BSIG - Earnings call transcript Q1 2020 | Acadian Asset Management Inc.

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Operator

Ladies and gentlemen, thank you for standing by. Welcome to the BrightSphere Investment Group Earnings Conference Call and Webcast for the First Quarter 2020.

During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. [Operator Instructions] Please note that this call is being recorded today, Thursday, May 7, 2020, at 11:00 AM Eastern Time.

turn Communications. over to Head Brett like Corporate of now the to meeting Perryman, I’d ahead, go Please Brett.

Brett Perryman

ended and call results quarter to morning, discuss XX, Good welcome our for to the BrightSphere’s conference March XXXX. first

about subject those please results started, to cause performance. we forward-looking and get we projected. and our statement uncertainties note business is Before future forward-looking actual from risks may differ that make materially statements to Each could financial that

X-K statements future Form today Additional XXXX call SEC a make as these filings, and undertake of assumptions earnings information and containing information on of on factors our release we as the regarding result new no our in Form appears events. including XX-K. that this filed to in our obligation them or today based Any are forward-looking we update

with will a measures We referenced be our measures measures. reference to financial of will GAAP today’s measures along non-GAAP slides also any on can discussion. Information non-GAAP about use as certain the reconciliation found that part those we of including website

nothing an solicitation investment buy any offer shall deemed Finally, to products. or be herein

over Rana, Suren. and Chief Executive call And now Officer Suren I’m pleased our turn the lead the to will President call. to

Suren Rana

for joining Brett. morning, and today. everyone, Thanks, Good us thanks

First and healthy and on of well. the I everyone their all, hope call families are

who the workers Our family, healthcare I people all by sincerely this been who of the crisis. the On frontlines thoughts battling courageous behalf BrightSphere with the want are have on been virus. impacted thank the to have

quarter. reported share same quarter for our business first XXXX, and as first start We Turning of first XXXX. to on the some X provide of what business, key with of Slide the per the updates we quarter of ENI reported presentation for me let $X.XX our in the

share on continuing ago expenses the variability of last year the ENI. the and reduce revenue market repurchase first major our built-in to then the on our decline, from us due the to our cost revenue to declined compared impact helped other And per on impact discipline our quarter decline the items helps relative our ENI the on our to AUM quarter, year. the While maintain operating

We expect due decline the the of the that full-quarter of our an market in on of earnings the see second reduced impact revenues and will to we more quarter effect AUM.

quarter QX managed for saw including XXXX since billion, our flows in Net sales particularly the time the factor-driven and increase, were first non-U.S. as strategy. for we $X quantitative gross our positive strategies volatility,

our we share Acadian investment now our me key In were each Solutions & on segments. with some Let the pleased segment, period. in XX-year of our largest the respective the quarter Quant highlight and strong outperformed revenue, three to business of record their as which improve across on track strategies three, helped first five their in continued XX% performance them long-term strong benchmarks by further

investment secondary estate. In private strong. alternative this same sellers in environment cycle potential time, portfolio. to embarking this asset we and rebalance are up At private assets on our or shore as real to our real of to strategies: Alternatives availability is opportunities secondary equity, for fundraising class the be liquidity continues expected their as we segment, vintage three year key have across The shared next demand previously, the increase look

result as we So the timing we do as our disruptions restrictions raises, continue the due the in previously process the outbreak. travel virus of the this about the have we fundraising a be segment in to and in normal target asset delay fundraising of hopeful to expect Though communicated.

large turned global our improved quarter. flow Alpha Barrow equity cap and In largest posted segment, which affiliate strategy, the positive in Liquid our Hanley net that segment their in for sales value

XXXX of a $X negative still segment much flows first the year billion the negative, though being quarter billion improved, in negative to overall, in compared quarter. ago $X the are For the

as updates front. X well to company the now as strategy Slide to this I’ll our on recap for share turn

As simplify targeted. we lead progress stepped CEO we changes growth announced month, be targeted to last and our looking business. the this corporate have the more I and much to up strategy to our made our role forward I’m to some reposition to of approach continued center

primary section is page. strategy data The first this of the our really growth on

