LPL Financial Holdings Inc (LPLA) 2022 Q3 法說會逐字稿

Good afternoon, and thank you for joining the Third Quarter 2022 Earnings Conference Call for LPL Financial Holdings Inc. Joining the call today are our President and Chief Executive Officer, Dan Arnold; and Chief Financial Officer, Matt Audette. Dan and Matt will offer introductory remarks, and then the call will be open for questions. (Operator Instructions).

下午好，感謝您參加 LPL Financial Holdings Inc 的 2022 年第三季度收益電話會議。今天參加電話會議的是我們的總裁兼首席執行官 Dan Arnold；和首席財務官 Matt Audette。 Dan 和 Matt 將進行介紹性發言，然後電話會議將接受提問。 （操作員說明）。

The company has posted its earnings press release and supplementary information on the Investor Relations section of the company's website investor.lpl.com. Today's call will include forward-looking statements, including statements about LPL's financial future financial and operating results, outlook, business strategies and plans as well as other opportunities and potential risks that management foresees.

公司已在公司網站investor.lpl.com 的投資者關係部分發布了收益新聞稿和補充信息。今天的電話會議將包括前瞻性陳述，包括有關 LPL 未來財務和經營業績、前景、業務戰略和計劃以及管理層預見的其他機會和潛在風險的陳述。

Such forward-looking statements reflect management's current estimates or beliefs and are subject to known and unknown risks and uncertainties and that may cause actual results or the timing of events to differ materially from those expressed or implied in such forward-looking statements. For more information about such risks and uncertainties, the company refers listeners to disclosures set forth under the caption Forward-Looking Statements in the earnings press release as well as the risk factors and other disclosures contained in the company's recent filings with the Securities and Exchange Commission.

此類前瞻性陳述反映了管理層當前的估計或信念，並受已知和未知風險和不確定性的影響，可能導致實際結果或事件發生時間與此類前瞻性陳述中明示或暗示的內容存在重大差異。有關此類風險和不確定性的更多信息，公司請聽眾參考收益新聞稿中標題為“前瞻性聲明”的披露以及公司最近向美國證券交易委員會提交的文件中包含的風險因素和其他披露.

During the call, the company will also discuss certain non-GAAP financial measures. For a reconciliation of such non-GAAP financial measures to the comparable GAAP figures, please refer to the company's earnings release, which can be found at investors.lpl.com.

在電話會議期間，公司還將討論某些非公認會計原則的財務措施。有關此類非 GAAP 財務指標與可比 GAAP 數據的對賬，請參閱公司的收益發布，該發布可在 Investors.lpl.com 上找到。

With that, I will now turn the call over to Mr. Arnold.

有了這個，我現在將把電話轉給阿諾德先生。

Thank you, Amy, and thanks to everyone for joining our call today. Over the past quarter, amid persistent market volatility, our advisors continue to be a source of support and guidance for their clients by helping them navigate times of uncertainty. This commitment to their clients underscores the importance of our work on our mission, taking care of our advisors so they can take care of their clients.

謝謝你，艾米，也感謝大家今天加入我們的電話會議。在過去的一個季度中，在市場持續波動的情況下，我們的顧問通過幫助他們度過不確定的時期，繼續為他們的客戶提供支持和指導。這種對客戶的承諾強調了我們工作對我們使命的重要性，照顧我們的顧問，這樣他們就可以照顧他們的客戶。

With respect to our performance, third quarter was marked our resilient business results, which drove solid financial outcomes as well as continued progress on our strategic plan. I'll review both of these areas, starting with our third quarter business report.

就我們的業績而言，第三季度標誌著我們富有彈性的業務成果，這推動了穩健的財務成果以及我們戰略計劃的持續進展。我將從我們的第三季度業務報告開始回顧這兩個領域。

In the third quarter, total assets decreased to $1 trillion as continued solid organic growth was more than offset by lower equity markets. With respect to organic growth, the business continued to perform well despite market [lull]. Third quarter net new assets were $20 billion, representing 7% annualized growth. This contributed to net new assets over the past 12 months of $101 billion, representing a 9% organic growth rate.

第三季度，由於持續穩健的有機增長被股市下跌所抵消，總資產減少至 1 萬億美元。在有機增長方面，儘管市場[平靜]，該業務繼續表現良好。第三季度淨新資產為 200 億美元，年化增長率為 7%。這導致過去 12 個月的淨新資產達到 1010 億美元，有機增長率為 9%。

Looking at recruited assets. They were $13 billion in Q3, bringing our total recruited assets over the past 12 months to $84 billion. These results were driven by the ongoing enhancements to our model and our expanded addressable markets. Looking at same-store sales against the backdrop of continued market volatility, our advisors remain focused on serving their clients and delivering a differentiated experience. As a result, our advisors are both winning new clients and expanding wallet share with existing clients, combination which drove improvement in same-store sales in the third quarter.

查看招募的資產。他們在第三季度達到 130 億美元，使我們過去 12 個月的總招募資產達到 840 億美元。這些結果是由我們模型的持續改進和我們擴大的目標市場推動的。在市場持續波動的背景下觀察同店銷售情況，我們的顧問仍然專注於為客戶提供服務並提供差異化的體驗。因此，我們的顧問既贏得了新客戶，又擴大了與現有客戶的錢包份額，這推動了第三季度同店銷售額的改善。

With respect to retention, we continue to enhance the advisors experience through the continued delivery of new capabilities and technology as well as the ongoing modernization of our service and operations functions. As a result, asset retention was approximately 98% in the third quarter, and 98% over the past 12 months. Our third quarter business results led to solid financial outcomes of $3.13 of EPS prior to intangibles and acquisition costs, an increase of 77% from a year ago.

在保留方面，我們通過不斷提供新的能力和技術以及我們服務和運營職能的持續現代化來繼續提升顧問的經驗。因此，第三季度的資產保留率約為 98%，過去 12 個月為 98%。我們第三季度的業務業績導致不計無形資產和收購成本的每股收益為 3.13 美元，比一年前增長 77%。

Let's now turn to the progress we made on our strategic plan. As a reminder, our long-term vision is to become the leader across the entire advisor-centered marketplace, which for us means being the best at empowering advisors and institutions to deliver great advice to their clients and to be great operators of their businesses.

現在讓我們談談我們在戰略計劃方面取得的進展。提醒一下，我們的長期願景是成為整個以顧問為中心的市場的領導者，這對我們來說意味著成為最擅長授權顧問和機構為其客戶提供出色建議並成為其業務的出色運營商的最佳人選。

To bring this vision to life, we are providing the capabilities and solutions that help our advisors deliver personalized advice and planning experiences to their clients. At the same time, through human-driven technology-enabled solutions and expertise, we are supporting advisors in their efforts, the extraordinary business [owners]. Doing this well gives us a sustainable path to industry leadership across the advisors experience, organic growth and market share.

為了實現這一願景，我們正在提供能力和解決方案，幫助我們的顧問為他們的客戶提供個性化的建議和規劃體驗。同時，通過以人為本的技術支持的解決方案和專業知識，我們正在支持顧問們的努力，即非凡的企業 [所有者]。做好這件事為我們提供了一條可持續的道路，在顧問經驗、有機增長和市場份額方面成為行業領導者。

Now to execute on our strategy, we've organized our work into 4 strategic plays, which I'll review in turn. Our first strategic play involves meeting advisors and institutions where they are in the evolution of their business by winning in our traditional markets while also leveraging new affiliation models, which expand our addressable market.

現在為了執行我們的戰略，我們將我們的工作組織成 4 個戰略遊戲，我將依次回顧。我們的第一個戰略遊戲涉及通過在我們的傳統市場中獲勝，同時還利用新的附屬模式，擴大我們的潛在市場，與顧問和機構會面，他們正在他們的業務發展中。

Our recruiting and traditional markets continue to be a source of growth in Q3 with approximately $6 billion in assets. We continue to increase our win rates and expand the depth and breadth of our pipeline despite advisor movement in the industry remaining at lower levels. Following several quarters of elevated market volatility, advisors are acclimating to the conditions and increasingly exploring new strategic alternatives for their practice. This creates a more favorable scenario for us as market-driven headwinds give way to the structural strength of our model. This should result in a solid finish to the year from a recruiting standpoint.

我們的招聘和傳統市場繼續成為第三季度增長的源泉，資產約為 60 億美元。儘管該行業的顧問流動仍處於較低水平，但我們繼續提高我們的獲勝率並擴大我們管道的深度和廣度。在經歷了幾個季度的市場波動加劇之後，顧問們正在適應這種情況，並越來越多地為他們的實踐探索新的戰略替代方案。這為我們創造了一個更有利的情景，因為市場驅動的逆風讓位於我們模型的結構強度。從招聘的角度來看，這應該會為這一年帶來一個堅實的結局。

With respect to our new affiliation models, strategic wealth, employee and our enhanced RIA offering we recruited over $2 billion in assets in the quarter and believe we are well positioned to drive continued growth across all 3 models. With respect to large financial institutions, over the past 2 quarters, we onboarded 2 new clients, CUNA and People's United Bank.

