28 unchanged sentences
These arrangements could change in the future.
−Removed: During our second fiscal quarter, global equity markets provided positive returns, reflecting strong corporate earnings in certain sectors and continued expectations of interest rate reductions, although likely slower and later in the calendar year than initially anticipated due to strong economic data.
+Added: During our third fiscal quarter, global equity markets provided positive returns, reflecting strong corporate earnings in certain sectors due to ongoing enthusiasm around artificial intelligence and expectations of an economic soft landing, although inflation remained a concern and expectations of interest rate reductions eased.
The S&P 500 Index and MSCI World Index increased 4.3% and 2.8% for the quarter and 28.8% and 25.0% for the fiscal year to date.
The Bloomberg Global Aggregate Index decreased 1.1% during the quarter, reflecting the shift in interest rate expectations, but increased 4.7% for the fiscal year to date, reflecting strong positive returns, in our first fiscal quarter.
−Removed: Our total AUM at March 31, 2024 was $1,644.7 billion, 20% higher than at September 30, 2023 and 16% higher than at March 31, 2023.
−Removed: Monthly average AUM (“average AUM”) for the three and six months ended March 31, 2024 increased 11% and 8% from the same periods in the prior fiscal year.
+Added: Our total AUM at June 30, 2024 was $1,646.6 billion, 20% higher than at September 30, 2023 and 15% higher than at June 30, 2023.
+Added: Monthly average AUM (“average AUM”) for the three and nine months ended June 30, 2024 increased 15% and 10% from the same periods in the prior fiscal year.
On January 1, 2024, we acquired Putnam Investments (“Putnam”), a global asset management firm, from Great-West Lifeco Inc.
10 unchanged sentences
Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
(in millions, except per share data) 2024 2023 2024 2023
17 unchanged sentences
AUM by asset class was as follows:
−Removed: (in billions) March 31,
−Removed: 2024 March 31,
+Added: (in billions) June 30,
+Added: 2024 June 30,
$ 595.0 $ 458.0 30 %
7 unchanged sentences
Change Mix of Average AUM
−Removed: for the three months ended March 31, 2024 2023 2024 2023
+Added: for the three months ended June 30, 2024 2023 2024 2023
$ 584.0 $ 442.8 32 % 36 % 31 %
6 unchanged sentences
Change Mix of Average AUM
−Removed: for the six months ended March 31, 2024 2023 2024 2023
+Added: for the nine months ended June 30, 2024 2023 2024 2023
$ 521.6 $ 431.8 21 % 34 % 31 %
7 unchanged sentences
(in billions) Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
2024 2023 2024 2023
2 unchanged sentences
Long-term outflows (85.9) (67.2) 28 % (237.8) (214.1) 11 %
−Removed: Long-term net flows 6.9 (3.7) NM 1.9 (14.6) NM
+Added: Long-term net flows (3.2) 0.2 NM (1.3) (14.4) (91 %)
Cash management net flows 3.0 (7.3) NM 2.9 5.9 (51 %)
−Removed: Total net flows 2.1 (8.0) NM 1.8 (1.4) NM
+Added: Total net flows (0.2) (7.1) (97 %) 1.6 (8.5) NM
— — NM 148.3 34.9 NM
5 unchanged sentences
for the three months ended
−Removed: March 31, 2024
−Removed: AUM at January 1, 2024 $ 467.5 $ 511.7 $ 256.2 $ 154.6 $ 65.5 $ 1,455.5
+Added: June 30, 2024
+Added: AUM at April 1, 2024 $ 592.7 $ 571.4 $ 255.5 $ 163.4 $ 61.7 $ 1,644.7
Long-term inflows 32.0 37.4 3.4 9.9 — 82.7
3 unchanged sentences
Total net flows (1.6) (4.8) 1.4 1.8 3.0 (0.2)
−Removed: 81.3 59.3 0.7 5.8 1.2 148.3
Net market change, distributions and other
3.9 (2.1) (2.4) 2.9 (0.2) 2.1
−Removed: AUM at March 31, 2024 $ 592.7 $ 571.4 $ 255.5 $ 163.4 $ 61.7 $ 1,644.7
−Removed: AUM increased $189.2 billion, or 13%, during the three months ended March 31, 2024 due to $148.3 billion from the acquisition of Putnam, the positive impact of $38.8 billion of net market change, distributions and other and $6.9 billion of long-term net inflows, which include $3.1 billion of long-term reinvested distributions, partially offset by $4.8 billion of cash management net outflows.
−Removed: Fixed income net inflows include the funding of $13.7 billion related to the strategic partnership with Great-West, partially offset by an institutional client redemption of $2.0 billion.
+Added: AUM at June 30, 2024 $ 595.0 $ 564.5 $ 254.5 $ 168.1 $ 64.5 $ 1,646.6
+Added: AUM increased $1.9 billion during the three months ended June 30, 2024 due to $3.0 billion of cash management net inflows and the positive impact of $2.1 billion of net market change, distributions and other, partially offset by $3.2 billion of long-term net outflows, which include $3.6 billion of long-term reinvested distributions.
Net market change, distributions and other primarily consists of $14.5 billion of market appreciation, partially offset by $9.7 billion of long-term distributions and a $2.7 billion decrease from foreign exchange revaluation.
−Removed: The market appreciation occurred substantially in all asset classes, most significantly in the equity asset class and reflected positive returns in the global equity markets.
+Added: The market appreciation occurred in all asset classes, most significantly in the multi-asset and equity asset classes and reflected positive returns in the global equity markets.
Foreign exchange revaluation from AUM in products that are not U.S.
dollar denominated was primarily due to a stronger U.S.
−Removed: dollar compared to the Japanese Yen, Australian dollar, Euro and Canadian dollar.
−Removed: AUM increased $222.6 billion or 16%, as compared to the prior year period.
−Removed: Long-term inflows increased 37% to $84.9 billion, driven by higher inflows in fixed income and equity fund vehicles.
−Removed: Long-term outflows increased 19% to $78.0 billion driven by higher redemptions in equity fund vehicles and fixed income funds and retail separate accounts, partially offset by lower redemptions in alternative open end and private open end funds.
+Added: dollar compared to the Japanese Yen, Brazilian Real, Euro and Canadian dollar, partially offset by a weaker U.S.
+Added: dollar compared to the Australian dollar.
+Added: AUM increased $215.1 billion or 15%, as compared to the prior year period, primarily due to the acquisition of Putnam.
