BSIG - Earnings call transcript Q3 2024 | Acadian Asset Management Inc.

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

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the BrightSphere Investment Group Earnings Conference Call and Webcast for the Third Quarter 2024. [Operator Instructions]

Please note that this call is being recorded today, Thursday, October 31, 2024 at 11:00 a.m. Eastern Time.

to of meeting Finance like Huang, to now Director SVP, and would turn over the Melody I Investor Relations. Melody. ahead, go Please

Melody Huang

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

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

in our release Additional filings, these XX-K information of and uncertainties today the earnings regarding Form XXXX. the the and for filed quarter our SEC X-K and XX-Q risks including Form second first our containing Form XXXX

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

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

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

Suren Rana

for the move today. I'll us can on of and cover joining then X my deck in Thank thanks you, initial everyone, Q&A. Good Melody. highlights Slide remarks, to morning, we the and

quarter in in XXXX. seen period. the market of $X.XX the in the AUM months. XXXX quarter of share last increased that XXXX, quarter we've And The reported third by compared per additionally, due fee to by primarily to was driven our ENI $X.XX, third of in XX%, and the The of in and over expense the of of appreciation the $XX.X year higher compared $X third from this a XXXX. quarter the during second increase we for also we management $X.XX XXXX, quarter continued ago So growth revenue million million third the to XX discipline ENI

of The XX% first the driven the repurchases by additionally that's Acadian higher ] that ENI over 'XX increase million And quarter, December report. a in to the third quarter. per ago year than [ very was share in quarter per increased the is compared same which the in performance in investment share ENI XXXX, the the because by XX% share ENI we the strong of half $XXX and continued started of in remained period.

September outperformed As their Acadian XX% periods. XX%, across X-, of and revenue, and by of strategies X- XX% XX-year benchmarks respective XX, XXXX,

to quarter NCCF to of we NCCF We had of quarter quarter the flows. breakeven the client XXXX, second of third reported cash in this the billion that Turning had compared XXXX. $X.X flows positive negative of net and we $X.X billion in

track our records. all well Our organic strategies stated credit nice are far X progress to continue so other and systematic with growth line our On expectations. initiative, building in initiatives

ceded QX in XXXX these U.S. of comprise November strategy investment-grade As we and global a reminder, strategy, strategy XXXX. X April which in strategies high-yield needed aided high-yield U.S. XXXX in

some in strong a ability X alternatives extension also new years QX go continues track multi-strategy September strategy strategy, On a with equity our needed we fund a initiative, of global equity our 'XX, of seeded global to 'XX, record to about short. is our build of which ago equity And variant in outperformance.

its second million, to revolving fully $XX balance At of the Turning the of end million of paid third to balance the end a compared $XX.X the has at and down of management. quarter, facility the outstanding capital had cash we Acadian quarter. approximately

seasonal generally operations. quarter As and from paid year-end discussed the fully previously, by down Acadian's is needs this from generated supports first revolving Acadian's cash facility

this as Acadian announced CEO. is Effective remaining as earnings business. our last rebrand only my XQ BrightSphere since this 'XX, Acadian call month, will BrightSphere be earlier Management as Now Asset we we will

retain ticker, and debt. Kelly a and to Young, the Acadian, CEO sell most largest basically operating focused we our buyback, role change manager. and also asset differentiated down who share the company's the business. will capital we These and will [indiscernible] to too. of public of the to conglomerate to a strategic transition X X current the is divestitures, Our AAMI returned singularly the $XXX the CEO, successfully affiliates, of Acadian, via the BSIG shareholders company billion and assume business paid sole of currently acquirers streamlined Thanks complete our our of from $X.X million steps multi-boutique

expanded XX% for to approximately also areas, reduced overhead classes asset corporate last We few returns touched have including credit we our shareholders. equity time. strong Collectively, I growth efforts years. that we sustained new by and generate expect into over alternatives Acadian And very over our earlier. for these the on company And these new the business produced organic

this of top-performing and business. exciting to the to of presents managers singularly is company transition exceptional one investment completion Acadian a opportunity systematic the asset an focused the Now world focus exclusively in management the on

as to remarks flow on continue now, using and we'll remain shareholder done of to but by growth about free initial support like maximizing buy quarters to focused I've and back for value, I'd shares. organic will the close its company my XX reiterating cash

I'm the now this the and call to point. answer to turn I'll at operator, questions back happy

