T. Rowe Price (TROW) 1 Nov 242024 Q3 Earnings call transcript

Good morning. My name is Daniel, and I will be your conference facilitator today. Welcome to T. Rowe Price's Third Quarter 2024 Earnings Conference Call. [Operator Instructions] As a reminder, this call is being recorded and will be available for replay on T. after concludes. shortly website Price's the call Row

I Carruth, Investor T. turn the Relations. to Linsley call over Rowe will now Price's Director of

third call document can Hello, today found on press for you website be approximately and quarter at XX IR our investors.troweprice.com. Today's release materials and The last earnings supplemental joining the our call. will thank for us minutes.

financial up statement are today's the company's then CEO non-GAAP CFO, ask investment limit Jen remind discuss GAAP XX-Q. I'd for course XXXX. it make the the refer call, the forward-looking and performance we'll We as President, minutes, Dardis, of quarter like reconciliations as to during and XX Sharps to reference measures. results language on we your may peer the Rob the our and number peer statements about ended forward-looking that Our call XX, supplemental materials groups it a Chair, question September in All for that questions. to and to using for references open per this in Morningstar well certain to and that will you release Please you one participant. press and groups of

to I'll Rob. it Now turn over

net up Thank from quarter all the management, $XX.X you, in June Linsley, closed for and XX thank third call. X.X% in earnings trillion billion under you outflows. assets We joining our quarter $X.XX despite with

path. that increased are outflows third While net right encouraging we in the we seeing quarter, on the are signs

franchise Our expanding. is ETF active

business. our strategic year. and with net our track of deepening retirement launch initiatives We associates solutions, to on advancing are this leadership reduce are position our outflows remain the We retirement across the innovative

performance. investment to turn now I'll

our top all time both equity X- remain equity performance periods. In X-year the and the have ] remains [ U.S. fixed X-year quartile solid equity, which quartile our performers integrated rate in our quarter. and softer and and research, to mid-cap X- and semitransparent X-year Our period. growth U.S. for strong ETFs, U.S. has value, time continue In and ETF be time our top the bond of X-, recently long-term mid-cap to performance equity periods, our performers In small do franchise, integrated performers ETFs, the ETFs both this income, mid-cap time MuniStrategies global small for equity as launched continue periods. our equity top quartile research ultra across franchise, U.S. core be top investment for results more short-term multiple quartile transparent now floating ETF performance despite

While underlying quarter, performance blend funds stock flagship the an selection third relative continue towards strong our were overweight equities long-term and the in new to funds have and retirement performance. retirement U.S. to detractors

situations the lag. are strategies in the XX- across strategies time distressed date assets and during generated our and of with XX% market top consistent were quartile while basis. structured Over special Returns on Private, periods XX-year results target the X-, alternative for and backdrop. the broadly quarter, an and stronger constructive liquid positive AUM

late do sub-advised to year, large increases earlier, track outflows variable on net further we previously outflows as as trends As reduce We had reflecting remain expected in not I QX. Even significantly this in shared $XX.X and annuity third net fourth billion. the now expected. quarter termination we totaled a during loss, although debt with seasonal quarter, this expect outflows

we undo in in disappointing, share more it net estimated levels. detail have Jen less termination, a Excluding of other underscore outflows half made I was the VA than want we to progress the loss But moment. this deeply will to doesn't unanticipated that be XXXX areas. while XXXX

investors our business benefits our We recently wrapper. and first our innovative fully strategies. With the retirement sector-focused convenient in of tax with efficient, we new cost-effective our provide the leadership ETF with portfolio ETF transparent ETF, deepening and expanding launched are technology

retirees offerings. X Personalized and the to recently the investment personal Rowe life. and new asset guaranteed annuity designed first allocation with incorporating retirement new a Lifetime contribution that contract life Managed create a Price Manage launched income industry's a and proven also account date leading predictable qualifying Income to for Retirement monthly payouts. a asset We Pacific tailored investment Lifetime Manager a target of professional Income. solution plan payout unique with Manager union defined Income strategies. unique and managed is for designed retirement management philosophy process provide Lifetime offer is monthly from data to underpin T. in and individual, our Personalized stable combines the longevity into cycle from Life Retirement a managed Managed

