Acadian Asset Management Inc (AAMI) 2023 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the BrightSphere Investment Group earnings conference call and webcast for the fourth quarter 2023. (Operator Instructions) Please note that this call is being recorded today, Thursday, February 1, 2024, at 11 AM Eastern Time. I would now like to turn the meeting over to Melody Huang, SVP, Director of Finance and Investor Relations. Please go ahead, Melody.

女士們先生們，謝謝你們的支持。歡迎來到2023年第四季的Brightsphere Investment Group營收電話會議和網路廣播。（操作員說明）請注意，該電話將在2024年2月1日（星期四）東部時間錄製。我現在想將會議交給財務和投資者關係總監Melody Huang。請繼續，旋律。

Good morning, and welcome to BrightSphere's conference call to discuss our results for the fourth quarter ended December 31, 2023. Before we get started, please note that we make forward-looking statements about our business and financial performance.

早安，歡迎來到Brightsphere的電話會議，討論我們截至2023年12月31日的第四季的結果。在開始之前，請注意，我們對我們的業務和財務績效做出了前瞻性的陳述。

Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected. Additional information regarding these risks and uncertainties appears in our SEC filings, including the Form 8-K filed today containing the earnings release, our 2022 Form 10-K and our Form 10-Q for each of the first, second, and third quarters of 2023. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update them as a result of new information or future events.

每個前瞻性陳述都受風險和不確定性的影響，這些風險可能會導致實際結果與預期的結果有實質差異。有關這些風險和不確定性的其他資訊出現在我們的SEC文件中，包括今天提交的8-K表格，其中包含收益發布，我們的2022表格10-K和我們的第一個，第二和第三季的10-Q表格10-Q 2023 年。我們在此通話中所做的任何前瞻性陳述均基於今天的假設，我們沒有義務因新資訊或未來事件而更新它們。

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

我們也可能參考某些非GAAP財務指標。有關引用的任何非GAAP措施的信息，包括對GAAP措施的核對措施，以及我們的網站，以及我們將用作當今討論的一部分的幻燈片。

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

最後，這裡沒有任何東西被視為購買任何投資產品的要約或招標。我們的總裁兼執行長Suren Rana將主持電話。現在，我很高興將電話交給Suren。

Thank you, Melody. Good morning, everyone, and thanks for joining us today. Well, I'll start off with some of the main highlights on slide 5 of the deck, and then I can answer questions. So for the fourth quarter of '23, we reported record ENI per share of $0.77 compared to $0.67 in the fourth quarter of 2022 and $0.45 in the third quarter of 2023.

謝謝，旋律。大家早安，感謝您今天加入我們。好吧，我將從甲板上幻燈片5上的一些主要亮點開始，然後我可以回答問題。因此，在23年的第四季度，我們報告了每股ENI的0.77美元，而2022年第四季為0.67美元，2023年第三季為0.45美元。

The 15% increase in ENI per share compared to the year ago quarter was primarily driven by management fee revenue being 10% higher than the year ago quarter due to higher AUM from market appreciation that we saw in 2023.

與當前季度相比，每股ENI的每股成長15％，主要是由於管理費收入比一年前季度高10％，因為我們在2023年看到的市場升值較高。

Acadian's investment performance remained great and strengthened further in the fourth quarter. As of December 31, 2023, more than 90% of strategies by revenue outperformed their respective benchmarks across 3-, 5-, and 10-year periods. Our net client cash flows for the quarter were negative $2 billion, as we saw some additional outflows in the quarter related to our managed volatility strategies and select large reallocations.

阿卡迪亞人的投資表現在第四季度仍然很出色，並進一步得到了進一步的增強。截至2023年12月31日，超過90％的策略在3年期和10年期間超過各自的基準。該季度的淨客戶現金流量為200億美元，因為我們在季度看到了與我們的託管波動策略相關的額外流出，並選擇了大型重新分配。

Our growth initiatives continue to be on track. Acadian's equity alternatives platform, seeded about a year ago in Q4 of '22, continues to show good investment outperformance. And Acadian's systematic credit initiatives was just seeded in November '23, with $15 million of seed capital in the high yield strategy, and that has now started to build its track record.

