Westwood Holdings Group Inc (WHG) 2022 Q4 法說會逐字稿

Good day, and welcome to the Fourth Quarter 2022 Westwood Holdings Group Earnings Conference Call. (Operator Instructions) Please be advised that today's conference is being recorded.

美好的一天，歡迎來到 Westwood Holdings Group 2022 年第四季度收益電話會議。 （操作員說明）請注意，今天的會議正在錄製中。

I would now like to hand the conference over to your speaker, Ms. Julie Gerron, General Counsel. Please go ahead.

我現在想將會議交給您的發言人，總法律顧問 Julie Gerron 女士。請繼續。

Good afternoon, and thanks for listening to our quarterly earnings call.

下午好，感謝您收聽我們的季度財報電話會議。

Before I jump into the details of the fourth quarter and the full year 2022, after celebrating 20 years as a public company last year, this year, we're celebrating yet another important milestone, our 40th anniversary since we began back in 1983.

在我進入第四季度和 2022 年全年的細節之前，在去年慶祝上市公司 20 週年之後，今年，我們將慶祝另一個重要的里程碑，即我們自 1983 年成立以來的 40 週年。

Westwood was founded by Susan Byrne in New York, with 2 colleagues who had worked together at Bankers Trust in the 1970s. The name Westwood is from Westwood, California, which is the home of the UCLA Bruins and the legendary coach, John Wooden. Susan grew up going to those games and always admired coach's sense of fairness, integrity and teamwork. We have embraced coach Wooden's pyramid of success and strive to live the principles he espoused to his players in their pursuit of 10 NCAA basketball championships.

Westwood 由蘇珊·拜恩 (Susan Byrne) 在紐約創立，兩位同事曾在 1970 年代在 Bankers Trust 共事過。 Westwood這個名字來自加利福尼亞州的Westwood，這裡是加州大學洛杉磯分校棕熊隊和傳奇教練John Wooden的家鄉。蘇珊在觀看那些比賽的過程中長大，並且一直欽佩教練的公平、正直和團隊精神。我們已經接受了伍登教練的成功金字塔，並努力踐行他向球員們提出的原則，以爭取 10 次 NCAA 籃球錦標賽冠軍。

Over the past 4 decades, we have enjoyed market ups and weathered market downs by sticking firmly to our investment discipline and running our company with the same standards that we look for in companies where we invest our own client funds. With the experience gained over market cycles, our teams have embraced change, navigated through business and market challenges and they persevered, and I couldn't be prouder of our team and my colleagues I've had the pleasure to work with over the past 30 years of our 40-year history.

在過去的 4 年裡，我們通過堅定地遵守我們的投資紀律並按照我們在投資我們自己的客戶資金的公司中尋求的相同標準來經營我們的公司，從而經歷了市場的起起伏伏。憑藉在市場週期中獲得的經驗，我們的團隊接受了變革，應對了業務和市場挑戰並堅持不懈，我為我們的團隊和我的同事感到無比自豪，我很高興在過去 30 年與他們共事在我們 40 年的歷史中。

I would also like to congratulate 2 of my long-term colleagues, Jackie Finley and Kim Calhoun, who have retired from Westwood after more than 25 years of terrific service to our clients, serving in many roles over their tenure. Today, we are rightfully enshrining both of these talented women into the Westwood Hall of Fame, where they will join the best of the best in Westwood's history. Thank you both for your commitment to Westwood and best of luck to you in your next chapter.

我還要祝賀我的兩位長期同事 Jackie Finley 和 Kim Calhoun，他們在為我們的客戶提供超過 25 年的出色服務後從 Westwood 退休，在他們的任期內擔任過許多職務。今天，我們將這兩位才華橫溢的女性理所當然地載入韋斯特伍德名人堂，在那裡她們將加入韋斯特伍德歷史上最優秀的女性行列。感謝你們對 Westwood 的承諾，祝你們在下一章好運。

Today's Westwood draws so much strength from years of investing in people and products, new technology and M&A that enhance our ability to serve clients across multiple distribution channels and solidify our competitive position going forward. One of our most significant investments is the acquisition of Salient Partners' asset management business, which we completed last November. We are all very enthusiastic about the opportunity ahead with our combined firm's future growth potential, and I'll elaborate further towards the end of this call.

