Franklin Resources (BEN) 26 Apr 182018 Q2 Earnings call transcript

Good morning and welcome to Franklin Resources' Earnings Conference Call for the Quarter Ended March 31, 2018. Statements made in this conference call regarding Franklin Resources, Inc., which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from any future results expressed or implied by such forward-looking statements. These and other risks, uncertainties and other important factors are described in more detail in Franklin's recent filings with the Securities and Exchange Commission, including in the Risk Factors and MD&A sections of Franklin's most recent Form 10-K and 10-Q filings.

Good morning. and your Matt, operator is name I'll call be today. My in time, mode. all this a participants At are listen-only

As a over reminder, Mr. this Chairman time, this CEO, Johnson, conference is like and turn being you to may the Greg call Mr. to begin. Resources' I'd Franklin Johnson. recorded. At

Lewis, quarter morning, results. Good Ken and me and you thank CFO everyone, to joining. for our discuss second

significant year investments year-to-date build and a enhance distribution Although challenge, flows continue improved to from global we outflows management make remain we out investment last to optimistic our our processes, because remain significantly our bolster solutions. and capabilities

us. teams payout focus Given environment well significant potentially $X accelerated going heightened the as including important also growth positioned total volatility forward. our per for rate cyclical trailing outperformance also remains billion. remained Capital over as rising investment Financial nature strong. special results $X of our a interest share believe dividend share recent an area And and are we market XX well we months for board bringing versus declared to for during of the and dynamics value, management repurchases, a our that quarter,

any Now, might we questions have. welcome you

this At Great. Thank session. a conducting question-and-answer we'll you. time, be

Our ISI. from first question Glenn ahead. here Evercore Please go is Schorr from

much. very Thanks Hi.

in you preference gotten exposed other on of look And agnostic time? words, style we So a yet. you Curious bigger be style towards Anyway, we from you a why move switchover over importantly, – in seen the your why there it'd value. I that more agree to to think across haven't are kind such not position that you haven't whole this might franchise, then more growth being see why franchise? across if might maybe have

Yeah.

just of volatility good in – broad-based you growth same and do have are looking questions, discounting rates there. is for advisors. the growth/value both more the think at think are you've you we one now it, to bouncing set talked and tend in five and downside I had more I portfolios right and the numbers as to more interest much stocks traditional have three interest think long-term underperforming clearly And environment significantly mean, and, we hasn't about that and back out an those influence good to value this very and lot stocks in protection. have better the that rise, tends the we is, funds played the than numbers in with thing actually I yet. And funds – I I seeing, keep the getting cycle been have really you're positioning having think a earnings that historically, macro environment, future gatekeepers outperform. had

growth rates that other it's it's based interest many a should happen. – markets that Technology the So, really mean at (XX:XX:XX), on rest, gatekeepers. see is I based the side when that and shelf the too, bit is and being performance where something rising in said, other that have little because going value right on big But take the kind and side quite all anything see the versus excellent, on just backdrop supported the The value we as and a really one a of like you'll and those offset the to bit just think, deep-value and it of and we to question record you Fund, the with the by seeing now I interesting place and look the franchise it not to retail Series. but other. believe right Franklin our the it's it's you we I why is to that looking some are specializes debate the doesn't time flows fund space DynaTech, But CCAP take now, of, Growth have before as But gets which flows growth position renewed happen rotation we'd funds. less. you have just a And as players Franklin Mutual outstanding would performance Templeton the so at but in versus same our the area Franklin like side,

a about, value is something more we and having think we group core more allocation there's between very between so of allocation with group, that a a we to where probably is I think funds, bunch creating the just address growth be new where value really but think growth have simple and our also that thought solutions would would the offerings of and of alternative offerings we type can that. we offer solutions tactical core

do of tougher. amazing glad how do the funds brought that. they agree. You performance long X years I'm up the involved I'm at look just now. that right they year, year? the handful – your you the X on last year, the balance year Definitely they more better is borderline said looking appreciate X how term they're How do curious that? How Like balance of because gatekeepers changes. and with XX is at some getting I