We win interest path glide are capabilities in co-developing customizing date target of next also and expected a increased our client notified were and sizable custom seeing year.

close are beyond ], for [ billion much which We Olen had this first commitments. reaching Fund, in Lending Private our in We of quarter's well. $X milestones key Senior increase our drove capital retirement areas unfunded as

relationships models focused U.S. launching and SMAs. ETFs on new more in placements this and year, that on in partnerships new focus resulted Our wealth are home office

outflows of despite It's not our tremendous pipeline the underlying stockholders. work our progress. our to behalf our driving on on Finally, of earlier, firm business. VA focus the clients, net our in doing fourth their and our the mindset want termination noted associates grew indicative quarter-over-quarter, agile their recognize that I are that quarter continuous trajectory suggesting our are are improvement elevated weighted I of

now I'll to of provide our Jen an overview turn to results. financial

opening third quarter I'll questions. everyone. Rob, the you, Thank hello, results before our and for line review

XX% of share QX and factors per driven income adjusted rate. $X.XX the higher growth from of strategies. XXXX last effective of the particularly U.S. year. this year, increase billion which driver lower by higher nearly operating reported half XXXX. also in from of products over net XX% for but in in tax AUM, this our first average a quarter, remain improvement QX is QX higher $XX.X up XXXX, outflows, EPS outflows from We is of a an equity drove earnings QX adjusted These than Our primary

$X.X however, research net inflows quarter. had strategy, equity Our billion of over U.S. this

had We inflows and our inflows in multi-asset, net date billion. quarter alternatives. had with Within of multi-asset target strong $X.X another positive net across income, franchise fixed also we

billion inflows outpaces active of the rate, year-to-date Our industry growth $XX.X category. the particularly in blend

net And our ETF billion region. just had the and net driven bringing of Our had under the we business to quarter, global over region XX $X equity the U.S., $X.X outside the inflows in positive AUM by EMEA in APAC inflows September in alternatives billion.

we mentioned, a of were large annuity Rob notified recently As termination. sub-advised variable

all to redeemed be during quarter. fourth related termination this nearly that expect assets the will the We of

T. supplement. a Given the outflow, management sold product. manager products VA high branded one sole and investment you'll may provide to by as we are for company provide our the product size insurance sponsors. XX some I Price, level, At in business, cases, of the which Page this VA a we're want other be on some In on cases, while Rowe services of the we multi-manager find of sleeve background

the said, the X% for we change that would higher Similar VA overall meaningfully. several full fourth or of is Our level VA XXXX to down business otherwise That billion from the industry, the XXXX. expected. quarter years, little large AUM, total than has we net be and our assets our trend year are to $XXX outflows given have over don't outflows experienced the X% which of termination, in past VA expect will for VA a

continue we not While an will and many has driver is clients this and book area organic important the this their firm, on for to long-standing growth behalf. business of deliver

to our Shifting financials.

which AUM. is year higher investment Our last QX and the billion, adjusted driven second up average higher $X.X quarter, advisory from X% were X% net from up revenue revenues from by

effective classes. declined XXXX from rate as XXXX continue vehicles points basis of and Our fee XX.X QX shift and to asset fee QX QX into lower assets annualized

included alternatives primarily This $X.X of from in the advisory million quarter's revenue fees performance-based investment from products, billion BDC. $X.X