關於我們新的附屬模式、戰略財富、員工和我們增強的 RIA 產品，我們在本季度招募了超過 20 億美元的資產，並相信我們有能力推動所有 3 種模式的持續增長。在大型金融機構方面，在過去的兩個季度中，我們新加入了 2 個新客戶，CUNA 和人民聯合銀行。

We continue to learn from each experience and use these findings to drive innovation that improves the transition to LPL and in turn helps make our offering even more appealing. And as we look ahead, we continue to see our pipeline build as demand for our model grows.

我們繼續從每一次經驗中學習，並利用這些發現來推動創新，從而改善向 LPL 的過渡，進而幫助我們的產品更具吸引力。展望未來，隨著對我們模型需求的增長，我們將繼續看到我們的管道建設。

Our second strategic play is focused on providing capabilities that help our advisors differentiate in the marketplace and drive efficiency in their practices. A particular area of focus that's helping our advisors create a digital experience for their clients, that's personalized for their practice. As an example, this quarter, we extended the flexibility our advisors have and how they utilize their brand and the optionality of the content and features they present to their clients.

我們的第二項戰略重點是提供能力，幫助我們的顧問在市場上脫穎而出並提高他們的實踐效率。一個特定的重點領域，幫助我們的顧問為他們的客戶創造數字體驗，為他們的實踐量身定制。例如，本季度，我們擴展了顧問的靈活性以及他們如何利用他們的品牌以及他們向客戶展示的內容和功能的可選性。

In addition, we're always looking for opportunities to arm our advisors and end clients, expanded tools, products and services navigate markets. To that end, we continue to build out our research capabilities in terms of content and subject matter expertise. We've also increased our focus on certain products like annuities and alternative investments which are in higher demand in this market. To that end, we're working on making it easier and more efficient for our advisors to provide these products while also expanding the breadth of solutions available to meet the clients' needs. These enhancements help advisors broaden their value proposition and enrich the offering they provide to their clients, which further contributes to the appeal of our platform, both existing and prospective deposits.

此外，我們一直在尋找機會來武裝我們的顧問和最終客戶，擴展工具、產品和服務來引導市場。為此，我們繼續在內容和主題專業知識方面建立我們的研究能力。我們還增加了對某些產品的關注，例如年金和另類投資，這些產品在這個市場上的需求量更大。為此，我們正在努力讓我們的顧問更輕鬆、更高效地提供這些產品，同時擴大可用解決方案的範圍以滿足客戶的需求。這些增強功能有助於顧問拓寬他們的價值主張並豐富他們為客戶提供的產品，這進一步提高了我們平台的吸引力，包括現有存款和潛在存款。

Let's next move to our third strategic play, which is focused on creating an industry-leading service experience that delights advisors and their clients, in turn, helps drive advisors recruiting and retention. As a reminder, over the past couple of years, we've been on a journey to transform our service model into an end-to-end client care model. And we think about this journey through 2 primary lenses transforming our service interface and reimagining the operational processing that takes place behind that interface.

讓我們接下來進入我們的第三個戰略遊戲，它專注於創造行業領先的服務體驗，讓顧問及其客戶滿意，進而幫助推動顧問的招聘和保留。提醒一下，在過去的幾年裡，我們一直在將我們的服務模式轉變為端到端的客戶服務模式。我們通過 2 個主要鏡頭來考慮這一旅程，這些鏡頭改變了我們的服務界面並重新構想了該界面背後發生的操作處理。

Our aspiration is to provide advisors a multichannel experience across voice, chat and digital-first support that's offering them greater flexibility for when and how they access service. While we continue to fine-tune each of these 3 channels, we're currently focused on our digital first support. We see it as an opportunity to create an easier and more efficient experience for our advisors to access the information they need.

我們的願望是為座席提供跨越語音、聊天和數字優先支持的多渠道體驗，從而為他們提供更大的靈活性來決定何時以及如何訪問服務。雖然我們繼續微調這 3 個渠道中的每一個，但我們目前專注於我們的數字優先支持。我們認為這是一個機會，可以為我們的顧問提供更輕鬆、更高效的體驗，以訪問他們所需的信息。

Now as we expand these capabilities, advisors can increasingly engage more and more digitally to resolve their requests, and many have already shared they prefer this simpler option over making a phone call. While we're still in the early innings, we believe these enhancements will have a meaningful impact, scalability of our platform while also enhancing the client experience.

現在，隨著我們擴展這些功能，座席可以越來越多地以數字方式參與來解決他們的請求，許多人已經分享了他們更喜歡這種更簡單的選擇，而不是打電話。雖然我們仍處於早期階段，但我們相信這些增強功能將對我們平台的可擴展性和客戶體驗產生有意義的影響。

Our fourth strategic play is focused on developing a services portfolio that helps advisors and institutions run driving businesses and deliver comprehensive advice to their clients. We're encouraged by the seasoning of this business and our value proposition continues to resonate with advisors.

我們的第四項戰略重點是開發服務組合，幫助顧問和機構開展業務並為其客戶提供全面的建議。我們對這項業務的成熟感到鼓舞，我們的價值主張繼續引起顧問的共鳴。

4 years ago, we started our service group with a strategic goal of solving the practice level challenges advisors face so they can spend more time with their clients. Through ongoing innovation and expansion, these efforts have translated into the comprehensive portfolio of services we offer today. And as a result of growing demand, our services group subscription base continued to increase ending the period at roughly 4,200 and generating run rate revenue of $34 million.

4 年前，我們成立了我們的服務團隊，其戰略目標是解決顧問面臨的實踐水平挑戰，以便他們可以花更多時間與客戶相處。通過持續的創新和擴展，這些努力已轉化為我們今天提供的全面服務組合。由於需求不斷增長，我們的服務組訂閱基礎繼續增加，截至本期約為 4,200，並產生了 3400 萬美元的運行率收入。

As we work with advisors on existing services, we continue to identify and solve for new needs on their behalf. One example is the launch of our latest solution Bookkeeping services. And based on insights from CFO Solutions, we created a new service to help advisors further streamline the business decisions with accurate and timely financial reports. As a result, advisors can spend more time growing and managing their business while also tracking [profit] more closely.

當我們與現有服務的顧問合作時，我們會繼續代表他們識別和解決新的需求。一個例子是我們最新的解決方案簿記服務的推出。根據 CFO Solutions 的見解，我們創建了一項新服務，以幫助顧問通過準確及時的財務報告進一步簡化業務決策。因此，顧問可以花更多時間發展和管理他們的業務，同時更密切地跟踪 [利潤]。

Looking at our innovation pipeline for the remainder of the year. We have several services in pilot and others in the incubation phase. And as we move forward, we remain focused on enhancing and expanding our portfolio better support our advisors and to drive growth.

看看我們今年剩餘時間的創新渠道。我們在試點階段提供多項服務，在孵化階段提供其他服務。隨著我們前進，我們將繼續專注於增強和擴展我們的投資組合，以更好地支持我們的顧問並推動增長。

In summary, in the third quarter, we continued to invest in the value proposition for advisors and their clients while driving growth and increasing our market leadership. As we look ahead, we remain focused on executing our strategy to help our advisors further differentiate and win in the marketplace. And as a result, drive long-term shareholder value.

總之，在第三季度，我們繼續投資於顧問及其客戶的價值主張，同時推動增長並提高我們的市場領導地位。展望未來，我們將繼續專注於執行我們的戰略，以幫助我們的顧問進一步區分和贏得市場。因此，推動長期股東價值。

With that, I'll turn the call over to Matt.

有了這個，我會把電話轉給馬特。

All right. Thank you, Dan, and I'm glad to speak with everyone on today's call. In the third quarter, we remain focused on serving our advisors, growing our business and delivering shareholder value. This focus led to another quarter of solid net new assets and earnings growth. In addition, we enhanced our sweep deposit program with the launch of the client cash accounts and onboarded People's United Bank. So as we look ahead, we continue to be excited by the opportunities to help our advisors differentiate and win in the marketplace.

好的。謝謝你，丹，我很高興在今天的電話會議上與大家交談。在第三季度，我們將繼續專注於為我們的顧問服務、發展我們的業務並為股東創造價值。這種關注導致了另一個季度的穩健淨新資產和盈利增長。此外，我們通過推出客戶現金賬戶和加入人民聯合銀行，加強了我們的掃除存款計劃。因此，展望未來，我們繼續為有機會幫助我們的顧問在市場上脫穎而出並贏得勝利感到興奮。

Now let's turn to our third quarter business results. Total advisory and brokerage assets were $1 trillion, down 2% from Q2 as continued organic growth was more than offset by lower equity. Total net new assets were $20 billion or a 7% annualized growth rate. Our Q3 recruited assets were $13 billion, bringing our 12-month total to $84 billion.

現在讓我們轉向我們第三季度的業務結果。諮詢和經紀資產總額為 1 萬億美元，比第二季度下降 2%，因為持續的有機增長被較低的股本所抵消。淨新資產總額為 200 億美元，年增長率為 7%。我們第三季度招募的資產為 130 億美元，使我們 12 個月的總資產達到 840 億美元。

As for our Q3 financial results, the combination of organic growth, rising interest rates, higher ICA balances and expenses led to EPS prior to intangibles and acquisition costs of $3.13. This was up 77% from a year ago and is the highest in our history.