XX of the number. all and think say that they over. little had come and consultants a I recognize different mean, bit retail the they is clearly time I on horizon patience But in it's level you mean, most it's also will I year a side. the would the find I've important

six say, over I But on on do and ranking and But many probably retail value, in weighted of we're on to it's somebody the side. before five and the a near up now that big to overall in us, try we (XX:XX:XX), are and higher area. list measured. I retail for the until slide growth or were it they very was for evaluate years pointing list that last a of look Barron's three for on presentation first how were time. right important then family cycles for was it the we you – interesting mean, is ninth the they your the out overall one reversal really and was bottom we think at the last really cycle. And next to used And just franchise concentrated the So XX the still an year in year how affect is back when years. would the moves the assets pointing macro were X because important still the

I and Don't do think I his to – the X is for year on to and X who partner slide that, is want was years. – well. are, right But back not point, that it's XX you So year really the the X with in X point mean the your XX years? year important, year look that the very there next as

Okay. Thanks, Greg.

Siegenthaler go Credit is ahead. - Craig from LLC question Securities Craig Credit Siegenthaler next from Suisse. Thanks. (USA) Suisse morning. Good Please Our

Or secondly, special the Morning. just be - Siegenthaler two repayment Craig dividend the on First What million dividend? over next should the you ask year? April we questions Credit then withdrawn it? starting And make management, special the was Suisse capital is actually we another LLC assume (USA) $X I'll just could XX after level here. capital and and see can that excess Securities debt the of $XXX

Right.

are factor that do kind our number. think could $X.X the that the filing then have all take I special of estimating, in that cash so All the Remember needs billion, those of all then too, that out and dividend, you to our April, have And anything. math in tax the to repayment regarding where wouldn't and see So you'd we assume in. were you'd about – dividend capital you I all debt, the the paid the that, operational it's and could liabilities. was

have I management is demonstrated that – priority, that think continue I continue process. demonstrate is to think a it's long-term and a Being we'll we'll to capital priority. shareholder-friendly a we

And so, do Ken, the Suisse terms whether - should cash can and over needs, assess Securities we're dividend. of you... Craig board (USA) and in they special Credit requirements another And, directors LLC of at where will time, Siegenthaler

Yeah. And that - activity there's always possibility into M&A large repayment? tax of activity. be possibility of Suisse add you to another answering also but Ken, on one, (USA) Securities that is another that, why question Credit obviously M&A there's Craig Siegenthaler I flexible in strong a what is. intention how would just falls have your LLC

It's $X billion.

Craig (USA) - Suisse Siegenthaler LLC Correct. Securities Credit Okay. it. Got

Securities $X.X guys. billion. Suisse Siegenthaler Credit much, very (USA) Craig LLC - Thank you

Thanks.

Ken Our Please next go question from is from ahead. Worthington JPMorgan.

in trends ago, in announced terms Invesco been an insurance I Thanks terms What issue redemptions? is how an for loss. so past. and pretty are for had sales here? you mandate the my That like in is And – question. How AUM big recent what or of business is your latest doing? of big Thanks. first, guess insurance a maybe years taking hour the Hi.

now in billion is the Their – annuity. insurance $X.X business variable sorry. right Is

No, like it's I think. $XX more billion

No, like variable. I I'm don't I sorry, meant that. I the – mean meant

some of would into type annuities say, companies Still – potential the to we and in although and the in that that come repricing ahead. really would for up with not of down. looking a the right But back the and continue think have equity two annuities, hopefully say, we've group retain companies viability some has position, But get variable outflow going are assets growth of solutions markets risk somewhere to more inflow. more to net net our of exposure some $XX working it's relationships seeing very redemption I year activity now lower forward and that. slowed insurance it's for still $XX at or through billion. in of a through a volatility and market with with alternatives The probably insurance now, we're the billion the strong I I at been

I with Okay. the expect compared of kind of flat, level get the service year, need year. on based now last flat new of Ken, Great. of quite description in back I to the seasonality And of quarter. is in the really couldn't To there calculated. on your they're and a get guidance to that last there then half how March shareholder be fee pull guess,

anything So, there?

all correct. Yeah, the the model line. that we this that is increased we It's related the have transactions. of because on in variable, of fixed and tax last have calculated. variable quarter, and fees of particular the seasonality November transactions changed those that's combination Yeah, how And – to are

overall flat. should that's why that be and fade should we're So out saying year-over-year

that, next March pickup in after the March typically. quarter March and should see the first the after But Okay. quarter and we the

I'm hear sorry, that. I didn't

seasonality, we of elevated about it... think depressed. So and Is March the should the quarter forward be how is of will rest the terms going of year will in sort be that

Correct.

years ...in forward?

