John Dunn

John Dunn asked for more detail on the geographic sourcing of subscriptions, specifically which non-U.S. regions are driving demand and for what particular strategies, given that two-thirds of fundraising was non-U.S. He then inquired about any changes in discussions, interest, or concerns regarding private credit exposures in the wealth channel, beyond software, given recent headlines.

Answer

Scott Hart (Partner and CEO) identified Asia (Singapore, Japan, Korea) and Europe (Germany, Nordics) as major drivers in the last quarter, with the Middle East also significant over the last 12 months, noting variations by asset class. He acknowledged the need to contend with headlines regarding private credit but stated that StepStone has not seen a pickup in redemptions for funds like CredEx, attributing interest to their multi-manager approach and highly diversified portfolios.

John Dunn of Evercore ISI also inquired about the private credit offerings in the Wealth Channel, asking if there have been any changes in discussions, interest, or concerns regarding exposures other than software.

Answer

Scott Hart, Partner and CEO, acknowledged industry headlines regarding private credit but stated that StepStone Group has not seen a significant pickup in redemptions for funds like CredEx, being early in its syndicate build. He attributed continued interest to their multi-manager approach and highly diversified portfolios, where largest positions are typically sub-1%.

John Dunn asked for an update on the geographical and strategy mix of recent fundraising. He also requested an outlook on capital markets activity and the demand for private equity.

Answer

CEO Scott Hart highlighted Australia and the Middle East as particularly strong fundraising regions in Q1, with private credit and infrastructure as the leading strategies. Over the last twelve months, fundraising was balanced across all four asset classes. Regarding the market, Hart noted that the investment pace is now expected to be in line with last year, and while realization activity is recovering, seller price discipline may temper the overall volume of transactions.

John Dunn inquired about the composition and expected timing of Acadian Asset Management's institutional pipeline for 2026, following its robust performance. He also asked about current investment areas and potential changes to fixed expense line items over the year.

Answer

President and CEO Kelly Young highlighted the pipeline's diversity across product types (enhanced, extension, emerging markets), geographies, and vehicle types, noting continued strong interest in enhanced and extension strategies, and a resurgence in EM. CFO Scott Hynes added that the pipeline levels have been remarkably durable and refilled even after significant client wins. Regarding investments, Scott Hynes stated a bullish outlook on generating positive operating leverage, with key investments in systematic credit (people) and technology (data, AI for research). He emphasized ongoing investments in growth areas without expecting a 'step change' in fixed expenses, confident in self-funding these initiatives.

John Dunn asked about the composition and expected timing of Acadian Asset Management Inc.'s institutional pipeline for 2026, as well as current investment areas and potential changes in fixed expense line items.

Answer

CEO Kelly Young explained that the pipeline is diverse across product types (enhanced, extension, emerging markets), geographies (North America, international), and vehicle types, with continued interest in enhanced and extension strategies, and a resurgence in emerging markets. CFO Scott Hynes added that the pipeline levels have been remarkably durable and refilled even after significant client wins. Scott Hynes also detailed investment areas, including systematic credit (dedicated salespeople) and technology (data, AI), emphasizing the company's ability to generate positive operating leverage and self-fund these initiatives without major step changes in fixed expenses.

John Dunn of Evercore ISI questioned if Acadian is exploring new distribution channels or vehicles to expand its business and asked about the factors influencing the management fee rate, along with its outlook for the second half of the year.

Answer

CEO Kelly Young explained that current product initiatives are well-suited for both traditional institutional clients and newer channels like wealth and sub-advisory. She also mentioned expanding vehicle offerings like CITs. CFO Scott Hynes described the fee rate as dynamic, influenced by market conditions and product mix. He noted that while a large enhanced equity win impacted the current quarter's rate, the pipeline contains a mix of strategies with varying fee profiles.

John Dunn asked about the expected seasonality for the private wealth business throughout the year and the specific areas anticipated to drive flow demand.

Answer

Onur Erzan, President of AllianceBernstein, noted that the second quarter typically sees tax-related seasonality, with potential slight softness in August due to holidays. Key drivers for new client acquisition and flow demand include robust M&A activity leading to business owner and entrepreneur exits, which benefits AB's ultra-high net worth proposition.