今天的 Westwood 從多年來對人員和產品、新技術和併購的投資中汲取了巨大的力量，這些都增強了我們跨多個分銷渠道為客戶提供服務的能力，並鞏固了我們未來的競爭地位。我們最重要的投資之一是收購 Salient Partners 的資產管理業務，我們於去年 11 月完成了這項投資。我們都對我們合併後公司未來增長潛力的機會充滿熱情，我將在本次電話會議結束時進一步闡述。

As for investment performance, many of Westwood's strategies closed out the year with strong fourth quarter results, including some notable highlights. Several of our U.S. Value strategies outperformed their benchmarks and posted top quartile peer rankings in their Morningstar universes. Select Equity strategies, managed by our Wealth team, outperformed their benchmarks. All of our Multi-Asset strategies outperformed, with several posting top quartile peer rankings.

至於投資業績，Westwood 的許多策略都以強勁的第四季度業績結束了這一年，其中包括一些引人注目的亮點。我們的多項美國價值策略表現優於基準，並在其晨星投資組合中名列前四分之一。由我們的財富團隊管理的精選股票策略表現優於基準。我們所有的多資產策略都表現出色，有幾個在同行中排名前四分之一。

This past year witnessed the rare feat of bear markets rolling both stocks and bonds, meaning that blended portfolios were hit both ways rather than saved by diversification. Fortunately, the fourth quarter delivered positive results to partially offset a tough 2022 for both equity and fixed income markets. The S&P 500 was positive, while the NASDAQ continued (inaudible), created a tempting environment for stock pickers like us.

過去的一年見證了熊市罕見的股票和債券滾動的壯舉，這意味著混合投資組合受到雙向打擊，而不是通過多元化來挽救。幸運的是，第四季度取得了積極成果，部分抵消了 2022 年股票和固定收益市場的艱難局面。標準普爾 500 指數上漲，而納斯達克指數繼續上漲（聽不清），為像我們這樣的選股者創造了誘人的環境。

Fixed income returns were helped by tightening credit spreads, moderating inflation and a decline in future interest rate expectations. Against this backdrop, I am pleased to report that all our strategies maintained solid performance for the quarter.

收緊信貸息差、緩和通脹以及未來利率預期下降有助於固定收益回報。在此背景下，我很高興地報告，我們所有的策略在本季度都保持了穩健的表現。

Within the Multi-Asset team, our largest strategy, Income Opportunity, along with our newer Total Return, High Income and Credit Opportunity Strategies finished ahead of their benchmarks for the quarter and the year. The Multi-Asset team employs a consistent investment approach that has yielded positive results for clients over multiple periods.

在多資產團隊中，我們最大的策略收入機會以及我們更新的總回報、高收入和信貸機會策略在本季度和年度的基準之前完成。多資產團隊採用一致的投資方法，在多個時期為客戶帶來了積極的成果。

As of December 31, our primary Multi-Asset strategies had earned [4 or] 5 stars, and the Westwood Income Opportunity Fund, WHGIX, landed in the 11th percentile for the quarter in Morningstar's 30% to 50% equity universe. Its longer-term, 3, 5, 7 and 10-year performance, places this strategy firmly in the top quartile.

截至 12 月 31 日，我們的主要多資產策略已獲得 [4 或] 5 顆星，Westwood Income Opportunity Fund (WHGIX) 本季度在晨星 30% 至 50% 的股票範圍內排名第 11 個百分位。其長期、3 年、5 年、7 年和 10 年的表現使該策略穩居前四分之一。

Last year as a whole, our Total Return Mutual Fund, WLVIX, finished in the top third. And for the last 3 years, Total Return has ranked in the top 5% in Morningstar and top 2% in the institutional investment database, truly great numbers. Our High Income Fund, WHGHX, finished in the top decile for the quarter among Morningstar's high-yield bond peers and shown in the top 2% for the trailing 3 years.

去年全年，我們的總回報共同基金 WLVIX 排名前三。在過去的三年裡，總回報率在晨星排名前 5%，在機構投資數據庫中排名前 2%，真是一個了不起的數字。我們的高收益基金 WHGHX 本季度在晨星的高收益債券同行中名列前茅，並在過去 3 年中名列前 2%。

Our Alternative Income Mutual Fund, WMNIX, which has a large allocation of convertible securities, often paired with short equity positions, posted positive returns for the quarter amid a positive equity market. It finished the quarter in the top quartile of Morningstar peers in the relative value arbitrage category and posted 19th percentile for the year.

我們的另類收入共同基金 WMNIX 擁有大量可轉換證券，通常與空頭股票頭寸配對，在積極的股市中實現了本季度的正回報。該季度在相對價值套利類別的晨星同行中名列前四分之一，全年排名第 19 個百分位。

This quarter, Multi-Asset team's newest strategies, Systematic LargeCap and SmallCap Growth, underperformed their benchmarks to Russell 1000 and Russell 2000 Growth Indexes. Both outperformed for the year, however, and our mutual fund, the Westwood SmallCap Growth Fund, WSCIX, ranked in the top third out of 622 Morningstar smallcap growth peers.