Correct.

it. you. Thank Okay. was That

Year next question ahead. go UBS. is from Brennan from Please Hawken

Good morning. Thanks for the question. taking

Just follow wanted to up.

on clarity the saw help modeling how uplift us the provide expense your to good some pickup revenue be you an from updating of how Could should line fee Edinburgh we You guide, of in cetera? going guys think to put coming some what about on, kind AUM et Edinburgh those is and rate, items.

not talked being still I and about think Edinburgh material that, the as to earnings acquisition overall we that's true.

what but why I I've Partners given the is, that. do initiatives we've I've about and guidance the trying of guidance. Korea all in say quarter in all severance the expenses. think expense Edinburgh X% in that it, with we've part had the to to a now factor big of – previously is the I been of that's I some think is I'm invested And doing just what this talked wouldn't the we and

the factor X%, guidance. you of when I'm giving in, X.X%, that So that's why X.X% all

Okay.

that effectively going being say? isn't revenue be you offset So, what the just material to there and contributor and not a driver, therefore one Is from Edinburgh either. really

correct. That's Correct.

for Thanks clarifying. Okay.

next ahead. from Fannon Jefferies. Our question is Please from go Dan

Thanks. or redemptions related In like about is talked the happened we there how in U.S. prepared pickup about I there the going anything think comments, should forward? outside the the specific trends you that guess, retail be may platform

to was that anything don't No, was I question as wise. I trend well. looking think answer trying there mean, underneath I

the pickup in a redemptions Total in Return, steady Emerging Global see Bond. had into did you Markets you think but clearly some flows I

just major in platform the trends reallocation quarter-over-quarter, in more moving been Europe pickup, real you certainly a no you because in that platform that But than report or States. of there. underlying could do some to And a have do a here get

the just this short environment picking also – correlated and markets, get is so are the seems as climbing in run, hopefully the in But this here like can Emerging momentum some think still is the up. anything two. it's kind tougher other defensive shines. not little up that the Bond fund lagging get rates And market versus last back. with absolute performance of the right I a in but month, nature, Market as we it And continues flows return get we down think else, a to Fund a now

comment follow then And to release. just Okay. up from on another the

about those at-risk at-risk guess, is I for talked how program put size assets how I outreach outreach can some going? You guess, you around that that, color assets. an you maybe and,

his head based to we've the relationship everything's how the may performance that I Well, that that have think be certainly certainly effort say Ken's at-risk, deep is is up on deep came out long-term should at-risk. making assets recognizing looking side. side there I came think, that you they like don't and at-risk the for the proactive that that the turnaround number billion – think there's and think We'd just every there else. being he are meeting the it's environment. value And one got on had that's have assets off get risk That's we I I was we any just just that the shifting and this category, And year think on with that with was day, of again, – that people we're and $X.X number VA top to know the but where where macro that value sure areas institutional at I institutional doing sure with the really we something make relationships, no the understand based at and those. underperformed, in

get I you styles out going lot recognize defensive when your to that and big to a of lot assets out of are of you – favor new have think a have efforts and business. versus trying

you sure make business, pressure to the existing relationships as have under with because You well. maintain the you're

it. you. Thank Got

Thanks.

Research. Davitt Please question Autonomous ahead. Our is next from from Patrick go

guys. good Thank you. Hey, morning,

you're of you're optimistic that, kind through within pool something follow-up guess, sell volatility? opportunity. the the the authorization And a M&A, the should keeping to placeholder the as think return capital recent in we Craig's you on sellers a gets sounds like As to for repurchase question, M&A Have until willingness it done? noticed I is still changes, do of it of any separate to from or

It's It's separate the latter. no. part, a (XX:XX:XX) It's a placeholder. not

Right.

seeing traditional alternative side. And volatilities the I say think, we But the more, in not I the wouldn't space. changed opportunities opportunities certainly here; the are in

fee was or than that as the people Okay, just great. that And higher how probably really just and you of average rate expecting there a And think as mentioned a fee, performance driven component? lot follow-up, revenue really the were I something else management periodic was sources there? is Is one equity by the much driver.