Alternatives, More Our our strong areas: of from which by well-positioned mix & Acadian; two-thirds primarily than primarily by Quant Solutions, Landmark. driven two comes and of business which driven is is portfolio.

and in We both distribution are Each and have in of and leading respective global completely secular fields both self-sufficient these areas. operations seeing their players growth Acadian fully-built are scale tailwinds Landmark infrastructure.

distribution maintaining the we at the very to efforts but supplemental the additional found the that affiliate distribution We have have level not center direct supplement been we’re at we productive.

due affected. nature to specialist affiliate center the specialized sales, contribute coordination and Landmark segment Liquid of the of closer earnings, are strategies, better in we placed effort too, affiliate produce distribution teams. and investment With that Given productive more in will centralized affiliate, service remaining Alpha other with than the much the our the less at efforts Acadian’s to the level found generalized much resources the third resources were from whereas level the our were client

to the decided since redundant, somewhat related to these were So we distribution proving center supplemental from the discontinue and efforts. efforts be

will distribution we affiliate the efforts at level. our focus Going exclusively forward,

and affiliates have sales Acadian the distribution built sized Landmark their fully appropriately and affiliate, are larger business. organizations our Our at for team already other

approach more of select $XX in believe sales the as generating that the the XXXX. ENI is some our will targeted million cases. center pretax by doing much and We cost add are savings at approach additions appropriate to effective implementation in this We from

primarily will allocation. focus on Going corporate center the capital forward,

cash affiliates fundamentals. flow we growth; this accretively our on products stock, three, strong and at will focus given sheet; deploying and trades maintaining for a meaningful to discount Our free flow generates repurchasing one, two, our businesses new free that to: future leading drive strong cash that can balance a our stock

encourage new strategy. their develop and we one innovate regarding feeding our to number for to Our will clients continue consistently opportunities, affiliates

number continues sheet our be to balance strong. Our two,

Our XX, as was December QX. XXXX. X.Xx ratio then of but quarter the we XQ, by we end pay of to built increase net seasonality the increased compared first our majority the Xx cash QX as up This leverage of in to as of comp variable to driven

to quarters, as and the revolver we to to million will next fundamentals. down ahead then at as shares our long repurchasing they Looking pay a we fully few and thereafter our on plan the increase $XXX repurchases trade discount the drawn continue

levels Hence per share. our from we to repurchases a dividend way optimal much of Given to to believe $X.XX capital quarter our stocks trading compared dividend. reduced are we that shareholders more returning $X.XX

outstanding XXXX have our $XX million. summary, is our Year-to-date, and These for creating shareholders In price of X.X% per shares share. at for adjusted per direct simplified, to be growing approach times of value our more our business average been $X.XX and about repurchases targeted. we year-to-date have X.X $X.XX EPS which repurchased of to share, have we an our

Slide X summarizes and of the of key the business segment each aspects mix. our demonstrate our of strength

clients On and is our is XX% us desire. primarily capabilities provide our comprising the that specific the our left because business segment exposures Quant Acadian. broad & Solutions Quant driven technology This allow the well-positioned to of effectively by is earnings and

saw For demand chaos, example volatility and and our in we managed the market for first the increased amidst extreme strategies. factor volatility to quarter, specific

multi-asset leverage which a core the equity. solutions customizable class strategy, couple Another and example years offer ago is exceeded of a technology to beyond class multi-asset our

very seeing in We’re momentum good strategy. this client

demand and investments. middle private meet growth efficiently well across our secondary going alternative the underlying for In driven earnings This positioned comprising by business diversification while is for to segment, vintages of growing very XX% the by because capital is Alternatives our to is Landmark. and continues fund demand deploying grow quicker that primarily GP, providing and is strategy

on strategies we in embarking I fundraising segment are our earlier, the are key growth. vintage confident mentioned in next As and our across

is Alpha the of is we mix capitalization income driven segment in TSW. Barrow comprising segment equities and of and long-only segment, On Hanley diversified our across and business In ranges our well. fixed regions. complement right overall this a by strategies primarily This provide XX% and and Liquid fundamental earnings

investment in affiliates. a we this have across generally know, segment As value-oriented you philosophy the

outbreaks, value to As value almost growth including the will XX underperformed believe be has when favor. virus we amidst to recently segment well-positioned benefit returns for years, this

the shows our of by business composition segment. X current Slide

& mentioned, our of is two-third As than segment. business Alternatives Quant and more Solutions in I