我們的增長計劃繼續前進。Acadian's Equity替代品平台大約一年前在22季的第四季播種，繼續表現出良好的投資優於性能。阿卡迪亞人的系統信貸計畫剛在23年11月播種，在高收益策略中擁有1,500萬美元的種子資本，現在已經開始建立其往績。

Turning to capital management. In 4Q '23, the company's Board provided a new authorization for share buybacks of up to $100 million. Starting in December of '23, and to date so far in '24, we repurchased approximately $43 million of shares, or 2.1 million shares, which was about 5.2% of our outstanding shares. Regarding our balance sheet, we had a cash balance of $147 million as of December 31, '23. Acadian fully paid down its revolver at the end of Q4 compared to the $13 million that was outstanding at the end of Q3.

轉向資本管理。在23年第4季度，該公司董事會提供了新的授權，可享有高達1億美元的股票回購。從2003年12月開始，迄今為止在2004年迄今為止，我們回購了約4,300萬美元的股票，即210萬股，約占我們流通股的5.2％。關於我們的資產負債表，截至23年12月31日，我們的現金餘額為1.47億美元。阿卡迪亞人在第四季結束時完全償還了左輪手槍，而第三季末獲得了1300萬美元。

I'd like to end with reiterating that from a longer-term perspective, we remain focused on maximizing shareholder value, and we'll continue using our free cash flow to support organic growth and to buy back our shares. I'll now turn the call back to the operator, and I'm happy to answer any questions at this point.

我想從長期的角度重申，我們仍然專注於最大化股東價值，我們將繼續使用自由現金流來支持有機成長並回購我們的股票。現在，我將回電給操作員，此時我很樂意回答任何問題。

(Operator Instructions) Kenneth Lee, RBC Capital Markets.

（操作員說明）肯尼斯李（RBC Capital Markets）。

Hey, good morning, and thanks for taking my question. Just one on potential for -- what's the outlook for cash usage this year? How much are you expecting to allocate in terms of seed capital? And ultimately, what's the best way to think about potential for excess cash on balance sheet? Thanks.

嘿，早上好，感謝您的提問。只是一個潛力 - 今年現金使用的前景是什麼？您期望在種子資本方面分配多少？最終，考慮資產負債表中超額現金的可能性的最佳方法是什麼？謝謝。

Good morning, Ken. So yeah, the way we size it is we have $147 million of cash balance, as I said, at the end of the year. And of that, we'll probably do $20 million of seed in the first quarter of '24, call it, $20 million to $25 million, we generally keep for operating cash, so that's $45 million-ish out of that $147 million, so that leaves $100 million for buybacks. So that's how we sized it.

早安，肯。是的，我們的規模的方式是，正如我所說的那樣，我們有1.47億美元的現金餘額。其中，我們可能會在24年第一季進行2000萬美元的種子，稱其為2000萬至2500萬美元，我們通常保留經營現金，因此在這筆1.47億美元中的價格為4500萬美元，因此這留下了1億美元的回購。這就是我們的尺寸。

Of that $100 million, as I said, we've used $43 million so far till yesterday, and we hope to use the rest in the coming weeks and months, hopefully. So that's the plan now as we continue to execute this year and the cash from operations builds up, that will build additional capacity for buybacks or to seed more organic growth. As we've said, those are the two uses.

正如我所說，在這1億美元中，我們已經使用了4300萬美元，直到昨天，我們希望在未來幾週和幾個月內使用其餘的東西。因此，這就是我們今年繼續執行並建立現金的計劃，這將建立額外的回購能力或播種更多有機成長。正如我們所說，這是兩個用途。

Got you. Very helpful there. And just one follow-up on in terms of the share repurchase, would it be fair to say it would be mainly opportunistic, or is there any other piece there that we should think about?