Yeah.

really we're was was is a shift performance in seeing clouded it effective it that I this So a calculation under assets the the mean, regular performance fund of takeaway then bit. rate at kind dramatic and the not average dual time. fees, Romanian the it of little – think operation I part fees. fee that daily that was But management our big

you. Thank

Carrier question from Please next America Merrill go (XX:XX:XX). of (sic) Michael Your from [Bank Franklin is ahead. Lynch]

guys. Thanks

Just management. on one capital

to the have have And Just sheet versus and firepower to just given for a can get buybacks we run trying balance kind maybe a a then in wanting should in you the sense be authorization of you still expecting opportunistic. basis was of rate that pace like as be what where that M&A. strong in announced,

on a what we elevated run be given color saw any level this quarter. So good the rate, might

many and depending a one A different on tough lot's say. factors. Right, so it's to

think continued priority, to high priority that is I it's a just shareholders. return to – comfortable I it's run a this feel a actually So don't it's capital a I say that saying rate.

elevated reasons have opportunities opportunities. a next might We more might there This quarter have – – have better the quarter lot was of for we'd or repurchases. – present less might

So it's tough to say.

doing changes. Got it. have guys you industry things in think Greg, And of the commentary, you then, the I the some been Okay. of mentioned some given

in stuff. the whether of M&A some So it's investments business, the

flow XXXX, Obviously, some maybe XXXX, you that away and side, see you take of into the able head shift And is aspect. as of can the distribution on investments to it's a heading the get what start But the some side. – to doing, of of maybe sense, might to are I just be kind there the think what that Where in like kind XXXX? say trends? performance product start like look XXXX, so whether big you're want the of at some traction when we into kind to we

where certainly made landscape, recognizing the the are results people the investments platforms, number distribution on mean, I exceeded And the for changing that platform. new the have and added sure the think for to on I calling already, and make, continue on home the and we lists year offices either think gatekeepers. targets funds of have that we on we have we've seen to from making of the and target Yeah. I number advisor we funds maintained that

I approach in important competitive of that of over the customized there people a a investment. not have important. million increasingly very the going in we firm. mandate solutions solutions. multi-asset is last investment multi-assets we been The to $XXX build is something another which a that target-date a The the and in that's have year we've and last category, important last that, quarter. offer now, the really So to out. distribution suite added And us think think year. in And new incremental that's And and position funds been be for the in got just to would quarter, to better an continue so last that's for very senior separate funds we area a area very have added to We team, ETFs seven

then how with a now data section. look be in term, made here and in non-bank scientists building having more hub it and around be we – I spoke capabilities teams lending but just that's to have how the important would other is investment of and – But bought at data. we looking in our the Random with India Forest each fixed effort the areas think and a we out at build or we longer in really income data our of the going just consider

we as fintech the that looking So one-off. a teams actually those kind pool the then way private and would we changes be those now amount at and significant piecemeal firm it investments, at of partnership be And specific already we've have approached think better about organized AI made we've and and that another funds it, would and technology a dedicated of money, with tools – a the us, equity raising have better disruption of of where And few now, strategic as a think teams investment have our information private areas. and all of have and about we a are we equity we for have help where of data. those. data we Well, we looking much and more

Okay. lot. Thanks a

Thanks.

next question Our is go from Please ahead. from Alex Sachs. Blostein Goldman

Hey, good morning, guys.