Quant With the upcoming Solutions, we segment increase. in that and & expect fundraising this proportion will in growth continued the Alternatives

outflows flows in Quant Turning Liquid our inflows positive net to flows and on XX. saw of We a net Alpha. $X as offset Alternatives & Solutions Slide billion in

this the are encouraged by pick fundraising the end and ahead, up the near help in our Alternatives year segment we flow. these that and further are hopeful pace Looking will of trends

how sheet to to leverage our of in more one from point I paying XX. would like increased to first We seasonality earlier on on Xx, balance Slide touch quarter. discussed ratio the X.Xx our the due bonuses on net

our a to variety We cash in we be to aside end increased a our You bit our compared gross $XXX to QX for from of have normalized down may around of a levels leverage revolver million to order of that more we This prepared amount compared of because would million the cash. scenarios. to on with meaningful comfortable X.Xx. been excess was set extreme incrementally drew cash of the note actually Xx $XX at carried

Happy to Thank you call you. the questions Now turn operator. to have. I’d the like back to answer may any

Operator

Credit with Your [Operator Suisse. question Craig Siegenthaler from first Instructions] comes

is open. line Your

Craig Siegenthaler

everyone. Hope all to you start affiliate. the with morning, Good wanted I well. doing Landmark

expected last the and fundraising initially Just we was how the should in-person about Landmark’s one? to on timing magnitude the given think restrictions larger be than cycle, meetings, upcoming which for travel and

Suren Rana

more investment for to market. be in reduced particularly there hope we supply, if in the well. -- I They Craig. up. you of asset -- historically. have show same we in of volatility to terms returns terms class, are the would I all Yes, larger earlier the as supply consistent continues said size Hi, size, terms expect in And the expecting of not with demand the opportunities

than As the like. allocation become potential liquidity, private would sellers may look class bigger they asset to for oftentimes

variety supply. that saw the that So last there of are crisis we factors financial around a time global generated

household all the are and in those terms optimistic. size the overall of we are So factors

of see on. to or in of home what some clients was as just terms distracted going terms settled work In from we being environment timing, disruptions did getting into the just

all but but same through one of emails are hard not digital obviously We audio, we’d size where are in of to is quarters the It’s the channels two know continuing video if delay. the and impact to we available, timing. and ultimately, that interaction there size up better. terms in definitely course we -- an of end how same But expect conferences much, would expect client the

Craig Siegenthaler

is that Got a interest one terminated, manager functions from BrightSphere are going all looking for lot affiliates? third or acquire essential it. And the to consider of my your maybe would now that party a be follow-up, how asset

Suren Rana

Yes.

public true to As be interest of company, recognize where that value. indications would during of course, a we responsive any, our but that

time obviously, would So to able acquirer an to there dynamic. from time, to if to at that a them. headquarters. we if impacts be the But look think they from comparing built-in had synergies queries, legitimate it we we would had are that always extent don’t material we would Because, infrastructure, realize fully

the So I have of autonomy, are that that self-sufficient our they some which coordination a because the that fact need always approach welcomed was to it as greater but autonomously. particular really only up get clients knowing more said not the but that that to affiliates scenario easier for like the help and were and makes we may you in with have this removed effort bandwidth outlining, autonomy had operate even also but already see. earlier, supplemental their times very there They at redundancies distribution frees

of factors acquire. guess So the or all are as I you those from outlined, somebody we business wanted our think perspective, if is running helpful from to

Craig Siegenthaler

Thank Suren. you,

Operator

Capital Your comes with Kenneth next RBC from question Lee Markets.