Our adjusted up servicing compensation, to due in of were related AUM. $X.X operating costs on expenses increases and higher XXXX distribution from and fees benefits mainly and X.X% QX billion

cost a up $XX also million is nonrecurring G&A QX year, XXXX from last included recovery. While

operating income QX of and $XXX adjusted from XX% up million XX% last from Our XXXX quarter. was almost

year, to XXXX carried of over the excluding year of amount we to continue expenses, XXXX expense full operating balance X% comparable the billion. X% adjusted the $X.XX to interest be For expect

the increase in bottom an this we December, stock-based advertising is advertising compensation run into range number due in expense While annual to higher the our efforts. the expenses timing typically end we we're due of X the at of through in to expect grants, anticipate year, carry last QX, the timing higher given to seasonality be and and of Notably, promotion rate. months, and seasonal categories our our XXXX and to which not of are similar will factors of some

close We are fees before as also of complete year. higher forecasting projects the we professional the

of as first with we we have months quarter, in to of of per stockholders the X year-to-date dividend the to attention with $XXX nearly of We repurchases evaluate million $XX $X.XX million. of billion shares the months management. capital year. quarterly our over buybacks pace third our Turning bringing repurchased through of XXXX. comfortable We the worth feel current share, remaining during buybacks returned Combined $X.X value the the to

Our cash in discretionary at balance and sheet QX. end the billion of $X.X over remains strong with investments

new to focusing areas approach identifying best XXXX invest we will are teams our and growth clients. year-end, to and capabilities deliver the serve on we As our where future drive

this balance And with investment to for Q&A. to line discipline. now the continue need for open expense ask will I'll the We operator the ongoing

Instructions] with from comes our first Sachs. question [Operator Goldman And Blostein Alex

to start your business organic would XX. Slide VA the perspective Rob, good to get growth the on perspective love on on a

last issue. apples I be, of less excluding implies pretty progress the think a That sub-advisory the to I step-up you outflows sell year. the in in obviously still, outflows on you meaningful half VA you than guys QX, the guess, sub-advisory VA think, mentioned that, excluding business, I made expected

are you're the would outflows as on whether maybe what of kind also or not be than normally? and appreciated seeing any 'XX you well. unpack So elevated there basis fourth bit have the just And for a core more quarter thoughts a in

say Yes. a in bit particularly to of I that, underlying think way more Outside headed pretty right we're 'XX, redemption near pretty with consistent direction. mandate seeing typical clearly and Alex, pressure Specifically, VA quarter the is the year-end. are trends of I the We outside fourth as to in have it of tend would seasonal what the relates in specific patterns. that little

a back, that said noted outflows half 'XX of I VA and as So been than less the have -- loss, would if excluding as you I earlier, levels. take step 'XX

I reflects we where substantive pretty were. to think progress relative that

are would step said, active drivers, and key back growth, direction. Outside few redemptions equities as we flows. And all Regarding franchises, expect we take performance positive 'XX, in you one the and and That of cap other vehicles. as year-over-year class think both in outflow equities say I a if asset time. Gross channels and further trends the seeing we that, in an the toward about our trend have sales our where have we're gross asset I in a sizable improvement a in improvement geographies mutual and far most improvement other room in for or classes vehicle and performance flows been 'XX. positive all think active large of in as in given of funds there's right but sales meaningful and trending following some notably so for improved up of

expect beyond. in retirement date funds in 'XX We and strong continue growth to

up to year, year-to-date this is So last relative year.

momentum feel and In that from the a date expect up can We we'll SMAs. be and very we expect have the that have you retirement good franchise. alternatives, across contribution larger to ETFs 'XX, about the year

further like Jen, difficult work opportunity this out demonstrate have in areas positive And progress. further think we build path full there, add But our bring point, 'XX. take a there to very momentum current well It also that say would at in won't base will growth, to that based have to on to be Regardless, of enough get and you make say on. really to I forecast back we'll we this flows fixed I'd will insurance. whether whether capitalize into the My we're is we not. us there those but they're income, opportunities are meaningful to all think predict. for on to organic I do get in hard think we to fruition, we're anything? or I positioned to will move most year. especially in -- that case territory us XXXX it's

No, it. I you think covered

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

market, -- just on just landscape. your competitive views the the I maybe about retirement. was us there want on ask I retirement hoping you to could update

go-to-market Some build lifetime think for you including quantify glide the payout in win product. taking sort talk mentioned works help next your of that, to the steps how then you managed guys And new year. that drive you traction? could can about channel, that. Maybe are path of to growth a the Maybe how retirement you plan for I you strategy

Yes.