we investment at spend? incremental assume part And years, is, two as we add? acquisition, around how Just initiatives I the You are but things. a part get with know trends. going Korea, and investment the this clearly there's spending so next the growth look just of and should up a in a And the grow can should what bunch to in guess, new you did couple the But that out expense how to trying JV – guess relative us range, to outlined and of in one. you, the Random that implementing for are questions where bridge guys the the basically I That's is current I rest much of that, time, thinking I'm much I growth is, couple the you year, help the kind the – foreseeable what to beyond of guess couple cycle? questions last Edinburgh be expense future? X% – just guess I

the year. give is be the I on like given just line. to – Well, done of said trying all main expense activities is yeah, of where of an growth, kind we've expenses the I'm the seasonality comp part this that estimate in will just I it's Part of earlier, think fiscal it you also the the – – but of

guidance the just but why that's the in short term. that's So, specific on kind gave the I compensation, of

that the inflation think it's I expense going for kind and assess and made us more ways of I look those growth that working a that can that the we the – comment next for year temper and year remarks forward, call investments in range. to aren't to something in the

together. be be to So year, next that's more on there'll looking forward next we and that come for going the to time get

Thanks. Okay.

is Bedell from from Our ahead. go next Please Deutsche question Brian Bank.

[Technical morning, just All right. the just thing last Thanks. Good Maybe Great. (XX:XX:XX) on the that on – Difficulty] you... folks. comment

repeat you question? the Can

Yes. Can you hear me?

Yes.

Now, it's working. Yeah.

Okay, great.

Ken, about comment Just assessing the in prepared you investments. the the remarks to relative made

also, are view market that variable go office. from again keep that that managers. back outsourcing how do market, that. a custodian a Just outsourcing you about the that part Obviously, to increased always we about structure would talking cost have to with obviously you keep in can guess of that? bear you fund and if your wanted scale is guys know And I you in-house, banks But asset is environment of of I rather because better something have the custody into that trend just extent accounting the an middle think or that. assessment, do to

really presence in we mix Sure. mentioned a we – as fixed of have variable nice basis and think our it's not I that And on but But something cyclically. jurisdictions we do having not for I it's do we compelling before comp. And we a think assessment, nice these that have annual also, said does think I outsourcing. something a that, do argument low-cost make certainly an

to the to investments we're we at internal going should forward, those ago that years and decided, three some did And look for as systems. continue well. oh, going so, make that we things maybe But analysis

Okay.

Greg, quarter first the question quarter. for then U.S. this retail the And or March redemptions Okay. you, on quarter – this

could If the corrections to but you the had and product we've conditions market parse broker dealers. warehouses could you to due more the out changes what other platform, you versus do, between that maybe with – think the if is at line maybe of hard the

view Just a since the of to that way are – the maybe we've since obviously happen? where we see most that it, your consolidation we I a on platform for broadly. do But of done you more lot DOL. is are of know industry – through that or lot

you a kind there, fairly had decline in quarter. quarter of you market risk-off had the the Yeah. significant I any a good think think big the in then larger there our a quarter in of for volatility then or flows. value real the the question. time funds, shifts first assets I drag the have and moment mean, the – mean, retail – don't end and first I where is and of you I at

funds. see you and So time class we've anything volatility some call didn't in And value first spike see the question other the you would we asset think – market. like little was... performance of with certainly, through wise the rate a redemption that short just of that out the than other some for wise I up by part of And better did a period period; we or expect to had did redemptions. again, retail in I really volatility real line product

Was on (XX:XX:XX) the and... warehousing

right. right. Oh, right, Right,

and increasing think of sales period talking I some is standard question requirements new, with heads our a that. or think standard the I And under suitability new conduct interesting was this good common actually interest it's to of best that's the higher that about – the it, I call disclosure. and

is important proposal level differentiated I commissions. where as survive in can't today, you exists that, have the modified doesn't can certainly brokerage, be and a to what's to think it have

that's I important. So think

I a thing obviously not that other, think attorneys good for by enforced being plaintiff proposed legislation. the is

would to think be And movement certainly there, The brokerage that so, I brokerage exposure has I acceleration that good think thing accounts. of do the a to our not urgency slow on for and down from that's advisory would mix side. of the high it assets

in and fee think of this and our I of XX/XX XX/XX major brokerage not they we're of still new at the had side base. is shift. we're are done, like probably partners – fees. It – was I the So, But in that probably in coming what a assets one the inning I looking distributors know a to don't other ratio seems

So think will slow I and more to deal certainly instead a with convert. off you side. the being more in rule, that have reasonable your of that some get regardless, But of difficulties can I fee way for to the model and positioned vacated think the complying well trend brokerage down run in having

we've come (XX:XX:XX) that gone the a on sort of cleaning... Difficulty] or you great down All house indeed, do of right, gives to from us [Technical do color. think actual And and through continuing number products the platforms, you significantly that see

Yeah.

