Invesco (IVZ) 24 Oct 232023 Q3 Earnings call transcript

Welcome to Invesco's Third Quarter Earnings Conference Call. [Operator Instructions] As a reminder, today's call is being recorded.

Now I'd like to turn the call over to Greg Ketron, Invesco's Head of Investor Relations. Thank you.

You may begin.

all joining to today. and operator, of us you Thanks,

release have press presentation plan In be available found press Investor information the to section invesco.com. we our to presentation provided website, on The by we addition to can topics of release, the a This are the that address. the going and Relations covers website.

on measures regarding includes statements appendix appropriate measures. well the disclosures financial these the and Please presentation the and non-GAAP Our Slide certain forward-looking for of presentation reconciliations as today as to statements X review the GAAP.

Dukes, and not and this authorized Chief to I'll our accuracy results only provided Finally, we'll responsible Invesco then Allison guarantee now over will teleconference third nor by not webcasts call the are is and present turn Officer, CEO; our transcripts for morning, earnings for Financial Andrew. up and Andrew does open located The edit on parties. the questions. call of President website. the Schlossberg, our

Thanks, on in speaking commentary with the moment crisis Greg, But acknowledge pleased East. to Middle did my today. begin to be morning to before I quarter, to and take you I humanitarian want a I'm the the everyone. good

and been and who by families, of everyone the events. colleagues We the across are deeply and saddened it's with life the and our by are has had region. on their loss well-being heartbreaking the our the of devastation We're impact thoughts the civilians on impacted recent safety and

to financial for with and more reallocation there's money more moved quarter Slide amount central Volatility today's clarity The on an challenge rising to into turning and to moving an been eventual higher X. global also risk-based investors cash course slowing investor certainty. earnings. the await been the returns can markets continue they I'll and uncertainty assets. from a sidelines activity now that's topic start rates of near-term industry, sets awaiting acceptable the bankers, our but for third But of extraordinary has interest and presentation the narrowing earn while it investors where define back

in results, highlighted Our are ways, Slide reflect dynamics. many on these which X,

unique our of helped positive us quarter. in a the solutions mix client and net positioning relationships, However, with suite a investment long-term geographic deliver broad strong inflows deep third

One the strength net to platforms. EPF our SMA contributors of primary our flow relative and is robust

It our quarters to strongest business record a asset the the in [ as in Xx share. third ETF concentrated captured industry Our flow market were industry experienced flows Xx capabilities. net our share quarter, gain ] we and our share was revenue lows AUM market continue of nearly we well. of basis ETF delivered our leading over as which have one We to of on factor-based share of importantly,

seeing of commercialization environment. momentum posted consecutive particularly the enhance positive to in and market platform continue challenging quarters we we are have fixed within flows, Additionally, net strong XX SMA despite our the flows income, of where

the interest U.S. Within the positioned optimization the tax these both clients vehicles, seeing around that by increasing personalization management and meet are we to well we're in wealth and around world.

income equities. active SMAs pressure flow of areas to continue have and growth like we for see fixed ETFs, year, this in strong While us been

see and emerging marked have international equity beginning headwinds this industry-wide, persisted global, in the are class particular in While we in asset to in improvement market Invesco, segments.

we outflows stabilized each X net of have XXXX than lower what in at strategies in our in experienced In are quarters. the around outflows billion $X and aggregate, last significantly these

important of fee-yielding spend going demand on improving product We're the net considerable into in both our put and we firm time to in today revenue demand meet the renewed call how revenue client our well the yield evolving asset the effort and engagement the its higher and are positioning differentiation and and to ensure further we're impact to we're asset the these how We shifting mix, investment these organizing demand, capabilities near on continue highlighting ahead some in client longer against quality, to situated eventual classes. net investor term.

