Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with a record high of $153 billion in Bernstein Private Wealth [4][5] - Net revenues for the third quarter were $885 million, a 5% increase year-over-year, while adjusted earnings per unit rose 12% to $0.86 [25][26] - Total performance fees decreased by $6 million to approximately $20 million [25] - Adjusted operating income increased by 15% to $303 million, reflecting strong margin expansion of 290 basis points [28][34] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stood at $351 billion, while the retail platform reached $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [5][6] - Private markets generated nearly $3 billion in net inflows, with strong origination for investment-grade corporate and ABS private placements [6][8] - Active equities experienced outflows of over $6 billion, primarily due to growth-oriented redemptions [6][7] Market Data and Key Metrics Changes - The U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in the third quarter [11] - Emerging markets outperformed, while global developed equities underperformed the U.S. [11][12] - The firm observed a rebound in client flows into American Income, reflecting renewed interest in U.S. dollar-denominated assets [10] Company Strategy and Development Direction - The company is focused on expanding its third-party insurance asset management business and enhancing its leadership in global insurance asset management [8] - A strategic alliance with Equitable is expected to provide a competitive advantage, allowing the company to scale higher-fee, longer-dated private alternative strategies [9] - The firm aims to achieve $90 to $100 billion in private markets AUM by 2027, leveraging partnerships and expanding capabilities [24] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [11] - The company is optimistic about capturing market share in Asia, particularly in taxable fixed income, despite geopolitical tensions [46][47] - Management emphasized the importance of innovation in retirement planning, with a focus on custom target date funds and lifetime income solutions [17][18] Other Important Information - The company is lowering its non-compensation expense projection for the full year to $600 to $610 million, reflecting enhanced operational efficiency [27] - The effective tax rate for the third quarter was 6%, in line with full-year guidance [28] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re sidecar? - Management expressed excitement about the insurance asset management business and clarified that the timing of funding for Ruby Re has not changed, with positive results expected [37][41] Question: What is the current state of credit quality in private credit? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality, with manageable maturities and positive cash flow generation [42][44] Question: How is the Asia business performing post-trade conflicts? - Management reported improvement in the Asia business, particularly in taxable fixed income, with strong engagement from institutional clients [46][47] Question: What is the capital allocation strategy regarding buybacks? - Management indicated that the light buyback this quarter was due to timing and not related to Equitable, with plans to fund deferred compensation [58] Question: How is the company positioned to benefit from bond reallocations? - Management highlighted strong demand for taxable fixed income in Asia and noted the company's success in the tax-exempt SMA space, indicating readiness to capture market share [60][61]

Core Insights - Percent has launched Separately Managed Accounts (SMAs) focused on private credit investments, targeting asset-backed loans valued under $25 million, with expected risk-adjusted returns between low double digits and mid-teens [2][4] - The SMAs will charge an annualized management fee of approximately 1% and an additional fee of 10% of the coupon rate for included deals, with plans to lower the minimum net worth requirement for investors [3][4] - The private wealth channel has shown increasing interest in private credit investments due to higher-than-average yields in a rising interest rate environment, although recent market volatility has raised concerns about potential defaults [4] Company Strategy - Percent's platform aims to raise funds from retail investors, family offices, Registered Investment Advisors (RIAs), and credit funds for non-bank lenders, focusing on small business, consumer, and litigation loans [4][6] - The company has been providing customizable products known as "blended notes" and has transitioned these into the SMA program since early September [5] - Percent's CEO highlighted the opportunity for investors to gain additional diversification through under $25 million transactions, which can offer better returns with comparable risk levels [6]

