Investment Management Fees

+~5% (from $1,048.7M in Q1 2024 to $1,100.3M in Q1 2025)

Higher average AUM supported fee growth compared to the previous period, building on trends seen in prior quarters, even as shifts in product mix and exchange rate offsets played a role. " "

Performance Fees

+337% (from $0.8M in Q1 2024 to $3.5M in Q1 2025)

A very low base in Q1 2024 magnified the year‐over‐year percentage increase, driven by improved fund performance and seasonality effects, reflecting a significant step‐up in performance-driven revenue compared to the previous period. " "

Total Operating Revenues

+~3.7% (from $1,475.3M in Q1 2024 to $1,529.2M in Q1 2025)

The modest revenue increase stems from the continued growth in investment management fees and improvements in other fee categories, which offset lower fee yields in some areas observed previously. " "

Operating Income

+~30% (from $213.1M in Q1 2024 to $277.3M in Q1 2025)

Operating income increased significantly due to enhanced revenue generation, strong operating leverage, and effective cost management initiatives that built on previous quarter improvements. " "

Net Income

+~25% (from $214.2M in Q1 2024 to $267.3M in Q1 2025)

The rise in net income is attributable to the higher operating income combined with favorable non-operating factors and improved tax outcomes relative to Q1 2024, continuing the positive momentum seen in the prior period. " "

Basic Earnings per Share

+~23% (from $0.31 in Q1 2024 to $0.38 in Q1 2025)

Improved profitability, driven by the better net income and a stable weighted average share count, resulted in a higher EPS relative to Q1 2024, mirroring the underlying earnings rebound. " "

Debt

–~23% (from $1,257.5M in Q1 2024 to $964.8M in Q1 2025)

A disciplined approach to debt management, including targeted repayments and lower net borrowings on its revolving credit facility, drove down the debt level compared to the previous period. " "

Cash and Cash Equivalents

–~8% (from $895.7M in Q1 2024 to $821.7M in Q1 2025)

The decrease in cash reflects higher financing outflows and operating cash usage during Q1 2025, a continuation of the trend from prior periods as the company manages liquidity amidst investment and repayment activities. " "

Net Cash Provided by Operating Activities

More negative (from –$54.4M in Q1 2024 to –$84.6M in Q1 2025)

Despite revenue growth, the operating cash flow deteriorated further likely due to worsening working capital conditions and increased cash outflows required for operations, marking a shift from the previous quarter’s performance. " "

Alpha Platform Implementation Costs

FY 2025

$10 million to $15 million per quarter " " "

$10 million to $15 million per quarter " "

no change

Total Payout Ratio

FY 2025

Closer to 60% in 2025 "

Closer to 60% in FY 2025 "

no change

Operating Expenses

FY 2025

Increase of ~1% over 2024 " " "

no current guidance

no current guidance

Compensation to Revenue Ratio

FY 2025

42% to 43% "

no current guidance

no current guidance

Expense Management and Operating Margin Control

Previously, expense management was discussed consistently from Q2 through Q4 2024 with emphasis on disciplined expense control, managing seasonal compensation variances, and improving operating margins through positive operating leverage and compensation-to-revenue focus. " " " " " "

In Q1 2025 the discussion focused on maintaining disciplined expense management in response to market volatility, highlighting a variable expense percentage tied to compensation, a nonrecurring $7 million benefit, and further improvement in operating margins (330bps gain). " " " " "

Consistent focus with a more tactical response to market volatility. The emphasis remains on controlling costs while also adjusting for market conditions, reflecting a slight shift toward addressing short‐term variability. " " "

Global Diversification and International Market Exposure

Across Q2 to Q4 2024, the company consistently emphasized its global footprint with strong performances in Asia Pacific, EMEA, and strategic initiatives in China and India; discussion included organic growth, asset inflows by region, and the benefit of local presence. " " " " " " "

