Financial Data and Key Metrics Changes - Total client assets increased by 76% quarter over quarter, reaching over $300 billion, a record high for quarter end [4] - Adjusted EBITDA was $179 million, equating to an adjusted EBITDA margin of 50.8%, slightly higher than anticipated [5][15] - Revenue increased to $351.2 million, up 60% from the first quarter [13] - Adjusted net income with tax benefit rose to $133 million or $1.57 per diluted share [5][15] - Net leverage ratio improved to 1.2 times, the lowest level since the initial IPO [16][24] Business Line Data and Key Metrics Changes - Gross long-term flows accelerated to $15.4 billion, with net outflows at $660 million, marking the third consecutive quarter of improving long-term flows [4][19] - The ETF platform posted positive net flows of over $4 billion in the first half of the year, bringing ETF assets under management to $15 billion, up nearly 90% from the same time last year [8] - The company achieved $70 million of net expense synergies on a run rate basis, representing nearly two-thirds of the expected total of $110 million [7][20] Market Data and Key Metrics Changes - The company is now managing assets for investors in 60 countries, with over 16% of total client assets from non-U.S. investors [17][45] - The integration of the Pioneer Investments business is progressing well, enhancing diversification across channels and asset classes [6][17] Company Strategy and Development Direction - The company is focused on expanding its product range, launching new ETFs, and enhancing its global distribution capabilities through the partnership with Amundi [6][10][41] - The Board authorized an increase in the share repurchase plan from $200 million to $500 million, indicating confidence in future growth prospects [12][16] - The company is actively evaluating potential acquisition opportunities, anticipating industry consolidation to accelerate in the coming years [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current trajectory and underlying momentum in several products, particularly in fixed income and global equity [4][6] - The company aims to grow organically and is in the best position in its history to achieve this, despite industry headwinds [55][57] - Management noted that the integration of sales teams is ongoing, with expectations for continued improvement in sales efforts [70][72] Other Important Information - The company closed its Newbridge, SOFAS, and THB investment franchises, managing less than $1 billion of AUM, to allocate more resources to growth areas [11] - The effective tax rate for the quarter was 32.5%, with a normal effective tax rate expected to be approximately 25% going forward [22] Q&A Session Summary Question: Can you provide insight into the nonrecurring expenses and how quickly they will wind down? - Management indicated that $53 million of acquisition-related costs were incurred, with $26 million being one-time deal-related expenses that will not recur [28][30] Question: How does the fixed income product set fit into the current market environment? - Management expressed confidence in their fixed income capabilities, stating that they have a strong product set for various market conditions and expect growth in this area [34][36] Question: What are the expectations for non-U.S. distribution and product launches? - Management highlighted the strategic partnership with Amundi, which allows for selling products outside the U.S., and anticipates significant growth in this area [40][45] Question: What is the outlook for organic growth and flows? - Management noted improvements in net outflows and gross flows, emphasizing their goal to grow organically and invest in distribution efforts [55][57] Question: Can you specify the benefit from one-time performance fees? - Management stated that it is difficult to quantify the exact benefit from one-time fees, but various positive factors contributed to the improved fee rate [58][66]