Franklin Resources (BEN) 25 Oct 192019 Q4 Earnings call transcript

Good morning, and welcome to Franklin Resources Earnings Conference Call for the Quarter and Fiscal Year Ended September 30, 2019. Please note that the financial results to be presented in this commentary are preliminary. 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. the uncertainties in important the recent Franklin's Exchange including risks, in are Securities Form other MD&A Commission, detail and filings. more recent in XX-K and and and Franklin's factors other described and sections XX-Q These of factors most risk filings with

and name call be operator today. Good morning. I'll My [Operator is Rob, your Instructions].

being As a Instructions]. reminder, recorded. this [Operator conference is

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

Thank quarter results. for the you. thank us joining you Good morning, and and to discuss fourth year fiscal

Joining our President Johnson, is me & today Matthew CFO; and Officer. Nicholls, Chief Operating Jenny

parts in our work midst in XXXX address convictions. of industry rapid change are certain year the remaining steadfast our diligently remains core business, in to that we fiscal Our evolving of by

are see We U.S. share retail in and the sales to channel. improved pleased

U.S. Our sales following this global reflecting but the months year, Overall recent strong in negatively also the and strategies. most income of investment performance in fixed final again equity trended certain events sales down strategies. U.S. throughout impacted improved performance continued quarter, momentum improved that our

a Capital management for important our very team. Board, focus allocation remains

evaluate income. enhance to dividends And net the for continue grow this landscape fiscal and repurchases and actively We rewarded our to to amounted our of XXX% opportunities acquisitions. through through business industry we investors year that

open to like the line to now I'd questions. your

Thank you.

with Craig question Suisse. first Our Siegenthaler Credit from of line the comes

do an II? I target raising provide AUM deal opportunities and Benefit senior And has the just us an Fund you first. Opportunities AUM to wanted growth start on have fund the with also update Street for Senior you since Can closed?

those means been for speed pleased excited of you progress have meetings, not obviously offering. our you this you on they're distribution introducing we flows. really on that one-time year. to think we'll see are said Benefit close over about new and And the platform in has but range we're next last two flows the I funds, of And billion, three And we global with everything, know, have I mean markets Street terms as we the call, had the we're think hopefully X I XXX As getting and a and the training. to X over target funds stay flow flow, or you what when and And up year with a the that steady events institutional large in last with side, somewhere year works and steady. expecting very billion

funds major process it’s products registered as retail also wealth and interval the funds some are We've in of distributors of with platforms. management whether BDC of potential the our of and introducing as retail out for more well getting the a there

in with there. only you pleased closed the that So, months. last six the million say very to the would a in And was for last progress asked about, quarter, I four one the or we had but to-date raise that closed so, fund really $XXX CLO

pricing growth? rate. fee beta, going just given then on your forward organic of shift? market enhance the follow-up And any the points to you on basis and When rate mix diversion fee kind could any also Greg. thoughts Thanks overall one that are And exclude XX.X appreciation you do potential what adjustments

very fee tough rate. Craig. question Matthew, to say predict, that I it’s Hey, would a it’s

guidance predict. little down difficult on rate fee the came But redemption products example, based evolving average for of global products I activity fee that bit that the talked down somewhat think came the quarter, a fact is past to we is increased through our international slightly about. Our on mix rate further

comes Research. next Please question. with proceed Autonomous with The Davitt your question of Patrick line from the

funds. Hasenstab’s few you outflows think high a some if expecting in still lens get and of and as a high and through there’s all these thoughts Historically ratings. the strong accelerated changes that are there’s first My is you to be between been that your I’d Morningstar distribution ecosystem just curious been correlation question, flows correlation profile a as result? downgraded given

Yes.

clearly global that think recent and is there Morningstar some clear really category peer its a correlation this on I of have this But of puts underperformance for no correlation duration. pressure the is with in tends the a beta one group to obviously real no bond, of and there bond think kind is unconstrained ratings. I more own or fund

very have that a relative that strong But a that. hasn’t typical the September key quarter, quickly that relative to it the in fund I in So, Argentina fourth And used performance I downturn is we or different. portfolio that XX, changed. the every the in expect think place the a and in in the point with lower understand that regardless run performance typical and no, turns more -- until market had XX so short But the risk than obviously think some any what up always ratings. fund because really don’t people was what past to looks it has brings you portfolio

said So, we very quickly move. at markets as the optimistic now as before right on that based can that flows September, as aren’t on I but turn

Right.

longer next on now potential Matthew the into you’ve And on a position been heading even updated expense get the year? the bit to Okay. thoughts Any side more follow now. that my in up, lean

Yes.

