to operating income per quarter based on our plan over the next five years. Remembering, of course, that a portion of the $100 million is capitalized. So that gets spread out over more years, probably something like 50% of it gets capitalized over more years, three to five.

它包含了這一點。因此，在一段時間內，我們既要為阿拉丁付費，又要為其他供應商付費。但我向您提供的季度觀點或願景包含了這個假設。因此，我們仍然認為，根據我們未來五年的計劃，這對每季營業收入的調整或影響將是非常溫和的。當然，請記住，這 1 億美元中有一部分是資本化的。因此，這些資金會分散到更長的時間裡，大約有 50% 的資金會在更長的時間內（三到五年）資本化。

And I could add that were not on a uniformed platform technology platform. So as you migrate certain cities over you retire their systems. And so it is a little bit lockstep you go along.

我可以補充一點，這不是在統一的平台技術平台上。因此，當您遷移某些城市時，您就會淘汰它們的系統。所以你的做法有點步調一致。

Yeah, and we have and the other thing is that we can at the time that we're implementing Aladdin, we are also implementing other important opportunities across the company that again offset, as I mentioned earlier, offset those the sort of double pay you have to pay across different vendors. And that's why when you get to the outer years like '28, '29 and so on when that gets eliminated. You're starting talking about $25 million plus of savings.

是的，我們已經做到了，另一件事是，我們可以在實施阿拉丁的同時，在整個公司範圍內實施其他重要的機會，這些機會再次抵消了，正如我之前提到的，抵消了那些雙倍工資。這就是為什麼當你進入像「28」、「29」等外部年份時，它就會被消除。您開始談論 2500 萬美元以上的節省。

Thank you.

謝謝。

Thank you. This concludes today's Q&A session. I would now like to hand the call back over to Jenny Johnson, Franklin's President and CEO, for final comment.

謝謝。今天的問答環節到此結束。我現在想將電話轉回富蘭克林總裁兼執行長珍妮·約翰遜 (Jenny Johnson)，以徵求最終意見。

Well, I just want to thank everybody for participating in today's call, and once again would like to thank our employees for their hard work and dedication, and we look forward to speaking with all of you again next quarter. Take care everybody.

嗯，我只想感謝大家參加今天的電話會議，並再次感謝我們的員工的辛勤工作和奉獻精神，我們期待下個季度再次與大家交談。大家保重。

Thank you, ladies and gentlemen that does conclude the conference call for today. You may now disconnect.

謝謝女士們、先生們，今天的電話會議結束了。您現在可以斷開連線。