outlined we are a previously, simplify demands. streamline rapidly to around the to plan and position organization we've evolving As undertaking multi-quarter client firm the

clients Our scale more aim investment our operate profitability. improve leverage even to better a agility, quality, efficiently and is enable and experience more client with our create greater for global size to more outcomes consistency of seamless our our drive and

already areas, we will have quarters. progress in continue coming execute made We and these the meaningful to in pace

fully our market date private investment multi-asset and operation and capabilities. these that us group key the more estate the classes. fundamental we're our further across that to a global of teams credit following: strengthening teams. income asset take single, fixed from platform bringing platform, highlights we're we've simplification single the of unified globally of a private enable focused achieved we Alpha platform, distinct State advantage investment the all across leadership both X as real integrated benefits our to platform together spans have will efforts Some We're Notably, include highly equity engine active evolved on creating a Street of established

growth a our the our ETF portfolios and we've model single in and distribution and into strategy and efforts group. of product also efficiency. We've made On considerable SMA side business, repositioning progress combined

choice that these vehicles leading our believe for capabilities will we of be the clients. forward, Going

enable and reduced active an to Our established to continuing brand continue in and to capabilities lead us prune investors infrastructure, way. and We're personalized product and both more passive to also to and our even globalizing efficient we've bring year. innovation past it will digital our scale, the we're our leverage our and to technology in opportunities capabilities many these unify simplify costs. aspects our data and strengthen applications, products lowering use XXX Further, finding delivery, of marketing line, by while over by

which gained all over will efforts, realize, beginning from are so be to efficiencies we these of are to to and There simplification do continue time. we

growth than will us acceleration, improve sustainable to more about However, just and quality, investment much base much expenses profit our much more capital and expense and We drivers margin effectively reallocate revenue as are -- these expansion time. savings. these allow which efforts more our view and more of deliver or

Moving Slide ahead X. to

strategies. As capture on clarity Bank income cash of an is of share of into of of will and Invesco, inflation we and be extend allocations we're wider out rate Fixed a we clients duration clear expect well their investors and ensuring area to move FICAM on range believe reallocation. to Central a profiles outsized strength we this focused positioned gain for are their what interest policy, greater

has fixed classes for requisite it private As you grower capabilities. both range can having active geography, see products. flows posted spans platform previous on strong income of scale, public returns integrated client across offering and and performance, our a $XXX robust it billion passive The across income plus asset has investments net investment XX been top-tier and this its quarters and slide, long-term of globally fixed and over a quality a consistently platform the has investment very wide institutional Invesco, strong strong diversity

and top the institutional position highlights include global A money years, squarely XXX% are fund in grown few favorable the X X liquidity over top the page the on capabilities, note our on that over XX past now to our of have nonbank-owned in we're providers. AUM amongst managers which by

top and DC well placed the capability in a Our stable is as ranks platforms in manager U.S. value marketplace. institutional

and investment-grade for managers. top emerging global crisis our past in and and the the performance our institutional relative the capabilities retail has been largest banking X strength markets fixed in has municipal amongst improving growth Furthermore, European years. since mini fund in and helped AUM among well our our U.K., Within us #X placed stellar and performance X markets. very managers of the nearly recent the income our in capabilities long-term double Asian U.S. are muni mutual Our high-yield fund performance capabilities, and rank

opportunity strengths And even our significant finally, expansion fixed bank are income Invesco. of too greater capabilities exists and we of believe notable that loan which ETFs for

clients to of profitability So share to fixed work with gain backdrop business an is meet the that and our area to are the against drive as fewer seeking beyond managers to investment rotation requirements, market breadth unfolds. asset greater continue even is clearly where eventual of poised cash income the

before of another moment Slide take relationship call and thesis, strategic our the to I on a want piece investment highlight X, Allison, turn Invesco Finally, MassMutual. over I the with important to to

mutually MassMutual facets Our create many with that has relationship. strategic meaningful, beneficial a engagement

MassMutual shareholder. First, preferred of is and one our as both largest equity common a investors

newly aligned is mutually to billion backdrop the and delivering a we're profitable a also market the strategies our with total private other long-term past So $X.X and MassMutual over launched success against supporting industry. commitments. of of of growth an many investor evolving years and key significant of

in and relationship, significantly Notably, X of balance own our of commitments sheet. since our inception bolstering channels our the course multiple our is trajectory institutionally to of private our in Xx for products management own business the is our on meaningfully setting capital has where access the both early seating their to is increased MassMutual wealth growth. paramount markets this growth to and this

manager behalf closely and where on insurance MassMutual the are Finally, and ranked investment-only a through broker-dealer we on with we work assets to platform. party manager of billion contribution sub-advised of their $X we the third pleased clients MassMutual be their and defined of largest channels,

summarize, is potential significant and with this for Invesco To ahead. powerful a relationship important

