WDR
#Well, I think those will be kind of reviewed on an ongoing basis.
We don't have anything to announce this morning.
But as part of a ---+ just kind of the realities of the industry we operate in and the consolidation of offerings across platforms and that type of thing, we're always evaluating our products in terms of their viability, their critical mass and acceptance in the marketplace.
So this will be ---+ I don't anticipate anything that would be dramatic and earth-shattering on a quarter-by-quarter basis.
Just more of an evolution consistent with what other investment firms are doing in terms of the current industry dynamics.
So those will be more incremental and evolve over time.
Good morning, <UNK>.
This is <UNK>.
I don't think we ---+ I don't think our experience is much different than anyone else's.
The distributors are culling.
Fortunately for us, I don't think it's been a meaningful percent of our assets, certainly not in the fourth and even with the movement that Morgan Stanley recently announced.
So not a meaningful impact at this point.
Well, this is Phil.
I'd say it's generally market-driven.
Equity markets, as you know, have been strong.
The bulk of our assets are equity-driven.
In terms of flows, maybe the only color I might offer is that, I think with respect to what we're experiencing the early part of the year from a wholesale perspective, we've seen some sequential improvement in the sales and redemption metrics.
And so, as I mentioned, the fourth quarter was a little bit of a setback for us relative to the third quarter.
We still are in outflow mode, but the metrics are a little bit sequentially improved versus the fourth quarter, broker/dealer trends consistent with what we've been experiencing and nothing too dramatic in institutional.
So the bottom line, I'd say still outflow in the month of January, most of the improvement in total assets under management driven by the market.
Okay, Bill.
This is Phil.
I think we have a fair amount of financial flexibility.
So all of those things are ---+ I don't think any of them are mutually exclusive.
I think you can count on us to be kind of persistent and active in terms of the share repurchase.
We announced that at the end of ---+ towards the end of October.
So as we move through the year, we expect to be active kind of on a consistent basis.
Obviously, we'll be selective if we see opportunities to step that up given share price or market volatility.
We can do that.
If there's opportunities to pull back, we will do that as well.
But that's something we're committed to over the next couple of years.
Inorganic growth opportunities, other investments, that type of thing, again, our balance sheet remains very strong.
The tax law changes are a positive.
So all of these things, I think we will be in a position to act accordingly when the opportunities present themselves.
And so, I just think it's hard to predict when these things happen, but I don't view any of them as mutually exclusive.
This is Phil.
I think as far as new introductions, I think it would be a combination likely of both.
Some subadvisory relationships, maybe expanding relationships with existing key partners, that's a potential opportunity.
Also, some organic new product introductions that we will do over time.
Things that fit with our core competency.
I think, we're kind of focused on things that we think we do well, and we have built a broad level of expertise.
And when I think about that, I think a lot of the core equity strategies and growth-orient strategies.
The international franchise has continued to do quite well with our core in emerging markets funds.
Obviously, we have a strong reputation in the credit side within the fixed income markets.
So I think, complementary products associated with a lot of those core competencies would probably be areas of focus.
I think, potential rationalizations, I don't want to get into products or specifics.
I think, just generally speaking over time and consistent with what the question earlier was about platform access and that type of thing that <UNK> was referring to, over time if you've got products that aren't at critical mass or you can't ---+ don't see the real opportunity to grow them and expand them, it gets challenging.
So we want to always make sure we're constantly reviewing our resource allocation and directing our opportunities to strengthen our products in terms of resources and opportunities and growth potential.
So it's always difficult, I think, to predict exactly where it'll be, but we're constantly looking at opportunities that are complementary to our core strengths.
Hey, Ken, this is Ben.
That's exactly the case.
As we're in the midst of derisking the plan assets, we would not expect any significant volatility in that going forward for the plan assets.
Yes, I think that tailors a little bit to the question earlier.
I think fortunately through this transition period, we have a strong balance sheet and a lot of financial flexibility.
So I think the tax benefit, we've talked a lot internally what that means for us.
I don't think it really will change fundamentally how we manage the company and what our plans are and how we execute upon our strategic initiatives.
But it certainly provides additional flexibility, and we're constantly looking for opportunities to begin to play offense in terms of growth initiatives.
We have spent a ---+ pretty heavily investing within our investment management capabilities and building out our research staff, and I think, we'll continue to add to that in 2018.
That remains a priority.
But if we see opportunities, as we've mentioned in the past, with respect to bring in investment capabilities or small acquisitions or anything that can ignite our growth and give us an opportunity to play a little bit of offense, that's something we're open to.
It's just difficult to anticipate the timing on those things, but we're definitely looking, and we'll just see what happens.
Well, I do ---+ yes, I think it's kind of an esoteric question.
But I think, the way I think about it is, where we have an opportunity here given our cash balance to opportunistically repurchase shares to be accretive over time.
We also have ---+ as opportunities present to us with respect to investment opportunities that will grow our long ---+ enhance our long-term positioning, we have the flexibility to do that.
So every quarter and all the time we're constantly look ---+ evaluating the trade-offs with respect to how we allocate capital.
We have a current dividend level that we adjusted last quarter that I think is a really competitive return to shareholders on an ongoing basis.
We have the opportunity over time to do some accretive share repurchases opportunistically.
And we'll have plenty of time ---+ plenty of resources to invest that can enhance our incremental growth.
So I don't want to get into a discussion of great detail, but I think this is something we're always looking at along with our board in terms of how we allocate capital and move forward.
So the good news is through this transition period, we do have the flexibility to kind of pivot and do different types of things to enhance shareholder value over time.
Well, I might just make one comment, then if <UNK> wants to add anything.
I think the comment there would be that historically, our asset manager and our broker/dealer, our broker/dealer basically existed as an asset gatherer and just brought in assets, and the total company benefited from the management fees.
I think, in today's world where clients and advisers want more choice and options, we've made a commitment to kind of evolve the broker/dealer to make it a more profitable on a stand-alone basis now that we're self-sustaining.
So don't misinterpret that in terms of our commitment to the broker/dealer, because we're strongly committed to that.
We're just trying to get it to be more of a competitive in today's world where clients and advisers want more choice and opportunity.
I don't know, <UNK>, if you have anything to add to that.
Okay.
Well, thank you, everybody, for joining us and appreciate the interest, and we look forward to catching up with you next quarter.
Thank you.