+Added: Long-term inflows increased 23% to $82.7 billion, driven by higher inflows in fixed income institutional separate accounts and equity fund vehicles and institutional and retail separate accounts, partially offset by lower inflows in alternative private fund vehicles.
+Added: Long-term outflows increased 28% to $85.9 billion driven by higher redemptions in fixed income and equity open end funds and institutional and retail separate accounts.
(in billions) Equity
2 unchanged sentences
for the three months ended
−Removed: March 31, 2023
−Removed: AUM at January 1, 2023 $ 419.1 $ 494.8 $ 257.4 $ 141.4 $ 75.0 $ 1,387.7
+Added: June 30, 2023
+Added: AUM at April 1, 2023 $ 437.1 $ 510.1 $ 258.2 $ 146.1 $ 70.6 $ 1,422.1
Long-term inflows 23.0 26.5 7.3 10.6 — 67.4
5 unchanged sentences
23.9 (1.9) (5.0) (0.1) (0.4) 16.5
−Removed: AUM at March 31, 2023 $ 437.1 $ 510.1 $ 258.2 $ 146.1 $ 70.6 $ 1,422.1
−Removed: AUM increased $34.4 billion or 2% during the three months ended March 31, 2023 due to the positive impact of $42.4 billion of net market change, distributions and other, partially offset by $4.3 billion of cash management net outflows and $3.7 billion of long-term net outflows.
−Removed: Fixed income net inflows included the funding of a $7.5 billion institutional mandate invested across fixed income strategies.
+Added: AUM at June 30, 2023 $ 458.0 $ 505.1 $ 257.2 $ 148.3 $ 62.9 $ 1,431.5
+Added: AUM increased $9.4 billion or 1% during the three months ended June 30, 2023 due to the positive impact of $16.5 billion of net market change, distributions and other and $0.2 billion of long-term net inflows (which includes $3.5 billion of long-term reinvested distributions), partially offset by $7.3 billion of cash management net outflows.
+Added: Long-term net inflows included $3.2 billion from a low-fee equity mandate.
Net market change, distributions and other primarily consists of $24.4 billion of market appreciation and a $0.1 billion increase from foreign exchange revaluation, partially offset by $8.0 billion of long-term distributions.
−Removed: The market appreciation occurred in all asset classes, most significantly in the equity and fixed income asset classes and reflected positive returns in the global equity and fixed income markets.
−Removed: AUM decreased $55.4 billion or 4%, as compared to the fiscal year 2022 period.
−Removed: Long-term inflows decreased 19% to $61.8 billion, driven by lower inflows in equity and fixed income open end funds, equity separately managed accounts, and fixed income institutional separate accounts.
−Removed: Long-term outflows decreased 25% to $65.5 billion driven by lower redemptions in fixed income and equity open end funds, equity separately managed accounts and fixed income institutional separate accounts.
+Added: The market appreciation occurred in all asset classes with the exception of the alternative asset class, most significantly in the equity asset class, reflecting positive returns in the global equity markets.
+Added: AUM increased $51.7 billion or 4%, as compared to the fiscal year 2022 period.
+Added: Long-term inflows decreased 13% to $67.4 billion, driven by lower inflows in fixed income, equity, and multi-asset open end funds, fixed income institutional separate accounts, multi-asset sub-advised mutual funds, and equity retail separate accounts, partially offset by higher inflows for multi-asset institutional separate accounts, alternative private funds, and equity sub-advised mutual funds.
+Added: Long-term outflows decreased 31% to $67.2 billion driven by lower redemptions in fixed income and equity open end funds, fixed income and equity institutional separate accounts, multi-asset sub-advised mutual funds, and equity and fixed income retail separate accounts, partially offset by higher redemptions for multi-asset institutional separate accounts.
(in billions) Equity
1 unchanged sentence
Management Total
−Removed: for the six months ended
−Removed: March 31, 2024
+Added: for the nine months ended
+Added: June 30, 2024
AUM at October 1, 2023 $ 430.4 $ 483.1 $ 254.9 $ 145.0 $ 60.8 $ 1,374.2
7 unchanged sentences
90.0 27.0 (6.2) 12.1 (0.4) 122.5
−Removed: AUM at March 31, 2024 $ 592.7 $ 571.4 $ 255.5 $ 163.4 $ 61.7 $ 1,644.7
−Removed: AUM increased $270.5 billion, or 20%, during the six months ended March 31, 2024 due to $148.3 billion from the acquisition of Putnam, the positive impact of $120.4 billion of net market change, distributions and other and $1.9 billion of long-term net inflows, which include $13.9 billion of long-term reinvested distributions, partially offset by $0.1 billion of cash management net outflows.
−Removed: Net market change, distributions and other primarily consists of $146.2 billion of market appreciation and a $1.4 billion increase from foreign exchange revaluation, partially offset by $27.2 billion of long-term distributions.
+Added: AUM at June 30, 2024 $ 595.0 $ 564.5 $ 254.5 $ 168.1 $ 64.5 $ 1,646.6
+Added: AUM increased $272.4 billion, or 20%, during the nine months ended June 30, 2024 due to $148.3 billion from the acquisition of Putnam, the positive impact of $122.5 billion of net market change, distributions and other and $2.9 billion of cash management net inflows, partially offset by $1.3 billion of long-term net outflows, which include $17.5 billion of long-term reinvested distributions.
+Added: Net market change, distributions and other primarily consists of $160.7 billion of market appreciation, partially offset by $36.9 billion of long-term distributions and a $1.3 billion decrease from foreign exchange revaluation.
The market appreciation occurred in all asset classes, most significantly in the equity and fixed income asset classes and reflected positive returns in the global equity and fixed income markets.
−Removed: Long-term inflows increased 16% to $153.8 billion, as compared to the prior year period, driven by higher inflows in equity and fixed income fund vehicles, partially offset by lower inflows in multi-asset open end funds and alternative institutional separate accounts.
−Removed: Long-term outflows increased 3% to $151.9 billion due to higher outflows in equity open end funds, partially offset by lower outflows in alternative private funds, open end funds, and institutional separate accounts.
+Added: Long-term inflows increased 18% to $236.5 billion, as compared to the prior year period, driven by higher inflows in equity and multi-asset open end funds and separately managed accounts, fixed income institutional separate accounts, investment trusts, and subadvised mutual funds, partially offset by lower inflows in alternative private fund vehicles.
+Added: Long-term outflows increased 11% to $237.8 billion due to higher outflows in equity open end funds and fixed income institutional separate accounts and investment trusts.