Financial Data and Key Metrics Changes - The company's assets under management (AUM) ended the quarter at $1,610 billion, an increase from the prior quarter due to positive market impacts and strengthening flows, partially offset by long-term outflows at Western Asset Management [18][19] - Adjusted operating income was $378 million, flat from the prior quarter, driven by lower compensation expenses, offset by the impact of Western outflows and lower average AUM [34] Business Line Data and Key Metrics Changes - Long-term net outflows totaled $9.3 billion, representing a marked improvement from the prior quarter's outflows of $26.2 billion. Excluding Western Asset Management, long-term net inflows were $7.8 billion this quarter [19][20] - Multi-asset and alternatives generated another quarter of positive net flows, resulting in a combined $4.3 billion for the quarter, with multi-asset flows being positive for 16 consecutive quarters [20] - Fixed income net outflows improved to $13 billion this quarter, while excluding Western, fixed income net inflows were $3.5 billion, driven by Franklin Templeton fixed income and Brandywine Global [21][22] Market Data and Key Metrics Changes - The S&P 500 posted a recovery, rising 25% from its April lows and ending the quarter up nearly 11%, with large-cap growth stocks leading the recovery [9][10] - International markets outperformed the US, with the MSCI EAFE up 19% through June, aided by a weaker US dollar [10] Company Strategy and Development Direction - The company aims to manage local businesses combined with global scale, focusing on local investing and client needs, with approximately 30% of AUM in countries outside the US [8] - The company is committed to growing its global alternatives platform, with a recent agreement to acquire a majority interest in Apira Asset Management, expanding direct lending capabilities across Europe's lower middle market [24][25] Management's Comments on Operating Environment and Future Outlook - Management remains cautiously constructive on the outlook for the US equity market, citing solid fundamentals but caution due to geopolitical and policy uncertainties [11][12] - The company continues to expect at most one more rate cut by the Fed this year, with additional monetary easing possible should growth begin to deteriorate [14] Other Important Information - The company has seen cash management net inflows for four out of the last five quarters, with $2.7 billion in each of the last two quarters, increasing cash management AUM to $72 billion [23] - The ETF platform achieved its fifteenth consecutive quarter of positive net flows, attracting $4.3 billion and reaching a new high of $44.1 billion in AUM, reflecting a 19% growth from the prior quarter [28] Q&A Session Summary Question: Integration and Growth of Private Credit - Management emphasized the importance of integrating acquisitions like Apira into the broader private credit platform, aiming for a unified private credit group rather than standalone entities [37][40] Question: Tokenization's Economic Value Proposition - Management believes tokenization will fundamentally change the financial system, enhancing capabilities and reducing costs through blockchain technology [44][48] Question: Regulatory Conversations and Capital Deployment - Management reiterated the strength of their fixed income franchise and noted ongoing cooperation with regulators regarding Western Asset Management, while focusing on organic growth and share repurchases [51][56] Question: Outlook for Private Markets Growth - Management expects alternative fundraising to be in the range of $13 to $20 billion, with a focus on expanding the wealth channel and increasing distributor relationships [62][66]

Core Viewpoint - Trump Media and Technology Group Corp. (TMTG) has signed a binding agreement with Crypto.com and Yorkville America Digital to launch a series of exchange-traded funds (ETFs) under the Truth.Fi brand, marking a significant step in diversifying into financial services and digital assets [1][4]. Group 1: Partnership and Product Launch - The agreement follows a non-binding agreement signed in March, with Davis Polk & Wardwell LLP advising on the development and launch of the products [2]. - The ETFs will include digital assets and securities with a focus on American-made products across various industries, subject to regulatory approval, and are expected to launch later this year [3]. Group 2: Strategic Goals and Financial Commitment - TMTG aims to invest up to $250 million in the ETFs and Separately Managed Accounts (SMAs) using its own cash reserves, as part of its financial services and FinTech strategy [4]. - The partnership is expected to provide global distribution for the Trump Media ETFs, leveraging Crypto.com's platform [4]. Group 3: Company Background - TMTG operates Truth Social, a social media platform aimed at promoting free speech, and Truth+, a streaming platform focused on family-friendly content, alongside the new Truth.Fi financial services brand [5]. - Crypto.com, founded in 2016, has over 140 million customers and is recognized for its regulatory compliance and security in the cryptocurrency space [6]. - Yorkville America Digital specializes in branded investment products centered around digital assets and American businesses, catering to specific client needs [7].