Franklin Resources (BEN) 27 Jul 182018 Q3 Earnings call transcript

Company Profile

Participants

Greg Johnson	Chairman and CEO
Ken Lewis	CFO
Craig Siegenthaler	Credit Suisse
Bill Katz	Citi
Ken Worthington	JP Morgan
Michael Carrier	Bank of America Merrill Lynch
Dan Fannon	Jefferies
Brian Bedell	Deutsche Bank
Chris Harris	Wells Fargo
Robert Lee	KBW
Alex Blostein	Goldman Sachs
Michael Cyprys	Morgan Stanley

Call transcript

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Unidentified Company Representative

Good morning and welcome to Franklin Resources' Earnings Conference Call for the Quarter Ended March 31, 2018. Statements made in this conference call regarding Franklin Resources, Inc., which are not historical facts, are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from any future results expressed or implied by such forward-looking statements. These and other risks, uncertainties and other important factors are described in more detail in Franklin's recent filings with the Securities and Exchange Commission, including in the Risk Factors and MD&A sections of Franklin's most recent Form 10-K and 10-Q filings.

Operator

Good morning. and your Omar operator is name I'll call be today. My in time, mode. all this a participants At are listen-only [Operator Instructions] As recorded. a reminder, this conference is being this CEO, to Franklin like time, call At to over turn Resources' Mr. the and Chairman I'd Greg Johnson. Mr. you may begin. Johnson,

Greg Johnson

conference Hello today I’m by and CFO. joined our call. third Lewis, welcome our to quarter Ken

highest and the sales clear strong into flows and during performance in hybrid improved. our equity quarter, level equity US products some the driven growth While for persist growth years, within reached net number our investment a category. challenges funds by strategies very three US was the within demand of

to continue notably we offer the lower several options make Additionally, strategic in initiatives to progress with DCIO investors, to space. cost

operating quarter. on in Importantly, of revenue billion income generated strong operating million results remained the X.X with over of XXX

questions. continue to capital prioritize the We’d and a repurchase with quarterly the per share open now line quarter elevated dividend. to We regular your share $X.XX like activity in return to

Operator

comes Credit [Operator first Craig Suisse. Instructions] question Our from Siegenthaler,

Craig Siegenthaler

On wondering the page your terms I’m and AUM what’s I standpoint so see impact A economic revenues this share, of structures just remarks, adjusted based fee of you large share from EPS in is also A an earnings? the in or or estimated how X prepared

Ken Lewis

Yeah. I a have mean, I don't number. think we

think the we I adjusting and to share schedule of those of impact the side payout on competitive would impact. million it say, breakpoint selling being of where A dollar -- more on schedules be products we've seen It's would think the over assets. a be lot I it really lower in kind real duration brokerage would still be just the any competitive the nominal sales,

sales. this would a don't think we stage. strong just get anything at I is number it will if Hopefully So, that it adjust

Greg Johnson

increase a the increase, would thing. and and think, if then distribution We will it sales good line which increase does see is sales, Right. it revenue sales, you expense

Craig Siegenthaler

around know don't up remarks. this just yet my looks funded the not quarter? follow-up, trend next pulled but just it you then if pipeline one I like wondering the intentionally, commentary did prepared you And from institutional and as the and in guys did tax how pipeline I'm the

Ken Lewis

was pipeline to Well, how I the related question back -- last the the that quarter? think

Craig Siegenthaler

Yes.

did one funded pipeline how institutional trend So months now not current of yet versus the right mandates yet ago? the three

Ken Lewis

Yeah.

quarter. big example, management think, I win think, in our don't the I asset last for the local for we noted UK, that

in of I pretty say So it pipeline, that came came surprise, but the pipeline the was an pretty for, the for as would much we upside rest in much, expected.

Operator

Bill from comes question next Our Katz, Citi.

