BSIG - Earnings call transcript Q3 2020 | Acadian Asset Management Inc.

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Operator

Ladies and gentlemen thank you for standing by and welcome to the BrightSphere Investment Group Earnings Conference Call and Webcast for the Third Quarter 2020. [Operator Instructions] Please note that this call is being recorded today Thursday October 29 2020 at 11 a.m. Eastern Time. I would now like to turn the meeting over to Elie Sugarman Managing Director Strategic Development. Please go ahead Elie.

Elie Sugarman

to third call XXXX. quarter welcome results discuss and the for ended morning BrightSphere's to conference our Good September XX,

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

update we in the the and second regarding appears a on forward-looking be today's in about Information of the and a slides as including these earnings on on filings information that obligation make discussion. containing may today those as risks we for uncertainties that GAAP We events. will call XXXX statements and Form measures use information quarters no XX-K filed including of assumptions are can Additional SEC along future non-GAAP X-K XX-Qs reference and Any Form result certain our of based our release found of financial part undertake also our to reconciliation as our this the measures we of website referenced or Form to XXXX. with and first non-GAAP new any today measures. them measures

lead over the be call. herein shall turn Suren will Suren? be Chief And offer Finally to products. nothing to Suren. now pleased call deemed an the any and solicitation Officer Executive investment to I'm buy or Rana to President our

Suren Rana

you Thanks for us morning Elie. joining Good everyone. today. Thank

the reported $X.XX than is third We ENI third higher remarks the which key five laid last on year. on highlights the deck. the in XX% $X.XX, As reported of quarter usual out of quarter I'll we quarter for my the Slide for per share the initial focus presentation

our basis. And quarter for the in We expenses the revenue $X.XX our third previously of quarter due savings year increase cost revenue ENI a and ENI second largely XX% the AUM our management AUM, from of on then in from Copper in discipline market our continuing the average the impact reported of our helped last and which we while fee the the first the our half year continuing year our of Barrow higher also declined OpEx compared divestitures increased affiliates. to ENI due per this on to compared The repurchases the by build per COVID-XX-related than to affiliates. market recovery, Hanley the the of reflects and on share this repositioning While $X.XX corporate share quarter QX. share the to further announced Rock our flat is to remained

completed we completed Copper and Rock July the be reminder of a As Barrow still sale in sale Hanley in in to the quarter. the expect fourth we of early the quarter

fee timing in continue imposed still which Alternatives on restrictions net in cash to on the these had Barrow fee million quarter because modest and fundraising, In client by on billion of of in reflects the billion. of the than outflows. quarter Rock of but see were segment, of pro the the $X.X in was delay we a inflows Copper we $X.X that impact was the pickup raise a But net our our pace the forma fund this pandemic. Hanley higher as $X.X inflows annualized Our revenue a basis the positive our the flows is a flows excluding negative

XXXX. in we XXXX expect and As bulk fundraising discussed the our still to we have come previously of

their over and and by respective X, stable. periods. investment Quant remains XX-year be revenue XX% strategies the with Our segment strong investment to X our Solutions beating performance In benchmarks performance & XX% the generally continued XX%, of prior

of end corporate X.Xx earlier. capital revolver the of to ratio at reduced QX to compared the QX X.Xx Moving which at We our debt our on borrowings reduced to $XXX million net management. $XX to the from end million

paid amount strategies of our million we to amount $XX since fully capital seed the seed adequate Additionally, we for of off remaining affiliates. outstanding on new an non-recourse have our facility

to we in closing toward the Now fully of Barrow center. that QX We're use still proceeds part of look million revolver previously over by XXXX from the to the the annual as use repositioning intend quarter, cost of plan closing to from fourth towards deliver $XX our sale repurchases. corporate Hanley on to down of our savings pay the proceeds we track we and announced

of Alternatives of segments. segment. XX% a on provide the our to mix ENI like walked We differentiated to Next I'd so Quant some business divestitures strength move to & our by few last fair the now from on through Slide earnings already color bit highlights XX our post with coming flows call, slides the and Solutions more this

you'll the the at on pro net $X.X billion. Alternatives posted inflows we column, the in chart Looking the see the the in of left-hand forma page second segment column, of side

of You Barrow posted and that's In for we may Alpha the that was in number net was positive positive QX. QX. excluding Hanley forma segment number of recall inflows a small Liquid quarter In this pro inflows this result In primarily $X.X had in billion billion in outflow the $X.X the segment Solutions billion. we Quant withdrawals outflows net rebalancing a driven net segment billion large QX of had net two & $X.X The by was considerations. quarter. of QX $X.X the

to back questions the and Now answer I'm the call to I'd to this operator like point. at turn happy

Operator

comes question from Michael first the Morgan Cyprys of Your Stanley. line Instructions] [Operator from