明白你了。那裡非常有幫助。而且，就份額回購而言，只有一項後續行動，可以說這主要是機會主義的，還是我們應該考慮的其他任何作品？

Yeah, we will generally keep all of the factors in mind. And yeah, I think it's opportunistic is a fair way to say.

是的，我們通常會牢記所有因素。是的，我認為這是一個公平的說法。

Got you. Thanks, very helpful.

明白你了。謝謝，非常有幫助。

Thank you.

謝謝。

Michael Cyprys, Morgan Stanley.

邁克爾·塞普里斯（Michael Cyprys），摩根士丹利（Morgan Stanley）。

Great, thanks. Good morning. I was just hoping you could maybe elaborate a bit on the flows in the quarter, the $2 billion or so of outflows, and also on the gross sales that we saw in the quarter. It look like there're some areas of strength on the gross sales there. Maybe you can unpack where you're seeing some of the areas of strength? And maybe you could comment a bit on the institutional pipeline, how that's shaping up here so far in '24.

萬分感謝。早安.我只是希望您可以在本季度的流量，20億美元的流出以及我們在本季度看到的總銷售額上詳細說明。看來那裡的總銷售額有一些優勢。也許您可以打開您看到一些力量領域的地方？也許你可以對機構管道發表一些評論，24 年到目前為止，它是如何形成的。

Yeah, hi, Mike. Yeah, we're seeing, as we've said, we -- on the managed volatility strategies, we've seen pressure for almost two years now in this good beta-rewarding market. Those are low beta strategies and they have underperformed the average beta market. Those strategies have actually outperformed their betas, but they've underperformed the core indices. So we're seeing clients, a number of clients from time to time either trim their positions or move to something else. So we saw some of that in this quarter as well.

是的，嗨，麥克。是的，正如我們所說的那樣，我們看到的 - 我們 - 在託管波動策略上，在這個良好的β獎勵市場中，我們已經看到了將近兩年的壓力。這些是低Beta策略，它們的表現不足，平均Beta市場。這些策略實際上優於其BETA，但他們的核心指數表現不佳。因此，我們會看到客戶，有時會有許多客戶修剪自己的位置或轉向其他事情。因此，我們在本季度也看到了其中的一些。

And then as we've said from time to time, in some quarters, we see clients doing some reallocations particularly at year-end, that has happened. So we saw that from a larger one from a client. So that was responsible for the larger net outflows in the quarter. So that was really driven by the outflows.

然後，正如我們不時說過的那樣，在某些地方，我們看到客戶進行了一些重新分配，尤其是在年底發生的事情。因此，我們從客戶的較大的人那裡看到了這一點。因此，這是該季度較大的淨流出的原因。因此，這確實是由流出驅動的。

The sales, it could be better. We still have, as I mentioned, I guess, a few times in the past that in the past year, the pipeline is still healthy. It's strong. That hasn't worsened. Maybe it's -- probably it's only gotten a little bit better, but things are taking a little bit longer than they used to. We're seeing good pipeline across a variety of strategies, all country strategies outside the US, ACWI ex-US, as we call it, a lot of interest in small cap strategies, both international emerging markets as well as US.

銷售可能會更好。正如我所提到的，我們仍然有幾次過去的幾次，在過去的一年中，管道仍然很健康。它很強。那還沒有惡化。也許是 - 也許只會好一點，但是事情要花的時間比以往更長。我們看到了各種策略，美國以外的所有國家策略，ACWI EX-US的良好管道，我們稱之為小型CAP策略，包括國際新興市場和我們。

There're some pipeline in emerging markets as well, and there's pipeline in different enhanced versions of these strategies, so really good pipeline there and hopefully more and more of it converts. But we are -- probably we do expect to see continued pressure on managed volatility strategy and there may be still the episodic things that happen with client reallocations.

在新興市場中也有一些管道，並且這些策略的不同版本中有管道，因此在那裡確實很好的管道，希望越來越多地轉換它。但是我們是 - 也許我們確實希望看到託管波動策略的持續壓力，並且可能仍然存在客戶重新分配的情節性事情。

Great. Thanks. And then just a follow-up question on the systematic credit as well as the equity alts platform. Just maybe you can give us a bit more of an update on the progress there? What would success look like for you in some of the metrics you’re tracking, and how are conversations progressing with clients?

