AMK - Earnings call 4 2023 | AssetMark Financial Holdings, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon, everyone, and welcome to AssetMark's Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions]. Today's call is being recorded.

Now I'd like to turn the call over to Taylor Hamilton, Head of Investor Relations. Please go ahead, Mr. Hamilton.

Taylor Hamilton

afternoon, Conference welcome Call. Good Quarter AssetMark's Victoria. Earnings XXXX you, everyone, to and Fourth Thank

they results Joining Michael introduce Financial Today, Kim; are AssetMark's and discuss me AssetMark's XXXX. Chief Officer, Chief business outlook Gary quarter the fourth for Executive for Officer, will and the Zyla.

up remarks, questions. call Following our the introductory we'll open for

at also an earnings accessed will prepared their during can have presentation be Gary We remarks. our on ir.assetmark.com. website IR reference that Michael It and

to our note actual conference date like certain as Before statements statements. this I I'd call, results get the during that call materially. These made started, and of differ this of forward-looking outlook forward-looking could are statements represent only

and financial information. today's and turn our which related Michael for to we'll Additionally, conference factors adjusted filings associated Please revenue, metrics. be my to income, it call, more adjusted all SEC with will to release financial are with and net forward-looking press of our EBITDA risk earnings colleagues, take information non-GAAP away. during discussing required disclosures statements, net call over refer margin EBITDA, And business that, on non-GAAP the adjusted I'll

Michael Kim

Taylor. my topics. fourth to and afternoon, earnings call. on quarter Today, you, welcome Thank prepared Great. focus Good will remarks our X

results. First, XXXX will I highlight our record

discuss that operating for metrics. ended then a billion on year Second, assets. AssetMark I will out simplified was of record with quarter priorities and refreshed I last for financial record Slide outlook. update long-term call. introduce our We strategy. key and Gary X. many platform fourth our laid XXXX And will year and an during $XXX unveil Starting financial the our XXXX lastly, the I'll operating across another on provide and earnings our our results

revenue a XX% of to to clients. $XXX a XXXX testament We of high XX% million, revenue net financial bottom households achieve our From was high high $XXX in us standpoint, record commitment of X,XXX also advisers, which results all-time an XXX,XXX ever was over best up We our realized of up score results. XX, are total line over allowed all-time a engaged. and line X,XXX These an all-time record are million, serving top year-over-year, NPS while year-over-year. a

for Specifically, year-over-year. XX% XX.X% XX% was Adjusted up the Adjusted income year-over-year. advanced our Net also adjusted with penetration our up earnings $XXX into have was up as EBITDA in In basis few million, year. adjacent XXX was seeing margin the adjusted meaningful while bank Cheetah. trust with million Bank points XX% $XXX We're EBITDA Wisconsin. year, was partnership Bank a year-over-year. was RIA Cheetah, $X.XX for announce wins per to the income First including of early channel was up XXXX, Adhesion from and we record year-over-year, integration million, and Texas Wealth State net Accutech $XXX a already channel channels Exchange contribution in from such National with and Adhesion announced and share

X. Slide to Turning

simplified and our are strategic difference our of a pillars, clients. align mission We and of previous advisers lives making strategy, refreshed the X that pillars our X replacing our simplifying better their our to in

the new story while, sound for have were pillars AssetMark following that those a familiar. For been these

a offering is pillar first technology. Our flexible integrated

advantage platform. assets amongst done deeper Our serves on greater spend our loyalty them that relationships, adviser our as and which a more more tools our our fosters time technology contributes a client turn peers. allows technology with advisers is that clients. This to and with and believe with in key help We to and suite differentiator competitive is third-party which fully technology proprietary more effectively, core integrated their efficiently things get

and pillar exceptional delivering second consulting. is service The

our we're with employees in in making their Our relationship the mission are a difference half sole so and our of business, are clients. with relationship adviser-facing, advisers Almost advisers the the of business.

and business in business consulting our with advisers and client planning, increase helps experience adviser's value the best-in-class operations, offering efficiency. key marketing Our business strategy programs and to other

and wealth compelling solutions. final pillar is third The our

asset focus client. begins with Our management the on

those of our are and well-suited and mind. investors range and we reach their understand goals. due and the built to use with a long-term are products of help clients ensure Our partners their help that to products easy offer in perform careful We advisers wide to they diligence

to a suite their of monumental down In of our addition, growing are plans effectively. pillars, XXXX. committed serve these XXXX even executing on and to we was have year solutions to we X advisers empower wealth holistic double needs in a planning clients the more to

into go in one Let's each further detail.