至於我們第三季度的財務業績，有機增長、利率上升、ICA 餘額和費用增加導致每股收益（不含無形資產）和收購成本為 3.13 美元。這比一年前增長了 77%，是我們歷史上最高的。

Looking at our top line growth, gross profit reached a new high of $838 million, up $127 million or 18% sequentially. As for the components, commission and advisory fees net of payout were $182 million, down $23 million from Q2. The decrease was primarily driven by the seasonal uptick in production bonus expense and lower advisory fees following the Q2 equity markets [client].

從我們的收入增長來看，毛利潤達到了 8.38 億美元的新高，環比增長 1.27 億美元或 18%。至於組成部分，扣除支出的佣金和諮詢費為 1.82 億美元，比第二季度減少 2300 萬美元。下降的主要原因是生產獎金支出的季節性上升和第二季度股票市場 [客戶] 之後的諮詢費用降低。

Our payout rate for the quarter was 87.9%, up about 90 basis points from Q2 due to typical seasonality in the onboarding of CUNA. Regarding asset-based revenue, sponsor revenue was $194 million in Q3, down $14 million sequentially. The decrease in Q3 was driven by lower average assets during the quarter as well as a nonrecurring $8 million sponsor payment in Q2. With respect to client cash revenue, it was $304 million, up $147 million from Q2, driven by higher average short-term interest rates as well as higher ICA balances.

由於 CUNA 入職的典型季節性，我們本季度的支付率為 87.9%，比第二季度增加了約 90 個基點。在基於資產的收入方面，第三季度贊助商收入為 1.94 億美元，環比下降 1400 萬美元。第三季度的下降是由於該季度平均資產減少以及第二季度非經常性的 800 萬美元贊助商付款。客戶現金收入為 3.04 億美元，比第二季度增加 1.47 億美元，這主要得益於更高的平均短期利率以及更高的 ICA 餘額。

Looking at overall client cash balances, they ended the quarter at $67 billion, down $3 billion sequentially driven by client net buying activity of $20 billion, which is the highest quarterly level we have ever seen. Within our ICA portfolio, we added capacity in Q3 as we saw further improvements in bank deposit demand, leading to an increase in balances of $7 billion. And I would highlight that $5 billion of that increase was in new fixed rate contracts.

從整體客戶現金餘額來看，本季度末他們為 670 億美元，在客戶淨購買活動 200 億美元的推動下環比下降 30 億美元，這是我們所見過的最高季度水平。在我們的 ICA 投資組合中，我們在第三季度增加了產能，因為我們看到銀行存款需求進一步改善，導致餘額增加了 70 億美元。我要強調的是，增加的 50 億美元是新的固定利率合同。

Looking more closely at our ICA yield, it was 212 basis points in Q3, up 78 basis points from Q2, primarily driven by the increase in short-term rates during the quarter. As we look ahead to Q4, we expect our ICA yield to continue to increase. Based on where interest rates are today, we expect our Q4 ICA yield to increase to approximately 265 basis points.

仔細觀察我們的 ICA 收益率，第三季度為 212 個基點，比第二季度增加 78 個基點，主要是受本季度短期利率上升的推動。展望第四季度，我們預計我們的 ICA 收益率將繼續增加。根據目前的利率水平，我們預計第四季度的 ICA 收益率將增至約 265 個基點。

As for service and fee revenue, it was $122 million in Q3, up $9 million from Q2, driven by revenues from our National Advisors Conference and IRA fees. Within our Services Group, we ended the quarter with roughly 4,200 subscriptions, which is up about 300 from last quarter. Our Services Group now generates roughly $34 million of annual revenue, while also contributing to organic growth by helping drive recruiting, same-store sales and retention.

至於服務和費用收入，在我們的全國顧問會議收入和 IRA 費用的推動下，第三季度為 1.22 億美元，比第二季度增加了 900 萬美元。在我們的服務集團內，我們在本季度末擁有大約 4,200 個訂閱，比上一季度增加了約 300 個。我們的服務部門現在創造了大約 3400 萬美元的年收入，同時還通過幫助推動招聘、同店銷售和留存率來促進有機增長。

Looking ahead to Q4 results, we do not have any large advisors conferences in the quarter. So we expect service and fee revenue to decline by roughly $5 million sequentially. Regarding Q3 transaction revenue, it was $43 million, down $1 million sequentially as trading volume decline. As we look ahead to Q4, we have seen an increase in trading activity in October. That said, I would note there is 1 less trading day. So that would likely offset that increase. So based on what we have seen to date, we would expect transaction revenue to be relatively flat with Q3.

展望第四季度的業績，我們在本季度沒有任何大型顧問會議。因此，我們預計服務和費用收入將連續下降約 500 萬美元。第三季度交易收入為 4300 萬美元，由於交易量下降，環比下降 100 萬美元。展望第四季度，我們看到 10 月份的交易活動有所增加。也就是說，我會注意到交易日減少了 1 個。因此，這可能會抵消這一增長。因此，根據我們迄今為止所看到的情況，我們預計交易收入將與第三季度相對持平。

Turning now to expenses. Core G&A was $298 million in Q3, up $12 million sequentially. Looking ahead, we continue to see opportunities to invest to drive growth. So while we expect to be within our full year 2022 core G&A outlook range, we expect to be towards the higher end. As a result, we are tightening the outlook to a range of $1.185 billion to $1.195 billion.

現在轉向開支。第三季度核心 G&A 為 2.98 億美元，比上一季度增加 1200 萬美元。展望未來，我們繼續看到投資以推動增長的機會。因此，雖然我們預計將在 2022 年全年核心 G&A 前景範圍內，但我們預計將接近高端。因此，我們將前景收緊至 11.85 億美元至 11.95 億美元之間。

On Q3 promotional expense, it was $99 million, up $15 million sequentially, primarily driven by higher conference expense as we hosted our largest advisors conference of the year, which returned to an in-person format for the first time in 3 years. Looking ahead to Q4, we expect lower conference spend, partially offset by continued growth in recruiting transition assistance. As a result, we expect promotional expense will decrease by approximately $15 million sequentially.

第三季度的促銷費用為 9900 萬美元，比上一季度增加了 1500 萬美元，主要是由於我們舉辦了今年最大的顧問會議，會議費用增加，這是 3 年來首次恢復面對面形式。展望第四季度，我們預計會議支出將減少，部分被招聘過渡援助的持續增長所抵消。因此，我們預計促銷費用將連續減少約 1500 萬美元。

With respect to depreciation and amortization, it was $52 million in Q3, up $3 million sequentially. Looking ahead to Q4, we expect depreciation and amortization to increase by a few million sequentially. As for interest expense, it was $33 million in Q3, up $4 million sequentially as higher LIBOR rates increased the cost of our floating rate debt. Looking ahead to Q4, given where LIBOR rates are today, we expect interest expense to increase to approximately $36 million.

在折舊和攤銷方面，第三季度為 5200 萬美元，比上一季度增加 300 萬美元。展望第四季度，我們預計折舊和攤銷將連續增加數百萬。至於利息支出，第三季度為 3300 萬美元，環比增加 400 萬美元，因為倫敦銀行同業拆借利率上升增加了我們浮動利率債務的成本。展望第四季度，鑑於目前的 LIBOR 利率，我們預計利息支出將增加到約 3600 萬美元。

Regarding capital management. Our balance sheet remained strong in Q3 with corporate cash at $424 million, up $183 million from Q2. Our leverage ratio was 1.7x, down from 2.1x in Q2. This decline was driven by a combination of our continued growth and a higher interest rate environment, both of which have meaningfully improved our earnings power.

關於資本管理。我們的資產負債表在第三季度保持強勁，公司現金為 4.24 億美元，比第二季度增加 1.83 億美元。我們的槓桿率為 1.7 倍，低於第二季度的 2.1 倍。這一下降是由我們的持續增長和更高的利率環境共同推動的，這兩者都顯著提高了我們的盈利能力。

As we look at our leverage ratio going forward, our balance sheet strategy is unchanged. Our focus is to maintain a strong balance sheet that can absorb a market downturn, while at the same time, having the capacity to invest for growth. With our improved earnings power, we are updating our leverage target to a range of 1.5 to 2.5x, which we believe positions us well to operate over a range of economic cycles and strikes the right balance between preserving balance sheet strength and investing for growth.

當我們展望未來的槓桿率時，我們的資產負債表策略沒有改變。我們的重點是維持強大的資產負債表，以吸收市場低迷的影響，同時具備投資增長的能力。隨著我們盈利能力的提高，我們將槓桿目標更新至 1.5 至 2.5 倍的範圍，我們認為這使我們能夠很好地在一系列經濟周期中運作，並在保持資產負債表實力和投資增長之間取得適當的平衡。

As for capital deployment, our framework remains focused on allocating capital aligned with the returns we generate. Investing in organic growth first and foremost, pursuing M&A where appropriate and returning excess capital to shareholders. In Q3, we allocated capital to both organic growth and share repurchases buying back $75 million of our shares. As we look ahead to Q4, we plan to increase share repurchases to approximately $150 million. This will complete our existing authorization of $1 billion that we established at the end of 2018.