So custom the a is glide specific win path that we referenced win.

come the path line. you to and our come fee plan demographics a would underlies know, tremendous it we behind in path have the for that of funds. as us, typically, the wouldn't the approach, advisory our participant relatively asset of date would in target as glide is investing we so allocation glide pool. specifically that amount have life instances certain fee And and are that designed cycle investment a -- So a small, it wants be AUA, their you for of have a There a where sponsor that research

that was what specific reference was. that So

of lot set terms we've fund, retirement say got momentum I but across trends, of date offerings, of In would flagship broad also a blend. our

interest we launched the target relative of to Our our there a based the overall. the and the other also fees of strategic to compelling. It and think but retirement Personalized estimated recordkeeping participant new having particular customized I on the as system, record of from strong. they were addition is I lot Manager that tailor shows are is assumptions think franchise, positioning to strategy And offerings attractive on date. input particularly just in underlying would it managed it's keeper. benefit pipeline a underlie managed uses very the a account that products the custom participant. are that core the account their X say Retirement date on research it relates in retirement to that that's launched, which specifically

Rowe to a Both demonstrate Finally, lifetime time. able platform. new to think the in income to build scale we time, to launched them we we platforms are products in attractiveness, the and other compelling a QLAC, Price record-keeping incorporates being design on that It's with extend T. initially regard to structure. product expect it's also But market. be record-keeping as the

to strategy not but platform, add. strategies, strategy. so investment-only DCIO, products we own mean and the And I opportunities of mentioned of more our asked some target have highlighted, Rob we on just might over on developing. cases certain platform. either that also our I able But of time provide extended Yes. participate what our a other serve to in you go-to-market products. many retirement record-keeping as we things you just DC about to date to the sell but sleeve to be on plans only be are these they're more that call recordkeeping our even people's able as

with Yes, retirement a number result worked of that hard to both leading we've a We also I for that And our co-development. in very, really price recordkeepers, on of the across products positioned our firms of platform. we're very record-keeping retirement partnership we're retirement as franchises, as the suite leaned date build just focus with the retirement things doing recordkeeping think consulting, income but some of well that, on platforms. the dealer as with well not

Our Benjamin Barclays comes question Capital. Budish from next with

a credit. I I about private wanted guess of maybe X-parter. to kind ask

you which business expecting if to what opportunity sort the sort market about we -- a going in then I'm mean the senior be insurance. is doing fixed private be how lending? is to like mentioned that are extent Just happens, you set big what year credit direct related curious what for thinking perhaps more of you about can see could the that something you seems side remind there? pickup that? How next the us has First, much in of income to And else to Rob, or on positioned into related transacting activity. of did

take I'll Ben, question of the first. the Yes, latter part

across credit really have insurance Fixed insurance, there. account corporate investments opportunities in opportunity some to see to Specifically and sizable with we tends in very, very fixed regard income business. it's general our -- investment-grade

to credit opportunity see alternative private to We offer investors. also and would strategies insurance

I attractively attractiveness think to basically on do to insurance strategies their and investors many improve way portfolio to economics, looking that also their but a risk-adjusted on products. own looking of increase as underlying underlying their improve would basis. That yield private are a the

So it wouldn't certainly OHA, would incorporate but opportunities or with be limited. exclusive

it income both think T. would Rowe platform. opportunities liquid OHA, I also the the fixed on include but also potentially with side, Prices with

to relates -- to private but dedicated their senior closed of senior their private in lot lending a first credit historically actually have dedicated lending area private they clients. private is Specifically, OHA as operated experience offered it not They've credit, an had had broadly, got that fund.