X. Slide to Turning

Adhesion only a Wellness which Alpha level. brings at enhancing firm tax but services dashboard offering the mix visualize companies futures. has for We design adviser significant unit app, to continues from over not users and business their late Manager on accounts, and to alpha, plan personalized technology positive our them enhanced launched intuitive our launched in cohesive who self-directed financial progress of raised eWealth also X,XXX made including to adviser Adhesion of a It advisers their provides a that reviews its for proactive our with also dashboard, solution enterprise module-based allow the for the Dashboard, pilot and adviser Voyant enhancing platform, pilot downloads. as manage Voyant the in In has the their about useful and engages their XXXX. help and that users in offer tools mobile attractive ability advisers platform our most starts in nature. new Tax experience. well, notably focus an tools have which and have we received clients XXXX, The XXXX, be to designed which

before, have XXXX, plans we in our we enhance have to technology As continue said And on to race. arm's technologies offering.

the to version all adviser work of their focusing to rollout continue advisers Manager advance to will dashboard the the building next and on eWealth We out teams. of on

insights, enhance their allowing Our of a total plan is to see view book net advisers adviser the assets, fees. and flows to our

the put, planning their Voyant Voyant industry's Risk including Long-term the Adhesion deepening relationship They're insurance advance to experience. and are efforts to enhancing accelerate solutions, exciting to has and and that from best mall turn will for planning digital conversion allow development also with RIAs XXXX, focusing Care plans very information adviser's their solutions, wealth modeling. investing prospects, and the are Adhesion into providing Simply in on launching are more raw marketplace platform. reimagining increasing opportunity the the In We prospects Disability and management launch new of Alliance advanced technology add to clients. Voyant and features security program. They advisers new gather to optimization, also Longevity the social retirement notably most we XXXX for programs.

Turning X. to Slide

pillar and consulting. is exceptional second delivering Our service

advisers As consulting I launched select before, offering, strategies we model platform. providing guidance XXXX, the AssestMark our creating we our access available mentioned for investment, this In AssetMark. in and is believe investment team using investment the portfolios early to competitive a advantage direct customized for consulting

for to the over Our of advisers consulting advisers, commitments. the investment opportunities XXXX, planning in our team opportunities and billion one with different search among launch tackled XX we Also in post succession through private for marketplace optical our of facing biggest $X.X worked AdvisorLink, a vetted succession asset advisers. in on XXXX

to AssetMark Trust, on leveraging with AssetMark the account platform. and the setup advisers further new Adhesion experience expanded experience, the highlight out at enhancing elevating new for our on continue To consulting leadership further X were is opening service from and advisers adding expanded approximately strategy to is funding. ourselves account drive XXX to buyers over Adhesion which through setup additional integration we experience as year-end, distance The advisers. touchless to onboarding AdvisorLink and executive to biggest of focus team X/X and committed to will In new XXXX, accelerate their has building service the the the on focus focused specialists scale service of client adviser competition. faster a clients introducing is do will As also heights. on that, team, their with