Bill Katz

So – first on background Appreciate some you expenses. question noise. just is that sorry,

it to the So the quarter side. relates on just the guidance, appreciate as G&A fourth

the So And lumpiness a is, year? close thinking now you’re where for it? articulated I growth guess so there how you you question that about first to part next spend? are like growth little of relative the is this is to rate the sounds to year, end the It of year, the then the

Ken Lewis

of kind Right. as the charges going expense was also there bit of there's there in were but There well. -- one-time a trends few in on G&A, a

we why gave that's So the guidance.

but there for process ’XX. fourth growth us year-over-year, relates the rate But we're Some is for under well. next probably I an quarter. forward target as think the it expenses in that early why of to revenue biggest versus the sub-advisory that try guidance you're offset giving expense, so I to to it's budget next driver that's our so ’XX seeing to and year, looking mean, to X% year, keep in the that's

Bill Katz

forward versus of you up where recently. repurchase of are within from announced the priorities of capital priority the plan? of buyback that in you just here, stepping just for buyback sort as the is more you And the then going overall is use stepped And mentioned sort returned, terms back, still the you think cap sort

Ken Lewis

some kind and capital that share this in we like of is was, had of there broaden continues was volume quarter. pretty with would returning would a repurchases. a factors to And I point related answer Yeah. we to share also that this the any to previous repurchases share was elevated say spike we the of repurchased quarter, priority. that, the to compared to cover I one during up a there quarter. be are, them couple There share part And the -- out, issuances shareholders M&A. repurchases quarter, shares big to opportunistic our of that be

priority. a elevated continues it So quarter, this little a but to be

Operator

question Our Worthington, Morgan. Ken from JP next comes

Ken Worthington

growth. to on to nothing kind that investors, acquisitions, of And but redirect the And the at and the is bunch returning you've transformational. conversation, a to of you you’re tremendous under time, but clearly same amount done I into would business cash, tremendous way opportunity better a follow-up got buy consider the you've pressure gives your capital or business return the

how about what the dividends? serious truly if buybacks opportunity transformational been a has are struggling in So, the room And the than to for arose cash board just and for more business? conversations something leveraging do

Greg Johnson

I you at priority on last the just from will fee continue advisory think the going when of is to that response use capital, the on growth balance sheet it's whether and know to put capital and all I the to think passive pressure pressure organic question with, bills, brokerage the that mention we mean look move for to M&A or I you on still challenges rates. to was that you're the add dead two and that Bill's I I think Ken’s to

and think growth that and as And ongoing, our more are of level dividends. and still channels the channels at of all we buybacks. number growth capital looking discussion buybacks priority in much priority that aspects in calls, be interested discussions, I board all make very the not one into those and looking past the obviously, in than invest to active the in said would and are, we just So

Ken Worthington

think the guys transformational guys smaller you of be arose, you term, business Franklin Like doing, guys taken long, big, done of better deals. is transformational long, big right opportunity in approach, you that using smaller deals battleship nudge evidenced under have kind would been the something since and but And deals approach? or of number do a been sort that the but time past, done to has consideration like transform guess, really longer you long have transactions? is maybe what If -- not deals, serious the been smaller been it's I it's they've transformational long by and a have so since big the

Greg Johnson

huge worth is where Franklin equity. to we continued as think do open scaling that mean to can't an you'll high up far Templeton are certainly it's far are what think, then scale maintain by we many businesses from two open I harder more investment think we today, we've something to organization who in we out transformational, think organizations net breadth again a as could business, whether continue We in bought a want I continue I challenging the businesses would more to we to we're that in as but as that I and change as size, a passive to in, is but alternatives past. do the of as transformational, places, we still be a in probably developing that other to I we’ll doing course, just think I are but organization, this between of bolt-on, in to see different very with are the do categories as they the company combining are organizations strategies continue priority also discussions those private but again the that and are whether like very and it's building Well, said the of those way. and duplicated that and I I up absolutely define significant products that ones offer when we're but that that's think But that. that, combining, the so a answer we difficult,

at. are all So looking things those we're

Operator

Bank Carrier, Merrill Our America of Lynch. next from question comes Michael

Michael Carrier

on rate. like bit one, was little a more little first there bit It fee Maybe of -- pressure quarter. the just seems a this

there some whether was on just it's pricing were playing more, was Just that shift, any that? into in vehicle wanted it were product the that or changes quarter get made other to sense,

Ken Lewis

were I and major not we're think one one-offs last just that there and of products. retail in quarter of but some shifts the didn't that any the -- weren’t that any simply factors major fee reductions quarter, was this really happen seeing

that of some some new pressure free think accounts accounts, significant. nothing on we're seeing in, there's the I coming but are for institutional

