BSIG - Earnings call transcript Q1 2024 | 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 2024. [Operator Instructions] Please note that this call is being recorded today, Thursday, May 2, 2024 at 11:00 a.m. Eastern Time. I would now like to turn the meeting over to Melody Huang, SVP Director of Finance and Investor Relations. Melody. ahead, go Please

Melody Huang

welcome the Conference XX, First and our XXXX. to results for Quarter to morning, Call BrightSphere's discuss Good Ended March

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

our the the and regarding appears in and including these earnings filings, containing today risks uncertainties Form Form information filed Additional SEC X-K XX-K. XXXX release our

Any referenced, to website, that will based make undertake those this on including a also non-GAAP discussion. measures. them new on assumptions to may deck certain we We the of financial reconciliation today's of as GAAP on reference obligation our can measures measures forward-looking and be information we statements events. call along found with or as a result as part are of we no slide future update Information about use non-GAAP measures of any today,

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

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

Suren Rana

Good morning, thanks Thank you, us today. and Melody. joining for everyone,

cover of then I'll my initial main we Q&A. Slide highlights remarks, can on of usual, As some and the the X deck in jump to

last saw months. due to market from driven year quarter $X.XX of XX% and primarily revenue per increasing $X.XX compared The XX appreciation over compared of XXXX reported the by management the to the of share first the the share fee AUM to ENI XXXX, the in first of in ago For quarter per we quarter fourth that we ENI increase higher $X.XX XXXX. in quarter was

the AUM of is XXXX. end at what X.X% had now than Our higher we billion, $XXX

also shares. and share XX% our have started benefited XXXX, outstanding of from buyback back we December EPS bought the we in that now approximately Our

to compared in that was versus ago EPS increase year the the Our I XX% mentioned quarter XX% ENI earlier. increase

lower, our of to of remained typically performance decline the quarter Acadian's of Compared quarter. performance driven was strong. fourth performance fourth are seasonality timing the XXXX, ENI by the fee majority investment as fee is and and in earned that EPS the and

XX, and periods. XX% of benchmarks As across XX%, outperformed by X- XX-year XXXX, the March revenue of strategies XX% X-, Acadian's and respective

Net client from some was outflows other billion inflows managed were by cash for flows offset the quarter volatility and as other strategies in $X.X areas.

million outperformance. building April continuing strategy, credit has Alternatives the stock was will strong seed are Yield initiatives XXXX growth to $XX a that in of Yield Acadian's 'XX, November platform's record. strategy seeded QX track we strategy Our record also plan. of Acadian's Platform High of of with build Credit a in good on also strategy another second build and Systematic XXXX, platform's Equity continues capital, seeded seeded to that start now first High progress And record. to Global track strategy, started in a U.S.

$XX million capital our in March million. as first $XXX XXXX million We approximately the of of to repurchased approximately shares a outstanding We of quarter X.X or 'XX. management. Turning balance had cash shares, XX, X% of

of first the and with on on down facility ended the XXXX, $XX During the outstanding credit Acadian facility. of revolving an quarter quarter the amount drew million

generated prior mainly the bonuses, or year's to at from from first and facility quarter draws at Acadian and balance. we our paid corporate years, down Acadian, Acadian annual pay operations. by the is operations facility of is year-end from from at this revolving needs then the beginning cash seasonal is facility not As discussed from in have levels, the fully cash the year repaid prior on the operating the cash

no this We to different. year be expect

value, reiterating, using the call and that close to turn back I'd initial our now cash to support shares. I'll operator, to organic back maximizing free with point. the this questions buy and shareholder remarks we'll our growth remain continue to on to like my and at we answer flow happy focused I'm

Operator

Your Glenn [Operator Schorr line first the comes Evercore. of question from from Instructions]

Suren Rana

could perhaps the to question Operator, circle with could we back later.. move if we next Glenn and

Operator

Your next the Michael from question line Cyprys. of comes

Michael Cyprys

any we use What's give can cash curious excess additional Just year about like capital? we of you you how level can the cash color usage of run how And in you also, and that think on minimum think about feel it should ahead? should with? the

Suren Rana

we end said, Thank $XXX we Again, about close mostly have Yes. than previously. currently March, with had -- a and are almost you. we pretty authorization more of the we as done million at little $XXX million

We million $XX on have authorization. left about the

credit $XXX if $XX So through the about million There's like earlier left mentioned operating guess, to we we our at -- our I $XX the million million, on about million, a buybacks, platform cash second you strategy. Yield Global just the that minimum. think million go the for that keep yet $XX a High on seeded strategy we'd of I on $XX for

So million. that's million $XX another that $XX

about look we're $XX a buybacks. so use to think from million perspective. left with or I So yes, And we'll

to recycle look seed the but will more more as quarter U.S. generate and cash seed interim. And some existing We products fourth to some well. target the Systematic to seed to investment-grade on try would our we strategies also Global we would Credit also Platform, in both Strategies

So add I seeding but guess, and be the for used round more will we are they and cash in purposes. buybacks -- general, those and numbers,

Michael Cyprys

follow-up, thoughts something just And opportunistic. maybe more pursuing a as programmatic on buybacks of curious in terms Great. than your rather