本季度，多資產團隊的最新策略 Systematic LargeCap 和 SmallCap Growth 的表現不及羅素 1000 和羅素 2000 成長指數的基準。然而，這兩隻基金今年都表現出色，我們的共同基金韋斯特伍德小型股成長基金 WSCIX 在 622 只晨星小型成長型基金同行中排名前三。

We're pleased to report for the first time on the Salient Energy and Real Estate strategies and the Hedged Equity strategies in Broadmark. The Westwood Salient MLP SMA, Global Real Estate and Real Estate Income strategies all beat their respective benchmarks for the quarter and full year of 2022. The Global Real Estate Mutual Fund, [KIRXY], ranked in the 18th percentile among global real estate peers at Morningstar and achieved fifth percentile for the year.

我們很高興首次報告 Broadmark 的 Salient Energy and Real Estate 策略和 Hedged Equity 策略。 Westwood Salient MLP SMA、全球房地產和房地產收入策略在 2022 年季度和全年均超過了各自的基準。全球房地產共同基金 [KIRXY] 在全球房地產同行中排名第 18 個百分點晨星，並在這一年取得了第五個百分位。

Our 2 Tactical Equity strategies, Tactical Growth and Tactical Plus, sub-advised by our majority-owned subsidiary, Broadmark Asset Management, also performed well and delivered positive performance for the quarter.

我們的 2 個戰術股票策略 Tactical Growth 和 Tactical Plus，由我們的多數股權子公司 Broadmark Asset Management 提供子諮詢，也表現良好，並在本季度取得了積極的業績。

Within our U.S. Value team, nearly all our strategies outperformed this quarter. Equity markets shifted momentum from bearish to bullish and favored companies with lower valuations and exposure to selected cyclical sectors. Many large technology and higher-quality companies underperformed and so did our LargeCap strategy, which felt the drag of holdings in these areas. However, trailing time periods for LargeCap Value remain ahead of the Russell 1000 Value Index.

在我們的美國價值團隊中，本季度幾乎所有策略都表現出色。股票市場勢頭從看跌轉為看漲，並青睞估值較低且對特定週期性行業有敞口的公司。許多大型科技公司和優質公司表現不佳，我們的大盤股策略也表現不佳，該策略受到了這些領域持股的拖累。然而，大型股價值指數的尾隨時間段仍領先於羅素 1000 價值指數。

Our U.S. Value strategy is to maintain a high-quality bias in their portfolios. With similar exposures to our LargeCap strategy, MidCap has trailed for the quarter, but strongly outperformed the Russell MidCap Value Index in 2022. Our SMidCap, SmallCap and AllCap strategies beat their benchmarks this quarter and for the year.

我們的美國價值戰略是在他們的投資組合中保持高質量的偏見。由於對我們的大盤股策略有類似的敞口，中盤股在本季度表現落後，但在 2022 年的表現強於羅素中盤股價值指數。我們的中小盤股、小盤股和全盤股策略在本季度和全年均超過了基準。

Our SMidCap Mutual Fund, Westwood Quality SMidCap Fund, WHGMX, ranked in the 14th percentile in the Morningstar's small-blend category. And our SmallCap mutual fund, Westwood Quality SmallCap, WHGSX, ranked in the third percentile in the same category for the quarter. Growth strategies also posted strong 2022 Morningstar rankings with 10th and 17th percentile rankings, respectively.

我們的 SMidCap 共同基金 Westwood Quality SMidCap 基金 WHGMX 在晨星的小型混合類別中排名第 14 個百分點。我們的 SmallCap 共同基金 Westwood Quality SmallCap (WHGSX) 在本季度的同一類別中排名第三。增長策略在 2022 年晨星排名中也表現強勁，分別位列第 10 和第 17 個百分位。

Our AllCap Value Mutual Fund, Westwood Quality AllCap Fund, WQAIX, finished in the 16th percentile for the quarter among Morningstar's large value universe, which holds more than 1,200 funds and was in the top third for the year.

我們的 AllCap 價值共同基金 Westwood Quality AllCap Fund (WQAIX) 本季度在晨星的大型價值基金中排名第 16 個百分位，該基金持有 1,200 多支基金，在本年度排名前三。

In [eVestment's] institutional AllCap value equity universe, Quality AllCap ranked in the 10th percentile for the quarter and finished in the top quartile for the year. In addition, overall strong fourth quarter performance, all our U.S. Value strategies with 3 and 5-year track records are outperforming over those trailing time periods as well.