XXXX at we we’ve very this, When think to again on budget I guidance disciplined think XXXX. been about a just for we be -- had just flat. referenced that process I last XXXX commented through to for

point bit now little that also that we little we I can believe a believe that say bit have we target. we below than in flexibility a I I And a come can provided more think process. below we before just that to thought on But still for to I bit the first XXXX. started guidance continue we've expense the beforehand little budget XXXX just

with of Carrier of the next America. Mike Please question. your line with Bank The question proceed from comes

or lot year terms past driving guys I business. but in of guess did so the investing over expensive, also efficiencies, just the a too more you

are just of kind bigger bit. mentioned terms And we’ve picture, whether in about things You where, down longer chunkier, flows or guess ‘XX investments like how or an you the the kind business? of could of outlook the of into time? in been drive are the if, thinking I period that a big other, outsourcing are it's base it's over weaker, there markets whether environment expense a lower

we've expenses our reinvest quarter. tended for little say of we spent bit been on I'd we other that up of But time important lot side. more bit to we expenses we say, announced on a think, IS&T business. working as that, pointed went administration Yes, outsourcing and in a if generally opportunity our which other to, I well which the very parts you investment as we've speaking, we’re more, IS&T we And to business, try why little our as and fund had if there there our to is is the to. hard some have where that already parts particular the of than we think planned ahead a decrease business, referred in our reviewing

in a teams. the science technology centralized around of one data embedded the mean, is with our data and investment scientists I teams investment data for the just like and on things Yes,

been in area the of that's And so growth on IS&T our expenses an side.

we reinvest it. where to save, So we're we so can can that trying out figure

the on follow-up. And then just

I going been see don't say whether of challenging different time in strategic we strategic solutions, if on are lot a -- guess, the initiatives? you're areas. next is something growth there price, sounds also on if about front it initiatives, opportunities. or like the And pursue So, year, those active it’s over good at ETFs, potential growth this to M&A you've spending that looking other think of factors still you after a it mostly of you’re areas, and environment you especially, the some are amount

value say strategic that meaningful commentary cash sheet, while to and we terms help acquisition readying feel the which conservative characterize in optimistic and I'd would and that also cash good nuance are last as of quarter, referred we from our the these that I we And in our targets regard. progress a add in previous utilize to is areas to our about mean, a options all our call. willing progress on objectives. cautiously quite in I portion focused to M&A we to meet are of balance

flexibility, mentioned financial should last our unwillingness and As any be quarter, with confused leverage but performance scenario strong this continue with will cash. our low not use

add, is absolutely I is matters. thinking to mostly a am obviously just going growth But M&A mean around I approach story. price, our price around it in about

be a first be cost right to then it has So, may don't have, we benefit filling a that of be we're geography. cutting, of we're we that's a capability course where And category product as distribution gaps hit foremost strong in, to or the that gets where then at that and not getting and has secondary to price. it

that add at out it's when grow right not paying but asset cycles be build time when you're security. long mean, as going on it's more a I around -- going needs and a bit it's And specific buy something like to available got that end time. class I price little to it up will think are we're to look over just sometimes the going an and to have you we market a for be and to that deciding many

have say easy the the I’ll it's well sometimes the and this at buy cycle. of you not part aren't -- it sell-off bottom but think in that that's I selling So, to sometimes realistic look sellers when gee world

frankly, companies market of certain it. valuations, the reflect that certain we current into the And get cases Yes. asset classes I of would asset evaluations that of the say contain the several where reality the is reflect classes,