John Dunn with Evercore ISI asked about the outlook for high-yield funds distributed in Asia, including macro factors and specific demand influences, and also inquired about the expected seasonality and key demand drivers for the Private Wealth business.

Answer

AllianceBernstein President Onur Erzan explained that macro factors like FX risk and rate outlook are navigated in Asia, noting no dramatic structural demand impact. He highlighted positives such as the globalizing ETF franchise, a successful high-yield fund IPO in Taiwan, and relaxed regulatory constraints in Taiwan. For Private Wealth, he noted the Q2 tax impact as the biggest seasonal factor and emphasized robust M&A activity driving new ultra-high net worth client acquisition.

John Dunn asked about the investor profile for AllianceBernstein's successful equity areas, such as structured equities, strategic core, and thematic investments. He also inquired about the pipeline outlook, specifically regarding its potential to return to last quarter's levels and its current composition.

Answer

Onur Erzan, Global Head of Private Wealth, Alternatives and Distribution, described structured equity investors as large Asian institutional, thematic products like healthcare attracting large European high-net-worth clients, and 'Security of the Future' driven by a large global private bank, indicating a global and balanced mix. Regarding the pipeline, Onur highlighted fast deployment, $3 billion added in Q3, and $15 billion in private credit dry powder not fully reflected. Seth Bernstein, President and CEO, added that FCA REIT is not yet included in the pipeline and noted the lumpy nature of large customized retirement solutions.

John Dunn inquired about the outlook for AllianceBernstein's pipeline, specifically efforts to restore it to previous levels and its current composition.

Answer

Onur Erzan (Global Head of Private Wealth, Alternatives and Distribution) noted that while the pipeline decreased due to fast deployments and Reinsurance Group of America dynamics, $3 billion was added, and there's $15 billion in dry powder in the private credit platform not fully reflected. Seth Bernstein (President and CEO) added that FCA REIT is not yet included, and large customized retirement solutions can cause lumpiness in pipeline reporting.

John Dunn of Evercore ISI asked about the expected funding timeline for the large institutional pipeline and the key drivers behind demand for the American Income portfolio.

Answer

Onur Erzan, Head of Global Client Group, stated that institutional mandates typically take 12-15 months to fund, but the current pipeline may have a higher velocity due to the RGA transaction. Regarding the American Income portfolio, he and CEO Seth Bernstein noted that demand was hit by Q2 macro turbulence and a weaker dollar but has shown signs of stabilization and positive flows in July as market conditions normalized.

John Dunn asked for more detail on the institutional pipeline, including the 'temperature' of different business segments and geographic risk appetites. He also questioned if there were any signs of non-U.S. investors, particularly in Japan, avoiding U.S. equities.

Answer

Onur Erzan, Head of Global Client Group and Private Wealth, reported a strong institutional pipeline driven by fixed income, particularly from insurance clients and new systematic fixed income mandates in Europe. He also noted strong client interest in asset-based finance and in underallocated equity areas like EM and value. Regarding non-U.S. investors, Mr. Erzan stated that AB has not seen a broad trend of investors avoiding U.S. stocks in its core geographies like Japan.

John Dunn asked for details on the scaling of active ETFs, the target investor profile, and which non-Japanese regions are showing demand for U.S. growth equities.

Answer

Onur Erzan, Head of Global Client Group, reported that AB has 17 active ETFs with $5.5B in AUM, with six funds exceeding $0.5B each. He noted strong traction in the RIA channel and that future expansion could include Asia and new domestic products in emerging markets and fixed income. For U.S. growth equity demand, he highlighted success in Europe, specifically in the U.K., Italy, and Spain, through partnerships with regional banks.

John Dunn asked for an update on the firm's business with third-party insurers and its outlook. He also inquired about the flow outlook for the Private Wealth channel and which areas are expected to see inflows.

Answer

Onur Erzan, Head of Global Client Group and Private Wealth, described accelerated momentum in the third-party insurance channel, citing new wins and investments in dedicated resources. CEO Seth Bernstein noted this interest extends to Europe and Asia. Regarding Private Wealth, Matthew Bass, Head of Private Alternatives, explained that lower rates and increased M&A activity are positive drivers for flows from business owners.

John Dunn (Evercore ISI) sought an update on the demand and interest for Artisan Partners' non-U.S. strategies, given their significant contribution to the firm's AUM. He also inquired about the regional puts and takes for institutional flows, specifically in the U.S. versus non-U.S. markets.