偉大的。謝謝。然後，只是關於系統信用以及Equity Alts平台的後續問題。也許您可以給我們更多有關那裡的進度的更新？在您重新追蹤的一些指標中，您的成功會是什麼樣，與客戶的對話如何進行？

Yeah. We’re pretty satisfied and reasonably happy with how things are progressing. They are on track on both of those initiatives. Equity alts is a little bit older, so that – we started it about a year ago in Q4 of ‘22. So that’s tracking up a nice track record of outperformance.

是的。我們對事情的進展感到非常滿意，並合理地滿意。他們在這兩個舉措方面都有正軌。Equity Alts年齡稍大一些，因此我們大約一年前在22季度開始了它。因此，這是追蹤超出表現的不錯的記錄。

We do have a reasonable size client in there. We’re hoping to get more in this year. I mean, generally, traditionally, in our business, people have looked for 3-year, 5-year, and 10-year track records, but this one as well as systematic credit are different enough that we are having good conversations with clients, hoping to get them in early on.

我們確實有一個合理的尺寸客戶端。我們希望今年能得到更多。我的意思是，通常從傳統上講，在我們的業務中，人們一直在尋找3年，5年和10年的記錄，但是這一記錄和系統的信譽都與眾不同，以至於我們與客戶進行了良好的對話，希望能儘早獲得他們。

And we do have a client in equity alts and their track record is good. So client conversations are progressing. And we’re hopeful to add at least some more clients in that strategy before it gets to a three-year track record.

我們確實有一個客戶股票的客戶，他們的往績很好。因此客戶對話正在進行中。我們希望在達到三年的往績之前至少在該策略中添加更多客戶。

Systematic credit just seeded. That’s only been maybe a little bit more than a month. It was seeded in November, so I guess a little more than a month, so far so good. It’s progressing well on the performance side. Of course, it’s too early to say, but it’s moving along as we expected.

系統的信用只是種子。那可能只有一個多月。它在11月被種子，所以我想一個多月了，到目前為止還不錯。在性能方面進展順利。當然，還為時過早，但是它正如我們預期的那樣繼續前進。

But the client conversations were happening already even before we seeded it as we were preparing the infrastructure and the models. And clients are eager to see how this plays out, and there’s a good amount of interest. And we hope to get some clients again early in ‘24, even though, traditionally, people have looked for three-year track records, generally.

但是，當我們準備基礎架構和模型時，客戶對話甚至已經進行了。客戶渴望看到這是如何發揮作用的，並且有很多興趣。我們希望在24歲的早期再次獲得一些客戶，儘管傳統上，人們通常都在尋找三年的記錄。

Great. Thank you.

偉大的。謝謝。

John Dunn, Evercore ISI.

約翰·鄧恩（John Dunn），Evercore Isi。

Thanks, Suren and Melody. Just to extend the institutional pipeline question a little bit. Anything -- do you have line of sight to anything chunky in or out over the next quarter or so? And I understand things are taking longer, but what's a decent assumption for how -- like time to fund going through the pipeline?

謝謝，蘇倫和旋律。只是為了擴展機構管道問題。任何事情 - 在下一個左右的左右，您是否可以看到任何矮胖的東西？而且我了解情況需要更長的時間，但是如何資助透過管道進行資金是一個不錯的假設呢？

Yeah, thanks, John. I guess, outside of managed volatility strategy that I touched on, we do probably expect more outflows there particularly in light of the environment as there is a soft landing and markets do well then that maybe is more of a defensive strategy that's played out over long periods as it has promised to do and deliver the same or better returns at market with lower risk.