Greg Johnson

two were the or emerging down assets. the mix and if quarter, would probably look times counts that as just that to dollar I markets per at for X% they of And add three the you

on can that kind line as impact that have So move of well. an

Michael Carrier

investments just on then And on M&A the the front.

in have cycle, pricing past the that of guys a look from think or I the you you it's of are but timing valuations lot bit opportunities, like a also tougher. a said at

consequence how with of deteriorating. you on not paid that sense, longer-term sort you Just the of when those do get versus guys your flow through pursuing the the and to go continuing, cash much wanted math the outflows maybe calculation, being the focus price

how to on, into wanted factor the rate potentially much current, doing Just K get the perspective is maybe your something.

Greg Johnson

you is will, think, acquisition Well, every if target, I every potential bespoke.

can it's the improve think would presents that. et at don't net of at or it it Or -- look that investment course set we improve aggregate where a in cetera. I and flows and flows, but potential say, be certain we capabilities, think opportunity will a all look -- oh, product improved our sector and that So, M&A target we we include

I case-by-case answers but don't know that analysis. question, basically, it's So, I your a if think,

Ken Lewis

that say probably the think I And out best just stock foremost, is still buy there. would and we first our

do undergoing, where growth of of think, to -- rate on these pressures are think cycle, seeing the we XX-year I of flows. mitigate spread rising we've of that environment, kind strength can that of that growth, value different we that the think the some dollar, all value current the we’re a we're things continue we'll the in the pressure market, So the versus don't the, and I

So don't forever. think I think that that's, that's we

you to area that the we look your let's at I and multiple how obviously, grow one, get quickly. pay -- to question smaller can a a there to start change higher we So that on have and business. an think exposure you to pricing, can acquisitions But

very I market multiples out next deals such works becomes the few gets you're and when in how that in factor at think, more a looking high it larger years. then difficult at the

talent expensive, quality organization. So up when but and people also willing recognize you expensive, pay times, to are for when at we purchase in that's to things that opportunities we're it's have

certainly we're scale can that if we think to that think I pay business So open, market above a it's multiples.

Operator

Fannon, Jefferies. Dan from comes question next Our

Dan Fannon

know little I deal, X.X% more assume a the I to of part in future opportunities for pick at, quarter as fourth the kind in about, that's of growth. I of the some you're and in you're of, with look sequentially. areas kind up but of like headcount, going, guess in spending dollars growth next went of terms whatever I look is bit are growth, guess you assume, the the on what happening you in X% investing I those most could kind talk if areas and up year just we where for numbers

Greg Johnson

something significant well as right acquisition find there are the has we products new the be and to would the been, headcount business increased has be, as ETF Well, certainly the ETFs the and distribution the channels that’s that new and build that, would that areas overall. us organically would in I separate on do, and think first, bolt headcount key if line we grow but for

houses talked in another asset a revamped a was of planning consultative distribution changing Stock to what required resources. the allocation, talent having Solutions is priority quite there. the That of institutional our we've US, switching landscape We’ve channelization us retirement we've a glide product the really been has more the reconfigured planning business your approach. to on all headcount priority the and retail multi grow distribution target part selling having have wire our funds Exchange focusing entire a about, and that tactical and added institutional side a is products more of and of that just date, from side. additional area and side the New traditional The with we've having path, has for in York brokerage added better bit asset and

more areas of think areas there's where a find added We at we’ve we’ve I where of four been savings other headcount. that's really probably the headcount invested spent areas, and So dollars lot can or in type incremental but of higher three hopefully. cost

Ken Lewis

seeing we've I in we forecasted through enterprise, technology ago Ken. also been numbers. our would the -- come been and years is you're This add increasing across investment we've that the

Dan Fannon

that, the broker a And the in context ’XX. recommended like, follow-up or XX just dealer I is some placements then fiscal what you comments this channels to of basis. of where can what about means guess, kind on list get from or what's prepared was year of hard it the across a give to, the that us trying a year to it ago, you're it's I sense standalone guess, get a bogey

Greg Johnson

have -- don't give I you really to that numbers that those context.

