Alex Blostein

Paul declined to disclose the specific figure but confirmed it drove most of the professional-fee increase; partially answered.

Butch confirmed the firm is at its ~20% adjusted pretax margin target while investing in growth, citing rates and M&A as catalysts.

Shoukry noted great competitors with strong cultures simply haven't been for sale. RJF invites firms to join the family rather than doing takeovers. Cited Morgan Keegan (2012) where legacy leadership still in place and Memphis headcount has grown. Patient approach, maintaining relationships with friendly competitors. Confident families will join at some point.

Shoukry acknowledged significant Agentic AI opportunities ahead but called it too early to dimension margin impact. Currently piloting Ray with hundreds of advisers with extremely positive early feedback. Using AI in cybersecurity and other areas. Compute power investment substantial. Corporate America broadly still early in Agentic AI journey.

Shoukry cited cybersecurity, AI application development, and infrastructure investment. Noted smaller firms struggle to remain competitive without $1B+ annual technology spend. Recruited advisers discovering technology gap after moving. Long-term AI efficiency gains expected but too early to dimension or put timeline on.

Shoukry framed Q1 as $400M buyback plus $80M preferred redemption = $480M total capital deployment. Reiterated $400-500M quarterly buyback target going forward while monitoring Tier 1 leverage ratio. Will adjust if other capital priorities arise.

Shoukry reiterated three criteria: cultural fit (most important), strategic fit (1+1 > 2 with leadership retention track record), and valuation. Cited Morgan Keegan (2012), consumer IB, and TriState as examples of retained leadership. Have lots of capital/liquidity and actively looking across all businesses.

Oorlog explained buyback pause was from senior note offering, not M&A signaling. Combined $350M buybacks + $98M sub-note redemption = $450M total capital deployment, within $400-500M quarterly target. Shoukry confirmed target unchanged going forward.

Oorlog noted 19% adjusted pretax margin was solid given capital markets softness. Improvement in capital markets plus 8% increase in fee billable assets for Q4 provide tailwinds to reach 20% target from Investor Day.

Shoukry emphasized headroom in private markets penetration. New leadership team in place for 4 months investing in education and awareness. Will not push products or create quotas/variable incentives. Demand-driven approach consistent with culture.

Shoukry described wide product range from alternative mutual funds to private investments for $50M+ clients. Open architecture platform with new private placements head bridging Capital Markets and PCG. Penetration still relatively low.

Shoukry pushed back on characterization, noting last quarter was 4% (mid-5s ex-OSJ departure). Emphasized March and April new commits accelerating. Confident in best-in-class NNA growth trajectory.

Reilly cautioned against extrapolating last two quarters as run rate. Q4 and Q1 benefited from early recovery and large individual fees. Pipeline strong but M&A is inherently lumpy.

Shoukry asked for patience noting they were at 10% just two years ago and did six acquisitions in that period. Reilly noted they decelerated buybacks prudently due to active acquisition due diligence.

Shoukry reiterated preference for organic growth and acquisitions over buybacks. Will maintain or increase buyback pace to limit further capital ratio expansion above 10% target.

Shoukry attributed cash growth to new advisor onboarding, previously masked by reinvestment activity. Decelerating reinvestment revealing underlying organic cash growth.

Dermot guided deposit betas roughly in line with the last cycle, about 80% for dollars and 60-70% for euros and sterling, noting BNY is predominantly a dollar book.

Dermot framed the medium term targets as through cycle miles rather than endpoints and declined to put a specific number on the profitability ceiling.

CFO expects balances to moderate seasonally from Q1 with Q3 weakest and Q4 strongest. Over the full year, balances expected modestly higher than 2025. Multiple rate and balance scenarios run to support the 10% NII guide.

CFO described balanced revenue between volume-driven and balance-driven fees, with balanced equity/fixed income mix. Noted 3% investment-related gains contribution to Securities Services 39% PTM. Record sales quarter shows clients doing more across platforms.

CFO cited three consecutive years of core fee sales growth, 64% increase in multi-product clients, and 10% of sales from new logos. New Chief Product and Innovation Officer expected to drive similar impact as commercial model. CEO added multiple megatrends as tailwinds.

CFO said capital philosophy unchanged with Tier 1 leverage ratio target at upper end of 5.5-6% range. Total payout ratio expected in 95-105% range, consistent with prior years. No longer feels necessary to separately guide on buybacks given overall algorithm.

CFO cited consistent delivery above best-in-class 150bps operating leverage benchmark over three years. Still early in decade-long transformation with platform benefits, product innovation under new CPO, and AI opportunities not yet factored in.

CFO confirmed proactive 2026 balance sheet repositioning has been done, replicating the Jackson Hole pivot approach, and stated Q4 is a good base case jumping-off point for 2026 NII.