Answer

Jason Gottlieb (CEO) identified key growth areas including the re-emergence of emerging markets allocations (a campaign raised over $1 billion in 5+ months), strong performance in global and international equity franchises (e.g., Global Value, Global Equity, Mark Yockey's international strategy), continued growth in credit solutions (custom credit, floating rate fund, EMsights), and expansion in alternatives (Grandview, Global Unconstrained, Credit Opportunities). For institutional flows, Gottlieb noted Europe as potentially more challenging due to regulatory changes and short-term performance in global growth strategies, while the U.S. market appears more favorable, particularly for emerging markets and credit.

John Dunn (Evercore ISI) sought an update on interest and demand for Artisan Partners' non-U.S. strategies, given their significant AUM contribution. He also asked for insights into institutional flow dynamics by region, specifically the "puts and takes" looking forward.

Answer

CEO Jason A. Gottlieb identified four key areas: re-emerging demand for emerging markets (a campaign generated over $1 billion in net flows across four strategies in 5+ months), strong performance and engagement in international and global markets (e.g., Global Value, Global Equity, International Equity), continued growth in credit (High Income custom solutions, Floating Rate Fund, EMsights), and expansion in alternatives (Grandview, Global Unconstrained, Credit Opportunities). He noted higher institutional risk in Europe due to regulatory changes and global growth strategy performance, while the U.S. institutional market appears more favorable, particularly for emerging markets and credit.

John Dunn from Evercore asked for more details on two recently won institutional mandates, including funding timing, and sought insights into the current sentiment and demand from institutional clients, both domestically and internationally.

Answer

Executive Chair Eric Colson explained that institutional interest is strong in emerging markets, particularly for the M Sites team and the Developing World strategy. He noted that institutional clients are cautious, leaning towards credit due to market uncertainty and dealing with illiquid allocations. He mentioned that gross flows were muted this quarter, signaling a risk-aware environment, and did not see any specific geographic trends causing concern.

John Dunn from Evercore ISI asked about the impact of recent market movements on strategy capacity and inquired about the M&A environment, specifically regarding team lift-outs and smaller firms seeking better distribution.

Answer

President Jason Gottlieb stated that while some strategies remain soft-closed, there is potential for capacity to open in the near future due to market dislocations. Regarding M&A, he confirmed a high level of activity and opportunity, particularly due to market volatility. However, he emphasized that Artisan Partners will remain disciplined and adhere to its time-tested process for evaluating potential lift-outs or acquisitions based on investment acumen and strategic fit.

John Dunn asked for an overview of the puts and takes in the non-U.S. institutional business regarding sales and redemptions. He also inquired about which specific areas of the business currently have the most investment capacity.

Answer

CEO Eric Colson responded that the non-U.S. institutional business is strong, representing 26% of total AUM, and has seen slightly positive flows year-to-date. He highlighted the EMsights team and its emerging market debt strategies as a key future growth driver in this channel. For capacity, Mr. Colson identified the EMsights team as having substantial room to grow, along with large-cap equity strategies like Global Value and Global Opportunities. Executive Jason Gottlieb added that International Value, High Income, and small-cap strategies are more capacity-constrained.

John Dunn asked about Federated Hermes' appetite and outlook for money market fund roll-ups given the current market cycle. He also inquired about the flow perspective and future growth trajectory for the Strategic Value Dividend Fund.

Answer

Chris Donahue, President and CEO, explained that money market roll-ups are primarily driven by owners of other funds deciding to move a family of funds, noting that increased regulation has reduced opportunities. He added that some bank trust clients with new leadership occasionally seek a 'warm and loving home' for their money funds. Regarding the Strategic Value Dividend Fund, Chris Donahue highlighted its positive flows despite the fund being down, noting the ETF's strong performance and the fund's consistent 4% dividend growth and 4% dividend approach over 25 years, expecting continued growth for its $36 billion AUM. Tom Donahue, CFO, added that the fund was up 5.3% in January through yesterday.

John Dunn asked about Federated Hermes' appetite, potential, and outlook for money market roll-ups given the current market cycle. He also inquired about the flow perspective and future outlook for the Strategic Value Dividend Fund.

