The Exchanges

Q What did you see about how to address, particularly the second two? Because I think the institutional market looks a lot like the ultra high net worth market.

A Sure. One of the reasons why I really loved getting into the wealth market was because at the time I moved over To lead wealth, the market was really changing. There was this real important inflection point. We talk sometimes about this idea of wealth going from one point O to two point O, but the intermediaries and financial advisors all started to become much more sophisticated when it comes to portfolio construction and asset allocation. Also at the time we started to see this real transition of financial advisor business models. If you think about it, years ago, most financial advisors were really portfolio managers. They would develop portfolios for their individual clients, usually incorporated individual equities, individual bonds, and they were really portfolio builders. If you fast forward, we're really seeing business models change dramatically. Financial advisors now have a much broader value proposition that they are holding out to their investors. Sure, they're building portfolios, but they're also providing financial advice and planning, tax perspectives, sometimes they're a financial concierge, sometimes a financial referee, an educator, an advisor, a therapist, and so for an advisor to be able to do all of those things, they really need to evolve the way they do the first part of that job, which is to build portfolios. There, they're starting to rely much more o…

AI assessment note: “Data, analytics, and marketing became much more important in figuring out how to engage”

Q Where is this already happening, and where might it never happen?

A In the managed account world, it's already happening, and that's where you have, most oftentimes, record keepers that are administrating a, a, a, a, have a managed account platform right adjacent, and there, they're already starting to add alternative private market options, evergreen wealth vehicles onto those platforms, and starting to incorporate them into the financial engines, and then many of the financial advisors are already familiar with it, so that's where It's happening very quickly. By the way, there's another area that is evolving, which is there are new plans called PEPs, or pooled employer plans, which is an alternative to a . So plan sponsors, instead of administrating their own . They can actually outsource it to either an investment consultant or an . It's already happening there. Within custom target date, it's just starting to happen, and the conversations are just emerging With many of those plan sponsors, they're already know all of the alternative providers because they're using them in their DB plans on the off the shelf. It's really early days because again, the decision maker is not a professional investor necessarily, and it's not somebody's full-time day job, but there are whole teams of advisors and professionals that are engaging and cover these clients. It's just the education process is going to take time. And that's also where legislation and go…

AI assessment note: “In the managed account world, it's already happening”

Q How do you think about the potential for dilution of the quality of return when, if in fact all of this money does come in, you have that much more money you have to put to work across these different pools?

A First and foremost, we're focused on delivering investment performance to our clients. The minute you start to dilute that is the minute that you no longer are consistent with your brand. You're no longer consistent with your value proposition. I think first and foremost, asset managers always need to make sure they're delivering what they promise they're delivering. In terms of the potential risk is more and more assets move into these markets. The reality is private markets are growing by leaps and bounds. And if you think about it, even in the equity space, More and more companies are staying private for much, much longer. So it's early, early days before we worry or get concerned about our ability not to be able to deliver returns. That's pretty consistent with what our clients are seeing. We've got a lot of time before all of a sudden there's going to be some type of challenge for us to deliver.

AI assessment note: “So it's early, early days before we worry or get concerned about our ability”

Q How do you think about the potential for dilution of the quality of return when, if in fact all of this money does come in, you have that much more money you have to put to work across these different pools?

A First and foremost, we're focused on delivering investment performance to our clients. The minute you start to dilute that is the minute that you no longer are consistent with your brand. You're no longer consistent with your value proposition. I think first and foremost, asset managers always need to make sure they're delivering what they promise they're delivering. In terms of the potential risk is more and more assets move into these markets. The reality is private markets are growing by leaps and bounds. And if you think about it, even in the equity space, More and more companies are staying private for much, much longer. So it's early, early days before we worry or get concerned about our ability not to be able to deliver returns. That's pretty consistent with what our clients are seeing. We've got a lot of time before all of a sudden there's going to be some type of challenge for us to deliver.

AI assessment note: “it's early, early days before we worry or get concerned about our ability”