I closer call look continue even for to With this over look future. We the the that, to relationship let turn with forward to our in Allison your MassMutual results, meaningful at more avenues a and explore make me questions. to

considerably frames we everyone. of the basis, investment is performance respectively. improved Thank We categories, a Overall, investment both seeing funds basis, X-year you, with and morning, reflective on the are several in investment good quarter equities half XX% international and did actively with I'll X-year peers in including XX% in to of third investment beating begin XX% global second of was XX% the Andrew, permits improved line Slide the the and performance X-year benchmark quarter. top managed those with in solid time see a and on second third our alternatives. going from performance. This across quarter, in a quarter X and on are the in

across Andrew investors flows our capabilities in conviction into strong fact and and As noted, important these given strategies. horizons, fixed to time have performance as we money attract income our all excellent an ability nearly deploy

continuation with trillion X. albeit at of in quarter. a the third AUM was of $XX quarter. uneven appeared than second quarter, to a last markets, Slide to saw the lower $X.XX that began recovery the in end billion be The quarter what we Turning

volatile net a garnered $XX.X for has billion will posture long-term uncertainty the best did marking as what a inflows quarters market movements, demand strong flows, $X.X difficult we that very generate another the drove were again decline Client AUM. with worldwide. our of in remain of grew, marking for been and billion, exchange the quarter we Market in quickly we long-term billion However, progressed to peers volatility, in shifted foreign for of growth. ETFs. quarter coupled outperform for markets expect risk and Despite capabilities $XX.X the ETF we asset environment quarter. net as passive during inflows organic one declines,

of Equal XXX with Weight quarter SMB Our funds $X.X net long-term input. led Index the billion

leading second our driver also ETF flow suite The $XX year-to-date, in flows years of the our is our XX and inception, to ETF the was full it billion largest fourth with our past X drawing highest XX in throughout QQQM, market making launched ETFs quarters. of attracted We've in This AUM QQQM the with cycle the sustain newer ago growth organic has ETF. growth demonstrated since now year-to-date. ability

flows $X.X outflows to with and We for strategies. strategies now several our outflows in of has the also in sizable a This passive of billion saw in for growth billion $XX.X long-term targeted strategy remaining net strategy. the return single billion in the quarter. outflows index was been redemption Contributing Offsetting solid has active fund. in less years $X than significant in growth some net the global was in our

to announced close demand. multi-asset fund other on focus In September, within the are stronger capabilities franchise seeing plans our where we client and we

elevated second The outflows of this global outflows half redemptions has active significantly in this equities, moderated class XXXX. level quarter. from Our net which also drivers were market the in includes investment of funds developing the of after

was by redemption, billion for would the $X.X the long-term retail generated returns Outside driven channel channel inflows while by institutional of the of had million of at have Looking $XXX had net $X.X redemption. This The this quarter. target in inflows institutional channel. flows we global outflows. billion net of long-term

Slide by to closed and geography. X Moving

for Japanese quarterly clients year-to-date top-selling $X.X retail and inflows from Japan, Equity of the in Asia in both Pacific Henley billion $X.X our inflows Global billion a quarter. fund making which income Japan, and industry growth in of net long-term delivered with to of it funds, Greater In during on the basis. outflows a strong experienced a growth offset due net guarding another we China quarter Japan

in are many the most favorable markets Japanese Japanese regulations. well for on of risk some assets in positioned constructive We are as -- experiencing including conditions new years,

After the where rate quarter. second business our resuming China the continued growth China The and for in interest across $X.X in experienced industry in $X.X billion growth year. diminished in our to long-term weak JV were were outflows billion. income, quarter, Outflows tightening net organic sentiment fixed this Greater has of led the market concentrated outflows

However, as the to positioned world's recovers, well market. additional Invesco in economy China's is extremely fastest-growing share capture

[ previously strong in flows mentioned ]. to class. Equities asset outflows by $X.X billion inflows, global redemption The alternatives targeted largely driven by single returns in $X.X in in was generated long-term the mainly driven billion the Turning net client by growth EPS.

of Excluding this million. in $XXX inflows redemption, flight alternatives were

good are well to as alternatives client platform to long-term these record asset We strategies. in have private our and capture this a within demand in positioned flows track markets class shifts

will over required dry of to materialize. have several market but the of We last market clarity for greater be quarters, on powder opportunity the billion this emerging opportunities dislocation from meaningfully $X capitalize to

investment modestly Fixed with $X.X in of outflows negative global long-term grade, flows outflows offset with income China. net the billion in experienced turned SMAs debt, net by and growth

our we investors outlined, in more to position in space and we income believe fixed capture positioned Andrew flows like money to are this As work products. as put well

our this conviction net quarters XX track record quarter. straight of to We have prior the inflows support to with