Your line is open. now

Unidentified Analyst

& outflows question is picked Hi, thanks. the Mike. up in this Stephanie is actually redemptions This for particular, filling quarter. have in Quant the Solutions. In My around

withdrawals in us you're give strategies called what color the at that you update point. some and well can latest of you if out on in are wondering of client the more what terms and So seeing activity rebalancing this positioned trends

Suren Rana

certainly. Stephanie. Hi, Yes,

consideration. it rebalancing pointed I not largely withdrawals withdrawals was two were As withdrawals that out driven specific the terminations, by which

sort environment change, tactical and don't to generally aberration. it around that tactical fact, received, we that understood of in year the was a an of in We a it was was was And generally, one them, when earlier to people out, of driven things rebalancing ran by that longer-term have received be allocation a we had a One coming its we that so receive. course. was starting that and we it in equity allocations are moved other short-term tactical of lot the little so But have and bit rebalancing. markets as the the

business, that in on powered multifactor you're business, very of it's the ultimately strategies you're approach Quant broad-based whether the of client low a goals, our across by diversified the sometimes it, as we or but is of core and the it. approaches we but and -- it's data the Solutions end see -- we at regions volatility of end longer-term on the So as giving But terms look generally, very have receiving sometimes & targeting decades and performance. research are

So, we of we see well generally variety strategies. is positioned in mean business see -- see that given now we very outs the I ins the we have. and capabilities a differentiated

Unidentified Analyst

you. Thank great. Okay,

Operator

next RBC. go ahead. question Please Kenneth comes Your Lee from from

open. is line Your

Kenneth Lee

Hi. Thanks my question. for taking

would the the could might pickup you you later in little the just of thought. mentioned terms a occur you expect that to that timeframe. you originally be XXXX would bit bulk fundraising increase granularity, would whether in Thanks. if steadily XXXX-XXXX than provide Wondering have fundraising, or the any perhaps what throughout additional the Just Alternatives' timeframe

Suren Rana

with and Hi, new are and Yeah, with hard is aren't that Ken. example, specific peg dynamic them the clients dialogue perspective. an a people is we able moving has situation clients to encouraged along person timing along do with generally, in able But from with not the investment for the issue. have an the committee they with new fundraise, starting jurisdictions, are meet are course, of notwithstanding moving the is to we kicked-off given issues to to and But in exact being But fundraising clients. meet pandemic. that, commit. person are there In to that idiosyncratic

And always the same we are were. as we still sizes targeting so, say would I that

is that maybe the that discussed because delay that pinpoint, would are really I We would that, slowing beneficiary to it's restrictions definitely targets, be given the bit. things previously down to that are timing a get dynamic than were just we've hard of that about then quarters. things quickly hopeful get very normalize very specific the to but we'll It's hard pandemic there more our if we the to say situation. But two a

Kenneth Lee

And one you. follow-up Very just if Got helpful. may. I

on Just recent industry focus given any you M&A? wondering potential thoughts potential updated Thanks. if all the have consolidation, around

Suren Rana

than the to no, we're definitely the is and which value rates by improved margins, activity also intrinsic pro Yeah. people the that realizing where forma our flows perspective, said, encouraging as some our industry. extent I we've is value seeing sector, From our in we business the evidenced still we we are our fee and higher trade. guess our that in always as but like increased believe

So as that the that we're businesses. But will we always hopeful in and over consider company, intrinsic unlock with we value of time the mind, things are overall might approach. public to really a market that's also open our -- value, our that recognize

Kenneth Lee

Very helpful. much. Thank very you

Operator

from Ramkrishnan question America. Bank Your from comes next of Gayathri

now Your is line open.

Gayathri Ramkrishnan

in expense of if and behalf looking that of different terms of this into the can the quarter. XXXX, levers Mike you you on some I near was sustain was Gayathri expense in is can management This you're to pull. term strong wondering It see Hi. And at management Carrier. that report great how

Suren Rana

Hi, Gayathri.

upside the continue expenses. from and couple operate a On you we also slight we've execute were the are affiliates as as track they front our that to as And very autonomously, on we're over but to then on we expense know, mindful repositioning, the deliver the quarters. might that next management said, of savings of have corporate front, expecting

We also things T&E like from being benefited lower.

so sales service normalized can and we out on things happily write would we generally, our But least mindful. continue at to be be be can't T&E have those clients. about we and front, that and to for checks, wait very So force

discipline. On the I a lot upside of expenses of front, more continuing expect a but wouldn't

Gayathri Ramkrishnan

much. Got it. you Thank so

Operator

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

Suren Rana

we summary, repurchases. on focusing I'd execute to of our to we on continue Thank capital you. deploy paying continue business debt doing our strategy differentiated In really and and longer-term accretive down really mix, toward say

thank and us healthy and stay you for today, joining well. So,

Acadian Asset Management (AAMI) 1 Nov 202020 Q3 Earnings call transcript