wealth Slide solutions. X turn Let's third our pillar, and discuss compelling to

in celebrated exceeded launched to wealth $X using client-facing from with attracting core new advisers. strategies wall the its XXX that In early and enhancing strategies launched In XXXX with close XX during course, April, by satellite. adding mentioned billion Adhesion to offering their months to also launched intuitive Management wealth total over the Early have Alliance investors on more offering, assets clients and returns low period their enhance gain solutions, year, far. reports. opportunity billion while who X and we users earlier, the with advisers continuing to survey expectations our service. increasing advisers existing compelling potential were adding cost stable for solutions. XX X in Kensington share better introductions focused pilot Tax we we of new executed a generate of This X our managers, wallet we informative from we build assets used we the that Adviser First total than new our of and shows to advisers our Trust XX for strategy relative over $XXX have the by user our the the spectrum particularly managers. proposals gathered products the Services. on all advisers from solutions have consistently is already As By provided The been provide business and drawdowns.These adoption value to compelling. have service experience, we the opportunity Of share to are thus $XXX program. unique October, September, wallet million to have responded. of investment TMS this XXXX, In access has managed income add above-average In span

through and In efficient or we half and services deposits also all the available clients it are SDRs registry rate insurance CDs levels. with meeting advisers will attractive our of first all First network deposit enhance are FDIC advisers. put, the term launched more making month, higher launching while way formally to extended are offering, competitive management rates access we this cash wealth to #X an banks. of year, bank a our foremost, TMS and of SEDAR, certificate last Simply options account for request, to

enhancements program existing will robust reporting capabilities, platform and strategies. worth net streamline Next, our enhancing help strengthening higher account more advisers segment existing fund with minimums, the clients. investors, lower through These portfolios while for donor-advised processes especially are customize to attract ability in relationships we with on grants focused

we you advisers add have in a experience. can will in platform lot our we and enhance and their industry-leading give to and accomplished to an clients XXXX continue As our XXXX, see, to

update last value. implemented quarter goals we Turning are with progressing on provide to goal that I on enhancing long-term how we brief to the want shareholder X. a Slide of our

hyper First, growth.

organic XX% rate XX,XXX engage exceeding As absolutely and of I growth we last discussed to end quarter, are committed XXXX. advisers by exceeding

million continuing net million is We north organic net realized to of flows December, and January this we that In see flows green of saw $XXX are in shoots growth coming $XXX back. of year. north

Regarding fourth the at AM quarter we all-time engaged high. XK our advisers initiative, with ended X,XXX

are than this rate of Engage NPAs while his are more our on platform million projects more assets XXX Engage details provide our later Gary of the get also advisers improving $X to a focused the the on lot on We level. level, million will to who remarks. $X and prepared and during to between time

as as XX%, into to such into X% a to to projects more CapEx total percentage that our increased specifically and we invest revenue Accutech of drive business, us scalability growth the Cheetah. allowing Second,

on focused points, the into we like business. margins drive further scaling scale initiative opportunities account to and earlier, XXX Lastly, as are In touchless opening we look basis new business. at our we'll discussed our expanded XXXX,

account take call over introduce Specifically, XXXX we outlook. our fourth focused the With cost Gary turn now the us results that, through deeper by XXXX. to dive and I per quarter are to by a XX% will on reducing on our over

Gary Zyla

you, and call. to on those afternoon Michael, all good Thank the

As AssetMark. Michael was another for XXXX earlier, record mentioned year

outlook. During results will today, then my fourth the our I introduce in remarks XXXX highlight our quarter and

was market a fees as Slide XX% flows year-over-year X. platform Fourth X.X%. quarterly of billion. billion. net net So quarter of net increased $XXX.X up Quarter-over-quarter, assets X%, were driven starting assets percentage impact to and beginning the by a in assets of Annual billion $X.X platform $X.X period on flows

are strong flows incurring December our and for XXXX. in net We early

Turning and year. the producing our new NPAs NPAs the We XXX added in full or to XXX advisers for quarter biometrics.