get really was goals is targets of our specific and think and -- we product that I set was to tried it to targets one that placement.

the it get have in turn coming funds, in when more are out what but place you'll again home of And, the mean could to when styles and now. for, the think we've are to you don't that favor plan or but of to getting that importance, the brokerage metric we We in in is better that bringing flows set that also assets, a assets know want looking -- it's people it that fee need be suddenly value from have all number other platforms made give there the or and office. right building market that that pipeline investment it really out your I relationships way set hit on means be you side, that, you and does for whether or consultants necessarily product that to doesn't it some the to just speaks the that goal for terms be a what, team on and base, we year. on three of that was you really platform helps a platform, retain in them, moving I they we the how quarters many it's of it when through

Operator

from comes question Deutsche Bank. next Our Bedell, Brian

Brian Bedell

global little about about of thinking either equities broad acquisition Templeton Equity the Greg, the bit with product? in strategy Maybe, the change this if or the you the you're Does Partners. talk could franchise a franchise managing in Edinburgh Global Templeton delivering how

Greg Johnson

No. It really doesn't.

has sub -- Edinburgh to that value little it Act XX that with assets pricing us it more funds, where allows done think flexibility building channel in to be good to relationships price with bit I a so a gives Templeton advisory a side. existing able us the wouldn't job, the new distribute

our than there accessing the can the of only the having distribution other And growing side. Templeton distribution well, we Templeton overall highly that. the a think of and do the person helpful I one Sandy combination a respected resource we the on to entities is to think don't standalone side there's industry, Nairn, we the who side, in there's in other I that helping no think know plans, sub-advisory with be benefit channel leverage we plans having that think Sandy of any do but just benefit with with any can

Brian Bedell

Right.

kind of transformational leveraging capabilities, that a and any move? more rather than extra of bolt-on So

Greg Johnson

Exactly.

Brian Bedell

Ken, expenses. then on just, one And

sure this Just I had make wanted correct. to

the was for this I X.X% and top about of am correct for X.X base of that? guidance an think if fiscal expense expense year, I'm correct the billion, me, growth I is on that

Ken Lewis

You are.

Operator

Our next Chris from Wells comes Fargo. question Harris,

Chris Harris

been basis. guys Asia? least Can growing trends for a that’s an you at the in on guys the been one you're talk seeing little region That's about you fastest, bit AUM the

you also the can that, up China maybe down an seeing? restrictions And for So you're Franklin the elaborate loosening opportunity then to is related what on road?

Greg Johnson

tough look for still areas be inflows the world, think are that distribution I the traditional having all, the our if net environment of first continues our strengths. in you Asia at -- mean, a to around I

and like to think that markets are I and positive generating India sales. So continue grow Taiwan

to our there. China think intent that's out and I We have on question in to happen, think clarity you think partners then when have discussions minority distribution do owner on our JV the I become And exact in to put on, of intention enables having that that, majority the that. that building allow we but control further they been announced don't with resources always once are to owner. the I you have your will

a now from everything on right So, a that, to that I is giving pattern the that of that. expect with that. be clarity months XX everything on holding we've around trade be but within think I to don't some probably issues see do little of heard, expect we bit to able we'd

Operator

from comes question next Our KBW. Robert Lee,

Robert Lee

small, and types little mean have your otherwise some about a investments future in a talked capital how past you see you've a thinking distribution you've and place acquired strategic a on some maybe bit companies. on and digital you investments, strategy of deals, bit at management made update competitors mean, for I for digital, and various could in digital made strategy different Franklin, up M&A? have little that but you the a of do I following us path investments strategic down for a go Maybe of, Can you're is possible

Greg Johnson

very need, if quarter it a it's Yeah, continuing and probably a don't of to we're strategy on, I the we doing know market a are path world are our think where markets some India the around we a way of a that like it's efficient doing in business in direct. develop direct there I absolutely in

that building out. been we've So

customizing think working things I top to M&A think on we've service tool, simple. those all piece levels, on robo digital that the The it. and fairly people got I do is of are need don't actively. we capabilities

trust is before, the an high robos financial that looking different companies around tools there. do that at advisor net leveraging fiduciary some in said we investment have world, like different As are worth we

we came are just accounts record on some could through of there service of a be no a it and we developing, at experimenting of that would channels and accounts service better mutual lot makes direct, are have way robo still we or have with some series a -- stage, it XX accounts to various this and where billion So type those that advisor that think so sense.