在 [eVestment] 的機構 AllCap 價值股票領域，Quality AllCap 在本季度排名第 10 個百分點，並在今年名列前四分位。此外，第四季度整體表現強勁，我們所有具有 3 年和 5 年業績記錄的美國價值策略在這些跟踪時間段內的表現也優於其他時間段。

Our Wealth Management strategies delivered mixed performance for the quarter as High Alpha underperformed, while Dividend Select and Select Equity outperformed the Russell 1000 Value and Russell 3000 Indices, respectively. With a dividend yield that's 40% higher than the S&P 500 and a strong 3-year track record, Dividend Select remains an attractive alternative for high-net-worth clients seeking income and long-term capital appreciation.

我們的財富管理策略在本季度表現不一，因為 High Alpha 表現不佳，而股息精选和精選股票分別跑贏羅素 1000 價值指數和羅素 3000 指數。憑藉比標準普爾 500 指數高出 40% 的股息收益率和 3 年的強勁業績記錄，Dividend Select 仍然是尋求收入和長期資本增值的高淨值客戶的一個有吸引力的選擇。

These 2 strategies, Select Equity and Dividend Select, ranked in the 15th and 26th percentile for the quarter in their respective [eVestment] categories. AllCap core equity and dividend focus, both made it into the top quartile for the year and their respective categories as well.

Select Equity 和 Dividend Select 這 2 個策略在本季度各自的 [eVestment] 類別中排名第 15 和第 26 個百分位。 AllCap 的核心股票和股息焦點，都進入了今年及其各自類別的前四分之一。

Shifting now to distribution. Market forces and selected rebalances, primarily in LargeCap, where the main drivers of institutional flows in fourth quarter and 2022. This quarter's institutional inflows of $187 million were offset by outflows of $329 million, netting the outflows of $142 million. With few terminations and outperforming in terms of client and AUM retention, we're poised to recapture client flows and a positive rebalance environment.

現在轉向分銷。市場力量和選定的再平衡，主要是大盤股，這是第四季度和 2022 年機構資金流動的主要驅動力。本季度 1.87 億美元的機構資金流入被 3.29 億美元的資金流出所抵消，淨流出 1.42 億美元。由於終止的次數很少，並且在客戶和 AUM 保留方面表現出色，我們準備重新奪回客戶流量和積極的再平衡環境。

At the institutional strategy level, SMidCap enjoyed positive flows this quarter, driven primarily by the funding of a new outsourced CIO client account. While SmallCap client rebalances pushed quarterly flows negative, 2 new consultant-driven client wins funded in the quarter, and our LargeCap Value strategy also had a new client funding.

在機構戰略層面，SMidCap 在本季度享有正流量，這主要是由新的外包 CIO 客戶賬戶的資金推動的。雖然小型股客戶再平衡導致季度流量出現負增長，但本季度有 2 個新的顧問驅動型客戶獲得資助，而我們的大型股價值策略也獲得了新的客戶資金。

Overall, with few search opportunities in 2022, our team progressed with an improved [sales/win] ratio over 2021. They will continue to focus on maintaining client AUM and pursuing new business activity with key consultants wherever and whenever U.S. Value strategies are approved for new searches. Looking forward, we're driving toward positive institutional flows based on continued strong investment performance, high client retention and improved sales in a more stable market environment.

總體而言，由於 2022 年的搜索機會很少，我們的團隊在 2021 年的[銷售/獲勝]比率方面取得了進步。他們將繼續專注於維護客戶 AUM，並在美國價值戰略獲得批准的任何時間與主要顧問一起開展新的業務活動新搜索。展望未來，基於持續強勁的投資業績、高客戶保留率和在更穩定的市場環境中銷售的改善，我們正在推動積極的機構流動。

In the intermediary channel, we firmly believe that the Salient transaction will prove to be extremely meaningful to our intermediary distribution efforts, with a new broader product lineup and enhanced platform availability. We envision significant synergies and opportunities emerging as we meld the 2 legacy distribution groups together. We will provide updates on our progress in future earnings calls.

在中介渠道，我們堅信，Salient 交易將證明對我們的中介分銷工作極其有意義，新的更廣泛的產品陣容和更高的平台可用性。當我們將 2 個傳統分銷集團合併在一起時，我們設想會出現顯著的協同效應和機會。我們將在未來的財報電話會議上提供最新進展。

Turning to Wealth Management. Our team had a strong fourth quarter in terms of new inflows. For the quarter, the team had inflows of $109 million, which were offset by outflows of $257 million. Gross sales of $456 million for the full year represented an 11% increase over 2021, while gross outflows declined 19%. This past year, our team added several new client relationships, including 2 with assets exceeding $30 million. We believe we're uniquely positioned to gain share in our industry as people continue to flee the large banks in favor of more nimble organizations with a range of client-oriented customized services.