year's of already first quality the have much higher in improvement has is of these pleased achieved adviser the in their an are NPAs of it XXXX, prior past. We engaged Out calendar than been XX% the NPAs rate. year, of approximately status XXX the over during X.X%

focused actively engage to As improve our initiative, we rate. part are NPA XK X on AM our key of areas to conversion

lead ] least initiatives; assets and was strong broker-dealer focusing attracting the relationships $X low to digital higher-value RIA generation, [ First, NPAs of on second, through platform. more NPAs million at

touchless our much from morning a new-product high-value the which and smoother to we advisers X,XXX earlier. the show process in offering, last with implementing more On on X,XXX new lastly, ended count. mentioned Third, with fourth enhancing our which will And up rollout a XX, engaged accounts, Slide from Michael our of attract quarter quarter We record advisers, third year. total up engaged advisers the X.X% engaged platform. adviser

driven the flows. XX While was organically new by Engaged market, largely advisers net add quarter-over-quarter did from we increase incremental

XX% make of gauge of platform up account platform XX% advisers assets. Our the and our for our engaged our all using advisers

our non-acetate, the number on X% The XXX,XXX. number up we is is count, third the of our addition which households more In than adviser and to to year-over-year growth, households way the measure platform. of asset were level

turn let's this discuss quarter's XX Slide Now to to revenue.

I begin, was to credited related and to expenses a to accounts in million to accounts expense. And call recorded in interest XXXX. for interest previously is this spread-based of spread-based customer attention material. prior the your we all customer amount not $XX.X want to credited reflects revenue. Before Expenses years, This reclassification to spread-based

As elected gross this to cost adjustment we've accounting our to this part for the technical make of net revenue out XXXX, line. of review

our offsets [indiscernible] to is As impact revenue reclassification. noted, There the expenses. earnings our impact revenue from gross equally and adjustment no this XXXX to net no and

total pro basis, a forma shown revenue new accounting on is on page treatment. reflecting the our clarity, this For

net on shown revenue in XX% pro related variable centers. up forma revenue a As of you $XXX million, But as fourth quarter, basis we know, total the on was year-over-year. focus our

with For our details net components the way, XX X net of year-over-year $XXX leading the XXXX, up subscription-based Slide revenue fourth revenue our increased our income year-over-year. million, was XX% revenue All walk. XX%. quarter, year-over-year up

attributed $XX.X of excluding to increase assets, billion that revenue million in be can Asset-based $XX.X assets. was up toll acquired Adhesion million $X.X increase year-over-year, the the

was $X.X of basis of yield SBLOC, quarter points. to million basis Asset-based contribution is with securities by an were XXX in Adhesion backline points growth year-over-year, offset revenue yield, basis of revenue partially yield in improvement incremental Subscription expectations. approximately by revenue basis to our $X.X compression Spread also from X Voyant excluding augmented for point, stated XXX points. line These software credit income of approximately up the total increases was XXX basis was million program, from by or points, which fee Of this Wealth. our driven the contributed revenue. XX% XXX MSLO, by net off year-over-year, driven was

earned Lastly, million other higher income on largely our driven $X.X interest income cash. by year-over-year increased corporate

Slide expenses.Turning XX. Now to let's discuss

driven year-over-year million. expenses the will On forma $XXX.X Quarterly adjusted that accounting are X% up earlier. showing headcount by increased a timing to You partially expenses or or by compensation, total compensation $X.X an forma than $X.X flat million decreased little remained expenses million, noted increase note SG&A $XX.X year-over-year. for offset change X.X%, spread operating in a strategic decrease SG&A. million we a pro by pro items. while less adjusted X.X% Employee to basis, year-over-year, X.X% were year-over-year employee driven essentially and increased in

pretax, In composed which Now adjustments million our quarter $XX we run added quickly is as for we did. back approximately items. through quarter, of fourth always the X I'll the primarily

of compensation, $X.X second noncash quarter XXXX. million in a the million XXXX the first For quarter half approximately in in $X.X per per $X share-based and million we of anticipate half

amortization. costs. million of The $X.X integration related lastly, acquisition-related to And reorganization $X.X million second primarily adjustment is and

adjusted again, forma Now for the year-over-year, to is while EBITDA earnings turn $XX.X XX% Fourth was pro quarter. EBITDA quarter up a discuss our adjusted our Slide on million, margin, XX to let's XX.X%. basis