Operator

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

Kenneth Lee

for working the great been it's with past you several years. Suren,

company streamlined? and any cost further had And some appreciate the [ the also of mentioned opportunities that structure of forward you I transition, you gone price past. terms as for once think Do structure. think expense had streamlining reductions -- the the ] I reductions there's undergone again, potential the in any the some going In major gets

Suren Rana

laser-focused expense efficient as can we as discipline, and to we maintain continue we on to be being and said, we opportunities, always be. we've as find Yes, really continue

So going any point hard there to the approach, same whether this but forward, obvious say we'll opportunities. continue it's are at

in X in last we've actually we've years, trading about reporting talked our we've investor the We've upgraded our been investing As capabilities. invested capabilities. infrastructure,

And so is we will our inflation much that face scalable. on. it that the platform do And touched we've pressures what also makes more that

what So that I point, over we've built would say is years. last lot of at a up couple this the

So we may not revenue our grows. see expense necessarily as growth

say operating terms would benefit So we absolute leverage that of But hard levels. whether of reduction would it's sort be to of see dollar in forward. expense going the the

Kenneth Lee

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

over in if for the of usage well an of potential outlook that, near there? to Just for cash share sort what's want this see terms us of you just outlook could And term remainder as year. give to the repurchases the updated related

Suren Rana

market with something and the us and it looking themselves, product X, terms the At at I said a in is just after a would have and to what to the opportunistic would seeding share as Between our from -- tenure, X understand, change. growth level, opportunity really repurchases. of then of whether haven't earlier, in to they primary regard for new the being And repurchases. share organic as about high the our strategies investment conditions They won't new even uses my see I client for changed. end on if see sort and also vigilant present cash opportunities of be remain

of to put primary a exclusive So but and for it's prioritization of X hard that those almost relative the remain X, cash. sort the was the uses

Operator

next question Evercore of ISI. Your comes Dunn from John

John Dunn

[ pipeline, little us give on a maybe geography. like maybe funding, to institutional update you composition the magnitude, time Could ]

Suren Rana

Yes, I guess, we pipeline. the are pleased with

in saw converting it. as into has the are of in Intel the we numbers been good sort some of progresses, third quarter, and sales. And been pipeline has course, Of working the we it through it

pretty across So goes geographies, it it's it's goes John, across -- robust, said, and pretty strategies. goes healthy, across it and it

good particular areas. of not low from offers tracking essentially also low an we some So like And a areas risk. error response but has seeing to it's that that any a -- with concentrated enhanced have are newer we strategy indices, the low also in

well. are in things pipeline. think volatility So with from quarter ] Also, as the managing I we going [ at the some saw happy we're outflows how

of So we have pockets risk well. as

are satisfied essentially next flows few as be things quarters. balance, ideally positive to forward were would look we say breakeven we where I on expect So we maybe or with that

John Dunn

it. next phase, Got the crop of you've consider And there maybe is like about then done product launches, of some thinking maybe but going as kind of the another you growth? where like would next phase into new areas

Suren Rana

and into see see have -- We're ] there if looking at on to and to I the the mix. opportunities the alternative, But These new credit in keeping and hands are we product and going remain actually some we've equity do are would eye talk large in asset out capabilities definitely ball we We'll our to we're moment. expand really the say other of full terms classes. any and variance got [ Yes. starting to that our getting areas clients. always are opportunistic and markets, quarter-to-quarter necessary the

stay definitely the along, hopper. disciplined it, too. great would to execution, we in I comes but will Opportunistically, say, on want we already So what on focus something we we'll have at look

Operator

Michael from Cyprys Stanley. comes question next Morgan Your from

Michael Cyprys

endeavors. the Congratulations your unlocking you execution I for with great working years. over on value your It's of past the strong all been number the and tenure you. in with BrightSphere shareholders new wish best

couple here. a Just questions of

among buyers. looked others. the could guys strategic the in have what Maybe the curious on dialogue maybe bit for strategy, past, scope Just from Board, just is you prompted new potential with the a what here? it? In And pursue your you to elaborate alternatives

feedback change been alternatives from chapter the moving curious organic strategic has Just reception strategy chapter seems the on next? growth the the is what to like in

Suren Rana

would of Mike. There nothing Yes. a isn't really And necessarily would Appreciate strategy. say. kind say it. the you for change I Thank there's new, I words,

that. shareholder said while, we remain that possible at for looking value we've ways we that on can and do maximizing As a focused all right,

alternatives. So the the company strategic same that remains remains where open to strategy