Secular asset X. provided Slide We've the trends the into our asset additional in revenue insight demand and altered across dynamics, our significantly mix recent more coupled of profile. the have driving portfolio Oppenheimer our industry, since shifts to client Moving management Funds. acquisition with market

in and $XXX our have in $X.X in also note, $XXX and XXXX grown the growth index overall Asia China. AUM you'll by trillion of strong excludes AUM from of Pacific, our driven AUM, nearly trillion this We've million or quarter. third or the As XX% ETF million of to in success QQQ, very $X.X seen primarily XX% our in

sparked part During the of demand the the our same that with weaker we've equity fundamental seen GTR developing driven XXXX, equities, in was in the off we sentiment pressure markets for by risk frame, time capabilities. closure early as and in global experienced as coupled well

of our by our quarter, or million portfolio dynamics our third revenue At $XXX weighed equity $X.XX that AUM. was portfolio over years. fundamental $XXX XXXX Our in was of or billion these result XX% AUM. of end last the on the the X results of The headwinds created has

loss we While higher outflows equity to not ETFs have and the capabilities organic revenue fee and experienced like it growth market enough liquidity, was from fundamental offset and lower depreciation. fee excellent

significantly in have slides. degradation the that investment net been our frame, revenue by within provided during but overall the not driven the investment declined relatively strategy in been the yield Our on yields revenue strategies. ranges shift this Net by has asset decrease mix, of stable time yields has our

emphasize want multiyear is I been in increasingly have to that shift client our this point secular results. in preferences other captured The

cycles which market and better concentration and Our have though to is fundamental ago, marginal now and demand. to independent These future well better events occur, has various portend a X more challenging of fee today portfolio diversified navigate mix, our higher client diversified manage and revenue profitability been than for through trends improvement. firm the years should business Further, reduced. we they as improvement, shifting positions equity dynamics risk market

greater shift quarter. due asset than last quarter operating $XXX in of decline or and revenues than Included from position of prior the were third year profitability changes million higher and as was to expenses million $X compensation was of scale our third than was the X% the XXXX revenue $XX of the million, efforts quarter expenses higher The that Slide from unchanged Turning were we discussed. the as million our quarter. lower just quarter to from in third Total quarter third we compensation adjusted retirements. firm the Net quarter related our quarter The to billion third are mix for we in we the largely expenses operating XXXX the the related quarter, making our grow $X.X base. million to and expenses growth simplification generate second margin and will seen of be the third revenue million in mainly In had benefits XX. $XX recovery. time over of executive second organizational $XX $XX full

rate To the associated efforts in be reorganization we The were were will this third costs several XXXX. quarter the million with quarter. of as of we that accelerated that we point, by the savings $XX million into undertaking $XX restructuring have activities the realized run annual beginning identified these expense of

expect quarter, we total an $XX to the expense incremental million fourth million. to expense these to of quarter, $XX million efforts, Next million the efforts with associated $XX $XX associated with bringing

with As to we year periods in XX% XX% compensation outcome full revenue a been to of competitive has in our the end company ratio line range that and Historically, of variable revenue net discussed, upper to practices. the trending industry range, compensation performance and decline. managed towards we've

year. the were environment. tightly of and compared as as manage million to other to quarter would third the for range expenses slightly the $X cost high we spend XXXX of when expenses $X office current and we executive discretionary last year of to third million quarter $XX lower last the technology end the prior quarter and AUM were excluding given At unchanged organizational revenue ongoing ratio to pertaining the million quarter last changes. relatively above retirements be Property, lower than continue the and of than Marketing the levels, challenging expect

G&A. were million. from quarter which the Compared of in expenses last $XXX $X expenses the expenses G&A in to we million area down quarter. quarter as managing $X are year, the prior Another G&A diligently increased million third