we’ll most think firms, how we other but direct them clients, that goal, well longer as about it's serve the out. help US I we're is thoughtful also be So going thinking for the about more with think first technology accounts provide more foremost, those the that's efficiently to markets, how tools advisor, like service that help term and first better distribution, and whether then so in can to we we partner roll or

Ken Lewis

just area that an expenses I would that’s so And been the expense is add that investing increasing and we've that growth. been part in, of

Robert Lee

country then been maybe as your for follow-up, low at it's stand just like while, you've And and expectations, on do a kind you strategy mean, update where ETF feel us now my kind that mean, can I update. of I that does so start with, initiative? of meeting specific particularly progress it you Great. you now cost the your it

Greg Johnson

Yeah.

it's think of distribution. out are strategies in I today. range in in roughly think billion rolling it's moving we these along, still of And terms I of probably the X.X many early

Our been to goal has get on platforms.

but We take on or may platforms, make three take seems new we're to every on, some faster. a continue bit every years -- just month being and approved to little get quarter, can there we -- progress get others like on

are bit actually growth and So, at recognize, grow, support just channel had seeing to the to campaign of but we this a decent institutional. the And date grow RA and little progress one we June, a at of I targeted stage. been in take sales kind think will that time awareness has we good to

quarter. So, compressed digital, ETFs launched ETFs we three ads through et we’re cetera and active print also marketing and and last and advertisement,

Operator

next Sachs. question Goldman comes Blostein, from Our Alex

Alex Blostein

expand retail unfolding UK presence it's focusing materially, this priority is retail of for the the distribution to the and as if a this Question some you more broadly changes not guess a know there still past. specifically for in know US regarding of structural of non much? an number I market, I been market. to you where UK a but haven't had area given in you try or I on guys lot changes don't

Greg Johnson

around it's a the market say plenty past, in core I equities, one our again market. that there global global -- that one and to were would priority that have identified strengths I think in that that we equities we of felt

we size but in, think changes, really a for So potential the it's still at resources what us. of didn't market the I now, we and that one I put lot think of the look what

effort that there So a strong into market more it hire and that that made we're putting we a is market. to resources run

make more changes a sales So of despite the just argue I market too us ignore. big think of to difficult, that it’s little a could retail the bit some one for

with last very And win, and we So got we've local in quarter, I successful billion, institutional and there have $X that again as UK strength we building that our local been performance over think are manager an equities. in of which mentioned, validates very we the strong the just team.

Alex Blostein

And just a follow-up expenses. question around

a So to heard as an faster help toward downturn, of ’XX, comments the able us areas. near guess on, to growing started some back you of you're the obviously your kind term what pivot granted you would event through I of can I our think think you scale to trying business be but and in in about

you tougher if a base flexibility would need what prolonged back from, are markets? some to the of So where in we the things period would expense more pull of and be see

Ken Lewis

address of One, ways. downturns in will had the can I reacted. -- and you two see past Yeah. can we've how kind that kind these of you

the that. look operations panning don't my year trying the is in we've minimal, of flexibility, flexibility. that call but that growth to next at to we we and have a of to performing and level level had if wouldn't we that if there's in about that I part want maybe out benefit we we to of made all we But do of it, don't to that that needed investments -- do we're past and the see it, talking part aren't process service incorporated expense into think -- do keep the it, certain

because where do guidance at areas So see savings savings the can to be above processes services. create we're that fund but we to incremental actual through also things gave all and growth outdated some can we reinvest we I you, the from want the new that we that into to want of looking X%

Operator

Michael next Our question Cyprys, from Morgan comes Stanley.