Answer

Chris Donahue, President and CEO of Federated Hermes, explained that money market roll-ups are primarily driven by the owners of other funds, noting that increased regulation has reduced opportunities, but they can occur when families of funds are moved or new leadership in bank trust clients seeks a new home. Regarding the Strategic Value Dividend Fund, Chris Donahue stated that overall flows (including the ETF) are positive, highlighting its consistent 'four and four' approach over 25 years, with $36 billion in AUM and expected continued growth. Tom Donahue, CFO, added that the fund was up 5.3% through January 27th.

John Dunn asked about the blended fee rate of the current institutional pipeline and how it compares to historical levels, as well as the firm's outlook and strategy for building out its active ETF product roster.

Answer

Executive Raymond Hanley stated that the current pipeline, with its skew toward private markets and equity, is accretive to the company's overall blended fee rate. CEO John Donahue described the firm's active ETF strategy as being in the 'early innings,' with plans to add a handful of new ETFs each year. The current active ETF AUM is over $800 million, with the MDT ETFs contributing about $250 million.

John Dunn asked for context on demand for the Strategic Value Dividend fund and inquired about any significant institutional mandates that might be at risk.

Answer

CEO John Donahue positioned the Strategic Value Dividend fund as a 'stepping stone' into the market for investors seeking yield and market participation. Regarding institutional risk, he stated that while all mandates are on a 'short leash,' there are no specific, known material redemptions. Executive Raymond Hanley confirmed that known redemptions were very low and that the institutional inflow pipeline, particularly for MDT strategies, continues to build.

John Dunn asked about the funding timeline for the institutional pipeline and the general sentiment among institutional investors and consultants. He also inquired about any changes to marketing the active ETF suite and its potential significance for the firm.

Answer

Executive Raymond Hanley detailed the pipeline, noting fixed income funding is front-loaded while alternatives are more ratable. CEO John Donahue added that RFP activity is 'very, very strong.' Regarding ETFs, Donahue stated they could be 'very big,' highlighting the success of the Total Return Bond and Strategic Value Dividend ETFs. Hanley confirmed the suite is over $500 million and the firm will continue to add to its active ETF menu.

John Dunn from Evercore ISI asked about the dynamics that could transform global real estate into a significant tailwind for Cohen & Steers.

Answer

Jon Cheigh, President and CIO of Cohen & Steers, highlighted two key dynamics: a re-acceleration of demand from global institutions favoring global real estate, and a changing perception among U.S. investors following recent outperformance of international real estate over U.S. real estate.

John Dunn asked about the current demand trends in private real estate and its potential as a significant contributor to Cohen & Steers' business in 2026, and separately, whether active ETFs are expected to scale more quickly due to established strategies. He also inquired about regional demand pockets for institutional advisory and sub-advisory, and the dynamics that could make global real estate a significant tailwind.

Answer

CEO Joseph Harvey noted early signs of increasing investor interest in private real estate, driven by shifts from private credit markets and factors like reduced interest rates and adjusted commercial real estate prices. He affirmed that active ETFs are expected to scale quickly, citing investor familiarity with core strategies and market preference for the vehicle, with President and CIO Jon Cheigh providing an example of accelerating adoption for their REIT ETF. For institutional demand, Mr. Harvey observed an expansion beyond the U.S. to domiciles like Belgium, Canada, Japan, Philippines, and the UK, driven by better non-U.S. market performance and diversification needs. Mr. Cheigh explained that global real estate could become a tailwind due to re-accelerating demand from global institutions and a shift in U.S. investor perception following recent international outperformance.

John Dunn asked about the demand for US REITs in the wealth management channel, comparing its development to past interest rate cycles and inquiring if flows in this channel are expected to accelerate.

Answer

CEO Joe Harvey explained that while REIT returns are historically stimulated by rate cuts, this cycle's extreme rate changes created a different dynamic, with real estate pricing mostly adjusted. He noted good results in wealth and strong institutional activity for US REITs, comprising 66% of the pipeline. President and CIO Jon Cheigh added that beyond rates, the fundamental cycle (supply/demand) is important, with oversupply in some sectors, but REIT earnings are expected to accelerate into 2026 and 2027. John Dunn then followed up by asking about the profile of clients contributing money, geographically and by type, and other areas besides US REITs attracting investment. Joe Harvey responded that the pipeline is predominantly North America, with diverse investors including retirement plans and annuity providers. He highlighted a European institution reallocating from US to European real estate and a global real estate allocation from a European nuclear decommissioning entity, noting wins from underperforming peer managers in real estate and infrastructure.