However, spending year the of the on includes in and million our $X this prior in restructuring was integration transaction to second quarter of third included quarter platform, year this which expenses. Alpha

our to We quarters. the Alpha remain platform few level expect quarterly spending average on this for near next

related operating Moving was the the changes. included operating the the the Earnings But organizational excluding was in quarter. for which operating basis would was related higher. XX. changes, costs XXX have quarter. third to in $XXX million quarter points organizational to share quarter costs per $X.XX margin third Adjusted Adjusted third XX.X% margin third Slide the income to been

XX% Excluding the would have per quarter the expenses XX.X% tax effective rate in $X.XX related to third between estimate share fourth items. tax was effective of can pretax The changes, be our effective and non-GAAP due items for org income higher. to the quarter rate earnings impact quarter. the nonrecurring XX% The on the vary We discrete to third actual been XXXX. and tax rate of

XX. Stated in Slide I'll progress priority, finish where strength. say pleased building balance I'm that up on we've significant sheet made to

This next We've $XXX shares now made sheet as preferred the at to quarter, of work the our on cash X we stands we've and our by balance year. balance net than pleased net exceeded less half million. the to bring it excluding debt improvement second the with lowered $X.X I'm billion. significantly, debt continue to down

the our X.Xx under quarter. ratio, Our facility the third at defined end agreement of leverage as was credit

drawn end We January. an million quarter the in with have with the opportunity facility. to the outstanding of the on credit at $XXX of further maturity notes ended We senior this the X address debt third

progress financial and while committed with sheet the driving build profitable resiliency this and the growth making we're organization to in organic quarter, areas. capability is performance to We're for a balance and stronger key again evident invest our environment continuing a of a high conclude, net performance. simplify growth of the firm's level difficult pleased I'm to To in flow

operator have the the to strategic that, And so. do We with to ahead open right go positioning and Q&A. I'll up to ask it

our Schorr Evercore. And Instructions] [Operator from comes Glenn first with question

are for? stronger. of guess, fixed I'm surprised clients been for rate Can think little post are you Is talk all hikes a So you still, I income. around just what everybody flows things casing looking through literally your the -- were in I appreciate then signed and seeing it that about that commentary economic in end haven't words, the you made you with solutions, market extraordinary And an money in outlook? amount comment same And on on of markets dialogue like with or the that? the maybe sideline in money RFPs, outflow. just

active I'll in lots XX% institutions, on to Andrew. reason through banks, start it's conversations efforts exactly central Conversations cash will I chip well. something whether waiting are -- tell with get It's Allison to those as described, thanks. XX% from whether from or what bit, you best things of And that's for allocated like it's it's have off the can to through and the sidelines we do move I but Glenn, wealth from just and from think And clients. conversations. that waiting The sidelines been to for it's or it's a portfolios direct simple. clarity and think a from paid our so. managers solutions and very it's really straightforward

money up? the pick don't side, Allison, market you On why

What I of positioned market portfolio is XX% institutional our an money say portfolio client about base. our about with is would

treasurers assets. about So corporate that and by stay being save think going for those funds are and to is managed

seeking. equity. repositioning the will that funds the opportunity that in we the saw this also, are just many was those strategies just more deployed a risk So yield like the on quarter those given respects, think treasurers treasuries in I being from prevent in what and into That presented

money owned. of important it base, composition our the So client I being think institutionally think, is you market about as XX%

flows income If rate appreciate. same kind had and duration, years? fixed lower pretty happen fee is fee One you there's is income rate follow-up quick as fixed noted, interplay margins. than start the think would just people you in like how the we've of we extending high should obviously conversation I some that think for do on I incremental margins overall. about into as imagine way But between the

base that underpinning and fixed portfolio. cost that fixed No, you've a got income relatively assumption is your correct

fixed think the accretive to margin. you as flows income being operating overall firm into about So should

look, to is in this to overall a of that's So certainly -- think that accretive to scale seeking out I and where margins, are is some income fixed lot of area and what is we will where we an through draw providing where that's true. want grow that additional be color

-- we the last this fixed things platform, up quarter, quarter further we of together just and and our the scale disparate of talked some wanted we Allison in a about platform call we elements reasons that brought income -- for Glenn, And to elements described.