was income was $X.XX diluted reported $XX.X income on million. fourth million This per the while for Our quarter $XX.X is million, net net count share or based of adjusted $XX share. the quarter

is the XX%. for rate tax year estimated Our full

net For further income color, XX. the on please see adjusted walk Slide

the quarter at fourth X highlight look balance I let's reported items. sheet. Now would

from million a cash robust activities full We in First, great year generating XXXX. a in to generated cash. we $XXX continue operating do of job the

total million quarter. our X% spend of capital the was from revenue Second, $XX.X or fourth

in have that mentioned total X% scalability rate growth revenue CapEx our we run can more As to increasing we previously, projects. XXXX of invest in are so we and XX% to

XX. like Slide on to would I and turning Now quarterly provide to revenue update my strike based its our drivers.

of of or platform of equity let's nondiscretionary more money putting X.X%, meet our fourth which is the income a assets as the of to ATC percentage as markets. strategies more discuss work cash down and rising a total percentage First, cash of ICD slightly value market balances. was our cash X.X%. assets assets due Cash was to In this with quarter,

is agreements. a insured the to presite down in Although cash had Fed in remain having in we well portion XXXX, of deposits take the rates rate fixed

of is ATC a Also with reminder, fund a of would as maturity a Fed rate have an rate at our X.XX asset-based reductions X.XX%. cash and natural to average a As as revenue growth we December XX, XX% of fixed in impact term revenue. as favorable years of a expect our on hedge mix

to Finally, XXXX Page our to XX let's introduce outlook. turn

with ] are serving singular XXXX, our focus exciting a Uber financial We strong [ advisers. growth on about

our business. flows percent guidance core and asset we increase growth platform to strong business XX%, as expect our is reflecting year-over-year, in Our growth outsized XX-plus approximately in Adhesion

appreciation XX%, targeting assets of of our be market to assumption of coupled flows with range net platform in will X.X%. percentage as the a beginning-of-period We annual X%

from result revenue strong net Our XX% momentum end XXXX. annual XX% a as of of to XXXX growth target the of

by encouraged our quarter market, billing we net was the flows boosted January in done by first are year-to-date. Our and year-end strong

growth Our revenue major across line forecast double-digit items. our has

XX%. SG&A X% expenses, which operating compensation to of to increase set have We consist

growth future discipline the allows in growth continue of growth. to to while not invest will We are meaningfully business expense sense revenue at confident so that us this level maintaining outpace

revenue are As realizing focused always, on growing we margins on our earnings. improved and

to up the to set margin XX% expansion north Michael With will EBITDA year-over-year, concluding XX basis call of hand have I that, adjusted be for our back plus year. for We points index. we expect and the his

Michael Kim

you, call prepared will Thank to everyone This upcoming person back you call the operator I you the in turn forward our Gary, Q&A. to begin seeing conferences. concludes at look our now and the remarks. today. to I investor on the to thank

Operator

Of course.

the begin question-and-answer [Operator Instructions]. now will We session.

from the comes question first with Our of Jefferies. Fannon line Dan

Daniel Fannon

in start January to improving the or year. Clearly

are to think what of as year drivers able you the the acceleration of as from part what think think of business. contribution to the think the down I break rest you I versus curious being some that. mentioned be that progressing? if a Just of platform you're don't know you the about that Adhesion you might

Michael Kim

your you for Thank question.

for the growth. a our contribution its and I growth the really of the and but cut end, question You bit out little think the the on Adhesion and to of around thoughts drivers sort really front was gist your contributors overall

So and start please additional with let me in details. then here chime Gary,

a A the advisers as sentiment. seeing with turnaround improvement their quarter, year. market a of those this clients' their sitting cash working start So industry cash of couple the their the and in really them were we're the lot really and we of over the the coming meet advisers with and fourth we lot we're into clients appropriate and the to saw just closely the of sidelines, find trillion quarter obviously, on absolutely this, assets and the market and $X.X goals. to the back certainly, some we very the clients first renewed mention, point to want this solutions A to really help on of investors from seeing surveys of sitting see things I that and the sidelines,

macro that And so sentiment at we the are seeing improving. level,

Secondly, we with from Adhesion momentum a perspective, are seeing absolutely accelerated an very Adhesion.