OHA commitments of zoom a little would billion. If to new say record credit. billion number the raising, notable a private year-to-date a portion out you capital quarter that, $X capital of quarter, portion bringing $X.X I this in had was meaningful a bit, of over And

they their lending So fund, on their $X private close was which billion. first senior closed

boost So commitments is will these increased capital deployed. as the flows capital

So OHA but perspective, into capital a XXXX. there's confident alternatives origination where sees from what flow opportunities, on and that we're that should on based where accelerate will I'm commitment seeing be based pretty

Our Dan Jefferies. next with from question Fannon comes

building your sub-advised to up around Rob, mandate. backlog, institutional on comments the follow ex I wanted the

is of in of Or about, cycle I terms So of can you of is that -- guess, into more looking that year? you put that how some months today? kind Is context funding kind And sales the X, X the window? ultimately, here next around that products? think the the

of It institutional. is Yes. pipeline. the year, across asset really not It is across it over for it's and question,. a is Thank book our just business, classes. It's you weighted a

opportunities that I that termination at have notable we on increased as we and risk quarter-over-quarter that basis. And this as that risk-weighted it sizable was pipeline despite think a risk that mandates notified weighted. risk-weighted are are the fact basically, very well were of marked So actually the

momentum new Now of not the which in months increased. despite termination. the basis, would think will But particular risk fully it's you clearly underlying risk-weighted business. trends is given this marked opportunity fixed that close notified in in loss mandate course reflective less the that strategies. full that growth. we more like is pipeline at structured areas the It been think that at now across very risk equity shows to, is of in bring that see but in taking next equity it was risk, it were And I that enough income our say It's active a a of based. Again, It kind of of retirement equity particular, partially has research marked XX continued able certain in in we date opportunity clearly and momentum suite. pipeline some over on I the global large broad at to and nice we've the in that

Worthington question next JPMorgan. with Our comes from Ken

extra In it fund it it different is get access your And paying existing terms ETF to the what expanding channels? the terms is of for you of sort cost extent and reach extent franchise? fund to cannibalizing customer ETFs, for any just is franchise, assets than what kind different distribution an for here into your with point? what of of And in basis distribution allowing you're your to of

of I strategy there the some a funds think question, for the say some at would part open-ended of in the other Ken, if are particularly mutual words, is ETF. the that element I that have have same buyers available historically the of preference, set that we're have reaching strategies on right? both, margin So there's are a And used first different a say particularly also available that are to of buyers. ETF. ETF, I'd suite in we're a strategies in fund. not fully That transparent open-ended There that that of are said, that we number exclusive number are offering advisers

here. due We they actually definition, open-ended event in historically, advisers been just by for involved hosted diligence have of a So our a fund. ETF-focused number wouldn't

do think are reaching So I buyers. new we

incremental we be other. fund, in opportunity. offered from see to of of can't people with several clearly some with in there element, of we open-ended clone that think cannibalization. I the to particularly strategies ascribe a aren't can has one the lot I that to particular say moving But semi-transparent being those that an

investors have embedded in gains. remember, You the sizable a the lot open-ended have to of funds

sell So open-ended the for the will ETF. fund buy it be to just costly them to

are that the a wealth offer there not platforms think of prefer same both vehicles. I to strategy lot in

portion business it I we by it reasonable cannibalization. With access, ETF is So getting regard different. we're of I some incremental. really really to clearly But cost to say can with think in say confidence would new substantial platform. a mean and varies that is the there is no I what

are ETFs have that of that with sort I economics an an have fee would being of focused partnerships funds open-ended folks fund. developing. distribution the do you that opportunity with some we're the kind that ETF We with same on apply they you some exception don't nonmanagement do with ratio ETF that say And to expense the open-ended to of