至於資本配置，我們的框架仍然專注於分配與我們產生的回報相一致的資本。首先投資於有機增長，在適當的情況下進行併購，並將多餘的資本返還給股東。在第三季度，我們將資本分配給有機增長和股票回購，回購了 7500 萬美元的股票。展望第四季度，我們計劃將股票回購增加到約 1.5 億美元。這將完成我們在 2018 年底建立的現有 10 億美元授權。

Looking to 2023, we work to put in place a new share repurchase authorization. Our focus was on an amount that we'd be in a position to execute against over roughly 2 years. With that framing in mind, we established a new authorization of $2 billion, which we expect to begin executing in the first quarter of 2023. As always, we will retain the flexibility to adjust the pace of repurchases as the environment warrants or as other capital allocation opportunities across organic growth and M&A merge.

展望 2023 年，我們努力實施新的股票回購授權。我們的重點是我們能夠在大約 2 年內執行的金額。考慮到這一框架，我們建立了 20 億美元的新授權，預計將於 2023 年第一季度開始執行。與往常一樣，我們將保留根據環境或其他資本調整回購步伐的靈活性有機增長和併購合併的分配機會。

In closing, we delivered another quarter of strong business and financial results. As we look forward, we remain excited about the opportunities we see to continue investing to serve our advisors, grow our business and create long-term shareholder value.

最後，我們又交付了一個季度強勁的業務和財務業績。展望未來，我們仍然對我們看到的繼續投資以服務我們的顧問、發展我們的業務和創造長期股東價值的機會感到興奮。

With that, I will ask our operator, Amy, to open the call up for questions.

有了這個，我會問我們的接線員，艾米，打開電話提問。

(Operator Instructions) And our first question comes from Steven Chubak with Wolfe Research.

（操作員說明）我們的第一個問題來自 Wolfe Research 的 Steven Chubak。

So I wanted to start off with a question, Matt, just on the buyback and the adjusted leverage target range. So certainly pleased to see or hear both. I was hoping you could frame the timing or cadence for executing that $2 billion buyback authorization.

所以我想從一個問題開始，馬特，關於回購和調整後的槓桿目標範圍。所以當然很高興看到或聽到兩者。我希望你能確定執行 20 億美元回購授權的時間或節奏。

And just given the meaningful step up, you should see in EBITDA and leverage likely to fall below the low end of that target range. in the coming quarters. Just in the absence of any opportunities around M&A, how should we think about your willingness or appetite to optimize buybacks and stay within that leverage target range over the long term?

只是考慮到有意義的提升，您應該會看到 EBITDA 和槓桿率可能會低於該目標範圍的低端。在接下來的幾個季度。在沒有任何併購機會的情況下，我們應該如何考慮您優化回購併長期保持在該槓桿目標範圍內的意願或意願？

Sure. I mean I think the core of it, as I talked a little bit about in the prepared remarks, is making sure that we're balancing having a strong balance sheet with deploying capital to drive growth. And I think when we think through the prioritization of that, it is focused on organic growth first, M&A second and then returning capital to shareholders third.

當然。我的意思是我認為它的核心，正如我在準備好的評論中談到的那樣，是確保我們在擁有強大的資產負債表和部署資本以推動增長之間取得平衡。我認為，當我們考慮優先級時，首先關注的是有機增長，其次是併購，然後是向股東返還資本。

And I think what you hear us saying on the $2 billion over 2 years that we think around $250 million. And I would emphasize roughly, right, roughly $250 million a quarter is that right allocation. Now if we get through a period of time over that 2 years, where interest rates are elevated for an extended period of time or there's just fewer opportunities to deploy capital towards organic growth or M&A, I would expect that pace to increase and for us to execute against faster.

我想你聽到我們所說的 2 年 20 億美元，我們認為大約 2.5 億美元。我會粗略地強調，正確的，每季度大約 2.5 億美元是正確的分配。現在，如果我們在這 2 年中度過一段時期，即利率在很長一段時間內升高，或者將資本用於有機增長或併購的機會更少，我預計這一步伐將會加快，並且我們將執行速度更快。

And I'd highlight, if the opposite occurs, we see more opportunities for organic growth and more opportunities for M&A that would expect it to slow down. So it's really just about the opportunities that we see, and we'll make those judgments along the way.

我要強調的是，如果發生相反的情況，我們會看到更多的有機增長機會和更多的併購機會，預計它會放緩。所以這真的只是關於我們看到的機會，我們將在此過程中做出這些判斷。

That's great. And maybe for my follow-up, a question for Dan on the M&A landscape, certainly, higher rates bolsters your relative competitive position versus peers, particularly those that are in self-clearing. I was hoping you could speak to the environment for deal activity.

那太棒了。也許在我的後續行動中，Dan 提出了一個關於併購領域的問題，當然，更高的利率會增強你與同行相比的相對競爭地位，尤其是那些自我清算的公司。我希望你能就交易活動與環境交談。

How active you expect to be on the M&A front? And just the willingness of any targets to engage just given the pressures that they've been feeling in terms of equity market declines without the similar benefit or the offsetting benefit from higher rates?

您期望在併購方面有多活躍？只是考慮到他們在股市下跌方面所感受到的壓力，而沒有類似的利益或更高利率的抵消利益，只是任何目標願意參與嗎？

Yes. So Steven, thanks for the question. And as Matt said, when you think about that allocation of capital, we obviously prioritize that to organic growth. And then we look to M&A as a complement to that organic growth. And I think as we've said before, there's 2 key areas. We continue to explore and look to the M&A marketplace for and that's to enhance or speed up capabilities that we deliver and make available to our advisors and/or one that contributes to our overall growth.

是的。所以史蒂文，謝謝你的問題。正如馬特所說，當您考慮資本分配時，我們顯然將其優先於有機增長。然後我們將併購視為有機增長的補充。我認為正如我們之前所說，有兩個關鍵領域。我們將繼續探索和期待併購市場，以增強或加快我們向顧問提供和提供的能力和/或有助於我們整體增長的能力。

And I think with respect to that second category, we continue to look through the entire ecosystem from smaller growth-oriented deals like the Boenning & Scattergood. example that you saw us do in the second quarter all the way up to if there were a more opportunistic opportunity to create value, deploy our capital in a way that makes sense relative to other options and alternatives that operationally, we can consume that acquisition and execute on it well fits inside our strategy, then we would be interested in certainly exploring those opportunities in. So I don't think our posture has changed at all relative to our strategy and how we think about using and leveraging M&A.

我認為關於第二類，我們會繼續從像 Boenning & Scattergood 這樣的小型增長型交易中審視整個生態系統。您看到我們在第二季度一直這樣做的例子，如果有更多機會創造價值，以相對於運營上其他選擇和替代方案有意義的方式部署我們的資本，我們可以消費該收購和執行它非常適合我們的戰略，那麼我們肯定有興趣探索這些機會。所以我認為相對於我們的戰略以及我們如何考慮使用和利用併購，我們的立場根本沒有改變。

Certainly, we get your point around how the market may -- and conditions in the market may change that may make those acquisition opportunities more ripe or available. And again, we stay consistent in our exploration of the market, looking at where we can complement our organic growth strategy. So I hope that helps.

當然，我們了解您的觀點，即市場可能會如何 - 市場狀況可能會發生變化，這可能會使這些收購機會更加成熟或可用。再一次，我們在市場探索中保持一致，尋找可以補充我們的有機增長戰略的地方。所以我希望這會有所幫助。

Your next question comes from Alexander Blostein with Goldman Sachs.

您的下一個問題來自高盛的 Alexander Blostein。

So maybe I could start with also a bit of a strategic question. Along similar lines to Steven's question around M&A. But your cash flow characteristics is obviously improving, meaning from the level, but also the visibility as you're starting to extend more. So from an organic perspective, if you were to think about areas where you'd want to invest more in to accelerate organic growth from here. What are the products? Or what are the channels where you think there could be the best opportunity to accelerate investment in order to capture a higher share of the organic growth opportunity?

所以也許我也可以從一個戰略問題開始。與史蒂文關於併購的問題類似。但是你的現金流特徵顯然正在改善，這意味著從水平上看，而且隨著你開始更多地擴展，可見性也是如此。因此，從有機的角度來看，如果您要考慮要在哪些領域進行更多投資以從這裡加速有機增長。產品有哪些？或者您認為哪些渠道可能是加速投資以獲得更高份額的有機增長機會的最佳機會？

Yes. Let me start and then Matt, you can add to that or complement that and thanks for the question. It's a great question. So I think, look, we would look across 2 different obvious landscapes. One would be how do we continue to create capabilities that help our advisors differentiate and win in the marketplace. Think about anything across the spectrum of our wealth management platforms and offerings, the more that we can automate the advisory platforms expand the content in terms of investment options, alternatives.