The next question comes from Craig Siegenthaler with Bank of America.

starting XX% So XXXX expect bond the benefit are off, and you where garner you sitting to of in through do Or platform? rates income to maybe higher, flows just passive, going left for come also, on with waiting you'd you ETF significant of positive share? cash think also verticals active most portfolios stop in which from fixed the do and which can most you the

It's Andrew.

both, passive. Just you some sides up We and but both diverse And the in it have said, as on in both come part will ways, of maybe the range we're active I'll bit conversations on equation. that think in indifferent, the are pick happening first. the second we a

they're focus portfolio, whether funds that that first that's positioned, rated, we well highly having protocol grade the known, conversations areas The and well the the of performance that's stellar. it, things probably is terms or In particularly are of are high yield, we're about investment point we're to. would municipal and

of anything the our move then well. had people short-term just of elements been we're bonds an area and fixed portfolio. even been curve, across as corporate have little really investment-grade And a the further side, interest income where on On positioned European

especially placed well to well take ranging, wide but we're pretty sort just those we're in out it's I'd point So there because of -- share. particular, areas,

follow-up in China. would wanted snap ] you on on near-term just on are back longer if And a just my period you'd you here your Or Great [ of China? go where I for term think XQ. they thought time a basis. we'd from if net Wall Flows see outflows through in negative Investor perspective

start. Craig, I'll

with IGW saw diminished rate in actually the China, flows was of quarter. We most fixed in just fixed appetite that's for inflows the I overall. it happening that important tightening of I the by was think interest think a inside seeing income. component we're driven And over equities income really the

do sentiment recover to the we So when timing there. exactly to gauge will as it's think hard economic

Hard think we're occur. quite there a be which overall. the -- to say back, will will very do to and stabilization that try well bit government I snap confident the quarter improvement to doing positioned is when that and does some -- very are exactly in sentiment we things confident stimulate we when

Our with Jefferies. next Daniel comes question from Fannon

question on A expenses.

clarification. from savings charges be believe until that the some Allison, the mentioned a First, won't you I year. of in next

I So in curious of as then changes of streamlining, these the you year that kind to some is was that why some what you're most savings about. think, of impactful raised? And [ you XQ. in the here or like of lot changes not seeing talked a ] there's Could maybe summarize

let expect fully on the million we realized So by half first clarify $XX XXXX. that, of me that, be that expenses, the will

of quarter. expect $XX that million here around actually we start in in so will expense some -- somewhere quarter. like compensation I fourth the the fourth in those And expecting savings see materialize I'm improvement to

So is probably run rate that $XX almost out million. to

materialize we'll to where think That, course, start next actually of all compensation. those see fourth and variable things AUM in into year. I dependent go majority the So in then and and of equal being of savings quarter is continue the markets

of savings, did severance them the we some to we pull A because part start realize the in quarter. quarter the of in benefits forward those of increase in third so would is expenses reorganizational and fourth the the

provided we across million decisions looking million see are pull entire closer quarter. as our those be to operations to everywhere It investment broad-based teams. expectations expect It's do some I is organization. streamlining thoughtful at as an some there $XX And Honestly, to savings. of Where areas severance $XX from to expectation just it's we them. we because streamlining know seek some forward so of making of the our again, we quite to that expended third were in was

will the the instead pocket one I just simplification the seasonality to multiple see in remarks, particular taxes across the first some like. ways. teams I the in and you point one can our and his will and in savings and majority are of that where area. that things see to any do way of course, of globalize noted tell to any you globe Andrew is, excluding As you payroll compensation seek we of expense, quarter couldn't

the pipeline, I And the helpful. on institutional the didn't disclose. just you That's then outlook, think overall numbers

solutions, it's still You talked is the about range which been been. XX% slide has in the

context into activities some institutional fourth see it in quarter year. around you and just next obviously the maybe into So building

Sure. pipeline, pipeline, the one third about pretty fee typically color a billion The little rate not so a we quarter, bit consistent. funded provide composition the lower in $XX the was the the the better, prior so was as some than bit it little to, same although institutional quarter

we it $XX.X look I quarter, look in So about from if inflows, was billion excluding that sizable say, still was that at it the If the gross pretty looks good. the in about I our inflows was pipeline. institutional to. inflows that pointed and of our GTR, from redemption would very our I gross channel at XX%

measure. full to to continues breadth health channel. it's be in activity reflect $XX kind consistent range. the certainly $XX pipeline does But of in really healthy, not it's good billion billion the institutional So the a strong. our It And of that