轉向財富管理。就新資金流入而言，我們的團隊在第四季度表現強勁。本季度，該團隊有 1.09 億美元的資金流入，被 2.57 億美元的資金流出所抵消。全年總銷售額為 4.56 億美元，比 2021 年增長 11%，而總流出量下降 19%。在過去的一年裡，我們的團隊增加了幾個新的客戶關係，其中 2 個的資產超過 3000 萬美元。我們相信，隨著人們繼續逃離大型銀行，轉向提供一系列面向客戶的定制服務的更靈活的組織，我們相信我們在行業中佔有獨特的優勢。

As we emerge from a difficult market environment, our wealth group is energized for what 2023 holds in store. We have recruited some great talent and have a strong team in place to gain market share. We continue to work aggressively as we invest in statewide marketing activities and increase our presence as an external facing organization.

隨著我們走出艱難的市場環境，我們的財富團隊為 2023 年的到來充滿活力。我們已經招募了一些優秀的人才，並擁有一支強大的團隊來獲得市場份額。我們繼續積極工作，因為我們投資於全州的營銷活動，並增加我們作為面向外部組織的影響力。

Overall, for the fourth quarter, client flows generated by our institutional, intermediary and wealth teams, including the addition of Salient assets, amounted to a positive $3.1 billion with outflows of $816 million. For the year, total flows, including the addition of Salient assets, aggregated $4.2 billion, partially offset by $2.4 billion in outflows. Although markets were notoriously difficult to navigate last year, Westwood remained focused on executing our plan, which included the strategic acquisition of Salient Partners' asset management business. This transaction clearly strengthens our platform with the addition of highly complementary investment capabilities across Energy Infrastructure, Real Estate, Tactical Equity and Private Investments.

總體而言，第四季度，我們的機構、中介和財富團隊產生的客戶流量，包括增加的顯著資產，總計為正 31 億美元，流出 8.16 億美元。這一年，包括增加顯著資產在內的總流量總計 42 億美元，部分被 24 億美元的流出所抵消。儘管去年市場出了名的難以駕馭，Westwood 仍然專注於執行我們的計劃，其中包括戰略收購 Salient Partners 的資產管理業務。通過在能源基礎設施、房地產、戰術股權和私人投資方面增加高度互補的投資能力，此次交易明顯加強了我們的平台。

It's not just access to more desirable investment strategies, this acquisition also significantly expands our distribution capabilities with little channel or client overlap. In addition, we are adding a broad presence in the wirehouse channel to Westwood's existing strong presence in the independent broker-dealer, RIA and institutional channels.

這不僅僅是獲得更理想的投資策略，此次收購還顯著擴展了我們的分銷能力，幾乎沒有渠道或客戶重疊。此外，我們正在為 Westwood 在獨立經紀自營商、RIA 和機構渠道中現有的強大影響力增加 wirehouse 渠道中的廣泛影響力。

Our sales teams met last week and identified several large prospects to add to the pipeline. Many of those opportunities will take a few meetings for closure, but there is some real positive momentum building. Our expanded distribution team will leverage increased scale and broader product availability, along with technical and marketing support to enhance our suite of offerings to a wide range of institutional, intermediary and wealth management clients.

我們的銷售團隊上週開會並確定了幾個要添加到管道中的大潛在客戶。其中許多機會需要召開幾次會議才能結束，但確實存在一些積極的勢頭。我們擴大後的分銷團隊將利用更大的規模和更廣泛的產品可用性，以及技術和營銷支持來增強我們為廣泛的機構、中介和財富管理客戶提供的產品組合。

Integration efforts, which were carefully planned throughout 2022, are continuing across investments, distribution, operations and enterprise support functions. The integration has touched most areas of our expanded company and is proceeding on schedule, thanks to the tremendous efforts of our many talented and dedicated professionals.

在整個 2022 年精心規劃的整合工作將在投資、分銷、運營和企業支持職能方面繼續進行。由於我們許多才華橫溢、敬業的專業人員的巨大努力，整合已經觸及我們擴大後公司的大部分領域，並且正在按計劃進行。

Deal-related costs exceeded $7 million, of which approximately $5.5 million in onetime costs impacted the fourth quarter. We also spent $1.6 million in the first quarter of 2023 to rationalize the Broadmark shareholder base and increase Westwood's ownership in Broadmark to nearly 80%. The Salient transaction is expected to result in significant accretion to our economic earnings per share by as much as 100% this year.