of question Brian Next line the Deutsche comes with Bedell Bank. from

it's weeks stance, global half more Hasenstab on believe cash look and I and least like the recent to that a months almost shift at something macro just Michael bond is understand and kind Maybe complex, to in cautious in I fund. big the of, to few back global -- this has a the -- moved

read that of that's a think sort advisors that how a and the I and more terms but Do engine in you is that of for -- maybe more by that the significantly permanent wrong strategic sort a complex? If of of a shift. word expect just being the do you view impact macro more of salesforce So and sales will of it’s repositioning? guess

clearly performance point is of say, derisking and I so move a quickly. it about lot currencies. But think more mean, back to I to how how and EM relative this goes a swing hard stance of again, can conservative the markets it's my

cash having today, So we've I up of stood right really sales I defensive that of behind long-term similar that position don't always think what's in environment? there's for sometimes which the mean think that, funds again PM’s a have what It doing has you the been convictions think, a and a that for does never fund. correctly kind lot bring a I and be problem. that because be It team cash get some you obviously, would a having more having equity for, feels during and in which, important, the higher of efficient not the can potential is fund, sell that times securities of if but that to buying and serious there's a cash in but environment dislocation. disruptive that very like in constraints an liquidity going

the track some have are of ammunition that's for. really fund built sell over positioned I best that So, of when instead you what to time that and records is buy think

this certain in holdings used up product, it's on my earlier a and that I comfort and cash little are the part the a that’s having earlier to from comments, people what of liquidity have issues it’s think, sales. impact some -- But different here. I hard bit higher said on with come will But of when fund to as that combination say get the

rates hedged reversed the higher And for then largely fund well? has that as too in

the longer a the Not curve shorter reversed, on the term and medium the just longer duration definitely on negative shorter end and that’s and more still longer, but end. medium of to focused on and

doing, just , for the Can Got in fund the still but believe house, administration the it. be my what fund middle think clear And follow and opus. question, to I outsourcing you have outsourced that what on in now? outsourced, of what is portions. fund parts your or review to the just it accounting custody future mutual maybe how that just up a I have sense is just could I my then or outsourcing, you’re fund like of it am you and house? across further in you complex just up And seems is of get much still administration. again the trying most

our part And Well. stepped global house. Yes, all footprint because And of correct somebody that kept I we of the the tend outsourced had in administration we providers and now difficult you’re mean the areas that the to to fund historically cover. was custody could it that with up. find had course cover who was have

of you And so fund to do work the administration. the outsource have done all fund we’re in to that’s And many looking administration. in custody

But found were geography to hard we amount be what do was as have funded early as it of as we And much that So some into we’ve could we environment, far both because competitive more pricing of is cost wise. duplication. find cost lower coverage that, as the now done the well competitive. providers as others now

this. it the be this couple longer-term? converted or just next then the of to And timing in Is going outsourcing is of of quarters the

XXXX. and be would over this No, XXXX conversion start benefits realizing we’ll from

the already your in guidance that’s for expenses. And

Yes, that’s correct.

JP proceed Morgan. next is the your question line Our with Ken Worthington question. with Please from of

good Hi, morning.

withdrawals quarter. and block quarter, fix for $X.X mutual larger some global were there in coming million past income, large quarter. this of the number mentioned $XXX guess the block redemptions shares current I billion You

business Now more redemption you’re is the on side. expect we the institutional lumpiness lumpy, be really

I ultimately, So that What of yourself block any So of themes for bigger that sort classes Franklin redemption and holding common which don’t path the six any these asset And distribution outflows, Thanks. different Franklin. has if for passive is are it issue, with you’re milestones what performance for out you’re hearing been is seeing? any so to common -- issues, back themes pricing? or to plus inflows regard? active years, you in in the know

Yes.