JPMorgan. Ken from with next The question Worthington comes

solutions backlog stand? And question, the To relative pipeline? what increased follow XX%, to shrunk there. ] in pipeline alternatives? was sort [ to where And If I what the alternative up for of the start well, to does guess, on

powder in quarter. shrunk got consistent about $X would and And I have Alternatives been that's dry prior actually to billion consistent. mentioned pretty been pretty Sure. What held equity. we think the we've

difficult actually transaction the because estate it's one is been we deploy of what the particularly going been challenges private is just the of little So for are on. real it's low, to of the But saw equities that in relatively pipeline activity, diminishment bit given dynamics a was in just financing some overall.

you sort of the split any funds Is so in of so? powder, dry or in next the Is months the the to credit? private markets of Okay. billion Great. it to are there real then estate? And powder? represents -- private that where market between And it come dry XX X? big what in it expect on markets, Is bulk $X that

billion got -- things credit We've would are we're from opportunities The and of the to oriented trying as stress bring to space standpoint we the now I say, there in terms market right some that the estate in working $X space would there private estate more private the bulk on, both are a of be it be to real real would an of particularly several out credit. we look than standpoint. capture opportunistic and what

greatest estate then And area the strategies of Ken, Yes. real the seeing both debt with management And and there. both mostly demand credit Europe on for traditional said, particular, is as we're private where channels amount probably lending, Allison the the we're in institutions, side, direct market U.S. but in wealth in in the and just

Our next UBS. question Hawken with comes Brennan from

rate. I start on wanted to fee

but pressure, net was revenue fee a to the advisory offset yield be of distribution modestly. investment allowed of down actual kind lot only the So

So forward? Or way think was that net in is the to about going line? that distribution any there right noise that

I'll The fees that XX% runs an to on third-party that. of about -- net it to annual take management basis. line, tends XX% distribution it in line,

it's think last about was year it XX.X%. XX%. about I Year-to-date,

though. was quarter a Third touch lower,

say some with line So now. pretty it I I fluctuates it's mean, But in there's in would and history line, just right noise quarter-to-quarter.

So are than that look should quarter on it at basis you a saying we specific? more this year-to-date

this range, to it it XX% manage about to quarter-to-quarter. hard XX% bring That's would about XX%, would. in it. to I a think the look kind I would I Absolutely. It's range. bit. think at down of we how starts in up quarter to that it it and brings

was given definitely And business said just class was great. you to give a with rate loss rate average broadly the just that not that that, along but large want your for follow-up, On below more that Was the might work, particularly -- the flow the given it at Greg see given be that -- That's fee big I investor, fee play was disclosure for a sort given my size? to firm alts rate GTR. a business, the account single by help asset of to there would or like revenue recommendation. for that of Excellent. dynamics your great single a with the for fee like

Brennan. Thanks, Yes.

Okay.

fee Page extra I'm was on above the capability did more standpoint of then we've And there going because X priced average. exactly you Greg provide fee to to that significantly an do from got bit little the that to and that to firm point work, AUM the rate, disclosed GTR, First, color. give some rates no, try a and

are to the the that some quite had of the experiencing as developing range of X. from Those about fundamental global of so been, would you firm consistent all and equities. and remixing pressure been been the have rates Slide equities average, GTR markets with one on some we would what challenges And out trying on would you north see along rate draw fee has think X. what of fee in with and that we've the Slide challenges have

Yes.

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Morgan Cyprys Stanley. The with next comes question Michael from

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Deutsche comes question next Bank. from with Bedell Our Brian

franchise. Maybe overall proportion highest Obviously, your on the just fundamental but given X, Slide as is that that's yielding a pressures, area. it maybe base, -- equities to of back revenue industry the shrunk asset

help you're active And can potential the enhancement making So of just about you that you talk the overall equities vehicle viewing are then of as fundamental organic types platform? ETFs maybe what a what maybe extent prospects to that? for investments franchise growth might in that also

to seeking Great. how standpoint improve the with -- standpoint. equities, question. an and a from we're start let Thanks for client investment me It's fundamental from both

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in distribution place. have We strong

as well. education there We high have

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active some of it going But definitely be there. a to is ETFs time. I we'll frontrunner as develops, take think the development

the the compensation charges color. on That's XQ maybe line. then And side, and or the XQ? the clarification, fourth the $XX in exclude expense just the Does a dynamic X just between in the quarters, improvement of include Allison, great that quarter million

rate run improvement. be would That

rate as million that to we of we give [ independent million $XX that underlying quarter savings. in the transparency that And more would the quarter, is $XX you we'll those improvement. million costs true that So reorganizational ] this of be $XX anticipate run begin to the realize and severance fourth to in