與交易相關的成本超過 700 萬美元，其中約 550 萬美元的一次性成本影響了第四季度。我們還在 2023 年第一季度花費了 160 萬美元來理順 Broadmark 的股東基礎，並將 Westwood 在 Broadmark 的所有權增加到近 80%。 Salient 交易預計將使我們今年的每股經濟收益顯著增加 100%。

I believe this will prove to be one of the most impactful transactions in Westwood's history. The benefits to stakeholders are numerous, including immediate accretion to economic earnings, added breadth to our range of investment strategies, a complementary distribution footprint with almost no overlap with Westwood's existing distribution presence and a strong cultural and geographical set. While much work remains to integrate our teams into the new Westwood, we eagerly anticipate the many benefits of this transaction and the opportunities that lie ahead of [us] all.

我相信這將被證明是韋斯特伍德歷史上最具影響力的交易之一。對利益相關者的好處是多方面的，包括立即增加經濟收益、擴大我們的投資策略範圍、與 Westwood 現有分銷業務幾乎沒有重疊的互補分銷足跡以及強大的文化和地理環境。雖然將我們的團隊整合到新的韋斯特伍德還有很多工作要做，但我們熱切期待這次交易的諸多好處以及擺在[我們]所有人面前的機遇。

With January's market balance and a potential performance fee to be earned later this month, we can foresee revenues exceeding $95 million this year, provided we don't have another market downdraft like we saw in 2022. Also encouraging is that the Salient product set carries higher fee rates, which will improve our overall fee mix. Salient's AUA, or assets under advisement, are much bigger than we've historically seen at Westwood. So we have highlighted that for clarity. To sum up, our teams have spent a lot of time integrating the Salient acquisition, and we're all meshing well as we get to know each other better.

憑藉 1 月份的市場平衡和本月晚些時候可能賺取的績效費用，我們可以預見今年的收入將超過 9500 萬美元，前提是我們不會再出現像 2022 年那樣的市場下滑趨勢。同樣令人鼓舞的是，Salient 產品集具有更高的費率，這將改善我們的整體費用組合。 Salient 的 AUA，或資產管理，比我們以往在 Westwood 看到的要大得多。因此，為了清楚起見，我們強調了這一點。總而言之，我們的團隊花了很多時間來整合對 Salient 的收購，並且隨著我們更好地了解彼此，我們都很好地融合在一起。

We were pleased with our investment team's performance to close out 2022, and our Wealth business is well positioned for growth in Texas. We like the business opportunities presented by our current strategies and can't wait to see what lies in store for us over the next 40 years.

我們對我們的投資團隊在 2022 年結束時的表現感到滿意，我們的財富業務在德克薩斯州的增長中處於有利地位。我們喜歡當前戰略帶來的商機，迫不及待地想看看未來 40 年會發生什麼。

I'll now turn it over to Terry Forbes, our CFO.

我現在將其轉交給我們的首席財務官特里福布斯。

Thanks, Brian, and good afternoon, everyone.

謝謝，布萊恩，大家下午好。

Today, we reported total revenues of $20.5 million for the fourth quarter of 2022 compared to $19.4 million in the prior year's fourth quarter and $15.4 million in the third quarter of 2022. The increase from the prior year was principally due to higher average assets under management. The increase from the prior quarter was a result of higher average assets under management and higher performance fees.

今天，我們報告 2022 年第四季度的總收入為 2050 萬美元，而去年第四季度為 1940 萬美元，2022 年第三季度為 1540 萬美元。同比增長主要是由於管理的平均資產增加.與上一季度相比有所增加是由於管理的平均資產增加和績效費用增加。

Fourth quarter net loss of $3.1 million compared to the third quarter's net loss of $1.2 million due to higher expenses primarily related to the acquisition of $5.3 million and unrealized depreciation on private investments, partially offset by higher revenues. Economic earnings or loss, a non-GAAP metric, was a loss of $0.7 million or $0.09 per share compared to the third quarter's economic earnings of $0.8 million or $0.10 per share.

第四季度淨虧損 310 萬美元，而第三季度淨虧損 120 萬美元，原因是主要與收購 530 萬美元和私人投資未實現折舊相關的支出增加，部分被收入增加所抵消。非 GAAP 指標經濟收益或損失為 70 萬美元或每股 0.09 美元，而第三季度的經濟收益為 80 萬美元或每股 0.10 美元。

Fourth quarter net loss of $3.1 million or $0.40 per share compared to the prior year's fourth quarter net income of $2.8 million or $0.36 per share on higher expenses primarily related to the acquisition of $5.3 million and unrealized depreciation on private investments, partially offset by higher revenues. Economic earnings or loss, a non-GAAP metric, was a loss of $0.7 million for the current quarter or $0.09 per share, compared to earnings of $4.7 million or $0.59 per share in the fourth quarter of 2021.