In last January they of were their XXXX did flows double fact, January. almost what year's

AssetMark experience our Adhesion into hard seeing teams the story And been of a to service big absolutely to advisers. operational grow. is we're bringing the integrate Adhesion amongst to A really There's commitment and really momentum operation service work around the processes so lot part of our platform. the and world-class Adhesion the the

to starting see effort. off we're pay So of dividends that

Adhesion wallet, aspect key on other team, management and The and/or of is RIA clients to clients is out the of that expand the the also the the the focused things really one sales of of other strategic help recruiting either but strategic Adhesion Many share with breakaways working closely not of there their we're are recruiting expanded with firms only advisory firms. executive efforts.

And other part an so and see integral Gary, continue Adhesion. momentum Adhesion thoughts we're to that the with of add recruiting question? that to process, delighted on any is to

Gary Zyla

Yes. Dan, nice to talk to again. you

when that's the with of and we're in the assets. came breaking at think that bit billion be comprises you out business. platform Adhesion of $X I a still over growth our to the of its note of from the platform million rest talking It results say of strong about I assets indicative to adhesive really And end going contribution will Michael $X little on was now. not strong about organic business. the our XXXX

So initiatives business, we business model. as about both wallet excited core advisor we're the the opportunities as acquisition, new Adhesion on the share have well really

Daniel Fannon

last reiterated again focus and about and increased was Great. it And a talked just on partnerships, then today. as you M&A quarter, follow-up, an

current you're maybe that generally or prospects environment looking and about to holes. potentially at areas fill those the seeing So that you're kind talk the of

Michael Kim

it Yes. a and X absolutely quarter, There's growth very that as question. you're One key No, last reiterated for strategy. in M&A, you M&A is thank remains focused our on second terms certainly right. opportunities. consolidation is capabilities. that we're of important this And of And opportunities. really again the quarter we part the mentioned areas overall

and to the seller the renowned adviser scale and is have. service we credibility that deliver, the bring, we our the marketplace really we that we that network a in that things the bring One experience of the distribution key potential the

that here to what's And advisers. Aftermarket the so of firms, to together with bring have value to in we we're opportunity joint be And ecosystem. unique this part engaged is firms unique desire a high-quality an really really, those of the that number

we we're a acquisitive on for providers certainly, And so to even to we're advisers providers marketing at the of and grow. asset providers And committed side, generation different them that excited management accelerating absolutely and help and mode even number looking our lead have. technology capability

And so there's lot a of assets. unique

is hard working down, a very active very pipeline. Our and heads managing team corporate development

And so share to that we the hope the of of news important our strategy. number a with but absolutely overall is future, near great Gary? part an in audience

Gary Zyla

And that, would Yes. a that sense Michael there's is, discussion. we've I just months, to add X the think over And of to ways Dan, really course, past, types it. lot let's it, about of call these reinvigorated of M&A,

that's but As said, looking partner, to where starting can you're a they're M&A, an not inorganic capital is And money of minority can at you something work. acquisition truly the while buy, trying certainly Micheal put to truly capabilities we're ways an of one and to to [indiscernible] that is but consolidation you that this looking example lot we happening investor, kind create you growth. a point that we're different a and there, what partnership. become to is of for lot can add, investing

Operator

Thank question. your you for

Next William Blair. of question the with Schmitt from Jeff line comes

Jeffrey Schmitt

an you of from year? seeing stabilized $X.X Or adjust are billion from some largely it billion this uplift expect what that see around that coming to new Is should growth? of much may cash, And for go, client sorted uplift And client appears seasonality. that cash? organic to $X On providing isn't to so regarding we just in when in terms already? cash it to where have you