CEO saw net positive from digital disruption, noting BNY provides traditional banking rails, on/off-ramp services, native Bitcoin custody, and stablecoin reserve custody spanning multiple platform synergies.

CFO attributed NII confidence to proactive balance sheet actions taken after Jackson Hole last summer, noting even 50bp Fed cut would not materially impact the full-year NII outlook.

CEO emphasized disciplined approach to M&A with clear criteria: strategic alignment, cultural fit, and attractive returns. Cited Archer acquisition as practice for future integration capabilities.

CEO noted repo is roughly 5% of total NII, so while investments have improved performance, it remains a small contributor. Expect growth but not a meaningful driver of total NII.

CFO confirmed focus on both total and fee operating leverage through the cycle, noting multiple levers across NII, fees, and expenses provide flexibility to deliver the target.

Schlossberg cited breadth of the shareholder base and the proxy solicitation experience as evidence of low fee sensitivity, but gave no channel-level split of gross sales.

Dukes described a taper starting in Q1 2027 with some bleed-through but deferred formal 2027 guidance until closer to the year.

Andrew noted 14 new launches ($2.5B inflows) but 75% of flows from existing products. Allison acknowledged new products launch at slightly lower fee rates but margins in high 50s to low 60s demonstrate platform strength. Fee rate compression likely to continue as mix shift story.

Andrew emphasized level licensing fees, total cost of ownership including spreads and liquidity, 25-year brand history with hundreds of millions invested, and ETF investors' demonstrated insensitivity to marginal fee differences.

Allison declined to give total 2026 expense figure but confirmed $3.2B is right starting point, with 25% variable assumption and comp-to-rev around 40-41%. Committed to continuing operating margin expansion with mid-30s target on path to high-30s.

Andrew indicated foundational restructuring largely complete, shifting focus to execution across ETFs, SMAs, private markets, and Asia/EMEA growth. Allison noted no obviously subscale businesses remain but significant opportunity for performance improvement.

Allison detailed India ($140-150M proceeds, ~$6M/quarter OI impact) and Intelliflo ($100M proceeds, negligible OI impact). Capital priorities remain balanced: balance sheet improvement, 60% payout ratio, and growth investment. Total divestiture proceeds of $240-250 million.

Andrew declined to comment beyond the proxy, characterizing NASDAQ and Bank of New York as outstanding partners with no indication of fee renegotiation.

Andrew indicated first phase focuses on private credit for US wealth management, happening relatively quickly, with second and third phases following.

Allison cited multi-faceted partnership strength. Noted MassMutual is 18% common shareholder invested in stock rerating. Future discussions possible under repurchase agreement.

Allison declined to share State Street fee specifics citing contractual constraints but confirmed implementation costs of $10-15M/quarter will end post-migration.

Andrew highlighted equity ETF demand growing in China, with balanced fixed income plus strategies also gaining traction amid government stimulus.

Woods framed positive operating leverage as the north star, with the $250M revenue uplift led by alternatives.

John outlined four building blocks for July update: 1) increasing business execution discipline driving organic growth, 2) distinctive portfolio of strategic initiatives (digital, wealth, privates), 3) operating model transformation with agile ways of working, and 4) technology modernization and AI. Current guide implies ~31% pretax margin. Goal is both growth and improved profitability over medium term.

Ron noted these platforms are close partners. STT has broadened from institutional to wealth and international channels. Any pocket impacts won't be substantial given the diversified ETF franchise.

John clarified: flat markets put fee revenue above midpoint of 4-6%; 5% market growth reaches upper end. Organic growth in 2025: ~2% servicing fees, ~3-4% management fees. Software transitioning from on-prem to SaaS creates temporary reporting headwind but underlying organic growth is high single digits. Markets business provides additional growth, variable with volatility.

John noted 2025 payout was right around 80%, slightly below target due to late FDIC windfall increasing denominator, not lower dollar buyback. 2026 capital waterfall: protect/grow dividend, deploy RWA for client lending and markets, bolt-on M&A, then strong buyback. CET1 is the lead optimization metric despite technical leverage constraint.

John said balance sheet expected to be about stable in Q4, not the driver of NII improvement. Real drivers are investment portfolio reinvestment at higher yields and terminated interest rate hedges with negative drag running down in Q4, both continuing into 2026. Non-interest-bearing deposits held in and expected to continue stable.

John outlined four priorities: partnering with management on execution/profitability, balance sheet optimization opportunities, productivity initiatives with tailwinds into 2026, and geographic expansion/product development. Noted solid deposit trends and NIM flat QoQ with NII/NIM headed up in Q4.

Ron emphasized operating model investments driving improved service quality, which both raises retention and enables wins. Alpha driving wins across the stack. Mark provided historical context: $140-160M sales in 2019-2020, now $145M in Q2 alone, 'That's more in the second quarter than we did in all of 2020.'