base in assets all in on continues some Templeton funds house particular but related this above coming quarter of and inflows what large in with accelerating. the to or have. deep relates about large are probably assets The we deep a about particular large this the doing that’s you us funds in to growing series U.S. broker that be dealer and funds mutual share, under of of talked value for of moving strong or having assets one it’s market not pressure moving years. the shares lower that mutual and to redemptions, but a more to all, obviously X value, inflows very X compared lumpy But First And well, Templeton pales really the extremely just their really was distributor U.S. house. performance

the We've value earlier And solution that rotation -- say those the and major or time. initiatives is going lot the around whether been -- our catalyst the A have also are of platforms. really on -- to So We drive think been that. the just that's be we've of funded, solutions new year to and recently talked would on many put very group over side, side. platforms growth. it's successful, last I getting in resources multi-asset two got of about then we the flows the SMA to into going I two

Act in and we players emerge. well traditional think to funds, is going on been most Now few these on new be in traditional XX are existence hopefully new at very they'll on positive, do as technology platforms would a maybe margin opening really, for of up the And ones for that space and to been multi-asset for or lower scale that. but can again, minimum cases little your drive that size than ETFs -- in only bit we where platforms be is as of solutions, continue platforms. where and U.S. be opportunities flows to ETFs years the a an to well crossing a say to getting that distribution and on that that's having just competitive the And platforms, growth has us billion. X getting area onto as getting now side more some been have the made I X progress getting have And

it. just big I’d institutional about this add And there Greg the on side, obviously some talked were Argentina, in, the headwinds year

on introduced the a had Global new Group. Equity also We CIO Templeton

playing days. conversation XX meetings, XX assets, up your clients had cities representing sub-XX That's X defense billion You're hitting in a what those ends being. in in they

international in billion X in got we've unfunded business. that, institutional said Having

the new Our U.S. pipeline has in X converted doubled size. actually prospects. in We institutional

shoots And headwinds. you're some big shoots, it as is business some in so green It's which And on good mentioned, some side there. growth underneath. green just placements some with mixing good have I think big they're time, the we a Greg of model our retail and

getting and really time. quality in I think for haven't we institutional opportunity give emerging process we're that new excellent has the the had performance leadership, assets and searches would that that excited institutional team for group the And another first and about is now example opportunity we an for And on that institutional in as in past. platforms markets

was funding the it's it billion. delay any is just Is fund then timing and into institutional unknown? think risk a that a there up, follow And they a $X I two don't was fundings, there that is certainty or

If is there's in the we be a indicates But will of risk any nothing kind that not there's risk. that always hand, that believe they there's funded. money

The of proceed Please your question. Jefferies. line next the Dan question with Fannon from with

that on a the points can from context or or you I said of versus I think international like relative in periods? of some gotten wins, we have Just billion ago like other we in of how guess as year X a Just context. kind before do the to that time, unfunded number I we've previous think backlog about so

I to part number probably timing those haven't when in mean that assets in. And you I past. the Yes, talked the we come for that's Because out hard think why figure is that’s good about question. the

could out, year next could think be take And sometimes a they longer you than and be month.

that And but I'm not really just in what's number domestically of sure a hesitant few talk offshore more always flows even you So, about that that been is what that. international institutional do with the to is we've actually. number kind

So point. good

so written And you about the you of just you're play bond, of the I been and with talked as the guys issue, So that of don't about a can a of or performance Morningstar gross more this you your given as it’s created? campaign yourself in doing has more of and salesforce to global kind basically follow-up level it's get internally keep lots a some of I kind talk underperformance earlier, headlines doing front also in. be there to on guess the sales and proactive? think assets I defense said kind is -- are internally the it's redemption a about something here assume much distributor changes. what to

we going term And world is valued going I on every you as a think on just point assets salesforce portfolio it a here And and the piece message and we're and with in are some have one those important the risk But it's much an Well, highly do trying what's metric lowers that and I -- can, out risky our the with in about still had as your the in not work you we to going forward to this out fund. again, as that the that we've focus out recent talks new I working moves portfolio. unparalleled and a we there on. story periods performance, repositioning things. to of long-term where short it's and really point and And run. had you've is record and defend mean, plenty how things your of to that's the long

to clearly. out people came of it hedge portfolio, because you uncertainty, to received. other many And world in October this we face been a positioning it for well as it's in called in that and your a take out it with to the want lay positions is, four it's of we're the piece And just which a trying pillars

So very, very recent.