In a follow-up, John Dunn of Evercore ISI asked for a breakdown of geographical demand trends, particularly within the advisory channel, and for an update on the U.S. advisory business.

Answer

CEO Joseph Harvey stated that the U.S. continues to be the largest and most active market. He characterized activity in Asia as 'burgeoning,' Europe as 'a little bit slower,' and the Middle East as less active than in prior years, though opportunities remain.

John Dunn of Evercore ISI inquired about the current environment in the wealth management channel, including sales trends, strategy preferences, and potential seasonality. He also asked for details on the initial marketing success of active ETFs, the profile of new investors, and any notable geographical differences in advisory demand.

Answer

CEO Joseph Harvey stated that the wealth management channel, especially the RIA segment, is a key growth area with positive traction in real estate, multi-strategy real assets, and infrastructure. Harvey noted that while Q2 gross sales saw a seasonal dip, the firm's new active ETFs are successfully attracting new capital from ETF-only RIAs and advisors converting from mutual funds. Geographically, he identified the U.S. as the most active market, with burgeoning activity in Asia, while Europe and the Middle East are currently slower.

John Dunn of Evercore ISI inquired about the wealth management channel's appetite for various strategies and potential seasonality. He also asked for details on the marketing of new active ETFs, including the investor profile, and sought color on geographical demand trends within the advisory business.

Answer

CEO Joseph Harvey addressed the questions, noting the wealth channel remains crucial, with Q2 sales showing some seasonal softness but good progress in the RIA segment. Regarding active ETFs, he described a strong start, attracting both new ETF-only RIAs and existing clients converting from mutual funds. Geographically, Harvey confirmed the U.S. is the most active market, with growing activity in Asia, while Europe and the Middle East are currently slower.

In a follow-up, John Dunn of Evercore ISI asked for details on geographical demand trends within the advisory channel and an update on the U.S. advisory business.

Answer

CEO Joseph Harvey stated that the U.S. continues to be the largest and most active market for the firm. He characterized activity in Asia as 'burgeoning,' Europe as 'a little bit slower,' and the Middle East as less active than it was a few years ago, although opportunities remain.

In a follow-up question, John Dunn of Evercore ISI asked for commentary on geographical demand trends, particularly within the advisory channel, and requested a specific update on the dynamics of the U.S. advisory business.

Answer

CEO Joseph Harvey stated that the U.S. continues to be the largest and most active market. He characterized activity in Asia as 'burgeoning,' while noting that Europe is currently slower and the Middle East is less active than it was three to four years ago, though opportunities still exist there.

John Dunn of Evercore ISI inquired about the current conditions in the wealth management channel, the initial market reception for the company's new active ETFs, and any notable geographical differences in advisory demand.

Answer

CEO Joseph Harvey responded that the wealth channel, particularly the RIA segment, is a key growth area with positive allocation trends in real assets. He noted that the new active ETFs are attracting both new ETF-only investors and existing clients converting from mutual funds. Geographically, Harvey stated that the US remains the most active market, with burgeoning activity in Asia, while Europe and the Middle East are currently slower.

John Dunn of Evercore ISI inquired about several key areas, including the current flow environment in the wealth management channel, the second-order impacts of tariffs on investment strategies, the sales process and client acquisition for new active ETFs, the nature of future innovation, the surprisingly low institutional pipeline, and the firm's potential shift towards M&A.

Answer

CEO Joseph Harvey and President & CIO John Cheigh addressed the questions. Harvey noted that market volatility has slowed wealth channel flows but interest in U.S. REITs and listed infrastructure remains strong, while preferreds have seen outflows. Cheigh explained that tariffs have indirect effects, slowing growth and raising inflation, positioning infrastructure as a resilient 'stagflationary' strategy. Harvey detailed that the new active ETFs are attracting new RIA clients who exclusively use ETFs and are also helping retain existing clients who are transitioning their business models. He clarified that 'innovation' could include a second round of ETFs or inorganic growth, a strategy the firm is now more open to given market dynamics. Regarding the institutional pipeline, Harvey acknowledged the low figure but cited solid activity levels and a new hybrid real estate product as positive future drivers. He confirmed the firm is exploring a spectrum of inorganic growth opportunities, from partnerships to acquisitions, driven by changing industry dynamics.