(in billions) Equity
1 unchanged sentence
Management Total
−Removed: for the six months ended
−Removed: March 31, 2023
+Added: for the nine months ended
+Added: June 30, 2023
AUM at October 1, 2022 $ 392.3 $ 490.9 $ 225.1 $ 131.5 $ 57.6 $ 1,297.4
7 unchanged sentences
76.7 28.8 (7.8) 10.6 (0.6) 107.7
−Removed: AUM at March 31, 2023 $ 437.1 $ 510.1 $ 258.2 $ 146.1 $ 70.6 $ 1,422.1
−Removed: AUM increased $124.7 billion, or 10%, during the six months ended March 31, 2023 due to the positive impact of $91.2 billion of net market change, distributions and other, $34.9 billion from an acquisition, and $13.2 billion of cash management net inflows, partially offset by $14.6 billion of long-term net outflows.
−Removed: Long-term net outflows included a $2.1 billion fixed income institutional redemption that had minimal impact on revenue.
+Added: AUM at June 30, 2023 $ 458.0 $ 505.1 $ 257.2 $ 148.3 $ 62.9 $ 1,431.5
+Added: AUM increased $134.1 billion, or 10%, during the nine months ended June 30, 2023 due to the positive impact of $107.7 billion of net market change, distributions and other, $34.9 billion from an acquisition, and $5.9 billion of cash management net inflows, partially offset by $14.4 billion of long-term net outflows.
Net market change, distributions and other primarily consists of $131.0 billion of market appreciation, a $9.8 billion increase from foreign exchange revaluation, partially offset by $33.1 billion of long-term distributions.
−Removed: The market appreciation occurred in all asset classes, most significantly in the equity and fixed income asset classes and reflected positive returns in the global equity and fixed income markets.
+Added: The market appreciation occurred in all asset classes with the exception of the alternative asset class, most significantly in the equity and fixed income asset classes and reflected positive returns in the global equity and fixed income markets.
Foreign exchange revaluation from AUM in products that are not U.S.
dollar denominated was primarily due to a weaker U.S.
−Removed: dollar compared to the Euro, Pound Sterling, Japanese Yen and Australian dollar.
−Removed: Long-term inflows decreased 28% to $132.3 billion, as compared to the fiscal year 2022 period, driven by lower inflows in equity, fixed income, and multi-asset open end funds, fixed income institutional separate accounts and sub-advised collective investment trusts, and equity retail separate accounts.
+Added: dollar compared to the Euro, Pound Sterling, Brazilian Real and Australian dollar.
+Added: Long-term inflows decreased 23% to $199.7 billion, as compared to the fiscal year 2022 period, driven by lower inflows in equity and fixed income open end funds, fixed income institutional separate accounts, and equity retail separate accounts.
Decreased inflows for open end mutual funds include the impact of lower reinvested distributions, which were $18.0 billion in the current year period, as compared to $29.5 billion in the prior year period.
−Removed: Long-term outflows decreased 14% to $146.9 billion due to lower outflows in equity and fixed income open end funds, multi-asset sub-advised mutual funds and equity separately managed accounts, partially offset by higher outflows in fixed income institutional separate accounts.
+Added: Long-term outflows decreased 20% to $214.1 billion due to lower outflows in fixed income and equity open end funds, multi-asset sub-advised mutual funds, fixed income and equity institutional separate accounts, and equity retail separate accounts.
AUM by sales region was as follows:
−Removed: (in billions) March 31,
−Removed: 2024 March 31,
+Added: (in billions) June 30,
+Added: 2024 June 30,
United States $ 1,155.0 $ 1,026.0 13 %
19 unchanged sentences
Exceeding Benchmark
−Removed: as of March 31, 2024 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year
+Added: as of June 30, 2024 1-Year 3-Year 5-Year 10-Year 1-Year 3-Year 5-Year 10-Year
Equity 52 % 52 % 44 % 61 % 45 % 40 % 41 % 51 %
3 unchanged sentences
1 Mutual fund performance is sourced from Morningstar and measures the percent of ranked AUM in the top two quartiles versus peers.
−Removed: Total mutual fund AUM measured for the 1-, 3-, 5- and 10-year periods represents 38%, 37%, 37% and 35% of our total AUM as of March 31, 2024.
+Added: Total mutual fund AUM measured for the 1-, 3-, 5- and 10-year periods represents 38%, 37%, 37% and 35% of our total AUM as of June 30, 2024.
2 Strategy composite performance measures the percent of composite AUM beating its benchmark.
The benchmark comparisons are based on each account’s/composite’s (strategy composites may include retail separately managed accounts and mutual fund assets managed as part of the same strategy) return as compared to a market index that has been selected to be generally consistent with the asset class of the account/composite.
−Removed: Total strategy composite AUM measured for the 1-, 3-, 5- and 10-year periods represents 54%, 53%, 53% and 49% of our total AUM as of March 31, 2024.
+Added: Total strategy composite AUM measured for the 1-, 3-, 5- and 10-year periods represents 54%, 54%, 53% and 49% of our total AUM as of June 30, 2024.
3 Total mutual fund AUM includes performance of our alternative and multi-asset funds, and total strategy composite AUM includes performance of our alternative composites.
−Removed: Alternative and multi-asset AUM represent 16% and 10% of our total AUM at March 31, 2024.
+Added: Alternative and multi-asset AUM represent 16% and 10% of our total AUM at June 30, 2024.
Mutual fund performance data includes U.S.
9 unchanged sentences
(in millions) Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
2024 2023 2024 2023
5 unchanged sentences
Investment Management Fees
−Removed: Investment management fees increased $140.6 million and $161.0 million for the three and six months ended March 31, 2024 primarily due to an 11% and 8% increase in average AUM, and for the six-month period, higher catch-up fees recognized at the closing of fundraising rounds in a secondary private equity fund and one additional month of revenues earned by Alcentra, which was acquired on November 1, 2022, partially offset by a decrease in performance fees.
−Removed: The increases in average AUM primarily occurred in the equity, fixed income and multi-asset asset classes, primarily due to the acquisition of Putnam, and, for the six-month period, the alternative asset class.
−Removed: Our effective investment management fee rate excluding performance fees (annualized investment management fees excluding performance fees divided by average AUM) was 41.4 and 41.7 basis points for the three and six months ended March 31, 2024, as compared to 41.8 and 41.7 basis points for the same periods in the prior fiscal year.