Your line is open.

Kenneth Lee

thanks for taking and questions. morning, my good Hi,

particular given and the strategy, Thanks. overall in opportunities the outside current distribution in emphasis on the changes your are regions? wondering, there in Just what’s distribution changes U.S. thinking any

Suren Rana

a time be long in of one centralized could we we more things Hi, found always Yes, especially been of the our effective as of how it efforts. discussion reviewed distribution distribution, for on have that’s that, terms a regarding Ken. the other

the product specific at that are a just effective one, to found any market the markets specific approaches more for client level. other found broad one we’ve thing that much So new that that the channels was But to any a or opposed a effective obviously into it just much we was having and as more entry product ready whether without that’s market. affiliate

strategy. markets, what we leverage that’s with into -- So as be and specific new going go will will we we that we will learning

point, some case really So, ago for and strategy China see showing promising in at China, that time a A example, results. that’s market Acadian we have we

that and be getting more that’s markets we where specific with those approaching traction. are would So we strategy

approach into to be. So product basic later the going figure out that’s terms going general what with then of leading we’re in would going to be be a our new as to entry specific markets; opposed product it and

Kenneth Lee

Got one could kind would. on if a have. balance you. you you you follow-up with that I’m Very Thanks. helpful. wondering may share just higher And having if what little cash or any near-term potential bit normally may, I needs commitments just you sheet than us any liquidity of unfunded mentioned

Suren Rana

strategies cash will produces to Thanks, have the use Ken. Obviously don’t I cash repurchases see our we for new very manage and business strong the any leverage. flow Yes, needs. we mentioned, liquidity and flow as to

have blocks that’s cash available. we wasn’t our well. down on arise we cash that excess the opportunities clear example, as and long-dated and just our for what But on it out revolver, stock, given the a leverage, our the on result, far whether be bonds revolver could the could the from particularly majority environment, has drew So as

like was desirable to if now out of Essentially, seems but cash. that I mean the are essentially it picture. the few weeks, fast-forward you extra uncertainty, as scenarios a worst-case So have it

the probably will pay revolver. excess to down use we So cash that

Kenneth Lee

Great. Very safe. and stays helpful. Thanks hope everyone again

Suren Rana

Thank you, Ken.

Operator

question KBW. next Robert Your from Lee with comes

Lee is line Your Robert open. KBW. with

is open. line Your

Your from Research. with Autonomous Patrick comes next question Davitt

Your line is open.

Patrick Davitt

morning. Good

would are more anything question, to manager difficult a make model. roadblocks business, affiliate Say versus in a an untie follow-up As Craig’s affiliate? it quick more there that that unique fully-owned a to traditional contracts is asset your

Suren Rana

a Hi, most one Patrick. had a our of recall, change of No, have a control, there had majority did affiliates back of exercise. former own unique they that you wasn’t themselves buy anything time unique. did We to ago. of may Heitman, affiliates. our contract one which some We right upon We

had. simple So we majority that, don’t than that of Other unique. was very the only and affiliates unique our own arrangement we have anything we have --

Patrick Davitt

strength some sustainability bit probably in follow-up quarter we can that Great. we you to around is the think maybe surprises of And some my flows businesses Quant-oriented a at other I think saw has why back business flows XQ, little talk on Acadian, everyone, can performed given so comfortable well other are we versus there you as forward institutional that like demand Quant sort building? we And of quarters flow-wise businesses? extent of then, repeatable pipeline more see that look to first look as So or what the get forward. you

Suren Rana

they’re not Yes, and specific I all of different terms approaches guess, alike Quant have. in are they businesses obviously

for all Quant So key performed well and have one, factors, longer-term route to has our and really with done business covering perspective, they their essentially that business and only primarily discipline academic on dear not from focus Acadian multiple the that well but times focus all are a factors in is clients. that

performance factors factor, produced clients. for on performed because deploy value, well, do that investment the other didn’t So we that first though and at well they helped the example even quarter as Alpha well, for as looked this approach one

helped as So are because and sustainable flows I in very asset tap terms as think and in that that terms we Acadian a that of has has brand ranges. classes, do the regions well as capabilities of see broad-based

looking specific looking to are client So to to get needs, or they’re respond they a can exposures problems the clients specific solve.