Mark declined to get into 2026 specifics but mentioned deposit pricing, balance sheet strategy, and investment portfolio positioning as active areas of focus.

Mark noted NIB decline came from asset manager and asset owner clients, expected from seasonal Q4 highs. Client deposits now tracking toward $240 billion high end of range.

Ron cited installation backlog and pipeline momentum. Mark highlighted $370M trailing four-quarter sales and record $356M to-be-installed revenue as core business momentum that hasn't changed.

Johnson described a unified public-private fixed income platform of $620 billion including $100 billion private, plus Western integration; Gamba cited multi-asset credit wins. Direct.

Nicholls detailed capital priorities and explained that the elevated buyback included repurchasing Great-West Life's stake above its 4.9% lockup. Direct.

Jenny: credit was largest contributor, Lexington meaningful but can't detail flagship. Over 30 vehicles contributed across credit, secondary PE, real estate, venture. No catch-up fees. Lexington on track, flagship update via filing in second half of year. Expect to exceed $30B annual target. Matt clarified: approximately 90% of alt AUM has fee-earning potential, current fee-generating is about 80% of $283B total.

Matt stated 30% margin target in fiscal 2027, 30-35% achievable over 5-year plan. Western support costing several points of margin. High 20s margin guidance for FY2026 assumes flat markets. If markets stay current levels, upside to plan. Scaling of ETFs, Canvas, and Solutions creating higher margins at current size despite lower fees.

Matt confirmed $200M gross efficiencies achieved, now determining net amount. Self-funding growth investments, absorbing Apera ($30M), increased fundraising expenses, and Aladdin project. Market up 15-20% to start year helps. Margin expected to tick up each quarter (Q1 lower by ~2% from accelerated deferred comp). Targeting 30% margin.

Jenny detailed $25-30B FY2026 target as mix of Lexington (up to half), Clarion, BSP, Alcentra, and Venture. Prior year achieved $22.7B even without Lexington first close. Expects FY2026 to be well-rounded across all alt managers.

Matt gave detailed Q4 guidance: comp $860-870M (includes $100M perf fees at 60% payout), IS&T $155M, occupancy $69-70M, G&A $190-195M. Total ~$1.283-1.285B. FY2025 slightly above flat ($20-30M higher) despite higher markets. FY2026: $200M+ run rate savings minus Apera ($30M) and potential higher alt distribution expenses.

Jenny updated alt fundraising to ~$18.5B expected for FY2025. Lex Fund XI first close pushed to December 2025 or early 2026. Wealth channel at 25% of YTD fundraising. Flex and Flex International seeing $150-200M/month. Added 16 international distributors. BSP perpetual real estate debt fund launched with 1 wirehouse, expanding internationally. 90 dedicated alt specialists, still adding headcount.

Private markets at $10.4B of $13-20B target. Lexington Fund 11 first close pushed from September to later in 2025 or early 2026. Still expect mid-range of fundraising target. Fund 11 expected bigger than Fund 10's $22.7B.

Matt detailed Western at ~6% of Franklin adjusted revenue remaining. $120B outflows = 30% of Western's FY24 revenue = 3% of Franklin. Integration of corporate functions accelerated as 5-year autonomous agreement expires July.

Mike declined to address deal rumors but laid out the M&A framework (culturally, strategically, and financially accretive) and made the case for scaling private equity.

Arougheti pushed back on the premise that non-traded BDCs were the incremental buyer, noting the diversified deployment across Infrastructure, Real Estate, European Direct Lending, and Secondaries.

Mike emphasized intentional slow wealth channel build to maintain institutional drawdown buffer. January $1.2B and February tracking similarly. ACI saw $750M inflows in Jan-Feb vs $200M prior year. About 95% of investors not seeking liquidity. Some outflows driven by small number of investors repeatedly queuing.

Mike highlighted third largest institutional real estate manager position, vertical integration, and 51% QoQ / 78% YoY deployment growth in real estate. Identified supply constraint tailwinds and rate-driven transaction volume recovery.

Mike pushed back on fee pressure narrative, noting some peers cutting fees to attract capital. Private credit spreads 100-200bps wide vs liquid loans, high-grade book 60-90bps wide. Growth driven by consolidated market share gains.

Mike cited historical resilience: FPAUM grew 23% in 2022 when M&A was down 25%. Identified opportunistic credit (ASOF), secondaries, alternative credit, and ARCC pivot capacity as key deployment areas when M&A slows.

Jarrod detailed $200M FRE in first 12 months, $245M in 2026, with $10M synergies and $10M integration costs. Mike added near-term fundraising pipeline of approximately $8B across data centers and real estate.

Mike noted high-grade demand is predominantly insurance-focused with some bank partnerships and sovereign interest. Viewed as distinct from sub-investment-grade private credit expansion.