Suren Rana

it's that that the opportunistic. of then also well The movements as and leaning are And in seeding timing now to the more gives necessitate from in not the benefit us market. Yes, in flexibility currently, anything of large amount being programmatic. reason we a favor would

the So approach opportunistic now. for comfortable we with feel

Operator

line question next Dunn of the Evercore. Your from John from comes

John Dunn

get And some could we inflowing type of see then you vol? do to the about from strategic managed of to vol? managed Could blunting what a are where the separately, from less of maybe talk environment are that other drag areas need we that outflows

Suren Rana

Thanks, John. Yes.

bit I managed well. say there's seeing would of a our good on are as And outside We emerging across little of strategy sales the strategies slowdown market most vol. of

long well. that ESG Global demand they smaller very then and sales compared And with extension strategies, the tracking XXX-XX versions well variance from strategies, go a niche as go markets, where strategies. the strategies strategies. itself as of bit Strategy, But Strategies good our we years market. benchmark short seeing small-cap Equity have also little a in error done in we types recent saw the to where enhanced we to Given of and close in those hasn't as there's index different some U.S. such Equity and Non-U.S. such We're

pipeline we well markets. an where the as to low pretty too will it's of the guess So in where I good your vol academic if well are seeing when the not that beta beta, risk-return statistics environment of longer much, when period, last well XX-year, period, we just environment, the building a see I in beta the up sense question, XX-year fair we and sales from cities there's does a environment, tell more then high securities do is better. up. And strategies running not guess part as on outflows you the that slowdown managed of over periods a over and emerging vol longer it cross-section and see does little and managed

to holds generally risk-on be that of a course, the gets But whenever environment, And rewarded. true. there's in out beta, interim,

XX had of haven't strategies more regular in market. that guess do we over last now, a years environment a I while or longer period, So been environment well. a several the beta But maybe those it's risk-off almost more over years, a rewarding a

that's an ideal So vol. not managed environment been for

John Dunn

sight pipeline are or the it And institutional far in then And characterization you next things as late? it. of couple could a quarters? in anything where us the then Got side, on you that might kind early redeeming line of give have be chunky as the of of institutional

Suren Rana

Yes, markets. has than than emerging derisking, for years, absent, yes, bit the as side, always we developed across where as ] But and on strategies, with like. episodic we right have well, rate cross [ more rates there emerging fixed high a particular, be in pension particularly stages yet are had to that good also see that notably that West. And derisk what but is The across we've things that volatility. stage, interest several But the seen vol to you investment they a would is described section line performance pressure funded. reallocating less it clients being types said where things. One that is right emerging cross-section are within good markets a pretty the different equities index continued that, the from to -- that, in of we the managed outflow with like stellar environment now early little managed high of is less is other are allocate and happen trend pipeline plans, of it's the one other from interest otherwise, there to U.S. the enough But a are can that income. thing by in stages client mid-stage market and lagged markets now because good I

seeing time So that to to those from to from allocation that one happen people time. and time. We're from the decisions time other move strategy

more allocation the from bit often. it's but and I little So that guess a to income hard perspective, tell, see fixed to a we trend derisking

But one we of because But at these derisking we expect things we be we're of next any our beneficiary excited look sort be may quarter, we and are given a of more probably the can also few systematic that's coincidentally specifically these to not in trends when the initiative So over the we quarters. see credit we flat. that, out flattish of that all happening fixed trend come where see. about the income, quarter may then why

Operator

Lee the [Operator Kenneth Instructions] question Capital comes from line of next RBC The Markets. of

Kenneth Lee

operating potential potentially benefit you around wonder continue to some perhaps some you color share if could generation could thoughts and your appreciate? forward going around outlook? leverage see EBITDA markets as any whether And from expense provide I

Suren Rana

the this is good of the look market The compared the operating ENI the year a used by we the XX%. appreciated about it leverage up Yes, as was the up buybacks. little our the that's AUM is year saw much versus benefit about ago. up ENI quarter, a at more at that result, level, a sense ago question. if And the you call essentially then fee bit in versus And about, And we XX% ago the quarter it, a quarter. to XX%. with year But by management

So up the is XX%. EPS then

because continued of expense benefit the discipline. primarily the of that's leverage So operating and

to going up. revenue the the generally benefit the So of appreciate, we to with we should go I discipline And sort expenses. as hold guess markets forward, on see the we're that continue trying

lot a IT or more a scalable. that lot on pressures that invested on making provides we Over rate add run abating we've outsourcing the are the to on We without from less cost. data years, last now. more with built costs in some the our inflation, the more initiatives few us to dealt We costs scalability had infrastructure full now. these particularly should And new that initiatives and up at be more having

invested on few operating much we So less expenses past years. the the scalability in forward see going we increase being in that

So your should benefit question, see leverage. answer up, Ken? the markets go Does operating we of the that

Kenneth Lee

does. Yes, it sure

Operator

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

Suren Rana

for Thank in We morning. to you, everyone, you operator. engaging us the quarters. with Thank look this forward months coming joining and you,

Acadian Asset Management (AAMI) 2 May 242024 Q1 Earnings call transcript