Jeremy the question line with next from Campbell Barclays. Our of

First, this but sorry, the I Street earlier, the and to missed on was Benefit answer your revenue quarter? contribution question if from Craig's what AUM during

that. don’t out We it break like

rough No sense?

about with million. had the quarter, $XX Well, is we last stable which was revenue

your on your think you a SMA like for kind the now your that all your wondering managers? this just footprint of what around about desire UBS kind broadly wealth are or new the asset then M&A thoughts does management of in fees And of front target over at at speaking, to happening is elimination kind fee the pressure? guys that And just with Franklin's of prepared called industry-wide more what's dampen outlook out kind you Do remarks? of right growing SMA

interestingly, right. mean, we've worth high kind with business, always our on our net conflict It I a fee Fiduciary never was of of a top around products, Trust that. charged proprietary own

product So experience like you a just one of desire the a they they fee absolutely and But and the of top -- outside just that the open the architecture in. it been bit house. when charging that. that our making reversed free at It conflict do feels to by have is products those clients want has

fee So do prove said you I the all in is this different going that fees, it’s side. free. is not and SMAs we’re institutional that, on the extension than the over out had have side I think no to our to think Having all that. an pressure there’s value going everything And to on just -- business. retail to And our

there think being that the is being been underlying of but there understanding. getting I a really confusion still was fee, it that charged an over change fee the managers account fee, and is around entity still my a are market little bit is not Yes, paid that a has the

defend the we SMA a it. controlled a is traditional know you is against can’t and because a to pricing business going believe all distributor trend Act the we versus but So, XX in one to and that versus trying way trend, a we’re that’s be your fund great it’s margins is to by not aggressively ignore accelerate shrinking

solutions larger area correct And and will for of in growth offset that that’s our an a you’re and that, it’s assets So, think but margin will mindset lower I it a I have change in we that it. think part result result us. hope will we of thinking think important it

Bill of your the with Please line with from proceed comes Katz question. question next The Citi.

a expense dancing and terms with back a come just dynamics, moment, with been around phraseology I bit discussion your sort of month-to-month forth here so better flow I'm of sort for side. discussing the on a let's you've so and in agitators cost Matt, so trying guess understand doing the AUM to little in on of to So, different the

is down that way that guess, to and/or more …? we're think I to out revenue a you're talking and that zero is about counterbalancing there So the X%, assumptions than what flow expense of that then

Bill say to I’d XXXX go further much from than probably into too early go that to we what zero to Look expenses. it’s a X.X% said. I’d on But forced say if detail, little the down

is And a Okay. there up? revenue back

on be roughly from based for this revenue on what that is mix which to is rate forecast confuse fee with addressed something assumptions will business, perspective. mix we and And don’t overall if And average consistent. domestically, assets that largely so of the whole our fee the pressure under we also series to flat we of internationally, that’s just to think But more thought I the return rate, the fee question was a offsetting growth heading do we the question is different. was of where related that I about also some a average around business think business earlier the our think we of

you then you when mentioned you deal that’s at follow interpreted. size look of gone to that gives the thinking of be up over Okay. what the the confidence and the years, things? What’s of the a deals more potentially I of so on last several And size landscape changed what receptive in the market types nuance of those have Matt, my your would just

becoming exists think institution have we frankly not areas opportunities have, we I whether larger, we further at we business we when the we bit will products chassis you we products, some we a the but a level that of of having have discussed quarter. think tremendous we at look across I a think that it's think Then a whether quite Franklin, more mentioned can as But we if leading more and global But in the certainly can with the we many that larger in successful. filling if and from U.S., and core grow see countries. were marketplace, already some that easy were by there's Jenny last fill the think assets. smaller, other will alternative gaps be we some it's that that

thinking towards expenses, the guide we to thought point. number transaction. So think, we're current having I us, going drive create of one wouldn't some list about, do our growth bullet short business ideas But down of mega without the for you sort that we given opportunities to

all obviously However, consolidation say the cost are of on. there we to some we that be should able this aspects to capitalize in that business would

is with next the line The from Please question with questions. proceed Brennan Hawken your of UBS.

