Research Reports

Prepared Highlights

AUM reached a record $151.1 billion as of June 30, 2025 (the highest in firm history) (CEO).
Net client cash flow of $13.8 billion in Q2 2025, representing 11% of beginning-period AUM — the highest quarterly NCCF in the firm’s history (CEO). Year-to-date 2025 NCCF was $17.6 billion, with six consecutive quarters of positive net flows (CEO).
Gross sales for the first half of 2025 totaled $28 billion, already surpassing the prior full-year record of $21 billion set in 2024 (CEO).
ENI revenue of $124.9 million in Q2 2025, up 15% vs. Q2 2024, driven by a 16% increase in management fees on a 20% increase in average AUM (CFO).
ENI diluted EPS of $0.64, up 42% vs. Q2 2024 (CEO).
Adjusted EBITDA up 22% year-over-year (CEO).
ENI operating margin expanded 360 bps to 30.7% in Q2 2025 from 27.1% in Q2 2024 (CFO).
Operating expense ratio improved to 44.6% in Q2 2025 from 48.8% in Q2 2024, a decrease of 420 bps (CFO).
Performance: 95% of strategies by revenue outperforming benchmarks over 5-year periods, with 4.5% annualized excess return (CEO). By revenue weight, >94% outperformed across 3-/5-/10-year periods; by asset weight, >92% outperformed the same periods (CEO). All five major implementations had 100% of assets outperforming over 3-/5-/10-year periods (CEO).
Capital management: In Q2 2025, repurchased 0.9 million shares for $23.6 million at a VWAP of $25.48 (CFO). Debt-to-adjusted-EBITDA ratio was 1.6x, net leverage ratio 1.1x (CFO). Cash of $90.2 million and seed investments of $95.2 million at quarter-end (CFO).

Official Guidance (CFO):

FY2025 operating expense ratio: expected to be approximately 45%–47% if equity markets remain at Q2 end levels.
FY2025 variable compensation ratio: now expected to be approximately 43%–47%.

Mgmt Quotes (CEOs/CFO):

“We delivered $13.8 billion of positive net client cash flow in Q2 of 2025, 11% of beginning period AUM, the highest in the firm’s history.” (CEO)
“Our revenue-weighted 5-year annualized return in excess of benchmark was 4.5% as of the end of Q2 on a consolidated firm-wide basis.” (CEO)
“We had $28 billion of gross sales in the first half of 2025, already surpassing our previous record annual sales of $21 billion in 2024.” (CEO)
“Our Q2 ’25 operating margin expanded 360 basis points to 30.7% from 27.1% in Q2 ’24, driven by increased ENI management fees.” (CFO)
“We have a track record of creating significant value through share buybacks… outstanding diluted shares have decreased 58% from 86 million shares in Q4 ’19 to 35.9 million in Q2 ’25.” (CFO)

Prepared Metrics

Metric	Value	Speaker/Context
AUM (June 30, 2025)	$151.1B	CEO — record high
Q2 2025 net client cash flow	$13.8B (11% of beginning AUM)	CEO — highest quarterly NCCF in firm history
Q2 2025 ENI diluted EPS	$0.64	CEO — up 42% YoY
Q2 2025 ENI operating margin	30.7%	CFO — up 360 bps YoY
Q2 2025 ENI revenue	$124.9M	CFO — up 15% YoY
Q2 2025 operating expense ratio	44.6%	CFO — down 420 bps YoY
Q2 2025 variable compensation ratio	45.4%	CFO — down from 48.2% in Q2 2024
H1 2025 gross sales	$28.0B	CEO — surpassed prior full-year record
Share repurchases (Q2 2025)	0.9M shares / $23.6M	CFO — VWAP $25.48
Debt-to-adjusted-EBITDA ratio (June 30, 2025)	1.6x	CFO
Net leverage ratio (June 30, 2025)	1.1x	CFO

Q&A Batch (1-2 of 2)

Q1 — Kenneth S. Lee

Topic: 机构管道构成与资本回报展望
Key points:
- 管道非常强劲且多样化，涵盖不同策略、渠道和客户地域；增强股权和扩展是过去几个季度的核心主题。
- 第二季度NCCF创纪录，第一季度也很强劲，团队持续在资金到位后补充管道。
- 资本回报方面，公司仍致力于长期将多余资本返还股东，但需平衡构建韧性资产负债表，逐季度谨慎部署。
Mgmt stance: 中性偏积极：管道表现强劲，但资本回报强调平衡和前瞻性，避免承诺具体节奏。

Q2 — Michael J. Cyprys

Topic: 资金流构成、产品创新与经营杠杆展望
Key points:
- 第二季度NCCF 138亿美元创纪录，主要来自增强股权策略，也有全球核心产品需求；其中一笔大客户属于历史级别规模，推动非美国客户AUM占比从37%升至43%。
- 产品计划仍聚焦增强、扩展和信贷，已公布的种子投资和基础设施基本到位，运营效率开始体现。
- 运营费用率（ENI基础）历史约50%，今年预计降至45%-47%，体现出业务规模化带来的杠杆。
- 管理层对未来经营杠杆持续改善持乐观态度，但避免对2026年给出具体指引。
Mgmt stance: 乐观：增强策略成功、客户基础多元化，且运营费用率明显改善，管理层强调专注于驱动杠杆并认为有持续空间。