−Removed: Performance fees were $85.2 million and $251.6 million for the three and six months ended March 31, 2024, and $111.2 million and $320.2 million for the same periods in the prior fiscal year.
−Removed: The decrease for the three months ended March 31, 2024 was primarily due to lower performance fees earned by certain of our alternative specialist investment managers, and for the six months ended March 31, 2024 was primarily due to a $65.5 million decrease in performance fees earned by Lexington Partners L.P.
+Added: Investment management fees increased $76.5 million and $237.5 million for the three and nine months ended June 30, 2024 primarily due to a 15% and 10% increase in average AUM, partially offset by a decrease in performance fees and lower catch-up fees recognized at the closing of fundraising rounds in a secondary private equity fund, which ended in January 2024.
+Added: The increases in average AUM primarily occurred in the equity, fixed income and multi-asset asset classes, driven by the acquisition of Putnam.
+Added: Our effective investment management fee rate excluding performance fees (annualized investment management fees excluding performance fees divided by average AUM) was 40.2 and 41.4 basis points for the three and nine months ended June 30, 2024, as compared to 42.0 and 41.9 basis points for the same periods in the prior fiscal year.
+Added: The rate decreases were primarily due to lower catch-up fees recognized at the closing of fundraising rounds in a secondary private equity fund, which ended in January 2024, and increased AUM in lower fee products, including those from the acquisition of Putnam.
+Added: Performance fees were $56.6 million and $308.2 million for the three and nine months ended June 30, 2024, and $125.9 million and $446.1 million for the same periods in the prior fiscal year.
+Added: The decrease for both periods was primarily due to lower performance fees earned by certain of our alternative specialist investment managers, and decreases of $11.6 million and $77.1 million in performance fees earned by Lexington Partners L.P.
(“Lexington”), which were passed through as compensation expense per the terms of the acquisition agreement.
2 unchanged sentences
(in millions) Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
2024 2023 2024 2023
2 unchanged sentences
Sales and Distribution Fees $ 358.3 $ 304.0 18 % $ 1,013.0 $ 897.3 13 %
−Removed: Asset-based distribution fees increased $43.8 million and $44.8 million for the three and six months ended March 31, 2024 primarily due to revenue earned by Putnam subsequent to the acquisition and increases of 4% and 3% in the related average AUM.
−Removed: Sales-based fees increased $13.1 million and $16.6 million for the three and six months ended March 31, 2024 primarily due to increases of 15% and 13% in commissionable sales and sales-based revenue earned by Putnam subsequent to the acquisition.
+Added: Asset-based distribution fees increased $43.6 million and $88.4 million for the three and nine months ended June 30, 2024 primarily due to revenue earned by Putnam subsequent to the acquisition and increases of 4% and 3% in the related average AUM, excluding the impact of Putnam.
+Added: Sales-based fees increased $10.7 million and $27.3 million for the three and nine months ended June 30, 2024 primarily due to increases of 6% and 10% in commissionable sales and sales-based revenue earned by Putnam subsequent to the acquisition.
Shareholder Servicing Fees
−Removed: Shareholder servicing fees increased $24.7 million and $23.8 million for the three and six months ended March 31, 2024 primarily due to fees earned by Putnam subsequent to the acquisition.
+Added: Shareholder servicing fees increased $23.0 million and $46.8 million for the three and nine months ended June 30, 2024 primarily due to fees earned by Putnam subsequent to the acquisition, partially offset by the impact of a change in fee structure for certain U.S.
+Added: sponsored funds.
OPERATING EXPENSES
1 unchanged sentence
Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
(in millions) 2024 2023 2024 2023
6 unchanged sentences
Total Operating Expenses $ 1,900.4 $ 1,654.1 15 % $ 5,708.5 $ 5,099.3 12 %
−Removed: The Putnam acquisition had a significant impact on operating expenses in the three and six months ended March 31, 2024;
+Added: The Putnam acquisition had a significant impact on operating expenses in the three and nine months ended June 30, 2024;
however, due to the ongoing integration of the combined businesses, it is not practicable to separately quantify the impact of the legacy Putnam business.
2 unchanged sentences
Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
(in millions) 2024 2023 2024 2023
2 unchanged sentences
Acquisition-related retention 1
+Added: 43.7 21.3 105 % 217.3 108.1 101 %
Acquisition-related performance fee pass through 1
7 unchanged sentences
and special termination benefits.
−Removed: Salaries, wages and benefits increased $56.7 million and $67.0 million for the three and six months ended March 31, 2024, primarily due to higher headcount as a result of the acquisition of Putnam and annual salary increases, partially offset by the impact of other headcount reductions.
−Removed: Incentive compensation increased $24.3 million and $58.7 million for the three and six months ended March 31, 2024 primarily due to the acquisition of Putnam, an increase in expense for deferred compensation awards, and higher bonus expense based on expectations of our annual performance, partially offset by lower incentive compensation at specialist investment managers in the three-month period.
−Removed: Acquisition-related retention expenses increased $81.3 million and $86.8 million for the three and six months ended March 31, 2024 primarily due to higher costs associated with recent acquisitions.
−Removed: Acquisition-related performance fee pass through expenses decreased $65.5 million for the six months ended March 31, 2024, due to lower performance fees earned by Lexington.
−Removed: Other compensation and benefits increased $12.2 million and $23.0 million for the three and six months ended March 31, 2024, primarily due to an increase in special termination benefits and higher net market gains on investments related to our deferred compensation plans.
−Removed: Special termination benefits increased $8.6 million and $4.4 million for the three and six months ended March 31, 2024 primarily due to the acquisition of Putnam, partially offset by costs associated with workforce optimization initiatives in the prior year.
−Removed: Compensation expense related to minority interests increased $0.2 million and $1.8 million for the three and six months ended March 31, 2024.
+Added: Salaries, wages and benefits increased $51.1 million and $118.1 million for the three and nine months ended June 30, 2024, primarily due to higher headcount as a result of the acquisition of Putnam and annual salary increases, partially offset by the impact of other headcount reductions.
+Added: Incentive compensation remained flat for the three months ended June 30, 2024 and increased $55.0 million for the nine months ended June 30, 2024 primarily due to the acquisition of Putnam, an increase in expense for deferred compensation awards, and higher bonus expense based on expectations of our annual performance, partially offset by lower incentive compensation at specialist investment managers.