In Q1 2025, the focus remains on robust geographic diversity and local presence. The call highlighted client asset flows across the Americas, EMEA, and Asia Pacific with detailed references to inflows in China and India, reinforcing the company’s strength in international markets. " " " " " "

Steady and evolving emphasis. While the global diversification theme is consistent, the current period places enhanced focus on local presence and detailed asset allocation across regions—indicating deepening regional strategies amid global volatility. " " "

Alternative Investments and Private Markets Expansion

In Q2 through Q4 2024, the narrative centered on expanding alternative investments through organic growth in private markets, real estate debt strategies (INCREF), and leveraging strategic partnerships such as MassMutual to boost private credit and real assets. " " " " " " "

Q1 2025 deepened the focus on private markets by announcing an enhanced strategic partnership with MassMutual and Barings, designed to deliver private credit solutions in the U.S. wealth management space, including a notable $650 million capital commitment that builds on previous initiatives. " " " " " "

Persistent momentum with increased strategic capital. The focus remains on private markets expansion while the current period underlines larger scale partnerships and a targeted push in the U.S. wealth management channel. " "

ETF Business Growth and Passive Investment Trends

Prior periods (Q2–Q4 2024) consistently highlighted strong ETF growth with record AUM, product innovation (including new ETF launches and cross-region inflows), and a steady expansion of both active and passive strategies across the Americas, EMEA, and Asia. " " " " " " " "

In Q1 2025, even though market volatility cooled demand slightly in March and April, the company maintained robust ETF business performance—including continued active ETF launches (e.g. QQQM) and international expansion through cross-listing, particularly on the Hong Kong market. " "

Consistent growth amid cautious sentiment. While innovation and international expansion persist, there is a mild cooling effect from increased volatility; overall, the ETF and passive trend remains a key growth driver. " "

Investor Sentiment and Market Volatility

In Q2–Q4 2024, discussions focused on mixed sentiments amid choppy markets, with regional variations—Chinese markets experienced persistent volatility while the broader market saw some positive momentum later in the quarter, and shifting investor behavior between fixed income and equities was noted. " " " " " " "

In Q1 2025, investor sentiment shifted from an early "risk-on" environment to a more defensive stance by the end of the quarter. Increased global volatility, particularly in March and April, led to a focus on shorter-duration fixed income strategies and a more cautious capital deployment. " " " " "

Evolving sentiment with a defensive tilt. Investor behavior continues to be volatile, but the current period shows a marked shift toward caution and defensive positioning, potentially impacting future asset allocations. " " "

Platform Integration and Alpha Implementation Costs

Starting in Q2 2024, integration costs were noted to be rising (from $7M to $12M), with expectations of sustaining $10–15M per quarter. Q3 and Q4 2024 provided detailed cost projections, phased asset migrations, and anticipated peaking of costs in late 2025 followed by operational efficiencies post-2026. " " " " " " " "

In Q1 2025, implementation costs held steady (around $13M) with clear communication of asset migration in waves. The plan now includes a detailed schedule for transitioning additional assets with the benefits (reducing system redundancies) expected to materialize by 2027. " " " " "

Consistent upward trend with defined transition phases. While costs remain within the expected range, the current period clarifies a more structured migration roadmap with long-term operational benefits, signaling a strategic investment in integration efficiency. " " "

Strategic Partnerships for Product Innovation

From Q2 through Q4 2024, strategic partnerships were a recurring theme with emphasis on collaborations such as the MassMutual relationship, ETF launches with external partners, and joint ventures in key markets like India and China. These were portrayed as vital for product innovation and market expansion. " " " " " " "

In Q1 2025, the company further solidified its approach by announcing a major partnership with MassMutual and Barings. This collaboration specifically targets product innovation in the U.S. wealth management sector with shared revenue models and a significant capital commitment, underscoring the strategic role of partnerships. " " "

Persistent and deepening focus. Strategic partnerships continue to be leveraged for innovation, with the current period marking an increased scale and scope—particularly emphasizing U.S. wealth management initiatives and higher capital engagement. " " "