是的。讓我開始，然後是 Matt，您可以補充或補充，感謝您的提問。這是一個很好的問題。所以我想，看，我們會看到兩種不同的明顯景觀。一個是我們如何繼續創造能力，幫助我們的顧問在市場上脫穎而出並贏得市場。想想我們財富管理平台和產品的範圍內的任何事情，我們可以使諮詢平台自動化的越多，就可以擴展投資選項和替代方案方面的內容。

We continue to invest significantly in our centrally managed platform, turning that into a really interesting and competitive UMA platform. Those are examples where we would think about added capabilities that I think continue to help our advisors differentiate and win. Other great examples of that are in our financial planning capabilities, that's where the pure planning comes in, tax planning overlays, et cetera. Or again, other places we believe the advisors can show up in the marketplace with a broadening and compelling value proposition. So that's just one example of where we would focus.

我們繼續對我們的集中管理平台進行大量投資，將其轉變為一個非常有趣且具有競爭力的 UMA 平台。這些是我們會考慮增加功能的示例，我認為這些功能將繼續幫助我們的顧問脫穎而出並贏得勝利。其他很好的例子是我們的財務規劃能力，這就是純粹的規劃，稅收規劃覆蓋等等。或者，我們認為顧問可以在其他地方以更廣泛和引人注目的價值主張出現在市場上。所以這只是我們關注的一個例子。

Again, the second one would be in this area of how do we help them run better businesses. And anything that we can do that makes them more effective at making better decisions and really understanding what's happening in their businesses. So using data turned into analytics to create better decision-making, creating leverage points and expertise, whether that be like our CMO marketing solution, as an example, our CFO Solution. Those are examples of where we would continue to invest in capability and services.

同樣，第二個領域是我們如何幫助他們經營更好的業務。我們能做的任何事情都能讓他們更有效地做出更好的決策，並真正了解他們的業務正在發生的事情。因此，將數據轉化為分析來創建更好的決策，創造槓桿點和專業知識，無論是像我們的 CMO 營銷解決方案，例如，我們的 CFO 解決方案。這些是我們將繼續投資於能力和服務的例子。

So you take that combination of technology and services combined all for the purpose of helping them deliver better advice and differentiated advice so that they win more and then ultimately to help them operate and run better businesses. That's where you should think about us accelerating and enhancing their overall spend level.

因此，您將技術和服務結合在一起的目的是幫助他們提供更好的建議和差異化的建議，以便他們贏得更多，然後最終幫助他們運營和經營更好的業務。這就是您應該考慮我們加速和提高他們的整體支出水平的地方。

I think at the same time, look, we continue to explore how do we expand and evolve our affiliation model such that you extend your addressable market, you actually create more and more flexibility and optionality for how that advisor may plug into our platform or may evolve how they use our platform over time, we think are really compelling and interesting places to continue to invest.

我認為與此同時，看，我們繼續探索我們如何擴展和發展我們的附屬模型，以便您擴展您的潛在市場，您實際上為該顧問如何插入我們的平台或可能創建越來越多的靈活性和可選性隨著時間的推移發展他們如何使用我們的平台，我們認為這些地方確實是值得繼續投資的引人入勝且有趣的地方。

So those are just a couple of examples of how we might think about deploying into our overall capability set that would drive new store sales, same-store sales, and all of which would obviously contribute towards the end. Of course, I don't know if you want to add anything?

因此，這些只是我們可能考慮如何考慮部署到我們的整體能力集中的幾個例子，這將推動新店銷售、同店銷售，所有這些顯然都會為最終做出貢獻。當然，我不知道你是否想補充什麼？

No, you covered it up, mostly.

不，你掩蓋了它，主要是。

Great. And my quick follow-up is just for Matt. Clearly, the dynamics in the broker sweep channel have changed quite rapidly here in the last 3 months even in with banks starting to see more deposit outflows. How are you thinking about the spread on the ICA portfolio, obviously, on the variable piece, the fixed, I don't think has a spread on it. But -- are you starting to see competition get into a point where spreads could actually start to increase over the last couple of quarters? And kind of how would you think about the book ends of where that could ultimately go?

偉大的。我的快速跟進只針對馬特。顯然，在過去 3 個月裡，經紀人掃描渠道的動態變化非常迅速，即使銀行開始看到更多的存款流出。您如何看待 ICA 投資組合的價差，顯然，在可變部分，固定部分，我認為沒有價差。但是——你是否開始看到競爭進入了一個點，在過去的幾個季度裡，點差實際上可能開始增加？你會如何看待這本書最終會走向何方？

Yes. We're definitely seeing demand lead into those spreads. So maybe just to walk back kind of pre-COVID, I think we landed in a zone where we'd typically be able to get Fed funds plus 20, maybe 25, And then during COVID, if you're lucky enough to get it is usually Fed funds minus. And then -- and I think we lived in a place of around Fed funds flat as we -- probably the last year or so.

是的。我們肯定看到需求導致了這些價差。因此，也許只是為了回到 COVID 之前的那種狀態，我認為我們降落在一個通常能夠獲得聯邦基金加上 20 甚至 25 美元的區域，然後在 COVID 期間，如果你有幸得到它通常是聯邦基金減去。然後 - 我認為我們生活在一個與聯邦基金持平的地方 - 可能是去年左右。

And then I think what we're seeing right now and even the new variable contracts that we're putting in place right now are at a spread of plus 5 to 10 right? So you're starting to see things come back. And I think I don't see anything to think that the book end of where we were with pre-COVID that plus 20 to 25. I think that's a good place to point to on where we think it could go. But I think the trend is a positive one. And we're seeing it each quarter, including this quarter that plus 5 to 10.

然後我認為我們現在所看到的，甚至我們現在實施的新可變合約的價差都在 5 到 10 之間，對嗎？所以你開始看到事情回來了。而且我認為我沒有看到任何東西可以認為我們在 COVID 之前所處的位置加上 20 到 25。我認為這是指出我們認為它可以去向的好地方。但我認為趨勢是積極的。我們每個季度都會看到它，包括本季度加上 5 到 10。

And our next question comes from Michael Cyprys with Morgan Stanley.

我們的下一個問題來自摩根士丹利的 Michael Cyprys。

Just a question on the bank mandates. We saw the People's United come through in the quarter. Can you just remind us how much, if any, is there still outstanding to come through from a funding standpoint on that or CUNA or others as we kind of look through the rest of the year and into next year in terms of remaining balances to come through?

只是關於銀行授權的問題。我們看到人民聯隊在本季度取得了成功。您能否提醒我們，從資金的角度來看，CUNA 或其他方面還有多少（如果有的話）需要通過，因為我們會在今年剩餘時間和明年的剩餘餘額方面進行展望通過？

And then if you could just maybe more broadly update us on the pipeline and the conversations that you're having with banks regarding outsourcing arrangements. And would you be surprised if there were no additional announcements on that front over the next 12 months?

然後，如果您可以更廣泛地更新我們的管道以及您與銀行就外包安排進行的對話。如果在接下來的 12 個月內沒有這方面的其他公告，您會感到驚訝嗎？

Yes. Let me take that. Or Matt, do you want to start with just what's outstanding in terms of the balances to transition with maybe People's United and CUNA and then I'll pick up.

是的。讓我接受。或者馬特，你想從與人民聯隊和 CUNA 過渡的平衡方面的突出表現開始，然後我會接手。

Yes. Yes, it sounds good. I think it's mostly onboarded between the 2 of those. I'd call it in the $1.5 billion still on that left to come on board. And that's on the direct side. So that takes a little bit longer for that process for those come over, but $1.5 billion would be the right number.

是的。是的，聽起來不錯。我認為它主要是在這兩者之間加入的。我會在剩下的 15 億美元中加入。這是直接的一面。因此，對於那些過來的人來說，這個過程需要更長的時間，但 15 億美元將是正確的數字。

And then maybe for the second part of your question. So look, we continue to see these financial institutions as an affiliation model that we believe has ongoing growth opportunity. And I think we selectively added roughly $65 billion, $70 billion in large financial institution assets over the last couple of years and continue to see strong momentum in the demand for the solution of the offering, which really just sort of introduced a new concept into an outsourcing model, which sort of scale into the marketplace, right?

然後也許是你問題的第二部分。所以看，我們繼續將這些金融機構視為我們認為具有持續增長機會的附屬模式。而且我認為我們在過去幾年選擇性地增加了大約 650 億美元、700 億美元的大型金融機構資產，並且繼續看到對產品解決方案的需求強勁勢頭，這實際上只是將一個新概念引入了外包模式，以什麼樣的規模進入市場，對嗎？

So all the value proposition that we've talked about originally, everything from the risk management profile shift all the way to better client experiences, attracting better advisor, better financial results all still hold. And I think what we've done over the last couple of years is as we've added these larger institutions, we continue to innovate both in terms of how we support them day in and day out. And also just as [totally] how you transition them over. That's a pretty big change management effort as you could imagine.

因此，我們最初談到的所有價值主張，從風險管理狀況一直到更好的客戶體驗、吸引更好的顧問、更好的財務業績等一切都仍然存在。而且我認為我們在過去幾年中所做的是，隨著我們增加了這些更大的機構，我們在日復一日地支持它們方面繼續創新。而且就像[完全]你如何過渡它們一樣。如您所想，這是一項相當大的變更管理工作。

And I think given that over the last couple of years, we continue to make our model more and more appealing. So as we talk to future prospects, I think we're able to continue to expand the value, which we provide and deliver for them, the quality at which we do it and simplify the change management effort in the overall transition. So with that, momentum that we have matched with the improvement in enhancing value proposition, we believe and are still very optimistic in the sort of growing durability around the growth opportunity and have a good solid pipeline. And though these deals are a little bit harder to predict in terms of the timing because they're longer sales cycle, feel good that we have opportunity to continue the momentum.