+Added: Acquisition-related retention expenses increased $22.4 million and $109.2 million for the three and nine months ended June 30, 2024 primarily due to higher costs associated with recent acquisitions.
+Added: Acquisition-related performance fee pass through expenses decreased $11.6 million and $77.1 million for the three and nine months ended June 30, 2024, due to lower performance fees earned by Lexington.
+Added: Other compensation and benefits decreased $5.6 million for the three months ended June 30, 2024, primarily due to lower net market gains of deferred compensation plans, partially offset by an increase in special termination benefits;
+Added: and increased $17.4 million for the nine months ended June 30, 2024, primarily due to an increase in special termination benefits and higher net market gains on investments related to our deferred compensation plans.
+Added: Special termination benefits increased $4.5 million and $8.9 million for the three and nine months ended June 30, 2024 primarily due to the acquisition of Putnam, partially offset by costs associated with workforce optimization initiatives in the prior year.
+Added: Compensation expense related to minority interests decreased $1.8 million for the three months ended June 30, 2024 and remained flat for the nine months ended June 30, 2024.
We expect to incur additional acquisition-related retention expenses of approximately $60 million during the remainder of the current fiscal year, and annual amounts beginning at approximately $190 million in the fiscal year ending September 30, 2025 and decreasing over the following two fiscal years by approximately $20 million and $80 million.
−Removed: At March 31, 2024, our global workforce increased to approximately 10,100 employees from approximately 9,200 at March 31, 2023, primarily due to the acquisition of Putnam.
+Added: At June 30, 2024, our global workforce increased to approximately 10,300 employees from approximately 9,300 at June 30, 2023, primarily due to the acquisition of Putnam.
Sales, Distribution and Marketing
1 unchanged sentence
Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
(in millions) 2024 2023 2024 2023
3 unchanged sentences
Sales, Distribution and Marketing $ 481.1 $ 406.8 18 % $ 1,366.2 $ 1,202.0 14 %
−Removed: Asset-based expenses increased $62.7 million and $71.3 million for the three and six months ended March 31, 2024 primarily due to expenses incurred by Putnam subsequent to the acquisition, increases of 3% and 2% in the related average AUM and higher marketing support fees.
+Added: Asset-based expenses increased $61.9 million and $133.2 million for the three and nine months ended June 30, 2024 primarily due to expenses incurred by Putnam subsequent to the acquisition, increases of 4% and 3% in the related average AUM, excluding the impact of Putnam, and higher marketing support fees.
Distribution expenses are generally not directly correlated with distribution fee revenues due to certain fee structures that do not provide full recovery of distribution costs.
−Removed: Sales-based expenses increased $12.7 million and $15.3 million for the three and six months ended March 31, 2024 primarily due to increases of 15% and 13% in commissionable sales and sales-based expenses incurred by Putnam subsequent to the acquisition.
−Removed: Occupancy expenses increased $16.5 million and $28.7 million for the three and six months ended March 31, 2024, primarily due to new leased office space located at One Madison Avenue, associated with an initiative to consolidate our office space in New York City and expenses incurred by Putnam subsequent to the acquisition.
+Added: Sales-based expenses increased $9.6 million and $24.9 million for the three and nine months ended June 30, 2024 primarily due to increases of 6% and 10% in commissionable sales and sales-based expenses incurred by Putnam subsequent to the acquisition.
+Added: Occupancy expenses increased $47.9 million and $76.6 million for the three and nine months ended June 30, 2024, driven by impairment of the right of use asset related to vacated office space and new leased office space located at One Madison Avenue, primarily associated with an initiative to consolidate our office space in New York City, and expenses incurred by Putnam subsequent to the acquisition.
Information Systems and Technology
−Removed: Information systems and technology expenses increased $27.1 million and $36.7 million for the three and six months ended March 31, 2024, primarily due to expenses incurred by Putnam subsequent to the acquisition, and higher outsourced data services and software costs.
+Added: Information systems and technology expenses increased $29.3 million and $66.0 million for the three and nine months ended June 30, 2024, primarily due to expenses incurred by Putnam subsequent to the acquisition, higher outsourced data services and software costs.
Amortization of Intangible Assets
−Removed: Amortization of intangible assets decreased $1.4 million and increased $1.2 million for the three and six months ended March 31, 2024, primarily due to the net effect of intangible assets which became fully amortized during the period, partially offset by the amortization of intangible assets recognized as part of the acquisition of Putnam and, for the six-month period, Alcentra.
+Added: Amortization of intangible assets decreased $1.4 million and $0.2 million for the three and nine months ended June 30, 2024, primarily due to the net effect of intangible assets which became fully amortized during the period, partially offset by the amortization of intangible assets recognized as part of the acquisition of Putnam and, for the nine month period, Alcentra.
General, Administrative and Other
−Removed: General, administrative and other operating expenses increased $50.6 million and $36.4 million for the three and six months ended March 31, 2024, primarily due to the acquisition of Putnam, increases of $15.8 million and $16.5 million in professional fees, and increases of $3.9 million and $9.3 million in travel and entertainment expenses due to higher activity levels.
+Added: General, administrative and other operating expenses increased $43.6 million and $80.0 million for the three and nine months ended June 30, 2024, primarily due to the acquisition of Putnam, increases of $14.6 million and $31.3 million in professional fees, and increases of $5.7 million and $15.0 million in travel and entertainment expenses due to higher activity levels.
These increases were partially offset by decreases of $4.4 million and $14.1 million in fund-related expenses.
2 unchanged sentences
Three Months Ended
−Removed: Change Six Months Ended
−Removed: March 31, Percent
+Added: Change Nine Months Ended
(in millions) 2024 2023 2024 2023
1 unchanged sentence
Interest expense (25.7) (34.9) (26 %) (72.2) (99.3) (27 %)
−Removed: Investment and other income of consolidated investment products, net 89.9 87.2 3 % 66.1 73.6 (10 %)
−Removed: Expenses of consolidated investment products (5.9) (3.4) 74 % (11.8) (14.9) (21 %)
+Added: Investment and other income of consolidated investment products, net 37.6 1.7 NM 103.7 75.3 38 %
+Added: Expenses of consolidated investment products (8.8) (0.8) NM (20.6) (15.7) 31 %
Other Income, Net $ 77.6 $ 15.8 391 % $ 311.1 $ 160.6 94 %
−Removed: Investment and other income, net decreased $8.1 million for the three months ended March 31, 2024, primarily due to losses on investments, as compared to gains in the prior year quarter, partially offset by higher dividend and interest income, lower net foreign currency exchange losses, and higher net income from equity method investees.
