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- **Revenue Growth**: FY 2025 AUM $1.66T (-1%), but average AUM +2.6%. Adjusted operating revenue +2.1% to $6.7B, driven by performance fees and higher AUM.
- **Alternative Momentum**: 2026 alternative fundraising target $25-30B, with tokenized AUM +75% YoY to $1.7B.
- **Expense Efficiency**: 2026 cost savings to offset market volatility, with net expenses flat or lower vs. 2025.
- **AI & Innovation**: 100%+ employees using AI tools, tokenized money market funds with intraday yields, and Binance crypto exchange partnerships.
- **Infrastructure Expansion**: $94T global infrastructure funding need, with perpetual funds launching in 2026 for wealth channel.

**【CEO Summary Section】**
- **Strategic Progress**: Achieved strong momentum in the first year of the 5-year plan, with alternatives, ETFs, and Canvas ahead of targets. AUM growth of 13%, 56%, and 71% respectively in retail SMAs, ETFs, and Canvas.
- **Investment Performance**: Over 50% of mutual funds, ETFs, and composites outperformed peers. AI-driven initiatives across investment management, operations, and sales are accelerating scale and efficiency.
- **Innovation**: Launched tokenized money market funds with intraday yield calculations, and expanded partnerships like Binance for crypto exchange integration. AI partnerships with Microsoft and Wand AI are driving measurable productivity gains.
- **Private Markets Expansion**: Acquired Apera Asset Management to boost private credit AUM to $95 billion. Infrastructure partnerships with Actis, DigitalBridge, and Copenhagen Infrastructure aim to capture $94 trillion in global funding needs.
- **Digital Assets Growth**: Tokenized AUM reached $1.7 billion, up 75% YoY, with first-of-kind features like on-chain mutual fund tokenization.

**【CFO Financial Commentary】
- **Q4 2025 Results**: Adjusted operating revenue $1.82 billion (+13.9%), net income $357.5 million (+35.7%), and EPS $0.67 (+36.7%). Higher performance fees and AUM drove margin expansion to 26%.
- **FY 2025 Performance**: Adjusted operating income $1.64 billion (-4.3%), net income $1.2 billion (-6.3%), and EPS $2.22 (-7.5%). Cost management offset headwinds from Western Asset outflows.
- **FY 2026 Guidance**: Target $200 million in cost savings, with expenses flat or lower vs. 2025. EFR expected to remain stable at ~37.5 bps, with potential upside from flagship funds.
- **Capital Management**: Returned $930 million to shareholders via dividends and buybacks. Maintained balance sheet flexibility with $2.8 billion in co-investments for new strategies.

**【Q&A Highlights】
- **Alternatives Growth**: 2026 fundraising target $25-30 billion, with Lexington flagship fund expected to close first half 2026. Private wealth AUM target to double by 2029.
- **Expense Efficiency**: 2026 cost savings to fund strategic initiatives, with net expenses flat or lower despite market volatility.
- **Infrastructure Strategy**: Partnerships with Actis, DigitalBridge, and Copenhagen to launch perpetual infrastructure funds for wealth channel, targeting $1 trillion+ retail alternatives market.
- **AI Impact**: Majority of employees using approved AI tools, with measurable productivity gains in operations and client service.
- **ETF Distribution**: Active ETFs account for 50% of flows, with Canvas platform expanding to 500+ partners and 1,100+ financial advisers.
- **Risk Management**: Minimal exposure to problem credits, with direct lending focused on lower middle market Europe post-Apera acquisition.

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