第四季度淨虧損 310 萬美元或每股 0.40 美元，而去年第四季度的淨收入為 280 萬美元或每股 0.36 美元，主要與收購 530 萬美元和私人投資未實現折舊相關的支出增加，部分被收入增加所抵消.非 GAAP 指標經濟收益或損失為本季度虧損 70 萬美元或每股 0.09 美元，而 2021 年第四季度的收益為 470 萬美元或每股 0.59 美元。

For fiscal 2022, total revenues of $68.7 million compared to $73.1 million in 2021. The decrease was attributable to the decrease in trust fees, primarily due to lower average assets under management and lower performance fees.

2022 財年的總收入為 6870 萬美元，而 2021 年為 7310 萬美元。減少的原因是信託費用減少，這主要是由於管理的平均資產減少和業績費用減少。

2022 net loss of $4.6 million compared to 2021's net income of $9.8 million on lower revenues, higher expenses primarily related to the acquisition of $7.1 million and higher realized gains on private investments in 2021.

2022 年淨虧損 460 萬美元，而 2021 年的淨收入為 980 萬美元，原因是收入減少，主要與收購 710 萬美元相關的支出增加以及 2021 年私人投資的已實現收益增加。

Diluted EPS was a loss of $0.59 per share compared with earnings of $1.23 per share for 2021. Economic EPS of $0.45 per share compared with $2.20 per share in 2021.

稀釋後每股收益為每股虧損 0.59 美元，而 2021 年每股收益為 1.23 美元。經濟每股收益為 0.45 美元，而 2021 年為每股 2.20 美元。

Firm-wide assets under management and advisement totaled $16.1 billion at quarter end that consisted of assets under management of $14.8 billion and assets under advisement of $1.3 billion. Assets under management consisted of institutional assets of $6.8 billion or 46% of the total; private wealth assets of $3.7 billion or 25% of the total; and mutual fund assets of $4.3 billion or 29% of the total.

截至季度末，全公司管理和諮詢資產總額為 161 億美元，其中管理資產為 148 億美元，諮詢資產為 13 億美元。管理資產包括機構資產 68 億美元，佔總資產的 46%；私人財富資產為 37 億美元，佔總資產的 25%；共同基金資產為 43 億美元，佔總資產的 29%。

Over the year, we experienced net inflows of $1.8 billion and market depreciation of $1.5 billion. Net inflows were principally due to $2.7 billion of AUM from the acquisition of Salient. Assets under advisement rose from $0.3 billion in the prior quarter, principally due to $0.9 billion of AUA acquired in the Salient transaction. Our financial position continues to be very solid, with cash and short-term investments at quarter end totaling $39.2 million and a debt-free balance sheet.

一年來，我們經歷了 18 億美元的淨流入和 15 億美元的市場貶值。淨流入主要是由於收購 Salient 產生的 27 億美元資產管理規模。顧問資產較上一季度的 3 億美元有所增加，這主要是由於在 Salient 交易中收購了 9 億美元的 AUA。我們的財務狀況繼續非常穩固，季度末的現金和短期投資總額為 3920 萬美元，資產負債表無債務。

I'm happy to announce that our Board of Directors approved a quarterly cash dividend of $0.15 per share, payable on April 3, 2023, to stockholders of record on March 1, 2023. This represents an annualized dividend yield of 5.1% as of the closing price on February 14.

我很高興地宣布，我們的董事會批准了每股 0.15 美元的季度現金股息，將於 2023 年 4 月 3 日支付給 2023 年 3 月 1 日在冊的股東。這代表截至 2023 年 5.1% 的年化股息收益率2 月 14 日收盤價。

That brings our prepared comments to a close. We encourage you to review our investor presentation we have posted on our website, reflecting fourth quarter and fiscal '22 highlights, as well as a discussion of our business, product development and longer-term trends in revenues, earnings and dividends.

我們準備好的評論到此結束。我們鼓勵您查看我們在網站上發布的投資者介紹，其中反映了第四季度和 22 財年的亮點，以及對我們的業務、產品開發和收入、收益和股息的長期趨勢的討論。

Thank you for your interest in our company, and we'll open the line to questions.

感謝您對我們公司的關注，我們將打開問題熱線。

(Operator Instructions)

（操作員說明）

Operator, are there no questions?

接線員，沒有問題嗎？

I'm showing no questions at this time. I'll turn the call back over to management for any further remarks.

我現在沒有問題。我會將電話轉回給管理層，以徵求任何進一步的意見。

Okay. Somehow the conference call team here left out our preamble that Julie Gerron normally reads. So I feel as I need to read this. So thanks for listening to our fourth quarter call.