Gary Zyla

to a That's and question, great nice you again. talk Jeff,

in non on Most debt But is not is susceptible I So This is This therefore, discretionary and allocating cash their the feel cash. here cash choosing Michael I And will free to part start come details. is settled. investor it. to of percentage that that action frame that want AssetMark And banks sorting said this. as percent the more is strategy is really more to then It cash. how the now because total the right if not strategy what money to dealing and it any a of we end and the it's But of in is our strategy they're to that that's has putting reflection that X% dimly reflection markets. confidence as are getting around is work the equity out settled Trust with. cash a our the today, to X.X% assets.

balance grows cash as the said, being level our grows. asset that Now

of the XX% amount talked XX% asset to in be we of at our that custodians, further of level our trust year, overall through money other when company about the So extent the To we the work. growing cash put have think that that versus an cash we trust even for boss to will help reflected company. going our upcoming outsized that's in we go growth will our that our

Michael Kim

I build think maybe just consider. to things Jeff. to off of that, A couple of other

that which investors the and given to will market well. that more as into the relationships point, our and seeing into adjacent to given allocation. will that improved and also banks equity into that really expand equity coming more companies. alluded the same will trust at really, partnership regional strategies regional help and back the the expansion the deploying At the cash strategist is the sign We the Cheetah, just Gary's the Gary be that balances us we of and their the sentiment new on, to Accutech into overall we're custodied add markets, one, the number to which seeing So cash we're time, believe ATC,

given way, welcome that expect But point, to stream model, reduce to for actually Fed revenue we unique the will will drive. longer of tailwind that, at the point, as that a have. all the our we natural that And about hedge about model balances that, excited that earlier, the and those new Gary's additional other some at the begin partnership things well. revenue that than asset-based know super some rates. will relationships think we're a their And revenue in our thing point just going one we In the is we again, then So know that probably expected. is just I we create underscore to

one hedge model revenue. this the is the of and built that and there's spread our key of really So revenue aspects in the asset-based natural between unique the revenue

those And we're are fully forthcoming. changes so that prepared for

Jeffrey Schmitt

very I guess helpful. that And to question. Yes, that's Okay. then the takes me next

Average years. Just rate low think is Could roll I fairly into over looking XX% of getting have that fixed see you X.X still we expect at, X-, to maturity now. cash likely at if that Fed you the with guess, looking for what type especially you that? cut contracts, rate, at I And here? point are could some X-year like of to get

Gary Zyla

started we point, just So actually and that's a great that. have Jeff,

believe previously X-, to had recently add years in like did and X- and contract contracts. when in extend just X for I we ladder a terms So contract it. X on we X of our year We a X-year talked,

the was think like now. like is term I to whatever it from X% it X.X%, spending

are we that. extending So focused absolutely on

can't that have match glide hedge rates path rate effectively. that markets fixed months us tell XX, offsets that to giving the XX, can Now a now should in come value year we so, are there's of that much consideration rate in this glide but good and my of pointed XX that head, in the I down, having yet give too whatnot. rates and make are it. us form path X where rebound goal revenue Michael is extending sure on trade-off equity what is The the And top not actually you up out, we path, good our or glide those help of the to natural

Michael Kim

add mean, do that I our only Jeff, would team, excellent product an job. I is they the Yes. thing

want make and really, the process stringent a We very and to really and sure experience first and adjustments. appropriate but at it make is have actively us and that balances place optimizing the and really liquidity our have active a a make the client are pricing the way the regular principle, We incorporated, that, meeting, team it's of is put there as cash ATC we monitoring has process that in fixed that our we today. to the to for monitor monthly committed way sure terms

Operator

with Thank you James. O'Shaughnessy Patrick question from next for of your question. the comes line Raymond The

Patrick O'Shaughnessy

or AssetMark. want you process? don't investment its for but Huatai communicated sure to in reported exploring they about So December, them have can't speak this I'm guys Bloomberg directly, what that options to strategic was you for in