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those of items line touch marketing higher. So seasonality there might be a X

very and We are discretionary though. our aggressively expenses thoughtfully managing

question with next Sachs. Blostein comes Our Goldman Alex from

of you expenses, guys noise year. obviously, and this for Lots

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it's a trying that associated of call fully loaded to expense are out sort we there and -- one-timers base, So there's are that. where with some

continue next We year. into will simplification our efforts well

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goes, are I year. of expense that where we next managing base revenue really think independent highly focused on

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time has reallocate continue playing also as about expenses to to growth much been and to in base efficient well. going with additionally but helping the have areas streamlining Also, us through these to be time talking grow we're and our Allison able revenue be efforts that more discipline expense over addition in our to these

equation to expect of in coming the of quarter. sides should expense you the So those see both

That's for revenue guys Got it. clarification All yield. helpful. just you the on right. question net a quick And

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reminder China. quick a on Just

occur. some already think either occurred I or decreases in pricing that are there yet to

maybe of that what just the remind magnitude that already the and us to... fully and rate So in expect whether it's run you

Sure.

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Davitt Patrick question with The from Research. Autonomous comes next

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to for kind changed up biggest your lowest buckets being what end on potential inflow So if change of cuts fee tone the the fee contributors? the

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net performance QQQ, $XX.X if yield, ex so and quarter. you fees And revenue it's this look million basis ex points our at

some than to higher in day That's additional in the points respects one due basis quarter. Xx actually last was quarter. it So

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eventually, see through into you be market mitigate start get flows that's to And redemptions so gains. going and to as positive share

it think sides on Allison that. I And covered think so I both And well. of

And Great. helpful. margins. That's then one follow-up on quick

ago, on I business say drag scaled you the as margin hasn't ETF to think it many a years yet. used was

some Glenn's where a on a more funds growth, not start incremental point see are to to to big CTF how of from I'm getting the lot similar getting. bonds, point the we margin given So

a at we So do contribution the point could see you the change you're we're in think step-up margin of from seeing? kind a on ETF where growth

was saying to joined been we ETF some neutral Yes. years I firm business the firm margin. been It's time when the have would to say the since a were it dilutive. going few back ago, I quite would

to overall. of We on is the are to position accretive that -- in you things it business continuing really grow accretive it as certainly a AUM, to is from I Scale what growing margin rapidly size the biggest one think could fundamental margin. in add improve growing X focused firm's think perspective. that now margin business, going of what about firm's that where redemptions we're and And pie the very could $X.X for that. the margin this is because And a overall, than firm something bit the it that stemming so contribution quite equities again, larger and is is a to overall trillion from

comes do We our And have Wells Securities. question with last one final Finian O'Shea for from Fargo question. time

of commentary beginning. or -- the those working Are A areas in build-out partnership ground question a hopeful executing the product already in through on partnership? for broader, toward private on is this with the you what's MassMutual a organic master say, markets, seating more focus

strategies Yes. the for seeding earlier Thanks of Much private we talked for has about happened market the question. the already.

that. we billion largely the And all comments of made of $X.X the so are around inclusive

to which executing which additional will doing growing happened forward that wealth been us and kind demand managers, be it's ground, we've partner, is much assets last as several will getting leads third-party move from continue already, As but the hopefully to for ourselves market years of and and we you to the said strategies, of situated MassMutual continue on bring come. institutions with what to that private

So on have you that's piece was -- that. other MassMutual? What another the do of MassMutual piece the

it. much pretty you. was Thank That

work. we from for joining that we the discuss profitability. rates at opportunities that to more better great to back money momentum greater strength we well you've which we client gain scale, have streamlining their seen call that very Okay. to of we investors and the as performance competitive better positioned to direction and put we spectrum meet build. Hopefully, and Well, Invesco are and continue ] today today, the performance and have on and have needs products, of [ scale, thanks, and and everybody, organization believe simplifying to breadth the as position for We're visibility improve

speaking Invesco we So thank your forward again in soon you quarter. interest for to and and next look

and you, Thank concludes conference. today's that

disconnect may this time. You at all