−Removed: Investment and other income, net increased $75.2 million for the six months ended March 31, 2024, primarily due to higher net income from equity method investees, lower net foreign currency exchange losses, and higher dividend and interest income.
−Removed: Investments held by the Company generated net losses of $18.5 million and net gains of $41.6 million in the three and six months ended March 31, 2024, as compared to net gains of $3.0 million and $48.5 million for the three and six months ended March 31, 2023.
−Removed: The net losses for the three months ended March 31, 2024 were primarily from investments in nonconsolidated funds and separate accounts, partially offset by net gains on assets invested for deferred compensation plans.
−Removed: The net gains for the three months ended March 31, 2023 were primarily from assets invested for deferred compensation plans, partially offset by losses on investments in nonconsolidated funds and separate accounts.
−Removed: The net gains in both the current and prior year six-month periods were primarily from investments in nonconsolidated funds and separate accounts and assets invested for deferred compensation plans, partially offset by net losses from investments measured at cost adjusted for observable price changes.
−Removed: Equity method investees generated income of $24.4 million and $81.3 million for the three and six months ended March 31, 2024, as compared to income of $20.6 million and $52.6 million in the prior year, primarily related to various alternative and global equity funds.
−Removed: Net foreign currency exchange losses were $1.3 million and $8.7 million for the three and six months ended March 31, 2024.
−Removed: as compared to net losses of $6.5 million and $33.6 million for the three and six months ended March 31, 2023.
−Removed: dollar strengthened in the three-month period and weakened less in the six-month period against the Euro and British Pound, which resulted in lower foreign exchange losses on cash and cash equivalents denominated in U.S.
+Added: Investment and other income, net increased $24.7 million for the three months ended June 30, 2024, primarily due to income from equity method investees and net foreign currency gains as compared to losses in the prior year quarter, partially offset by losses on investments, as compared to gains in the prior year quarter.
+Added: Investment and other income, net increased $99.9 million for the nine months ended June 30, 2024, primarily due to higher net income from equity method investees, lower net foreign currency exchange losses, and higher dividend and interest income, partially offset by lower gains on investments.
+Added: Investments held by the Company generated net losses of $24.3 million and net gains of $17.3 million in the three and nine months ended June 30, 2024, as compared to net gains of $13.8 million and $62.3 million for the three and nine months ended June 30, 2023.
+Added: The net losses in the three months ended June 30, 2024 were primarily from investments in nonconsolidated funds and separate accounts, and investments measured at cost adjusted for observable price changes, while the net gains in the prior year period were primarily from investments in nonconsolidated funds and separate accounts, and assets invested for deferred compensation plans.
+Added: The net gains in the nine months ended June 30, 2024 were primarily from assets invested for deferred compensation plans, partially offset by losses on investments measured at cost adjusted for observable price changes, while the net gains in the prior year were primarily from investments in nonconsolidated funds and separate accounts, and assets invested for deferred compensation plans.
+Added: Equity method investees generated income of $41.0 million and $122.3 million for the three and nine months ended June 30, 2024, as compared to losses of $9.1 million and income of $43.5 million in the prior year.
+Added: The income for the three months ended June 30, 2024 was largely related to various global alternative funds, while the losses in the prior year period were primarily due to a $7.5 million other-than-temporary impairment of an equity method investment.
+Added: The income in the nine months ended June 30, 2024 was largely related to various global alternative and equity funds, while the income in the prior year was largely related to various global alternative, equity and fixed income funds.
+Added: Net foreign currency exchange gains (losses), net were gains of $1.2 million for the three months ended June 30, 2024 and losses of $7.5 million for the nine months ended June 30, 2024, as compared to net losses of $6.6 million and $40.2 million for the three and nine months ended June 30, 2023.
+Added: dollar strengthened against the Euro and weakened less against the British Pound in the three months ended June 30, 2024, which resulted in net foreign exchange gains on cash and cash equivalents denominated in U.S.
+Added: dollars held by our European subsidiaries, as compared to losses in the prior year period.
+Added: dollar weakened less in the nine month period against the Euro and British Pound, which resulted in lower foreign exchange losses on cash and cash equivalents denominated in U.S.
dollars held by our European subsidiaries.
−Removed: Dividend and interest income increased $5.7 million and $24.0 million for the three and six months ended March 31, 2024, primarily due to higher yields.
−Removed: Interest expense decreased $5.8 million and $17.9 million for the three and six months ended March 31, 2024 primarily due to interest expense recognized in the prior year periods on our term loan that was terminated on July 25, 2023 and a decrease in interest recognized on tax reserves.
−Removed: Investments held by consolidated investment products (“CIPs”) generated investment gains and other income of $89.9 million and $66.1 million in the three and six months ended March 31, 2024, and investment gains and other income of $87.2 million and $73.6 million during the three and six months ended March 31, 2023, largely related to gains on holdings of various equity and fixed income funds, and in the current year periods, gains on holdings of various alternative funds.
−Removed: Expenses of CIPs increased $2.5 million and decreased $3.1 million for the three and six months ended March 31, 2024, due to activity of the funds.
−Removed: Our cash, cash equivalents and investments portfolio by asset class and accounting classification at March 31, 2024, excluding third-party assets of CIPs, was as follows:
+Added: Dividend and interest income decreased $2.9 million for the three months ended June 30, 2024, primarily due to lower average balances, partially offset by higher yields.
+Added: Dividend and interest income increased $21.1 million for the nine months ended June 30, 2024, primarily due to higher yields.
+Added: Interest expense decreased $9.2 million and $27.1 million for the three and nine months ended June 30, 2024 primarily due to interest expense recognized in the prior year periods on our term loan that was terminated on July 25, 2023 and a decrease in interest recognized on tax reserves.
+Added: Investments held by consolidated investment products (“CIPs”) generated investment gains and other income of $37.6 million and $103.7 million in the three and nine months ended June 30, 2024, largely related to gains on holdings of various funds.
+Added: Investments held by CIPs generated investment gains and other income of $1.7 million and $75.3 million in the three and nine months ended June 30, 2023, largely related to gains on holdings of various equity and fixed income funds, substantially offset by losses on holdings of various alternative funds.
+Added: Expenses of CIPs increased $8.0 million and $4.9 million for the three and nine months ended June 30, 2024, due to activity of the funds.