Class classes. of is touched responds client And for as across on one I that needs those to example, some examples, solution Multi-Asset such asset

environment. strategies clients looking generally, continue to for demand Our are strategies, see to for certain those also specific increased strategies factors. factors we managed there but in was are exposure this volatility, where And for helpful demand

has helped. that So

see to a that that Obviously, term a approach longer and the time don’t primarily, happen in growth. longer stuck At that as and being quarters that trend. we the well-positioned business are may see sustainable discipline consistent in term trend. we secular We have time. there where had from things as be a tie we institutional to could with very that Obviously

Operator

Lee comes question Robert KBW. from next with Your

is open. line Your

Robert Lee

Great, thanks. apologize. I

my Hope doing by had I well. everyone phone Before on accident. mute is

the guess a you I on pretty own expense share structure just I profitability. the believe the affiliates, I profit of but question some clear, at of certainly them have just are kind mean maybe all a pressure their see objectives Holdco, curious, on with So

maybe So more little on downside where underway some on any and know -- spending trying I protection affiliates some protection you get you any that things or that mean, doing kind different to their when get they’re maybe downside end. going? initiatives kind agreements are granular or there their the of they of within have keep the business on moderate they Just are get triggers there that end, with your and

Suren Rana

Rob. you, fact to Yes, so. this have we been continue affiliate at while Thank level, in and all the investing do

investing our been So side, show Acadian our grow on infrastructure similarly we that does for technology and both run assets investment investment side to have we touched at and expenses, to there. adding we’ve been as have this that continue example, in we the Landmark, in up rate

and people from as investment Similarly strong at are time. time very invariably and happens do margins the we can are that well Barrow the downturn, still Hanley, to adding and the distribution on if us do to that we those afford investing because allow side as side, on margins the

but a hold don’t necessarily see back on to we reason we that capabilities need. as build So to that continuing

the that the it So that and we the sales. earlier side, be I really in generating to of expenses sometimes have and remove effective more truly reasons we terms business could been it it without expenses was center impacting expect do walked really -- on through incremental the is

earnings, as generate, very allows our pass of on the you repurchases. cash our flow on, shareholders through to that allows -- this that approach of us strong to more generate they So more a us pass to that if will, affiliates

essentially how answer So Does question, see we Rob? that’s that your it.

Robert Lee

Yes, moving balance couple you. on just and to side. the maybe the clarify sure capital follow-up, a make And management pieces I’m as sheet thank on to a want of clear the

I had And flow, you been hand I that of balance. And reduction? of of we zero that fully of $XX debt quarter that that to north would mentioned you’re think guess of than the or is revolver generating cash about kind that cash wanted around you to you down mentioned want that take million that. for be at at so mean, mean to was used comfortable higher million also you get revolver, cash I think you million should that on the $XX kind I can have comfortable then, little so end a it paid you a free little quarter $XX there currently? or probably running -- a to level

Suren Rana

Rob. thanks, Yes,

are in we that we cash are reduced So the about directionally of strong kind with and are AUM. those numbers generating flow, excess line carrying even cash side that

balance our the that to are of from just fully. down of [indiscernible] a From range maintaining downturn. we to the leverage, provides the want in still have So, at sheet, more of we comfortable perspective scenarios, very up revolver less variety cushions or be and perspective we the preparing would strong because pay that for to ample X.XX

this and of directionally use so essentially repurchases in year very a then so repurchases first far that’s the So we we’ve done quarter. good thinking. of our what are amount just would and in quarter, capital, And last -- we’re attractive

gap as repurchases as So long want continues. increase that then we wide would

Robert Lee

again, would then so, way it? appropriate, is end wouldn’t repurchasing down reloading to and start more the comfort the low leverage to of that your have towards before range it’s the getting of initially the of you as And kind necessarily zero think ratio maybe you revolver