好的。不知何故，這裡的電話會議團隊遺漏了 Julie Gerron 通常會閱讀的序言。所以我覺得我需要閱讀這篇文章。因此，感謝您收聽我們的第四季度電話會議。

The preceding discussion included forward-looking statements that are subject to known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those contemplated by the forward-looking statements. Additional information concerning the factors that could cause such a difference is included in our press release issued earlier today as well as in our Form 10-K for the year-end December 31, 2022, that is filed with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. You are cautioned not to place undue reliance on forward-looking statements.

上述討論包括受已知和未知風險、不確定性和其他因素影響的前瞻性陳述，這些因素可能導致實際結果與前瞻性陳述所預期的結果存在重大差異。有關可能導致這種差異的因素的更多信息包含在我們今天早些時候發布的新聞稿以及我們提交給美國證券交易委員會的截至 2022 年 12 月 31 日的 10-K 表格中。我們沒有義務公開更新或修改任何前瞻性陳述，無論是由於新信息、未來事件或其他原因。請注意不要過分依賴前瞻性陳述。

In addition, in accordance with SEC rules concerning non-GAAP financial measures, the reconciliation of our economic earnings and economic earnings per share to the most comparable GAAP measures is included at the end of our press release issued earlier today.

此外，根據美國證券交易委員會關於非 GAAP 財務措施的規定，我們的經濟收益和每股經濟收益與最可比的 GAAP 措施的對賬包含在我們今天早些時候發布的新聞稿的末尾。

So that somehow got left off in front of the call. So I wanted to make sure I included it. And I'll just conclude with a few remarks. Since we had no questions.

所以不知何故在電話前被遺漏了。所以我想確保我包括了它。最後我想說幾句。因為我們沒有問題。

This was an unusual quarter for us for sure. We had significant deal costs associated with the Salient transaction, which were over $7 million for the year and about $5.5 million of that hit in the fourth quarter.

這對我們來說肯定是一個不尋常的季度。我們有與 Salient 交易相關的大量交易成本，全年超過 700 萬美元，其中約 550 萬美元發生在第四季度。

We also took a write-down on our ownership interest in Charis Bank. Charis Bank is in the process of being acquired by Vista Bank, which is a 100-year-old bank with great financials. We're excited to partner with Vista Bank going forward. And in fact, they are subleasing some of our space, and we'll be sharing some of our common areas. So we anticipate a much higher level of engagement and expect to have a great opportunity to [cross-refer] business to each other.

我們還減記了我們在 Charis Bank 的所有權權益。 Charis Bank 正在被 Vista Bank 收購，這是一家擁有 100 年曆史且財務狀況良好的銀行。我們很高興在未來與 Vista Bank 合作。事實上，他們正在轉租我們的一些空間，我們將共享一些公共區域。因此，我們預計會有更高水平的參與，並希望有很好的機會相互 [交叉推薦] 業務。

The good news on revenues for the Salient transaction is that they came in as expected, with over $3 million in revenues for the brief period from end of November 18 to December 31.

關於 Salient 交易收入的好消息是，它們如預期般出現，在 11 月 18 日末至 12 月 31 日的短暫時間內，收入超過 300 萬美元。

Our pipeline looks good. And at the institutional, there's about $350 million of late-stage and early-stage opportunities. The Wealth business has over $100 million of near-term opportunities. And the intermediary team is very excited. They met last week in Florida, had a sales meeting. I went to New York and met with one of the wirehouses, spent a whole week there. They're truly fans of Salient and Broadmark. And so the team is really excited about the prospects going forward. We've added some interesting technology to help us better identify leads and improve our success rate.

我們的管道看起來不錯。在機構中，有大約 3.5 億美元的後期和早期機會。財富業務擁有超過 1 億美元的近期機會。而且中介團隊很興奮。他們上週在佛羅里達會面，舉行了一次銷售會議。我去了紐約，會見了其中一家電線廠，在那里呆了整整一個星期。他們是 Salient 和 Broadmark 的忠實粉絲。因此，團隊對未來的前景感到非常興奮。我們添加了一些有趣的技術來幫助我們更好地識別潛在客戶並提高成功率。

So that concludes our call for today. If you have any further questions and you want to reach out directly to myself or to Terry, please do so or visit our website at westwoodgroup.com. Thanks for your time.

我們今天的呼籲到此結束。如果您有任何其他問題，並且想直接與我本人或 Terry 聯繫，請這樣做或訪問我們的網站 westwoodgroup.com。謝謝你的時間。

Thank you, all, for participating. This concludes today's program. You may now disconnect.

謝謝大家的參與。今天的節目到此結束。您現在可以斷開連接。