What over So moved say unique management of table. of no singular well I to really of asset the do conglomerate business done the option we've of years, the off has wouldn't positioned sort out is trach that that's ], sort And few approach and with. integrated the then right? last the most longer [ that's this from an

partner has be accomplished on and as strategic our And -- we've X.X of years an we to we've succession, update And expense and same be had company optimize we've interim course, as at the but in continue then leadership public we Acadian the independent we to almost time, continued remained right. open So and to an the position to alternatives ago. disciplined this it.

all to open strategic as remain so independent alternatives. public company be really we been fronts well as an on to continuing And optimized we've as

for a say sort a So and continued nothing I culmination of would that of this strategy this had is while, way but just a of is has we've in execution the of effort. changed,

the that forward, positioned synergistic open Going remains well something along also value, the company if an creates shareholder company as to company is that. independent to very open came

Michael Cyprys

And a then in been thinking traction traction, client of about seeing terms over that elaborate newer seeing marketplace the of for the scope could next clients where couple strategies new bit on strategies the some you're third-party that assets, how just the you you've and or from years, past over you some with are so? interest to bringing the year the of maybe just you're

Suren Rana

So I completely strategies lines. moving new expected have along been would say the on

to less and can't meaningful built with the length models. and anything track really it's technological We've we've But institutional built with to strategies hard tell what's is the outside before of the we sort necessarily built necessary new, more business, tell. from that along long-only going looking appreciate of it management well on you teams, execution because the we going numbers. and But been Now our to of expected, we've has had start the record asset or changes a see new we lines of when lot is our sales been do. quite in flows, hard important to it's that on the kind see I

record. interest, of that been are conversations with have have a internal a lot thresholds duration requirements And who -- length certain clients quite we've track just of certain their taken variety a but people of to reasons, see of having great a

So of moving terms things It's new there's -- time to I in there's would long just strategies the awfully nothing that concerned with new we're that up on nothing -- say scale. about along, build over coming strategy. these take that

would these I -- continue is to what new all we stay with how that's and So say on strategies, are we the that happy going. focused execution

with unhappy because So start right would it's to are not now. that doing we're we then what new want we strategies

said, present I do open as opportunistic, well. as the that company the from strategies remain if have client seeding to But we something or to come opportunities But in to either new remains compelling pipeline now. feedback from market enough were right we

Michael Cyprys

just on just that to opportunistic then And mentioned know on follow-up looking to I be one also look buyback, you Great. the question capital allocation. see. you

just that cash we of about into how out. curious we [indiscernible] strategies flow Maybe should cash look could might or you building cash business across see that just generated about As the we uses? into deployed of 'XX, otherwise buybacks or much new think you usage how help flesh versus think versus seeding other for

Suren Rana

conditions and regard Yes. opportunity sort client of And uses. any predetermined X. remain with will feedback between -- a allocation yes, any strategies that sizable, how just sort the the market enough And and we opportunistic. very markets -- digest it those are would right made see come large. have of we sort I organic with of we X that least and buyback X may There do things really to how but mean X be it's we up, the at big that the not function We I be those nothing -- haven't now. be be said not new may to some or on it very regard side we the to are may of

I so between to see that probably of And the the relative say you hard X it's tell. may them that both regard to with would allocation

Operator

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

Kenneth Lee

net of flows to the quarter get drove what strategies sense better wanted a there. in specific Just

Suren Rana

Yes. came good we mentioned, just -- as well. touch that, that but They protection as one some strategies variants did of mean, is, new to really I a it's of them from on I have

them we offer enhanced passive. going were that's low of lines low that one resonated is and So error tracking with whereby with otherwise risk,

as as area, one and good well We've U.S. in are was ] well. small-cap that interest non-U.S. [ hike So those example. seen for equity, as

And emerging cap benefit. side nice we also in opportunities. a saw interest that's So markets, small

So strategies. it's variety of across been a

Operator

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

Suren Rana

you, you [indiscernible] is everyone, words. It operator, for moment for for me. Thank thanks, us, and thank a the and kind also joining

of us. As leave culmination on the executing more last the one me. the the streamlined phase it's been public hand, been very that independent But same I really for mentioned, few And everyone, with a at strategy that joining well the time, also have years. is we the was you, new exciting knowledge a company. without I Thank an as company positioned for it

Acadian Asset Management (AAMI) 31 Oct 242024 Q3 Earnings call transcript