Suren Rana

from was distinction Yes, just emphasis near-term that’s was the I more right. a perspective. really making Yes, on

may still stock times on our Yes, the yes, was a on leverage would paying of to is -- are bringing just while depending there we levels keep trading repurchases, outstanding. it’s the So off is open. when I qualitatively, where increased where and we all of more focused revolver -- chunk good the down want those be -- But revolver. options this we the sharing revolver

Robert Lee

taking Great. questions. my for Thanks

Operator

with Chris from next Harris question comes Fargo. Wells Your

line open. Your is

Chris Harris

the get normal to cost of how growth, you saves, Once expense thinking be the about of should we other the side rate markets? assuming

Suren Rana

Hi, Chris.

primary at expenses, there of guess said, is of guess most In key I the terms be living, would terms we are of really cost in inflation fully factor our the probably et I factor because That it’s affiliates. cetera. of as -- built I

some investing to center, that in corporate reflect already on reflected have allocation time. already And don’t will we’ll primarily -- for We That’s the from But be focus capital continue at the and lean, we that major to any activity. the be is run to have aside we been rate. continue need, essentially.

just maybe question. So a you of is run I first by we cost think will, rate that that rate will XXXX, end living XXXX, of and the main in run is essentially reach good quarter increases, that if essentially

Chris Harris

about Okay, those your got this what your guys And demand customers hearing you then are in institutional the products? take to views what it. for mean from appetite their broadly for environment? unrelated, And more on do risk potential

Suren Rana

are maybe the that most institutional, guess one area is of clientele where are not we I different them a is our investors. and of some other only lot asset managers than Yes,

far, very take they see thoughtful they would the like our So we from generally second been advantage. clients about and far to quarter in so how so any and what have like to first quarter, type they didn’t of moves in do risk-off

saw some in areas where So some there’s our clients saw they regions. from rebalance where we moved particular cases,

And put in a there. scenarios, those to We’re managers good they their dollars to would a to work search. wanted opposed manager value go to as go-to they often running more and

seeing So that and we’re play. that a still good that’s dynamic positive helped,

other at end that. they’re the That of happen. could Sometimes

their of will see And So been thoughtful, any that we generally, I we have continuing. think, aren’t patient making and move. half and declines

of demand on we class, ultimately we that know, mean volatility. for seeing for what that like are terms is in strategies what might based us far managed where So so multi-asset

of also the off. a we’re -- quality seeing are were also interest traded that and stocks We in lot given seeing large-cap large-cap value,

balance, it’s been a for I on think us. generally, all So it’s -- positive

Chris Harris

thank Okay, you.

Operator

America. comes with question of Mike from Carrier Bank next Your

Your is open. line

Mike Carrier

right. taking morning questions. the thanks and Good All for

exit that’s distribution Just center $XX the on million your to the savings, attractive. decision, obviously

sales much the in did curious, drive or Just flows how that past?

Suren Rana

decision. Hi, factor a We Mike. been productivity much. wasn’t our key The had Yes, supplemental that in maintaining that effort. was

in was a sales, couple expect are do There So up wasn’t there so. we of if the sales, or particularly level, the there at making select will, additions very some that boost terms some of the impact. be bigger in sales sales that we would last from of small force years the much you And freeing and at affiliate bandwidth, affiliates.