And we've some the is specialists a rationalize I gone where think shelf I make important and on that made consultants something have you – space. have funds But product and that the those the to but we've been it, and you less going funnel more of that at – what narrowed is, year, in the the relationship get sure be that's funnel getting rates to your or think you're you'll to question redemption narrow for move quickly that really is in a I there lot assets the clearly, your think and of – brokerage accelerated traditional really promote and base. future. spent higher the through to continue how last that's to there have the have investments to initial deciding really means looking viable which is time we've that that lineup where

okay. Right.

question. the the narrower much So reason for of think speed there's will more I movement, it a funnel, any a not narrowed. But it's that. that's it's really don't hopefully get

still is coming, saying... what And that's you're

Yeah.

Yeah, ...in terms the yeah. actual okay. flow, of

Yes.

Thank you.

Our next Lee from question go is ahead. from Robert KBW. Please

morning, Thanks. Good Great. everyone.

Good morning.

morning. Good

of capability, that retail recognizes distribution talked I to because competitors question as mean, I want in talked a much because kind if sense SMA guess out have a on have that where And about success distribution in been of distribution. have some they focus. of don't invested that presence. guess, need I retail traditionally how mean, channel. they've I I in Others their that's other it be building kind about seeing had a product lineup you've your of, they're a

– mean, So that SMA-type of should do making maybe you out new platforms could – that. be – of position is that's on lot there? a a on investments? is lot the that centralization I wrap get advisors shift new feel a the making rolling of Is get feel do trying Just to and of products you focused products you for more you to kind and places think that – decision your that you're making one – you as

we've SMAs, do before, content say the more We're to we and I that. management yes. as do or mean, would commingled XX to, of SMAs I I could can with ago. I now easily efficiencies, ETFs. agnostic we're X than in vehicle going not say, as And (XX:XX:XX) active do improvements technology much think, whether and all we investment think ourselves years the said we it's view trusts,

trusts continue an will to and area offer we've in we something year. that with here last is been So and that the products. that commingled the more And think certainly, expand doing flexibility I is

you to last quarters had a I And couple one Okay. much. $X the the management back was XX%, capital understanding not increased it guess special ago. horse too Great, and question, dividend then beat and the maybe

are of if just of, let's it, worldwide range. in kind your of have cash. think – As I it's around And now your XX% dividend I think many you peers kind payout call ratio, still around to And of of that to of access XX% kind hovering or regular your XX%.

towards talk possibility So your I is mean, kind of can start increases? raise you the to you Is maybe peer kind a regular your ratio normal there just track that about dividend? just and payout of average? of a that just of of kind of up kind keep low more record Or goal

will and this all major dividend, your probably at that topic and talked meeting, our ratio, out February payout and talked all is, we meetings. think shareholder preferences. will of future special I yield the talked to the the about And answer a regular question when board dividend went We dividend, the the shareholders. the to at The about be aspects tell. the Well, time we

wouldn't I wouldn't I larger either. on out but increase, a it It's rule count so definitely And a board decision.

was for it. Thanks that Okay, my taking questions.

