Financial Data and Key Metrics Changes - Revenue growth of 7% compared to the previous quarter and 8% year-over-year, driven by strong market conditions and lower fixed expenses, leading to a margin expansion of 450 basis points [11] - Adjusted operating income increased by 22% compared to the prior quarter and 12% year-over-year [12] - Adjusted net income per adjusted share rose by 23% quarter-over-quarter and 11% year-over-year [12] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached an all-time high of $181.3 billion, with net inflows in 14 of 26 investment strategies year-to-date [7][8] - The credit business saw $1.8 billion in year-to-date net inflows, marking the 13th consecutive quarter of positive credit flows [8] - Emerging markets strategies, including Sustainable Emerging Markets and Developing World, experienced positive inflows, indicating growing demand [8][19] Market Data and Key Metrics Changes - Strong performance in equities, with several strategies generating year-to-date returns exceeding 20%, outperforming benchmarks by 425 to 934 basis points net of fees [5][6] - The company noted a resurgence in interest in emerging markets, contrasting with previous trends where allocations were cut [19][20] Company Strategy and Development Direction - The company aims to expand its multi-asset class investment platform by enhancing distribution and aligning compensation to a sales orientation [9][28] - Focus on internal and external talent acquisition to build differentiated investment franchises, particularly in real estate, private credit, and secondaries [9][10][24] - The company is modernizing its vehicle lineup to adapt to evolving client preferences, including models, SMAs, ETFs, and private funds [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the investment performance, with over 70% of AUM outperforming benchmarks over three years [4] - The outlook for performance fees in the fourth quarter is projected to be similar to the previous year, subject to market conditions [14] - Management acknowledged the impact of client rebalancing activities, particularly in the intermediate wealth space, but noted strong long-term performance [39] Other Important Information - The company declared a quarterly dividend of $0.88 per share, a 21% increase over the prior quarter [14] - The balance sheet remains strong with $300 million in cash and $140 million in firm seed investments [13] Q&A Session Summary Question: Demand for non-U.S. strategies - Management noted growing demand in global mandates and direct international equity exposure, particularly in emerging markets [17][19] Question: M&A opportunities and allocation - Management highlighted active engagement in real estate and emphasized that M&A opportunities will not be transformative but will align with the company's core values [21][24] Question: Improving gross flows and distribution efforts - Management discussed efforts to enhance distribution by aligning compensation with sales and expanding the team targeting the UK and Middle East markets [27][29] Question: Client rebalancing activity - Management provided insights into rebalancing trends, particularly in the intermediate wealth space, and noted that these were not terminations but adjustments in exposure [38][39] Question: Outlook on expenses - Management confirmed that fixed expense growth is tracking in the mid-single digits, with no unusual changes expected moving forward [41][42]

Financial Data and Key Metrics Changes - Revenue growth of 7% compared to the previous quarter and 8% year-over-year, driven by strong market conditions and lower fixed expenses, resulting in a margin expansion of 450 basis points [11] - Adjusted operating income increased by 22% compared to the prior quarter and 12% year-over-year [12] - Adjusted net income per adjusted share rose by 23% quarter-over-quarter and 11% year-over-year [12] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached an all-time high of $181.3 billion, with net inflows in 14 of 26 investment strategies year-to-date [7][8] - The credit business saw $1.8 billion in year-to-date net inflows, marking the 13th consecutive quarter of positive credit flows [8] - Emerging markets strategies, including Sustainable Emerging Markets and Developing World, experienced positive inflows, indicating growing demand [8][19] Market Data and Key Metrics Changes - Strong performance in equities, with several strategies generating year-to-date returns exceeding 20%, outperforming benchmarks by 425 to 934 basis points net of fees [5][6] - The firm noted a significant uptick in inquiries for international equity exposure, particularly in the Global Equity Franchise [19] Company Strategy and Development Direction - The company aims to expand its multi-asset class investment platform by enhancing distribution capabilities and aligning compensation to a sales orientation [9][28] - Focus on internal and external talent acquisition to build differentiated investment franchises, particularly in real estate, private credit, and secondaries [9][24] - The company is modernizing its vehicle lineup to adapt to evolving client preferences, including models, SMAs, ETFs, and private funds [31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of selling more and losing less, emphasizing the need for improved gross flows and reduced redemptions [9][28] - The outlook for expenses remains disciplined, with expectations for mid-single-digit growth in fixed expenses for 2025 [42] - Anticipation of approximately $900 million in mutual fund distributions in the fourth quarter, with performance fees projected to be similar to the previous year [14] Other Important Information - The company declared a quarterly dividend of $0.88 per share, a 21% increase over the prior quarter [14] - The balance sheet remains strong with $300 million in cash and $140 million in firm seed investments [13] Q&A Session Summary Question: Demand for Non-U.S. Strategies - Management noted growing demand in global mandates and direct international equity exposure, particularly in emerging markets, with significant interest from institutional clients [18][19] Question: M&A Opportunities - Management discussed active engagement in real estate and the potential for M&A, emphasizing that any acquisitions would not be transformative but rather align with the company's existing capabilities [21][24][25] Question: Improving Gross Flows - Management outlined efforts to enhance distribution, including doubling the field team and expanding into untapped markets like the U.K. and the Middle East [28][29] Question: Client Rebalancing Activity - Management reported significant rebalancing activity in the intermediate wealth space, impacting certain strategies but noted that these were not terminations [39][40] Question: Expense Outlook - Management confirmed expectations for fixed expense growth to remain in the mid-single digits for 2025, with no unusual changes anticipated [42]

Financial Data and Key Metrics Changes - Revenue growth of 7% compared to the previous quarter and 8% year-over-year, driven by strong market conditions and lower fixed expenses, leading to a margin expansion of 450 basis points [11] - Adjusted operating income increased by 22% compared to the prior quarter and 12% year-over-year [12] - Adjusted net income per adjusted share rose by 23% quarter-over-quarter and 11% year-over-year [12] Business Line Data and Key Metrics Changes - Assets under management (AUM) reached an all-time high of $181.3 billion, with net inflows in 14 of 26 investment strategies year-to-date [6][8] - The credit business saw $1.8 billion in year-to-date net inflows, marking the 13th consecutive quarter of positive credit flows [8] - Emerging markets strategies, including Sustainable Emerging Markets and Developing World, experienced positive inflows, indicating growing demand [8][20] Market Data and Key Metrics Changes - Strong performance in equities, with several strategies generating year-to-date returns exceeding 20%, outperforming benchmarks by 425 to 934 basis points [5] - The firm noted a significant uptick in inquiries for international equity exposure, particularly in the Global Equity Franchise [20] Company Strategy and Development Direction - The company aims to expand its multi-asset class investment platform by enhancing distribution capabilities and exploring new talent acquisition [9][10] - Focus on growing capabilities in private credit, real estate, and secondaries, with a methodical approach to M&A that aligns with the company's core values [25][26][35] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of improving gross flows and reducing redemptions, with ongoing efforts to align compensation with sales orientation [30] - The company anticipates approximately $900 million in mutual fund distributions in the fourth quarter, with performance fees projected to be similar to the previous year [15][39] Other Important Information - The Board of Directors declared a quarterly dividend of $0.88 per share, a 21% increase over the prior quarter [14] - The balance sheet remains strong with $300 million in cash and $140 million in firm seed investments [13] Q&A Session Summary Question: Demand for non-U.S. strategies - Management noted growing interest in global mandates and direct international equity exposure, particularly in emerging markets, with significant performance improvements driving renewed interest [20] Question: M&A allocation and philosophy - The company is actively exploring M&A opportunities, particularly in real estate, while emphasizing that any acquisitions will not be transformative but will align with existing capabilities [26][27] Question: Efforts to improve gross flows - Management discussed initiatives to enhance distribution, including doubling the field team and modernizing the vehicle lineup to better meet client preferences [30][33] Question: Client rebalancing activity - Management observed significant rebalancing activity among sophisticated clients, particularly in the intermediate wealth space, impacting certain equity strategies [40]