是的，謝謝，約翰。我想，除了我涉及的託管波動策略之外，我們確實期望在那裡流出更多的流出，尤其是在環境的情況下，由於有一個柔軟的著陸，市場表現良好據此承諾要做的時期，並在風險較低的市場上提供相同或更好的收益。

But this is not the ideal environment for it. So we probably expect more outflows from that strategy. But outside of that, there's nothing specific that we know of that's large and chunky in terms of what we see add risk. But in terms of other strategies, it's a good pipeline, pretty diversified across different strategies.

但這不是理想的環境。因此，我們可能希望從該策略中流出更多。但除此之外，就我們看到的增加風險而言，我們知道這很大而大塊。但是，就其他策略而言，這是一條很好的管道，在不同策略之間非常多樣化。

And how it converts is really just depends on -- it's very -- it's hard to have some rules or guidepost because it's pretty diversified by stage as well. Some are in late stages, some are in middle stages, some are very early, but it's -- and this is also in terms of time to convert, it just ebbs and flows, some move quickly, some move slower. So it's not that anything structurally, that things are just taking longer structurally, it's just like those things also change.

它的轉換方式實際上只取決於 - 非常困難，很難有一些規則或指南，因為它在舞台上也非常多樣化。有些處於後期階段，有些處於中間階段，有些處於很早的階段，但這也是 - 這也是轉換的時間，它只是在起伏和流動，有些移動迅速，有些移動速度較慢。因此，在結構上並不是什麼，而是在結構上花費更長的時間，就像那些事情也改變了。

So it's really hard to say. But we are pretty satisfied and happy with the pipeline that we have. And yeah, the team is really on it and connecting with clients and serving them and hoping to get some of these wins. We do have some mandates that have been won that we're expecting to fund. So they are really across different stages.

所以很難說。但是我們對我們擁有的管道感到非常滿意和滿意。是的，團隊確實在上面，與客戶建立聯繫並為他們服務，並希望獲得其中一些勝利。我們確實有一些我們期望提供資金的勝利的任務。因此，它們確實是不同階段的。

Got it. And then you talked about some of the puts and takes of managed (inaudible) institutional pipeline, but it being diversified, can you just go through the puts and takes for the fee rate for the next stretch?

知道了。然後，您談論了一些託管（聽不清楚）機構管道的看台和占用，但是它是多元化的，您能否仔細研究下一個股票的收費率？

Yeah, we would expect it to be pretty stable around this level, 38 bps, for the next few quarters. What would really change it going forward, I guess, from a longer-term perspective would be as we execute more on our equity alts and our systematic credit strategies, those are higher fee.

是的，我們希望在接下來的幾個季度中，它在這個水平上會非常穩定。我猜，從長期的角度來看，真正改變它的過程將是因為我們在股權替代和系統的信用策略上執行更多的事情，這是更高的費用。

So as we start to get larger flows in those two strategies, particularly equity alts because that has much higher fee. And systematic credit, we are starting with high yield, which is higher fee as well. So that will start to change the mix toward higher fee.

因此，隨著我們開始在這兩種策略中獲得更大的流量，尤其是股權替代品，因為這收取了更高的費用。和系統的信用，我們從高收益開始，這也是更高的費用。因此，這將開始改變更高的費用。

And as you may have noticed generally also, the outflows are coming out from managed volatility strategy, which has been low fee traditionally, and the inflows have been coming from these other strategy ACWI ex-US and small cap and those are higher fee. So I would say, for the next few quarters probably, 38 bps is a good baseline. And longer than that, we would expect it to start to go up a little bit gradually.

而且，您可能也普遍注意到，流出來自託管波動策略，傳統上是低費用的，並且流入來自這些其他策略ACWI EX-US和小帽子，而這些策略是更高的費用。因此，我要說的是，在接下來的幾個季度中，38個基礎是一個很好的基準。比這更長，我們希望它會逐漸上升。

Thanks, very helpful. Appreciate it.

謝謝，非常有幫助。欣賞它。

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

這是問答環節的結論。我想將電話會議回到蘇倫·拉娜（Suren Rana）。

Thank you, operator. Thanks, everyone, for joining us today. We appreciate it.

謝謝你，接線生。謝謝，大家今天加入我們。我們很感激。