Thanks.

go next Our Please from Katz Citi. ahead. question from Bill is

taking for been Thanks have already. the Okay. question. asked Lots

growth? have earnings little been from in what is working to tactical accelerate bigger Greg, approach, in but verbiage more bit. in you're like the of terms sort terms something accelerate skunk-work actually you're a whether you're the either in either these think back still but than And as any of on platform, you out. that rather there what And some could from start hear get do trying Where transactions, or fixed Is growth I that today? are jump you see a Just not you perspective, move just needed of a be what you to of to hear hold? like might picture more if seems great open equity you've have the acquired building larger about of how way but leveraging performance, of – across the I that you're picture firm things performance, flows, that you're that a income. something or to perspective be it'd risks coming bolder a long-term your or bigger do on

Yeah.

a think and great merger are left to the risks with. I what think large-scale about you're

look that's of some the $X.X probable. that billion you we've significant fairly balancing it. of something to a as is at So But less us in in That's generating now quarter KX I net like rest inflows. a think again, said,

adds that little they and But kind incremental. open, that the everything we important and bit risky for non-correlated very combining the two that I I and say, of multiple styles us. are who going of think to daunting be can a understand and So incremental we do. thought they But we're alternatives start jump gets think large still have think firms are what specifically more that underneath those through them, institutional. And can at to be we shareholders the trying priority or offer, find to is as look always to retail to

at finding are many are looking So that we, have size. different – and always, medium as situations in firms

ones work have take bigger done sometimes and of they a as ones. much smaller the series as We

And the so, seeing that things in to like extremely we'd large; more are or tiny move to going that's we we want really something and needle mid-size versus and do. that's what

your quarter recognition sort anything peers some terms fee of numbers optics And may distribution have adjust quick in one prior just and/or that your of of quarters? Is one revenue payments from helpful. here this have of certain in numbers restatement comparably for the had to That's reported then Okay. waivers affected or there Ken.

year. That's No. us effective next for No.

Thank All Okay. very right. much. you

Thanks.

ahead. is Research. question Patrick Autonomous from next go from Please Our Davitt

sales of Curious think for post-election in global pretty like last if period would decile kind is the seeing improvement? we looks top we this bond saw you're It the time to a and there's that that that I again quick than again, saw in follow-up. think that year-to-date. there. Thanks of The uptick any terms improvement like different period if reason be –

I small fairly alternatives. But weeks move had it I a this looking for then that's had in will the I that so was don't again, and little XX-year you was more short a it market doubt obscure it and to we the really volatility I've it fund take and pretty relative And was the people think knows time. record. the have big and is – start I market that But a know so – yet. I few think last numbers certainly which term seen. news in in me, it think a

During it the decade XX% last a up of was equities, year.

that can market Euro in the an been and it to you it's people Europe for. alternative really like looking what where add stabilized, the a And have has decade places for strong. an some last was a that's balance been are tougher euro. market to alternative So environment, do competing ripping with

an can markets, do going of when places it well local the So think in that to well in its choppy headwinds debt many very think markets in hide get be not from that go lot clearly, and local just a But Europe. it's had rates to I we the environment. alternative you in and there category is be it's that does if tends really U.S., up, and to if

Our next Bank. go question Bedell Please comes Deutsche from Brian ahead. from

Great. Thanks for taking my follow-up.

Just I revenue want to Ken, clarify, – think the the deals. the one question contribution said, thing from about I prior recent about you

deals. going of was heard severance then, that guess, said – I part you I those from the And obviously was I I correctly, then material. is expense think it you it's said it And think. up if not

year So, and for profitability is profile see through match expenses severance? get the we revenues a that that after of a next you or do

material I on think it's revenue Yeah. expenses. don't or

– – clarify was and of clarify trying out just confusion, added that play the quarters. I trying year I will what's to think more but it to maybe done I was future effect this how been try in to just

Okay, okay.

sure the that $X payment So down, the just not your including And that payment, then and sort billion, that little forma big, I that north cash, billion, for bit Is factors. pay a okay. not we to look pro at dividend we be have bond on other tax would of right? you make any $XX.X just if the the

for needs, kind that aside from And we of regulatory money put number. operational significantly then, takes our down the it that

$X.X Yeah, keep billion right. the $X.X billion, you for... that The

Right, right.

Yeah. Yeah.

$X.X your billion see You excess will basically. go to

reasonable conclusion. That the is

Okay.

that word. use don't We

much. Okay. Thanks very

floor session. I'd management does like conclude back to over This for any you. closing Thank question-and-answer turn to the the comments.

for call you next quarter. thank Thank you. we to speaking quarterly look everyone our forward participating and on Well,

This today's teleconference. concludes

participation. You lines you Thank for may this disconnect your your at time.