other sort unusual you Matthew, expense that you Are earlier any think, that I of your guidance? to in included guide for or to non-recurring be would what the included XXXX. amount outsourcing flagged cost there be would that shift items to greater expect of outsourcing in is

the Not at moment.

of then expenses, of $XXX And -- there the non-recurring like so it portion recurring. looks is some the we when think about million and or that's acquisition-related

so or in non-recurring, that's suggest expenses in So, would million a $XXX X% core like guide. whatever, it rate growth call that let's your

that the ROI that for the and Thanks. some what's kind guys that of we You two, investing some the returns, of but industry? have given number you're just for one, here everything about these backdrop challenging or a it flagged really that like doing you what investments making what kind talk have, of right way to can that, you number and about is fair think -- hurdle

separately we Yes, through I think, questions of lots say there's go that should to well, in would that more follow-up in that. I detail.

built into increase about in is expense the an think I assumption our to modeling.

Benefit which is our next say, years, at that drops reason an the recurring, $XX you'll accurate. that margin assuming our looking non-recurring why acquisition, try items, which would to with million Street element that this I it's include is misleading. three around very business I of Benefit we associated that the there you're wanted acquisition, is Otherwise, outlined Street think make the and that but clear. does be is we for If that then off, not correct so zero --

why how So look -- we in we terms teams, costs work a reason business basis, our investment our ROI three-month that's it. to over for it and look in scaling to apply opportunities distribution things perspective. classic on for or the and one future we terms that of six-month don't creating table, our to of our at make or or into has put more a year the wanted I to a We has sense wouldn't it at but say we efforts certainly investments, multi-year

The is Chris with the proceed questions. next line Please of with from Harris Fargo. your Wells question

Thanks. Can do your a today as to forward? might international a which area going them you bit distribution little capabilities improve the focus you and for talk site trying you to firm guys what be about

US we focus funds. global bonds. more rely flows of KX has doesn't have muni seeing I of would products. changed. mean, and Templeton, on there as would the That more lot I US the the seeing say, strong we're flows well. the in it in more of of benefit not growth are Franklin in are a there a -- -- capability, some the be bond the for sales momentum international terms municipal

more products the side on and which part cap some where very just E getting to think Street India leveraging Benefit be think one for I the us a under at different Luxembourg we're Benefit it's as where Taiwan had gaining network. And in the we side it's of in one. it distribution there some would is, feel fund it on year of is pockets look institutional again, if huge So franchise story and the as the up doing, for strong -- you underutilized process in year Street and that is very us like company you have not value well But is acquisition ahead I the base product for where strong of of growth capacity a year. relating a inflows,

take on maybe more thinking that. we are throughout traditional a But that we that's like So that there globe well just our acquisition generally very speaking, are I than product different and of can have part on mix feel pockets doing think our the one.

is proceed Cyprys question questions. Stanley. the of next Michael coming with Morgan from your Please with The line

on help here. of with wanted pieces moving could you back circle to some Just expenses, hoping the

So we be guidance that the hear next year. to down slightly

if and if investment spend quantify you how meaningful cuts. could guess mentioned you're how cutting, where what add much specifically, But you you else, combination then I think And you it's provide you help I sort color how you of the a around side are So just an investments on of any lake, quantify also if I expense tech that I much these know investments? just that? and fund conversely, investing, could with guys help could the and data making are

that we Yes, systems on that on I we'd is to information we that. say move some technology think and think what have room

ago, up moment mentioned points As there. I percentage a to see perhaps several more efficient,

equal able remaining I all whole. slightly confident, early think to down be item very line beyond I the else that expenses XXXX specific we will keep that back on are that and give just would any it's our fact as to a we referring to be on guidance

span continue and recognize mean invest the with and we very we to the management add, senior look incremental are I and that to think can this, pressure look be we industry of that to is few inflows at And is going every of just we think the kind saving control top at where I mind all under, generate a of that years. the in to getting would in to parts I it