而且我認為鑑於過去幾年，我們繼續使我們的模型越來越有吸引力。因此，當我們與未來的前景交談時，我認為我們能夠繼續擴大我們為他們提供和交付的價值、我們所做的質量，並簡化整體過渡中的變更管理工作。因此，隨著我們在增強價值主張方面的改善相匹配的勢頭，我們相信並且仍然對圍繞增長機會的持續增長非常樂觀，並且擁有良好的堅實管道。儘管這些交易在時間方面有點難以預測，因為它們的銷售週期更長，但我們有機會繼續保持這種勢頭，我感到很高興。

Okay. And just a follow-up question on the technology portfolio spend. I think you guys are expecting a little over $200 million or so this year. Can you just remind us what portion of that goes through the P&L versus what's capitalized? How you see that evolving? And then on the P&L, we see D&A continues to drift higher, what sort of growth rate can we expect there on depreciation and amortization relative to the 24% growth that we saw in the quarter on a year-on-year basis?

好的。只是關於技術組合支出的後續問題。我認為你們預計今年會超過 2 億美元左右。您能否提醒我們，其中哪些部分通過損益表，哪些部分通過了資本化？你如何看待這種演變？然後在損益表上，我們看到 D&A 繼續走高，相對於我們在本季度看到的 24% 的同比增長，我們可以預計折舊和攤銷的增長率是多少？

Yes. On that growth rate, I mean, I think when you look at the last few quarters there's been a few million a quarter on that depreciation and amortization growth, and that's primarily the tech portfolio, the capitalized piece that goes there. So I think that's a good framing to think about that. On the tech portfolio, the capitalization versus expense rate, it moves around depending on the type of work that we're doing in that particular quarter. But I think a good rule of thumb is 70% capitalized, 30% expense.

是的。關於這個增長率，我的意思是，我認為當你查看過去幾個季度時，折舊和攤銷增長每季度有幾百萬，這主要是技術組合，資本化的部分。所以我認為這是一個很好的框架來思考這個問題。在技術投資組合中，資本化與費用率之間的關係取決於我們在該特定季度所做的工作類型。但我認為一個好的經驗法則是 70% 資本化，30% 費用。

Our next question comes from Brennan Hawken with UBS.

我們的下一個問題來自瑞銀的布倫南霍肯。

I'd like to start, we've heard from some other wealth management firms that they've seen a shift and more growth on the brokerage side. driven by investor demand to go and find yield and buy more interest and bonds and whatnot. Are you seeing that as well? And should we maybe tweak our expectations for your mix of growth in the near term?

我想開始，我們從其他一些財富管理公司那裡聽說，他們看到了經紀業務方面的轉變和更多增長。在投資者需求的推動下，他們去尋找收益併購買更多的利息和債券等等。你也這麼看嗎？我們是否應該在短期內調整對你們增長組合的預期？

Yes. So short answer is we are seeing some mix. I think you're right in assessing that it's very much sort of environmentally driven by the macro market conditions. Fixed income is a good example of that. I think you're also seeing it in the alt space and in annuities. And those drive up a higher mix of perhaps deploying capital to new solutions in a kind of a time-bound way relative to the market conditions.

是的。所以簡短的回答是我們看到了一些混合。我認為你評估它在很大程度上是由宏觀市場條件驅動的環境是正確的。固定收益就是一個很好的例子。我認為您在替代空間和年金中也看到了它。這些推動了更高的組合，可能以一種相對於市場條件有時間限制的方式將資本部署到新的解決方案中。

I think we've also seen it show up in a bit of a slowdown in some of the transition from brokerage to advisory, in the short run as well. We think that structural trend still makes sense and still expect that to continue. I just think you have a little bit of that sort of environmental noise that's overlaying, so I think those are the right way to think about slight mix.

我認為我們也看到它在從經紀業務到諮詢業務的一些過渡中出現了一些放緩，在短期內也是如此。我們認為結構性趨勢仍然有意義，並且仍預計這種趨勢會持續下去。我只是覺得你有一點那種環境噪音在疊加，所以我認為這些是考慮輕微混合的正確方法。

If you look at our overall macro trend, I still expect to see much more assets deployed to advisories for all the structural reasons that we've talked about before. And I think you'll see that we still sit in sort of that 52% to 53% range of assets now in advisory, and that probably hasn't continued to trend up as much as we would have expected, a little bit because of the macro, probably more because of some of the larger bank or enterprise solutions that we've brought on, just have a higher mix of brokerage assets than typically independent advisors that we recruit new. But we do expect once they get on to our platform and have new capabilities and access to perhaps better advisory tools, they typically begin to also see a trend or a transition of their books over time from brokerage to advisory sort of path.

如果你看看我們的整體宏觀趨勢，我仍然希望看到更多資產部署到諮詢中，因為我們之前討論過的所有結構性原因。而且我認為您會看到，我們現在仍處於諮詢中 52% 至 53% 的資產範圍內，而且這可能沒有像我們預期的那樣繼續呈上升趨勢，有點因為宏觀，可能更多是因為我們引入了一些更大的銀行或企業解決方案，只是經紀資產的組合比我們招募新的通常獨立顧問更高。但我們確實希望，一旦他們進入我們的平台並擁有新功能並獲得可能更好的諮詢工具，他們通常也會開始看到隨著時間的推移，他們的賬簿從經紀業務轉向諮詢業務的趨勢或轉變。

So I hope that color helps. You've got kind of the structural trend towards advisory that still exists to a little bit of an environmental influence over the (inaudible).

所以我希望顏色有幫助。你有一種結構性的諮詢趨勢，它仍然存在一點點對環境的影響（聽不清）。

Sure, little mix of cyclical and with the secular. That makes a lot of sense.

當然，週期性和世俗的很少混合。這很有意義。

Yes. You got it.

是的。你說對了。

Okay, great. And then for my second question, I know it's early, but do -- and it will be impacted by a lot of factors that will come out and play out in the next several months. But any sense about how we should be thinking about expense growth for 2023. We've seen as the benefits of interest rates provide some tailwind that you have been driving a little bit of incremental investment in the platform. Should we assume that that would continue along with a rate forecast that we might be using? Or -- and is there any reason to think that some of the expense growth or trajectory would slow for any reason at some point?

好，太棒了。然後對於我的第二個問題，我知道現在還為時過早，但是這樣做 - 它將受到許多因素的影響，這些因素將在未來幾個月內出現並發揮作用。但是，我們應該如何考慮 2023 年的費用增長。我們已經看到利率的好處提供了一些順風，您一直在推動對該平台的一點增量投資。我們是否應該假設這種情況會隨著我們可能使用的利率預測繼續下去？或者 - 是否有任何理由認為某些費用增長或軌跡會因某種原因而放緩？

Sure, Ben. I'll give -- it's a little early. I'll give you some color. I mean, I think when we think about -- to your point on interest rates and how that impacts our financials, when we do those economies, just building from the start of the cycle, right, early in the cycle, we were focused on that, the benefit from those increases falling to the bottom line and really improving margin, right? And then as we got deeper into the cycle, really pivoting to our capital allocation framework and allocating that capital across the 3 primary areas that we look at.

當然，本。我給 - 現在有點早了。我給你點顏色。我的意思是，我認為，當我們考慮到您對利率以及它如何影響我們的財務狀況的觀點時，當我們做這些經濟時，只是從周期開始就開始建設，對，在周期的早期，我們專注於也就是說，這些增長帶來的收益下降到了底線並真正提高了利潤率，對吧？然後隨著我們深入到週期中，真正轉向我們的資本分配框架，並將資本分配到我們關注的三個主要領域。

And I think investments to drive and support organic growth is the primary category, the first category that we look at. And as you highlighted a bit when we look at this year, right, we've been accelerating investments to drive growth and support our advisors. And just looking at core G&A, we've typically been in the mid- to single -- mid-single-digit growth rates in the past. And this year, we'll be in the 12% to 13% range, right? And part of that increase is coming from those incremental earnings from rates that we're really deploying to improve our value proposition.

我認為推動和支持有機增長的投資是主要類別，也是我們關注的第一個類別。正如您在回顧今年時所強調的那樣，對，我們一直在加速投資以推動增長並支持我們的顧問。僅看看核心 G&A，我們過去通常處於中到個位數的增長率。今年，我們將在 12% 到 13% 的範圍內，對吧？部分增長來自於我們為改善我們的價值主張而真正部署的利率的增量收益。

Now when we look across the other options, right, we see opportunities potentially in M&A, right? We see opportunities in returning capital to shareholders that we've talked about today, increasing the buyback in Q4 at $150 million and then pivoting to a $250 million -- roughly $250 million per quarter next year.