Michael Cyprys

to wanted on up Just follow M&A.

out we cycle or hold kind anything the into As a if there, hesitation, sort And the point, gotten if view does back what better of this a opportunities cycle hesitation, term in you as that close sort the of largest of a of of term acquisitions so versus it factor in how think you near maybe and you as for happened? do where on get on bit any consideration M&A, and then price? balance and be patient purchase price, think about the of better is kind there a about to side you a return a at are, medium is of more sort the on what’s have price of you terms wait

Greg Johnson

quarter, Well, I like so obviously last all, think, of scale. not not the we it's of we're although first two close did deals anything, doing not

-- tie a in been talking can if if to that's that. as number resources as I only think, at multiple much you we capacity for even partners, up close of we’re we a You're have and to and about, active be it's bit so have deals looking take going working

be of to culture. think are business, be So right think not out. of the We're not fit, concerned is price the a the factors, right what always going one. -- could I just above, cycle that's It it's is all all not about mean, the in in stands but anyone course. we we where don't consideration I

in that think in it's I we're got opportunity going again, organization, answer in that we've quality need for we we that. to to area be up an an As if pay bring a earlier said and to

bring gee, to -- I try are -- isn't any best it and can term long or we that has don't be accretive much. be, would think those in that be So the says, number hopefully factors and have to going one overpaying year to just we're it too can't in set don't

Ken Lewis

we could but of get an As we having strong that if Greg opportunity benefit just sense, always that's factor, mentioned, is that price sheet a balance a makes strategic we see it. the think

Michael Cyprys

And capabilities I equity that a your building how that organically, just alternative quick if follow little see can you're there? as some progressing, building you, could business, I a think have that's of about talk private out a heard were what just may suggestions up, and bit we on you the next more

Greg Johnson

Yeah.

I think is, the in in -- it with and areas the for we've of part for private the really been and us, that Templeton it's we've side while, other US a the developed equity private growth, sense that here Valley opportunities analysts made having that markets, private just build one then to the side. relationships of seeing said strong a on start it a lot in Silicon and we just That's business.

it of we're and And location is to fund, that think made analyst recognize to the private but looking and Mateo. our that partners investors just, outside we're that some there know, that. very on technology trying in strength here first not It's also of side buy that in take equity advantage here we're sense at big data has significant hard to go I our -- doing to and a our and firm. San out, in a go have bringing million, AI and XX Valley I fund strength the as and think access do team you big the the we're the at

to but entertain we think building came it there right want I do. we see think difficult, would building and again, organically, -- extremely situation just that's that, is the if that that's time up, I what taking we strong records

we of you side, like strong the KX, had quarter. extremely earlier alternative we the quarter, Whenever that, did an disruption The we talk the market in didn't about other the but kind in a see they've basis on category the basis and alternative well. win a had interest major a results flow tend on had a strong quarter to last very relative see in strong and as and

larger business real that's on looking we're that. categories M&A then And that side, grow. we'd the that alternatives estate build another So continues the the at like to within other within group to

looking So something we've going that's and at that an category. been be certainly recognize deals to that's important that

Operator

Our Brian Deutsche comes next Bank. question from Bedell,

Brian Bedell

to was couple that wanted Just a of come back made. to comment

it terms On the it strictly like sounds would in deals, balance of you will cash. M&A, looking be, for sheet, in doing be any

just on an as the on you so to update current acquisition, ETF balance maybe transformative cash then sheet. a you view mentioned acquisitions, there? relative building the you And potentially franchise your consider So ETF footprint would us what also given large through excess

Ken Lewis

debt, we it’s had We net about billion we for that, see. let’s need internal as disclosed, net about so of about billion. X.X X.X requirements, uses, cash, regulatory So leaves that think we billion X and

purchase other a we was, The question transformative ETF? large would

Greg Johnson

would many there, consider the but There's of be them we to would idea. certainly We it. open not out

Brian Bedell

deck, trust transitioning sales And getting area in or trust the you growing that trust you structures DTIO? area. of collective in to fund what then AUM of in are strategy and or mutual at with and collective mentioned obviously least, actually collective is sort size Can sort in collective your new either also trust just extent, you the the assets to

Greg Johnson

do I flexibility you know, the what right now, and pricing, trust collective of we an think in we I the can billion have RX it's class. like X as think

and a more alternative strong XX trusts, the that find to your Act and cost flexibility solutions lower we suited forty and than well a group, combining the it's fund. be channel, flexible just very retirement of on a within using do fees this within the it's also building So pressure vehicle, to

existing seen existing us strategic So DCIO channel funds the specially we have with those interest partnership and -- another to firm on have and already allows built play that kind an platform. into plug of there, strong

sure that I I'm was working and XX DCIO or now XX probability billion like So that. something right that. group on the like the pipeline. our is I what of they've the not felt within in identified But but like channel, billion, itself trillion think, market X that obviously, retirement there the think