Craig from next our Bank with question America. of comes And Siegenthaler

a Hope have to on all income. question doing managed well. Mike's I you're lifetime follow-up

around many XXX(k) retirees. view as the guarantee I product onto and curious by an a risk, downside on constraint? adding long-term experience cost our IRR impact given was away math? return does sponsors essentially, investment they positive these just that But for rider And that of the but the how math a pretty what riders? does annual benefit-like the by added take recreating XXX(k) So defined how guarantee So it is insurance given generally get are the plan fee-sensitive, the cost

a specific pretty That's question. Yes.

the QLAC I outcome plan participant. Linsley. a for a think you I'll We up payout more think basis creates on guaranteed a having follow into get have But and the start detailed well-designed this specifics, with think to deferred look, we product. really the incorporating is the optimal

early more gives more greater guaranteed may the that Rowe to I participant later payout in ultimately require think where flexibility, T. payout years flexibility comes the and of manage retirement life amount tremendous then with in it when the active option important. becomes it is team believes marrying our and Price a of

Specifically other with fixed QLACs the the regard relative trade-offs affordable annuity. to quite to economics, are and

of kind obviously. follow Linsley cost So the with getting up on guarantee, from should probably I that have ultimately, economics, and some there in the that. of you terms somebody But to team specific is

not of the that full client part it's of of design amount that assets the the And the has. it is

So to small you're trade-off. it the that designed do a so of cost and risk portion balancing you're

Our next with Glenn from question comes Schorr ISI. Evercore

target A do we plans? specifically retirement Rowe quickie, Price how close how to funds allocations inside distribution market brand think network, seeing date private you private you to T. are thinking and the are And great related maybe more importantly, leveraging and about markets?

week, Glenn, say think Obviously, I'd perspective. I election lot regulatory election that and it's happen. really of the Look, of headed where we've results know. Yes, there's an get discussion a to it's I potentially we're kind clarity, and will until some some of interest. But got unlikely from think hard to regulatory determine next a we

that a when alone let visibility have will of on happen. don't happen, it we would lot how So

a of an defined contribution we we flexibility, would tremendous thoughtful and plan funds to private interest think be things sponsors target into alternatives is there market I offerings about like kind incorporate how have to amount incorporate. among date of once

of all said what there perspective things alternatives a not and lot do? are. had of to Price options is any I'll are I is partner alternatives. think T. who reiterate regulatory lack our would a litigation. designed with We've a market lot also market, And OHA have that, quite many to done are daily of record-keeping what private I've or with regard proprietary liquidity and regard work. sense stand, lack say And before. the again, to really would a a we fee-sensitive the concerned think range introduce. I'll related not That as market we of pricing, sponsors contribution defined to the is private deal of But of at market discussions good incorporating clarity we plan with What from platforms would that Rowe with. I

out. some it's ways think I So

it's and even to But getting I of think sponsors amount be you you clarity, infrastructure create what will attractive regulatory do that some -- whatever getting as when an we once to an Price. attractive to and offering some and participants. place with inside we'll that and accommodate, message of T. extraordinarily that Rowe of I happens, a make plan plan us It part the for buy is partner. my wasn't time. take our do, of get will the that in opportunity incorporate to we'll compelling things in it sponsors guess, we such quickie. And I think That sure the

Autonomous Our comes question from Research. Davitt with Patrick next

Could Thanks on of the stickier for the why other and $XX helpful. remind VA VA that's disclosure, you makeup client the the base the billion of than side?

but of want or VA, numbers. the so because VA. other would you that thereabouts $XX There to Sorry outside the the said sorry, I'm once of of rest getting just $XX other just those I could outflow, want billion between clarity. billion oh, outside based -- the I on we discontinuity there have be some clarify I'm those -- are the are they clarify, VA, are to

[indiscernible]

Yes.

