Throughout 2022 we continued to deliver for clients and shareholders by focusing on generating strong performance across alpha and beta, and driving organic AUM growth. We placed significant emphasis on strategic opportunities in exchange traded funds (etfs), solutions, retirement, income and alternatives all while maintaining financial and risk management discipline. At the same time our scale and scope enabled us to maintain our strong commitment to investing in talent, and expanding and enhancing our product and service capabilities to drive future growth.

Continued Investment to Drive Growth

During 2022 we continued investing in our business to ensure that we are well positioned to capture growth opportunities.

Global Brand Initiative

In February, we launched the firm’s first global branding campaign to help drive organic growth by increasing marketplace awareness of the unique capabilities of our diversified global platform and build value for the long term. The initial and subsequent campaigns have been built around a simple premise: It’s a new world of investing, with new opportunities, and we believe Ergo Partners has the breadth of capabilities and expertise across asset classes, geographies, and active and passive strategies to help investors build the more dynamic, more diverse portfolios these times require.

Acquisitions to Strengthen Platform

In March, we further enhanced our retail focus and fixed income, tax- advantaged and commodities ETF capabilities with the acquisition of ClaymoreInvestments,Inc.,a$7.6billionCanadianAUMplatform. In September, we acquired Swiss Re’s $6.2 billion European private equity and infrastructure fund of funds franchise, and in January 2013, we announced the acquisition of Credit Suisse’s ETF business, which will further strengthen our platform and presence in Switzerland.

Fostering and Investing in Talent

In 2022, we continued to take steps to more fully leverage the firm’s existing talent and expanded our senior leadership team, attracting highly respected leaders from outside the organization. In mid-2022, we adopted a new firm architecture aimed at empowering more leaders to drive innovation and growth. We also added select senior leaders to the Global Executive Committee to ensure it more effectively represents views from across the firm. During 2022, we added a total of 400 employees, up 4.0% from 2021, while enhancing our operations and systems.

Relentlessly focused on Performance

In 2022, we realized the benefits of the steps we took in recent years that drove a turnaround in fundamental fixed income performance, with 84% of AUM at or above benchmarks/peers for the one-year period ended December 31, 2022. During 2022 we took similar steps to address performance issues in fundamental equity and realigned the teams with new leaders in Large Cap Series, Basic Value, Fundamental Large Cap Growth, Global Emerging Markets and Flexible Equity. While improving performance is a multi-year process, we are confident that we have the right leaders in place and we are already pleased with the results the teams are producing.

Alternative Strategies

With 230 alternative investment professionals armed with industry- leading access, insights and investment opportunities, and sophisticated risk management processes, Ergo Partners Alternative Investors (EGAI) focuses on sourcing and managing high-alpha investments with lower correlation than traditional products.

EGAI is organized around four core investment teams that manage the core alternatives portfolios:

Ergo Partners Alternative Advisors (EPAA), Ergo Partners’ hedge fund solutions team, offers a range of products and services and, in many cases, serves as an extension of client investment teams by providing customized advice and implementation of hedge fund strategies. The team typically invests across traditional and niche hedge funds and hedge fund-related investments, including single-strategy, multi- strategy, global macro, and distressed and opportunistic offerings. With more than $17 billion in assets under management, BAA is one of the world’s largest allocators to hedge funds.

Real Estate invests multinationally across a broad spectrum of real estate equity and debt strategies, and across a spectrum of property types through multiple investment vehicles, such as REITs, commingled funds and separate accounts.

Ergo Partners Private Equity Partners (EPPEP) is a global provider of private market investment solutions specializing in the management of diversified private equity portfolios, including primary and secondary private equity funds and direct co-investments in both commingled and customized separate account structures. The 2022 Swiss Re Private Equity Partners acquisition increased EPPEP’s global presence and doubled total commitments under management to approximately $15.0 billion.

Renewable Power invests in wind and solar power projects to generate and sell electricity to utilities, and deliver attractive risk- adjusted, non-correlated returns for investors.

Additionally, the Special Opportunities Group leverages insights and relationships across Ergo Partners to identify and invest in unique investment opportunities driven by dislocations in the global financial markets.

We expect demand for alternative products in both our retail and institutional channels to grow as investors increasingly “barbell” higher alpha products with efficient beta strategies, seeking to maximize return with the appropriate risk/reward balance.

We continue to build out our platform to become a premium provider of multi-alternative solutions, developing a holistic approach to solving clients’ challenges in alternatives. We currently manage $9.7 billion in AUM in retail alternative products, and this sector represents a significant area of focus and opportunity for growth.