So we think from a be sales perspective, a this positive. would

Mike Carrier

thanks. just Okay then And a follow-up. quick

Just million XXXX. you guys I XQ said think on the hit run that by fully it the savings, $XX rate would

how So just will much savings for given some hit these guidances that you of how in versus give Thanks. of in XXXX? XQ that actually guys is XXXX ratio XXXX, much

Suren Rana

see a in We’ll XXXX. chunk decent

majority a the the already in been second the actions, of or have of quarter. vast actions, All taken

on accrue So benefit XQ, a of variable bit able had didn’t we little to in much comp. that, the than quarter, less we we we that didn’t But see much. shrinking, the except knowing that were other first the some have

et So that take have there leases, we’ll second more. cetera, example, are do But items, for residual time. some quarter,

the that fourth reaching really of we’re So rate run by quarter. end

expenses guess other corporate and the operating was year. is $XX it, the for level information. segment, about provide the do our you And year we I way look segment look last the full at variable one easy to comp center, if So at our which essentially million

number essentially. in be be middle, that And below it expect $XX then we’d the to somewhere XXXX, in will Before million. XXXX,

Mike Carrier

a lot. Okay. Thanks

Operator

Cyprys Michael Morgan Stanley. with from comes question next Your

Your line is open.

Michael Cyprys

I Hey, morning. on taking circle good to capital allocation, question. today. for just Thanks wanted backdrop the just the given back

affiliates has appetite would say is curious sort the how this today? opportunity focus seeing there adding how appetite there you And even bolt-ons new How your Just evolve How evolved? much relationships. influenced has of that or are you at affiliate for too? set

Suren Rana

I Yes, looking see we’re that we flow at Mike. repurchases the attractive very generate. in at We M&A reasons for are the cash not earlier. outlined all Hi,

the leverage, have of add uses our managing shareholders, the We receiving would supporting clients. new repurchases, and to for and growth our primary affiliates three most strategies that’s that the value

if clients, that, our affiliates of efforts. we to those would see their bring organic on as things supportive So team one wanted be a we of but obviously to more serve

focused where from essentially allocation we’re capital that’s our So perspective.

Michael Cyprys

it. given the from not the back curious as has Got not way forth a and the office, And at pull I because other marketing changes distribution, Why just the you’ve away resources go so to outlined on? and just more so that center, follow-up, and functions, centralize each the center why affiliates and and of more and get middle guess. scale? to affiliate their Duplicative, own economies and

Suren Rana

Hi, Mike. leading business from different where they cost-efficient. could guess quite answer it’s are outlined, that we centralization as -- is probably is sense. have really managers business, that our I I our the strategy scaled very many make In franchises, really

sense to to reporting any their fully in it make none leader Obviously, have wouldn’t a Has very next are is centralized resource Acadian a any business. So specialized scale that infrastructure. distribution capabilities business. so their technology

assets both going on insight specialized are strategy. market. is what’s capable, professionals terms as talented sellers on very alternative Similarly, the their for in clients are Their Landmark deal business of The very focused secondary people. the their needs about very technology capabilities, providing a really professionals secondary sophisticated are as highly -- well in unique very of

for So again, and is the in back office that. customized

Barrow that So low-cost large franchises, and are Liquid equities on in again, a focusing Alpha in within GSW and again unique and are long-only is ranges Virginia of cap and Hanley the managers and and do we are Dallas income similarities the there where is locations but need. very across strategies segment different two some fixed the have Where our respectively.

working very could than We much are more be. boutiques, any who have centralization specialized looked two Then at it. we current infrastructures cost-efficient basis. that small on very are have and Their are

to some it ended including essentially -- and it them up our Essentially, sense functions essentially the pass the that centralized we really for really of the doing reduce our affiliates, midst approach distribution, ultimately the from we most affiliates and because what we before receive we did our of makes So shareholders. coming pass evaluated this have that the but on is from strategy just bit to as in a our of shareholders. on flow earnings most businesses to really us was more cash more little were the that on new

Michael Cyprys

thank Great, you.

Suren Rana

Thank you, Mike.

Operator

This to to concludes call our question-and-answer Suren session. Rana. I’d over turn conference like back the

Suren Rana

joining stay Thank everyone Thank Okay, healthy for continues to safe. you, thank today you. you. us and hope and everyone,

Acadian Asset Management (AAMI) 11 May 202020 Q1 Earnings call transcript