In a follow-up question, John Dunn from Evercore ISI asked for details on the firm's international expansion, specifically questioning which markets outside the U.S. are most important for flow demand and what differences exist in client preferences in those regions.

Answer

CEO Joseph Harvey highlighted Asia ex-Japan and Japan as key opportunity regions. He noted the slow but steady adoption of real estate and infrastructure assets in Asia, justifying the new Singapore office and expanded presence in Hong Kong. In Japan, despite slower-than-expected flows, he expressed confidence in the long-term 'investment renaissance' and confirmed the firm is adding sales resources there to support its partner.

John Dunn of Evercore ISI inquired about the expected fee rate and incremental margins for new business, and the company's strategy for succeeding in the competitive active ETF and private real estate markets.

Answer

CFO Raja Dakkuri confirmed that recent inflows are directed towards higher-fee open-end funds. CEO Joe Harvey added that strong investment performance allows them to maintain attractive and historically stable fee rates. Regarding new initiatives, Harvey explained that their active ETF launch will leverage key talent and a new sales structure, while the non-traded REIT aims to differentiate itself through a focus on mispriced shopping centers and the strategic use of a listed REIT sleeve to generate alpha.

John Dunn asked for more detail on the firm's improving intermediary reputation outside the US, including regional demand and vehicle preferences, and inquired about how institutional investors are utilizing ETFs.

Answer

CEO Ali Dibadj detailed growing intermediary opportunities in Continental Europe, the Middle East, and Asia, noting the firm is gaining preferred mandates and signing new clients, while acknowledging the UK remains a challenge. He explained that institutional ETF adoption, which began in the US, is now being led by institutions in Europe for liquidity and cost benefits. CFO Roger Thompson emphasized the growing breadth of the firm's ETF offerings beyond the flagship JAAA fund.

John Dunn of Evercore ISI asked for commentary on regional differences in flow demand and the general 'temperature' of demand in both the intermediary and institutional channels.

Answer

CEO Ali Dibadj explained that intermediary channels in EMEA, the U.K., and the U.S. experienced some caution and outflows amid market volatility in early April. In contrast, demand in Asia and Latin America remained strong. He characterized the institutional channel as more stable and longer-term focused across all regions, with significantly less gyration in demand compared to the intermediary channel.

John Dunn asked about the catalysts needed to improve flows in the multi-asset segment and questioned the firm's philosophy on integrating acquisitions like Victory Park Capital.

Answer

Executive Ali Dibadj expressed bullishness on the balanced fund, citing strong performance and a favorable market environment. On M&A, he rejected a boutique model, favoring a 'smart integration' approach that centralizes functions like distribution and compliance while preserving the investment team's autonomy. He confirmed Victory Park will serve as a chassis for future private credit opportunities.

John Dunn of Evercore ISI inquired about the target to double the private wealth management business, Fiduciary Trust International, asking about the appetite for firms to join the platform and how aggressive Franklin Templeton plans to be with acquisitions.

Answer

CFO and COO Matthew Nicholls clarified that after focusing on building out the core asset management business, the company now intends to strategically grow its Fiduciary Trust wealth platform. He stated the plan is to capitalize on the existing full-scale platform by actively attracting new teams to join, turning it into a more strategic growth operation for the firm.

Asked about inflow sources offsetting managed volatility outflows, the ideal environment for managed vol strategies, the institutional pipeline's composition, and potential large redemptions.

Answer

Inflows are broad-based across global, non-U.S., and small-cap equity strategies. Managed vol performs better in risk-off environments. The institutional pipeline is healthy but faces pressure from managed vol outflows and a pension derisking trend, leading to an expected flattish flow outlook.

Asked about visibility on any large client flows in the near future, the expected time for pipeline mandates to fund, and the outlook for the company's fee rate.

Answer

More outflows are expected from the managed volatility strategy, but no other specific large flows are anticipated. The timing for pipeline conversion is hard to predict. The fee rate is expected to be stable around 38 bps for the next few quarters, with a long-term expectation for it to gradually increase as higher-fee strategies like Equity Alts and Systematic Credit grow.