Brian Bedell

a switches formation was then fund? that portion to And Templeton just it billion, unusual X or Franklin money is mostly good new your from that the in of of own

Greg Johnson

Templeton. while No. its vehicle a been that side for we for use money of Most institutional there that's the with that

to interest now competitive within seem growth be is incremental the where we're existed, a the funds is have structure group opportunity lot the just but what really a those getting channel of we the, DCIO our is So, there. have and pricing excited to seeing more about

Brian Bedell

So about seen everything, flow other lot have could on July if any we've if with and just outflows, and I in them are companies markets from come of you hearing give teams flavor appetite lumpy advisors net can you mean, obviously, retail possible? environment talk maybe a maybe in uncertainty the kind funds sales the July, of of your the the But in characterize if from financial early outlook maybe July for what it’s us a flow, for terms trade sources.

Greg Johnson

remarks any I of other shift made. to don't the some have seeing that this at color with stage, much offer think we're Yeah. significant there. probably I don't been but have consistent

Operator

Our next question comes from [indiscernible], Evercore ISI.

Unidentified Analyst

maybe getting as back as far you are going number flip you list and the placements, about general? funds, off can that in what seeing the recommended the on Just for to funds consolidated guys you and industry gross XX side, is list a talk like

Greg Johnson

Yeah.

think if number not how it's as probably placements on advisory I have sure those. you getting net, you it's and far platform would as gross a I'm new that a new really

it's absolutely that they up moved, to even because really not why statistic, so has I and keep get advisory is on, new share it's that's downside, the greater not when not open went on meaningful competing more as and list I'm if on advisory. of go old you're or could a to it, opportunity with the new access a -- from vulnerable there, of off before, of the these that, it, you we really it's on you're assets who because and move it set or off, you you if know the the you're everybody had brokerage sure funds, their list we you're are architecture because right, narrowing you're to argue, but they if how platform all once important and you'd redemptions to and new most think to it that, available on are what's a it's funnel, that a it's get you lists if calculate thousands

Operator

from Bill Our comes Katz, next question Citi.

Bill Katz

And within ahead? be you that pricing? share, as the in of in three business your what’s and economic of are then And like versus where are the so realign on that then to yourselves, A now you into you sort peers as remaining US? terms stand much the impact better B flowing where part advisory of and now the exposure if terms you successful A, you've you are right How sort shift, look do brokerage to in class question. share of So C repriced -- a the

Greg Johnson

it's there's all, at competitive when was make in sales. effective -- next pricing and effect. cost, fiscal if the, a that economic impact, we go was look if to it's it's of the cost to year, it'll we competitors it of results So, And Certainly, the just the our hard the a increased only it sure but into with first pricing quantify. be terms in will effective,

good a thing that's to have. So

distribution see have expense we’ll assets and the a increased So up result. management you'll as under sales go and line

Ken Lewis

adopted just And more a, pricing part, to being consistent even their to model of some or was consistent trying a as brokerage of it adopted get model. it

we because within example, and of for outlier new the XX class have were have at on to the had to move -- advisors XXBX had with funds pricing just we our would an to them that a that some that's make standard XX lower that we've asset that. For class certain

but that impact of think better don't -- impact an material than on to don't it's financially and while and tickets some structures there. more because don't exact hopefully just that dollar said sales. I I have just going other and have tweaks think really an number, It's any a sales, have just it's million material payout the really as new we for And I in leads earlier won't doesn't pricing to be that a call, change larger the there a and generating repricing way. that around flexibility hopefully the So within

Operator

the we session. question-and-answer end of Ladies and have gentlemen, reached the

back the to closing Mr. for like turn to would call Johnson I Now, remarks.

Greg Johnson

Well, thank to you you. Thank speaking again for everybody attending today's call and forward we quarter. next look

Operator

conference. This concludes today's

your participation. this for You time. lines at may Thank your you disconnect

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