Merrill and Bank of America have introduced a private market program designed for ultra-wealthy customers.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.The Alts Expanded Access Program, aimed at ultra-high-net-wo ...

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2025 was $2.23, down from $2.38 in Q1 2024 but up from $2.12 in Q4 2024 [21] - Q1 2025 adjusted net revenue was $1.8 billion, a slight increase from Q1 2024 but down 3.6% from Q4 2024 [23] - Net outflows for the quarter were $8.6 billion, primarily driven by U.S. equities and rebalancing activity [21] Business Line Data and Key Metrics Changes - Target date franchise saw net inflows of $6.3 billion, led by blend products [22] - Fixed income had strong net inflows of $5.4 billion, mainly from institutional clients [22] - ETF business achieved net inflows of $3.26 billion, with eight ETFs each receiving over $100 million in inflows [22] Market Data and Key Metrics Changes - 99% of target date assets outperformed their peer group over three, five, and ten-year periods [10] - 60% of funds beat their peer groups across one, three, five, and ten-year timeframes [8] - Mixed results were observed in alternative portfolios, with private lending strategies generating the strongest gains [12] Company Strategy and Development Direction - The company is expanding its retirement solutions internationally, including partnerships in Japan and Korea [12][13] - Focus on enhancing ETF offerings and integrating strong equity research with hedging strategies [14] - Continued emphasis on managing expenses while investing in strategic initiatives [19] Management's Comments on Operating Environment and Future Outlook - Management acknowledged policy-driven market volatility affecting assets under management and revenues [7] - The outlook for 2025 remains largely unchanged, with expectations for improved flows relative to 2024 [58] - Management is optimistic about the growth potential in ETFs and private market alternatives [35][53] Other Important Information - The company maintains a strong balance sheet with $3.3 billion in cash and discretionary investments [19] - A quarterly dividend of $1.27 was announced, marking the 39th consecutive year of increases [19] - The company is recognized for its workplace culture and investment performance, receiving multiple accolades [16][17] Q&A Session Summary Question: ETF business growth and future opportunities - Management expressed excitement about the ETF business, highlighting strong performance and plans for future offerings [30][31] Question: Update on private lending and O Credit - Management noted $20 billion in private market alternatives, with O Credit seeing slower growth but potential for improvement [42][44] Question: Access to private market alternatives in retirement plans - Management indicated that private market alternatives will eventually gain access to defined contribution plans, but the timing is uncertain [48][53] Question: Flows and sales momentum outlook - Management reported that the flow outlook for the year is largely unchanged, with expectations for improvement in 2025 [58][61] Question: Fee rate dynamics - Management explained that the decrease in effective fee rate was driven by structural shifts towards lower-cost vehicles [65] Question: Expansion of retirement solutions outside the U.S. - Management detailed various international partnerships and the tailored approach to retirement solutions in different markets [72][75]

Financial Data and Key Metrics Changes - Adjusted earnings per share for Q1 2025 was $2.23, down from $2.38 in Q1 2024 but up from $2.12 in Q4 2024 [18] - Q1 2025 net outflows were $8.6 billion, primarily driven by U.S. equities and rebalancing activity [18] - Adjusted net revenue for Q1 2025 was $1.8 billion, marginally increasing from Q1 2024 but down 3.6% from Q4 2024 [20] - Adjusted operating expenses for Q1 2025 totaled $1.1 billion, a 7.4% increase from Q1 2024 [22] Business Line Data and Key Metrics Changes - Target date franchise had net inflows of $6.3 billion, led by blend products [19] - Fixed income saw strong net inflows of $5.4 billion, primarily from institutional clients [19] - ETF business achieved net inflows of $3.26 billion, with eight ETFs each having inflows over $100 million [20] Market Data and Key Metrics Changes - The effective fee rate for Q1 2025 was 40 basis points, declining from the prior quarter and Q1 2024 due to a mix shift in assets [21] - Equity assets under management decreased from 52% to 49% of total AUM, while fixed income and multi-asset increased [63] Company Strategy and Development Direction - The company is expanding its retirement strategies beyond the U.S., including partnerships in Japan and Korea [10][11] - Focus on enhancing ETF offerings and building a robust pipeline of new products [12][36] - The company aims to leverage its capabilities in private market alternatives to meet growing client demand [49][85] Management's Comments on Operating Environment and Future Outlook - Management acknowledged policy-driven market volatility impacting assets under management and revenues [6] - The outlook for 2025 remains largely unchanged, with expectations for improved flows relative to 2024 [55] - Management is cautious about the competitive landscape in private lending and alternative investments [40][46] Other Important Information - The company maintains a strong balance sheet with $3.3 billion in cash and discretionary investments [16] - A quarterly dividend of $1.27 was announced, marking the 39th consecutive year of increases [16] - The company is being thoughtful about controllable expenses while investing in strategic initiatives [16] Q&A Session Summary Question: Steps to drive ETF success and future opportunities - Management highlighted strong performance, scaling products, and investment in sales capabilities as keys to ETF success [28][30] Question: Update on private lending and investor appetite - Private market alternatives total approximately $20 billion, with OHA seeing $54 million in flows for the quarter [40] Question: Potential for alternative investments in U.S. retirement channels - Management believes there will eventually be access to private market alternatives in defined contribution plans [45] Question: Flows and sales momentum outlook - The flow outlook for the year is largely unchanged, with expectations for improvement relative to 2024 [55] Question: Fee rate dynamics and future expectations - The decrease in effective fee rate was driven by structural shifts towards lower-cost vehicles [62] Question: Capital allocation and inorganic growth opportunities - The company is considering share buybacks and M&A opportunities, particularly in private market alternatives [81][85]