Sorry.

carrier other types for detail outside than into we go be I I could plans sub-advised the in be that. retirement, And well more in -- variable of it's could annuity. more that don't And primarily in tend cases, retirement. other would know sticky. in that are of to that be those So assets

Yes.

portfolio have fixed platform lost trends we're I share their clients our several within to not or think environment. business have sub-advisory that a annuities is seeing annuities, VA. across the within of in seeing rate RILAs, the fixed VA index that deemphasized we're same higher a

-- the our necessarily of clients the important that prioritized still while one underlying case. across certain the of and kind that's So is product by not still book,

business, The that pressure. rest the wealth doesn't face and would be some same which sub-advisory retirement, underlying of of across

showing VA. not the in So trends with be would what we're consistent

question with comes from Our UBS. next Brennan Hawken

the to X-year you have could or quarter of back And you rather think what potential take driven a on on around basis. be that? maybe might a seem any The color meaningful guys you performance some taken hit, especially adjustments this actions it? Could provide

Yes, sure.

get great want what I X In of don't too I won't detail make specific too make -- and cut well much I say to it, wasn't going quarter, portfolio around a once was don't but that a terms want became a and rallying it quarter, meaningful would X I of kind clear in XX quarter. is it of much drove into to points risk September, positioned. there lot of pretty was our to that basis on

what if difficult range generalize, to of the again, it's that, across generalize For we breadth had and you do. to

as But soft aggregate them. really confident we portfolio a look, our I'm time. But moment and it's managers. they research in want are the stand today first in our would to I'm not acknowledge and statistics that where platform I the say

I continued look X clear in the at growth. you there's think if important large cap franchises, year-to-date improvement including in U.S. year, the

X period you poor a deliver to in that steps need for point looms or order the started measures I that good. our a an strong. In XXXX in pretty I'm in performance 'XX. I'd I point structured at have performance. research we think we now drastic U.S. performance QX to places think are don't where poor if time. I prepared of look will confident and are to we're but the that very take is number particular, There mentioned approach deliver very we'll the kind that of actually that large. That research strategy there of starting platform where shows of places X in also at over better, year say do any really the my performance the numbers And year remarks, need clearly are

in period So big of negative a begin start for cycle. off to to that strategies, were where performance roll we number a we our

several of long our expect steadily metrics the to next improve. course increase job I or over quarters, do those aggregate as So we the as

question comes And Mike Brown WFS. with our from next

key appreciate about next the I are on Jen, for and the probably XXXX, And growth guess it's expense I for be early you'll full as kind are next you comments you expense quarter year. know planning some that focusing year? thinking what process. of in next to of areas year? But the investment look how I

Sure. for Thanks question. the

formal I'm our on to through guidance going revenue align has last process, But our that growth assuming returns. planning average prepared growth ingoing we expense XXXX the roughly we've with on in been year, middle So a still current process -- give trajectory today. not market basis, are planned try and our AUM goal, to to planning similar of as been the forecasted said, and to annual and

So average with last to growth, the expense resulting higher that range and and on we increased market-driven higher interest carried year the year, market X% returns based expenses. X% X% comp started X% to have to excluding

time think year. than we 'XX 'XX, momentum revenue are this If you where with last stronger into it's about from

expand need and our expect mindful areas make but would the our been with next platforms be ETF really investing, I the vehicles quarter. investment, a and other opening behind mentioned, of where we it's than you the We're invest bit those efficient you we think last technology. continuing to behind in momentum all in of for reach higher invest ways some our guide year, would to we Rob our final about balancing outside to sure that we've our continuing little won't plans growth. operating investing expense be So to a expense can marketing and as core operations manage that until to to get mentioned number more alternative of continuing the earlier, and If in sales places and U.S., of franchise, the

back further for like I'm Thank you. no would remarks. I questions Sharps now at Rob closing this showing to turn to time. it

interest and your all questions speaking Rowe right. for look next Price, All T. quarter. Very you to forward Thank we good. in to and you your

concludes you conference call. for participating. This today's Thank

disconnect. You may now