+Added: Our cash, cash equivalents and investments portfolio by asset class and accounting classification at June 30, 2024, excluding third-party assets of CIPs, was as follows:
Accounting Classification 1
13 unchanged sentences
1 See Note 1 – Significant Accounting Policies in the notes to consolidated financial statements in Item 8 of Part II of our Annual Report on Form 10-K for fiscal year 2023 for information on investment accounting classifications.
−Removed: 2 Total cash and cash equivalents and investments includes $4,435.5 million used for operational activities, including investments in sponsored funds and other products, and $324.5 million necessary to comply with regulatory requirements.
+Added: 2 Total cash and cash equivalents and investments includes $4,188.8 million maintained for operational activities, including investments in sponsored funds and other products, and $458.7 million necessary to comply with regulatory requirements.
3 Total cash and cash equivalents and investments includes approximately $370 million attributable to employee-owned and other third-party investments made through partnerships which are offset in nonredeemable noncontrolling interests, $286.1 million of investments that are subject to long-term repurchase agreements and other net financing arrangements, and $440.3 million of cash and investments related to deferred compensation plans.
TAXES ON INCOME
−Removed: Our effective income tax rate was 26.4% and 24.2% for the three and six months ended March 31, 2024, as compared to 25.4% and 25.8% for the three and six months ended March 31, 2023.
−Removed: The rate increase for the three-month period was primarily due to tax audit settlements and state tax provision to return adjustments.
−Removed: The rate decrease for the six-month period was primarily due to tax benefits from stock-based compensation and the release of tax reserves due to statute of limitation expiration.
+Added: Our effective income tax rate was 22.7% and 23.7% for the three and nine months ended June 30, 2024, as compared to 25.4% and 25.7% for the three and nine months ended June 30, 2023.
+Added: The rate decrease for the three month period was primarily due to state tax provision to return adjustments in the prior year period and activity of CIPs for which there is no related tax impact, partially offset by benefits in the prior year from the release of valuation allowances for capital losses.
+Added: The rate decrease for the nine month period was primarily due to state tax provision to return adjustments and tax benefits from stock-based compensation.
Our effective income tax rate reflects the relative contributions of earnings in the jurisdictions in which we operate, which have varying tax rates.
51 unchanged sentences
(in millions) Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
2024 2023 2024 2023
25 unchanged sentences
(in millions, except per share data) Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
2024 2023 2024 2023
2 unchanged sentences
Add (subtract):
−Removed: Net loss of consolidated investment products* 3.5 8.5 1.3 4.9
+Added: Net (income) loss of consolidated investment products* (2.4) 1.5 (1.1) 6.4
Acquisition-related retention
6 unchanged sentences
Net gains on deferred compensation plan investments not offset by compensation and benefits expense (1.1) (0.5) (11.0) (14.1)
−Removed: Unrealized investment gains (9.6) (1.9) (58.6) (32.6)
+Added: Unrealized investment (gains) losses 31.0 9.4 (27.6) (23.2)
Interest expense for amortization of debt premium (6.4) (6.3) (19.2) (19.0)
7 unchanged sentences
(in millions) Three Months Ended
−Removed: Six Months Ended
+Added: Nine Months Ended
2024 2023 2024 2023
1 unchanged sentence
Other income, net 42.0 7.3 72.0 67.4
−Removed: income attributable to noncontrolling interests 31.1 62.3 8.9 50.8
−Removed: Net loss $ (3.5) $ (8.5) $ (1.3) $ (4.9)
+Added: income (loss) attributable to noncontrolling interests 27.3 (3.3) 36.2 47.5
+Added: Net income (loss) $ 2.4 $ (1.5) $ 1.1 $ (6.4)
LIQUIDITY AND CAPITAL RESOURCES
Cash flows were as follows:
−Removed: Six Months Ended
+Added: Nine Months Ended
(in millions) 2024 2023
2 unchanged sentences
Financing cash flows 506.4 2,492.6
−Removed: Net cash used in operating activities decreased during the six months ended March 31, 2024 primarily due to lower net purchases of investments by CIPs and decreases in receivables, partially offset by lower income taxes payable, decreases in accounts payable and accrued expenses as compared to increases in the prior year, and lower net income adjusted for non-cash items.
−Removed: Net cash used in investing activities decreased primarily due to lower net purchases of investments by collateralized loan obligations (“CLOs”), lower cash paid for acquisitions in the current year as compared to the prior year, net consolidations of CIPs as compared to net deconsolidations of CIPs in the prior year period and net liquidations of investments as compared to purchases in the prior year.
+Added: Net cash provided by operating activities increased during the nine months ended June 30, 2024 primarily due to lower net purchases of investments by CIPs, partially offset by decreases in accounts payable and accrued expenses and income taxes payable.
+Added: Net cash used in investing activities decreased primarily due to lower net purchases of investments by collateralized loan obligations (“CLOs”), lower cash paid for acquisitions in the current year as compared to the prior year and net liquidations of investments as compared to purchases in the prior year.
Net cash provided by financing activities decreased primarily due to lower net proceeds on debt of CIPs, lower net subscriptions in CIPs by noncontrolling interests, and proceeds from repurchase agreements in the prior year.
4 unchanged sentences
Our liquid assets and debt consisted of the following:
−Removed: (in millions) March 31,
+Added: (in millions) June 30,
2024 September 30,
5 unchanged sentences
Liquid assets consist of cash and cash equivalents, receivables and certain investments.
−Removed: Cash and cash equivalents at March 31, 2024 primarily consist of money market funds and deposits with financial institutions.
+Added: Cash and cash equivalents at June 30, 2024 primarily consist of money market funds and deposits with financial institutions.
Liquid investments consist of investments in sponsored and other funds, direct investments in redeemable CIPs, other equity and debt securities, and time deposits with maturities greater than three months.
6 unchanged sentences
In prior fiscal years, we issued senior unsecured unsubordinated notes for general corporate purposes and to redeem outstanding notes.
−Removed: At March 31, 2024, Franklin’s outstanding senior notes had an aggregate principal amount due of $1,600.0 million.
+Added: At June 30, 2024, Franklin’s outstanding senior notes had an aggregate principal amount due of $1,600.0 million.
The notes have fixed interest rates from 1.600% to 2.950% with interest paid semi-annually and have an aggregate carrying value, inclusive of unamortized discounts and debt issuance costs, of $1,586.5 million.
−Removed: At March 31, 2024, Legg Mason’s outstanding senior notes had an aggregate principal amount due of $1,250.0 million.