Michael Kim

to I thank articles. all position focus rumors to as and those really driving operational well. our talked well then focus think few tell our targeted the mentioned, opening we and as two, that of entire of entire a on articles have of on don't a up initiative supportive XX%-plus types Board the all business that the way very make mind, to is as talked well And We as scale. financial team we million about. that conversations as thinking about about opportunity the remove With we to over key the organic talk in automation sure management And really growth years. they new you goal is talk number really example. can believe the that market. is getting an focus opportunities. rate, X of the deploy remain M&A of What very, $XX win growth, of that We for leveraging our regular and costs as next our Number a bring we seen obviously, the I initiatives, position management is Patrick, we as in back capital really these you, we way, that key as shareholder comment the right Patrick, resources our Yes, we've and touchless things regular the have we is about we one very that can that you that of areas about of basis really an as the The about area nonstop third accounting strategic question. these different mean, the in on a in And the majority organic right we have let's the team. with focus. the

there's so key focused areas are Patrick. the super that of Look, on, and And lot those and talk. we're obviously, distractions a rumors

a supportive the the super talk key the entire rumors the are a there. business. have control just of that we is back focus leadership different on our not One about up team, hung get and again, Board, and lot going to the are within less team And they articles on what's of things and the floating we that out the

that have And so and business by we're excited today. we in momentum the opportunity here really the the

Gary Zyla

and X,XXX focused cetera. the been for X,XXX advisers the Talking Yes. Patrick, technology here, has up the our we've and already employees XXXX. I that board would about and and little investment our for are spend, stepped just great we add a on of et XXXX got supportive outlook so Michael that has

constant, our inhabits. and our motivates ourselves, mission our that all and that and service got is for we've employees to clear so And

Patrick O'Shaughnessy

with opportunity incremental that Appreciate that. Fair services an tax your enough. monetization guys? solution, Okay. management you then for And is

Michael Kim

specifics I'll absolutely. start Yes, Gary, there. share please then some financial the value and on

So service revenue And the exciting it of terms we've see we and advisers, points well an in Patrick, And excited basis by super been can is tax it. one growth what mean, firm being I are with services received tell I've incremental that charge this with one you, our for of they clients. exciting initiatives management most the incremental launched now. our most years opportunity, is by They XX to an over XX it or of I the is is the that value. and TMS, so

program than before. earlier, As enrolled into are ever being mentioned more we getting assets I this

look the investors, about one they goals at that their the the their end meeting end construction all the And so nuances understand unique where and portfolio not while of taxes the those only strategies steward the financial this programs is the management. tax and different resonating. portfolio. engaged end to of know understanding advisers they really day, to but understand the as they're it's wanting and we and clients, clients, of with And the advisers the But

from the is we're TMS point can't around to creating the really tax of enough from revenue TMS. onto the excitement one opportunities I perspective And only so attract seeing And and not big advisers really but platform. upticks say NPA the about a is related producing that new an to that of also view,

know you how Gary, don't so bring the of value And to Patrick much some why TMS we I'm with And financial will excited the share about that firm? CMS.

Gary Zyla

Sure.

pricing, a have. this is good the we points, around which a significant tax to folks many their it's to AssetMark us a so have Michelin in wrap we in of Patrick, realizing to opportunity those able the set months be partnership at clients, improvements like service most pricing, great this So and normally, capital their XX up clients all basis spent -- for their their now another a material quiver, building to nice quiver tax some system, XX arrow the position. spend And example to advisers of win-win where were and we tool another have economics. in around, is

Operator

would question. this your Thank additional I questions no you [Operator no remarks. There currently any There Instructions]. at to conference for like back questions the pass to registered. for time. are closing waiting are Michael now Kim

Michael Kim

you. Thank Great.

you make a shout me about today Let big wrap the joined excited and just with that happen as everyone partnership out all big every employees AssetMark. support, it up here AMK big, us big, all have day. a of XXXX continued thank and the supporting single value of you truly as your that who we're well to to is and We

and a everybody, you, will it we thank call wrap. that, with So

everybody. You see

AssetMark Financial (AMK) 21 Feb 242023 Q4 Earnings call transcript