現在，當我們審視其他選擇時，對，我們看到了併購中潛在的機會，對吧？我們看到了今天討論的向股東返還資本的機會，將第四季度的回購增加到 1.5 億美元，然後轉向 2.5 億美元——明年每季度大約 2.5 億美元。

Now on the level of investments next year, I think if the interest rate environment does play out like it's predicted, I think we're going to be in a position to have opportunities to invest and drive growth, and we'll apply the same framework on the capital allocation front that we always use to guide us. And I'll share a bit more color at Investor Day in a few weeks, and then we'll finalize those plans as we normally do and share them on our year-end earnings call.

現在就明年的投資水平而言，我認為如果利率環境確實像預期的那樣發揮作用，我認為我們將有機會投資並推動增長，我們將採用同樣的方法我們一直用來指導我們的資本配置方面的框架。幾週後，我將在投資者日分享更多色彩，然後我們將像往常一樣敲定這些計劃，並在年終收益電話會議上分享。

And our next question comes from Devin Ryan with JMP Securities.

我們的下一個問題來自 JMP Securities 的 Devin Ryan。

I want to start with a question just on advisor recruiting. In volatile markets, typically, we see advisor appetite to move slow or go away. So good to hear the comment on the strong recruiting pipeline. So I'd like to just maybe dig in a little bit around kind of where you're seeing momentum across what channels, expectations on actually executing on that pipeline.

我想從一個關於招聘顧問的問題開始。在動蕩的市場中，我們通常會看到顧問願意放慢腳步或離開。很高興聽到關於強大招聘渠道的評論。所以我想稍微挖掘一下你在哪些渠道上看到的勢頭，以及對在該管道上實際執行的期望。

And then I'm just curious, like maybe there's a little bit of a coiled spring building. So I'm assuming that natural conversions has slowed a bit, but maybe the actual conversations and what's in the pipeline is expanding. So I'd just love to get more color there.

然後我很好奇，好像有一點螺旋彈簧建築。因此，我假設自然轉換速度有所放緩，但實際對話和正在進行的對話可能正在擴大。所以我只是想在那裡獲得更多的顏色。

Yes. Devin, you said it, and we've talked about it, the macro conditions certainly can create some headwinds across new store sales or recruiting as we've talked about, right, the complexity in the marketplace drives focus on serving and supporting their clients in the short term, rightfully so and sometimes then delayed more strategic considerations. So I think we saw certainly a pickup in the third quarter as we talked about some of those market-driven headwinds beginning to give way to the structural desire of an advisor to improve their practice or their programs.

是的。德文，你說過，我們已經談過了，宏觀條件肯定會在新店銷售或招聘方面產生一些不利因素，正如我們所談到的，對，市場的複雜性促使人們專注於服務和支持他們的客戶在短期內，這是理所當然的，有時會延遲更多的戰略考慮。因此，我認為我們在第三季度肯定看到了回升，因為我們談到了一些市場驅動的逆風開始讓位於顧問改進其實踐或計劃的結構性願望。

And so we feel great about our pipeline across all of the different affiliation models that we have, certainly are traditional one as well as then new models that we've created. And so as we go forward, we feel like, certainly, as these advisors pivot back to focusing on structurally enhancing the programs, if that aligns well with the [feel] and capabilities of our model sets up well for a good, strong finish to the year from a recruiting standpoint.

因此，我們對我們擁有的所有不同附屬模型的管道感到非常滿意，當然是傳統的模型以及我們創建的新模型。因此，隨著我們繼續前進，我們當然覺得，當這些顧問重新轉向專注於從結構上增強計劃時，如果這與我們的模型的[感覺]和能力很好地保持一致，那麼我們的模型的能力就可以很好地完成從招聘的角度來看這一年。

And again, I think you've seen it over the RIA channel the employee channel and the strategic wealth channel, right, those new models, we've consistently recruited a little over $2 billion each of the last 3 quarters. And so we feel good about the growing appeal and positioning in the marketplace for those as a great complement to our traditional markets. And then when you overlay the financial institution market over the top, it sets up for continued interesting evolution of our new store sales. And we continue to focus on trying to drive that higher as we go forward.

再說一次，我認為你已經通過 RIA 渠道、員工渠道和戰略財富渠道看到了它，對，這些新模式，我們在過去 3 個季度中每個季度都持續招募了略高於 20 億美元的資金。因此，我們對這些市場日益增長的吸引力和定位感到滿意，這是對我們傳統市場的重要補充。然後，當您將金融機構市場置於頂部時，它為我們新店銷售的持續有趣發展奠定了基礎。在我們前進的過程中，我們將繼續專注於努力提高這一點。

I think if you look at the trailing 12, we've got about $84 billion in recruited results and outcomes, and we continue to work both on our efficacy to execute better, met with more appealing model met with the breadth of affiliation models to continue to drive that [path]. Hope that helps.

我認為，如果您查看過去的 12 年，我們的招聘結果和成果約為 840 億美元，我們將繼續努力提高我們的效率以更好地執行，遇到更吸引人的模式和廣泛的附屬模式以繼續駕駛那條[路徑]。希望有幫助。

Yes. Great color. As a follow-up, on customer cash, you appreciate it's primarily operational of LPL, and that's different than some others in the wealth space. But I just want to think about kind of the ranges of kind of where cash has trended. 4% of assets today, you're kind of at the higher end. I think the average from 2016 is like 5.3% in the low in 2019 was about 4%.

是的。很棒的顏色。作為後續，關於客戶現金，您欣賞它主要由 LPL 運營，這與財富領域的其他一些不同。但我只想想想現金趨勢的範圍。今天4%的資產，你有點處於高端。我認為 2016 年的平均值約為 5.3%，而 2019 年的低點約為 4%。

So I just love any help thinking about kind of where we are in that range (inaudible) know we're in the higher end, but is 5.3% average, maybe where we get back to if sentiment in the market improves and gets back to something more normal, the denominator also matters quite a bit here. So just love to think about that range a little more to you and how you guys are thinking about maybe where cash could trend given that it is operational.

因此，我只是喜歡任何幫助思考我們在該範圍內的位置（聽不清）知道我們處於高端，但平均為 5.3%，如果市場情緒改善並恢復，也許我們會回到更正常的事情，分母在這裡也很重要。因此，只是喜歡多考慮一下這個範圍，以及你們如何考慮考慮到現金的可操作性，現金可能會走向何方。

Yes. Yes. It's definitely operational. I think that the best things to look at are the history, the empirical data that you were referring to. I think an average of 5% is where we've been. So you think of that as maybe a market neutral position. and the lows have gone down closer to 4%. But keep in mind, our mix of assets were different back then. They were more in brokerage than they are today. and advisory in general, will have a higher amount of cash to facilitate rebalance.

是的。是的。它肯定是可操作的。我認為最好看的是歷史，你所指的經驗數據。我認為平均 5% 是我們去過的地方。所以你認為這可能是一個市場中立的立場。低點已跌至接近 4%。但請記住，當時我們的資產組合是不同的。他們比今天更多地從事經紀業務。和諮詢一般來說，會有更多的現金來促進再平衡。

So maybe that low end -- would that mix change, that low end feels more like 4.5% given that mix change. And I think you're right, where we're sitting today in that 6.5% zone is certainly towards the upper end. So that's the range that I would have.

所以也許那個低端 - 混合變化，考慮到混合變化，這個低端感覺更像是 4.5%。我認為你是對的，我們今天所處的 6.5% 區域肯定是高端。這就是我想要的範圍。

And our next question comes from Bill Katz with Credit Suisse.

我們的下一個問題來自瑞士信貸的比爾卡茨。

So just maybe picking up on that last line of questioning. Just given where you are, I wonder if you could update us on your thinking of sort of fixed to float relative to the 50% to 75% range. I see you sort of added 15 percentage points in the quarter. Is there any reason to think that you could take that number higher, all else being equal? And then how should we think about maybe the pacing to get back into the target range?

所以也許只是接聽最後一行提問。剛剛給出你在哪裡，我想知道你是否可以更新我們關於你的想法固定浮動相對於 50% 到 75% 的範圍。我看到你在本季度增加了 15 個百分點。在其他條件相同的情況下，是否有理由認為您可以將這個數字提高一些？然後我們應該如何考慮回到目標範圍的起搏？

Yes, Bill, and good to hear. Good to hear from you again. Welcome back. I think our target range remains at 50% to 75% in a rolling portfolio. So we're minimizing that interest rate volatility. And I think we're in periods of low rates, we'd want to stay closer to that 50% in periods of higher rates like we're getting into now, where there's also some steepness to the curve, I think we'd want to be closer to 75%, and our ability to do that really is subject to the demand in the market, right?

是的，比爾，很高興聽到。很高興再次收到您的來信。歡迎回來。我認為我們的目標範圍在滾動投資組合中保持在 50% 到 75%。因此，我們正在最大限度地減少利率波動。我認為我們正處於低利率時期，我們希望在像現在這樣的高利率時期保持接近 50%，曲線也有一些陡峭，我想我們會想要接近 75%，而我們能做到這一點，真的要看市場的需求，對吧？

So maybe just a little bit of color on what we're seeing there is demand does continue to return, right? On ICA overall, right. We added $7 billion of balances in Q3, the majority of that $5 billion in fixed, and that brings the amount we've been able to add this year of new fixed to $9 billion, right? And that's the most we've been able to add in a single year ever, meaning even pre-COVID.