look all think that. than or to come two we're But very that other I on in focused with, years, attacking So kind of number hard out we're every three angle. does very like what just

demonstrated there the around balance our do we the compensation were fourth in what's do and have right, very when Yes, moves quarter important right the compensation we expenditure, get discipline is variable it comes which for expense have shareholders. we also think the why but in also I think of each we then clear item. we company, demonstrated for most that that the to components what's firm, right reasons I the for And our other I think

to And to actually expected. to we likely what but we continue. did. that that more increase wanted the that because we not That's make is it and IS&T, progress down, thing expected was do come right we that's down. than So to Actually just does be to mean up continue going

On both don't guided G&A, wouldn't so campus last because and that previous last we in fair San when some another quarter amount this much down intangible spiked and drill repeat. It's quarter quarter. we about also. expense, included it quarter, expect as would we a occupancy impairments what G&A, and some we've the -- Mateo. to, don't Our in that talked the think hope reason completed We our analyze there there's this, we've we room why the

an new that's in the of revenue have ownership, by drives We of also to state Mateo some across attractive increase to in our be San attributed here in efficiency that streams very pay Poland, headquarters frankly real them. both going our the lease including all and estate offset running our but building

won't a we that took we don't make why which key as adamant and whether think one the IS&T, each I each want that across is investment plans mean as items. benefits, in margin. flexibility where we on fact described by We've have all offset one it refer fourth it's we others, of we needed. are the the each forecasted that we of doesn't to to the with these. continue we So But action demonstrated take that G&A we of items, action and to one comp under expense, that's our We the have some quarter occupancy think

that. can for opening China, about the in taking your us just the up on thinking the up you change and of today color China? actions you're given that just over to And next where thanks of market update there marketing opportunity you're what on stands maybe China, couple an set business Okay, on years give the sort regulatory in -- then How and this? on capitalize

and it's at early that were and Sealand one I that stake it not it's ones are majority our is a But the of We in a profitable obviously very many, and as earnings, any looking we a that in we joint thought have we number we with has think think look like taking continuing I are if other I venture think that think opportunity you contributor alone include partnership growth. the going market. at in $X but in China Well, I'm with tax. to licenses is, had a control she's of and think to have most very market, the the process it's it's don't for taking growing good and it's one wise of it other we major think size because our Jenny, take at I'll like different trying can I and a -- tricky billion, versus profitable, to performance. I think additional… our And assets And options we of that tremendous I'm Jenny got looking China, ask But carefully.

our No, doing right. said. also we it's us that up I like if XXX% or think -- to make but I always -- for can there, been not own UEFI as whether that's have we'd sense we about end mean Greg can we option and

been think institutional well very well JV to UEFI with when Asia optionality is of keeps we capabilities market either us And going A has get mandates our they team that our as it been emerging research can So talk on it to or team. options that we collaborate our integrating some which important. big interest as of focus gives the investment so team has area open.

you. Thank

line Please last Research. questions. from your Davitt proceed the Patrick comes Your Autonomous with of question with

thank for the you Hey, follow-up.

billion the mentioned placement Street, billion that, so, is that on but from Benefit the potential $X with if to in and expect expense the for fees side expense chunky, You should $X we guidance?

the push we're our placement own trying there. have to some have do would We fees really although big institutional team

kept have it comes are we that but team. hoping bit, a up we we've think it that institutional I where divided our through So

perfect. Okay,

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think of pipeline, better a give then And the billion one, could one that if last on or mix you even all little any the more on average? you unlocking color are that bit And signals it's maybe on part fee than just just us kind of worse the $X just broadly, start the is there if might maybe there? color no at or there second

given for the business the as the the has fee our that embedded think versus fee earlier a would year. just Benefit rate board I across guidance the I The be on rest know, much gave franchise. about in Street higher rate, of you

us our be the helps to remain think confident So will that year we across that rate our -- statement that in stable. we fee actually

time, will call closing remarks. Mr. I At the back you. to for this Thank turn Johnson Greg

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

Thank This concludes you. today’s conference.

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