−Removed: The notes have fixed interest rates from 3.950% to 5.625% with interest paid semi-annually and have an aggregate carrying value, inclusive of unamortized premium, of $1,455.0 million at March 31, 2024.
+Added: At June 30, 2024, Legg Mason’s outstanding senior notes had an aggregate principal amount due of $1,250.0 million.
+Added: The notes have fixed interest rates from 3.950% to 5.625% with interest paid semi-annually and have an aggregate carrying value, inclusive of unamortized premium, of $1,448.5 million at June 30, 2024.
Franklin unconditionally and irrevocably guarantees all of the outstanding notes issued by Legg Mason.
−Removed: We intend to repay the $250 million 3.950% senior notes due July 2024 from existing cash or other sources of liquidity.
+Added: On July 15, 2024, we repaid all of the outstanding $250.0 million 3.950% senior notes due July 2024 issued by Legg Mason at the principal amount plus accrued and unpaid interest of $4.9 million.
The senior notes contain an optional redemption feature that allows us to redeem each series of notes prior to maturity in whole or in part at any time, at a make-whole redemption price.
3 unchanged sentences
This facility remains undrawn as of the time of this filing.
−Removed: We were in compliance with all debt covenants at March 31, 2024.
−Removed: At March 31, 2024, we had $500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012 and is unrated.
+Added: We were in compliance with all debt covenants at June 30, 2024.
+Added: At June 30, 2024, we had $500.0 million of short-term commercial paper available for issuance under an uncommitted private placement program which has been inactive since 2012 and is unrated.
Our ability to access the capital markets in a timely manner depends on a number of factors, including our credit rating, the condition of the global economy, investors’ willingness to purchase our securities, interest rates, credit spreads and the valuation levels of equity markets.
4 unchanged sentences
We typically declare cash dividends on a quarterly basis, subject to approval by our Board of Directors.
−Removed: We declared regular dividends of $0.62 per share during the six months ended March 31, 2024 and $0.60 per share during the six months ended March 31, 2023.
+Added: We declared regular dividends of $0.93 per share during the nine months ended June 30, 2024 and $0.90 per share during the nine months ended June 30, 2023.
We currently expect to continue paying comparable regular dividends on a quarterly basis to holders of our common stock depending upon earnings and other relevant factors.
2 unchanged sentences
The size and timing of these purchases will depend on business conditions, price, market and other factors, including the terms of any 10b5-1 stock purchase plan that may be in effect at any given time.
−Removed: During the three and six months ended March 31, 2024, we repurchased 0.4 million and 2.8 million shares of our common stock at a cost of $11.7 million and $70.5 million.
+Added: During the three and nine months ended June 30, 2024, we repurchased 4.3 million and 7.1 million shares of our common stock at a cost of $101.5 million and $172.0 million.
In December 2023, our Board of Directors authorized the repurchase of up to an additional 27.2 million shares of our common stock in either open market or private transactions, for a total of up to 40.0 million shares available for repurchase under the stock repurchase program.
−Removed: At March 31, 2024, 39.1 million shares remained available for repurchase under the authorization approved by our Board of Directors.
−Removed: On January 1, 2024, we acquired Putnam from Great-West for 31.6 million shares of our common stock, cash consideration paid at close of $221.7 million for investments and other purchase-related amounts, and deferred cash consideration of $100.0 million to be paid during the third quarter of fiscal year 2024.
−Removed: The cash consideration paid at close was funded from existing cash and we expect to fund the deferred consideration from existing cash and sources of liquidity.
+Added: At June 30, 2024, 34.8 million shares remained available for repurchase under the authorization approved by our Board of Directors.
+Added: On January 1, 2024, we acquired Putnam from Great-West for 31.6 million shares of our common stock, cash consideration paid at close of $221.7 million for investments and other purchase-related amounts, and deferred cash consideration of $100.0 million paid on July 1, 2024.
+Added: The cash consideration paid at close and the deferred consideration payment was funded from existing cash.
In addition, the Company will pay up to $375.0 million between the third and seventh anniversaries of the closing date related to revenue growth targets from the strategic partnership with Great-West and its affiliates which will be recognized in operating income.
5 unchanged sentences
While we have no legal or contractual obligation to do so, we have in certain instances voluntarily elected to provide the funds with direct or indirect financial support based on our business objectives.
−Removed: We did not provide financial or other support to our sponsored funds during the six months ended March 31, 2024.
+Added: We did not provide financial or other support to our sponsored funds during the nine months ended June 30, 2024.
CRITICAL ACCOUNTING POLICIES
8 unchanged sentences
Our VIEs are primarily investment products and our variable interests consist of our equity ownership interests in and investment management fees earned from these products.
−Removed: As of March 31, 2024, we were the primary beneficiary of 69 investment product VIEs.
+Added: As of June 30, 2024, we were the primary beneficiary of 75 investment product VIEs.
Business Combinations
5 unchanged sentences
We also monitored fluctuations of our common stock per share price to evaluate our market capitalization relative to the reporting unit as a whole.
−Removed: During the six months ended March 31, 2024, there were no events or circumstances which would indicate that goodwill, indefinite-lived intangible assets or definite-lived intangible assets might be impaired.
+Added: During the nine months ended June 30, 2024, there were no events or circumstances which would indicate that goodwill, indefinite-lived intangible assets or definite-lived intangible assets might be impaired.
While we believe that the assumptions used to estimate fair value in our impairment tests are reasonable and appropriate, future changes in the assumptions could result in recognition of impairment.
2 unchanged sentences
We use a three-level fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value based on whether the inputs to those valuation techniques are observable or unobservable.
−Removed: As of March 31, 2024, Level 3 assets represented 5% of total assets measured at fair value, which primarily related to CIPs’ investments in equity and debt securities.
−Removed: There were insignificant transfers into and out of Level 3 during the six months ended March 31, 2024.
+Added: As of June 30, 2024, Level 3 assets represented 4% of total assets measured at fair value, which primarily related to CIPs’ investments in equity and debt securities.
+Added: There were insignificant transfers into and out of Level 3 during the nine months ended June 30, 2024.
Quantitative and Qualitative Disclosures About Market Risk.
−Removed: During the six months ended March 31, 2024, there were no material changes from the market risk disclosures in our Form 10‑K for the fiscal year ended September 30, 2023.
+Added: During the nine months ended June 30, 2024, there were no material changes from the market risk disclosures in our Form 10‑K for the fiscal year ended September 30, 2023.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.