因此，也許我們所看到的需求確實會繼續回歸，對吧？在 ICA 整體上，正確的。我們在第三季度增加了 70 億美元的餘額，其中大部分是 50 億美元的固定資產，這使我們今年能夠增加的新固定資產達到 90 億美元，對吧？這是我們在一年中能夠添加的最多，甚至是在 COVID 之前。

So the environment is certainly improving. And then when you look at from this point forward, it does feel like that it's set up for demand to continue to be strong. Right, from the Fed side of raising rates and really shrinking their balance sheet to the banks themselves, where consumer spending continues to remain healthy. Loan balances are growing, and those are all the things that would lead to additional demand.

所以環境肯定在改善。然後，當您從這一點向前看時，確實感覺它已經為需求繼續強勁做好了準備。沒錯，從美聯儲加息和真正縮減資產負債表到銀行本身，消費者支出繼續保持健康。貸款餘額正在增長，而這些都是會導致額外需求的因素。

Now whether that's fixed or not becomes more about those banks and what their asset liability management is and their interest in FX. So it becomes a little bit more challenging to take all that information and say that there'll be more fixed in -- but I feel confident overall that the environment is conducive to banks needing more ICA. And what we've seen so far has been an improvement. So we'll keep monitoring. But I think if the demand is there, we'll want to manage that 50% to 75% range we've talked through, which even though we've improved, we're still below the low end of that today.

現在，這是否是固定的，更多的是關於這些銀行以及它們的資產負債管理是什麼以及它們對外彙的興趣。因此，獲取所有這些信息並說會有更多的固定變得更具挑戰性 - 但我總體上相信環境有利於銀行需要更多 ICA。到目前為止，我們已經看到了進步。所以我們會持續關注。但我認為，如果存在需求，我們將希望管理我們已經討論過的 50% 到 75% 的範圍，即使我們已經改進，我們仍然低於今天的低端。

Okay. And just a follow-up. Just coming back to your commentary and perhaps I heard this incorrectly, I apologize if that's the case. I heard you say that sort of the new target leverage ratio would be 1.5 to 2.5 and I'm looking at something correctly. It was previously 2 to 2 or 3 quarters turn. Why now to reduce it? It feels like the franchise has probably never been in better shape. The earnings power certainly cyclically has a significant step function in front of them for the next couple of years. What is it about the messaging of bringing that down? Is this to point conservatism, is it may be less leverage opportunities going forward? I'm just trying to understand why bring it down.

好的。只是一個後續行動。剛剛回到你的評論，也許我聽錯了，如果是這樣，我很抱歉。我聽說你說新的目標槓桿比率將是 1.5 到 2.5，我的看法是正確的。以前是 2 到 2 或 3 個季度。為什麼現在要減少呢？感覺這支球隊可能從未像現在這樣好過。在接下來的幾年裡，盈利能力肯定會周期性地在他們面前發揮重要的階梯作用。降低它的信息是什麼？這是為了指向保守主義，是否可能會減少未來的槓桿機會？我只是想明白為什麼要把它降下來。

Yes. Yes, of course. So I think when we look at our strategy, right, which is unchanged, right? It's really focused on a combination of maintaining a strong balance sheet and having capacity to invest for growth. And the driver of the decline in the leverage ratio has really been our earnings power improving, right? Our growth, combined with the interest rate environment has driven the leverage ratio down. So given that and given -- and thinking about what our target leverage ratio should be, we wanted to solve for 2 things, making sure we're positioning ourselves to be able to consistently supporting our advisors even when the macro declined, so the economic cycle link.

是的。是的當然。所以我認為當我們查看我們的策略時，對，這是不變的，對吧？它真正專注於保持強大的資產負債表和有能力投資增長的結合。而導致槓桿率下降的真正原因是我們的盈利能力提高了，對吧？我們的增長加上利率環境導致槓桿率下降。因此，鑑於這一點並考慮到我們的目標槓桿率應該是多少，我們想要解決兩件事，確保我們將自己定位為即使在宏觀經濟下滑時也能夠始終如一地支持我們的顧問，因此經濟循環鏈接。

And then second, just making sure we're striking the right balance between preserving that balance sheet strength and investing for growth. right? In our perspective in solving for those things, we think 1.5 to 2.5x leverage is really something that positions us all to achieve those objectives. So that was the driver.

其次，確保我們在保持資產負債表實力和投資增長之間取得適當的平衡。正確的？從我們解決這些問題的角度來看，我們認為 1.5 到 2.5 倍的槓桿率確實有助於我們所有人實現這些目標。所以那是司機。

Our next question comes from the line of Kyle Voigt with KBW.

我們的下一個問題來自 Kyle Voigt 和 KBW 的系列。

Most of mine have been answered already, but I just had a couple of follow-ups. Maybe one on the betas in terms of incremental betas, I know those increased to 20% over the last 75 basis points. But just wondering if you could provide some updated thoughts there on the trend for incremental betas as the Fed is now set to more -- to move more meaningfully above the peak of last cycle?

我的大部分內容已經得到了回答，但我只是進行了幾次跟進。就增量貝塔而言，也許是貝塔上的一個，我知道在過去的 75 個基點上增加到 20%。但只是想知道你是否可以就增量貝塔的趨勢提供一些更新的想法，因為美聯儲現在設置得更多——更有意義地移動到上個週期的峰值之上？

Yes, Kyle. I mean I think the betas so far have been coming in favorable, right, as you highlighted. And the most recent hike, we're at 20%. When you look at the last cycle, that would have peaked around 25% for us. They are coming in a little bit better. Our approach, though, here is -- and we'll continue to monitor it is to remain competitive, right? We've got a product that we want to be competitive in the marketplace. And I think that's what drives those betas. So I think we'll continue to price that way. I would say, just looking at the marketplace, we don't see anything pointing to a meaningful change in the price sensitivity of this particular product. So I think we'd be surprised if betas ended up being materially different than last time.

是的，凱爾。我的意思是，正如您所強調的那樣，我認為到目前為止的 beta 版本一直很受歡迎。而最近一次加息，我們達到了 20%。當您查看上一個週期時，我們的峰值將達到 25% 左右。他們的表現會好一些。不過，我們的方法是——我們將繼續監控它以保持競爭力，對吧？我們有一種產品，我們希望在市場上具有競爭力。我認為這就是驅動這些測試版的原因。所以我認為我們將繼續以這種方式定價。我想說，僅從市場來看，我們沒有看到任何跡象表明這種特定產品的價格敏感性發生了有意義的變化。所以我認為如果測試版最終與上次有實質性不同，我們會感到驚訝。

Okay. And then just a follow-up on the leverage conversation just really more so on corporate cash. You built up your corporate cash balances to just over $400 million in the third quarter. And even when accounting for higher repurchases in 4Q, you're still very likely to build cash into the end of the year.

好的。然後只是對槓桿對話的跟進，實際上更多的是關於公司現金。您在第三季度將公司現金餘額增加到剛剛超過 4 億美元。即使考慮到第四季度更高的回購，你仍然很有可能在年底之前積累現金。

I'm just wondering if there's a near-term preference to maintain higher cash balances than you have historically say, over the last 4 or 5 years in order to maintain kind of maximum flexibility on opportunistic M&A, is that a part of the decision-making there for running with higher cash balances.

我只是想知道，在過去的 4 或 5 年中，為了保持機會併購的最大靈活性，是否有近期偏好保持比您以往所說的更高的現金餘額，這是決策的一部分嗎？在那里以更高的現金餘額運行。

Well, I think it's back to our capital allocation framework. It's all about being prepared to take advantage of opportunities to invest in organic growth first, M&A second and returning capital to shareholders third. And I think the time, which each of those things emerges can be different, right?

好吧，我認為這又回到了我們的資本配置框架。這一切都是為了準備好利用機會首先投資於有機增長，其次是併購，然後是向股東返還資本。而且我認為這些事物出現的時間可能不同，對吧？

So I think what you see there is there's no -- nothing to infer about that cash balance build other than our economics improved pretty materially in the quarter, and we're going to allocate it the same way we have before. And our target for corporate cash hasn't changed at $200 million. So we're above that right now, but our target and objective will be to deploy it across our capital allocation framework.

所以我認為你所看到的沒有 - 除了我們的經濟在本季度有相當大的改善之外，沒有什麼可以推斷現金餘額的建立，我們將按照以前的方式分配它。我們的公司現金目標沒有改變，為 2 億美元。所以我們現在已經超越了這一點，但我們的目標和目標是在我們的資本分配框架中部署它。

(Operator Instructions) I'm showing no further questions at this time. I would now like to turn the conference back to Mr. Arnold for closing remarks.

（操作員說明）我目前沒有其他問題。我現在想把會議轉回阿諾德先生的閉幕詞。

Thanks, everyone, for taking the time to join us this afternoon. And as a reminder, we're holding our Investor and Analyst Day in New York on November 16. We look forward to speaking with you then as we discuss our business in greater depths. Hope you have a great day.

謝謝大家，今天下午抽空加入我們。提醒一下，我們將於 11 月 16 日在紐約舉行我們的投資者和分析師日。我們期待著與您交談，因為我們更深入地討論我們的業務。希望你有一個美好的一天。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。