Westwood Holdings Group Inc (WHG) 2023 Q3 法說會逐字稿

Good day, and thank you for standing by. Welcome to the 3Q 2023 Westwood Holdings Group, Inc., earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded and would now like to hand the conference over to your speaker today, Ms. Jill Meyer. Please go ahead.

美好的一天，感謝您的支持。歡迎參加 Westwood Holdings Group, Inc. 2023 年第三季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中，現在將會議交給今天的演講者 Jill Meyer 女士。請繼續。

Thank you, and welcome to our third quarter 2023 earnings conference call. The following discussion will include 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.

謝謝，歡迎參加我們的 2023 年第三季財報電話會議。以下討論將包括前瞻性陳述，這些陳述受到已知和未知風險、不確定性和其他因素的影響，這些因素可能導致實際結果與前瞻性陳述預期的結果有重大差異。

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-Q for the quarter ended September 30, 2023, that will be filed with the Securities and Exchange Commission.

有關可能導致這種差異的因素的更多資​​訊包含在我們今天早些時候發布的新聞稿以及截至 2023 年 9 月 30 日的季度的 10-Q 表格中，該表格將提交給美國證券交易委員會。

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.

我們不承擔公開更新或修改任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。請您注意不要過度依賴前瞻性陳述。

In addition, in accordance with SEC rules concerning non-GAAP financial measures, the reconciliation of our economic earnings and economic earnings per share to those 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有關非公認會計原則財務指標的規則，我們的經濟收益和每股經濟收益與可比較公認會計原則指標的調節表包含在我們今天早些時候發布的新聞稿的末尾。

On the call today, we have Brian Casey, our Chief Executive Officer, and Terry Forbes, our Chief Financial Officer. I will now turn the call over to Brian Casey.

在今天的電話會議上，我們的執行長布萊恩凱西 (Brian Casey) 和財務長特里福布斯 (Terry Forbes) 出席了會議。我現在將把電話轉給布萊恩凱西。

Good afternoon and thank you for listening to our quarterly earnings call. We have plenty to share with you this quarter.

下午好，感謝您收聽我們的季度財報電話會議。本季我們有很多東西可以與您分享。

So I'm going to tell you about our ongoing efforts to create positive investment outcomes for clients, the successful transitions we've made in our SMidCap, AllCap, and Broadmark Tactical Plus and Tactical Growth strategies, and our initiatives to diversify and grow our offerings and revenue streams.

因此，我將向您介紹我們為客戶創造積極投資成果所做的持續努力、我們在SMidCap、AllCap 以及Broadmark Tactical Plus 和Tactical Growth 策略中所取得的成功轉型，以及我們為多元化和發展我們的業務而採取的措施。產品和收入來源。

As you know, at Westwood, we focus on helping our clients achieve their objectives by using our disciplined investment processes to generate portfolio Alpha without taking excessive risk. This approach has delivered excellent compound rates of return for our clients throughout our 40-plus years of history.

如您所知，在 Westwood，我們專注於透過使用嚴格的投資流程來幫助客戶實現其目標，從而在不承擔過多風險的情況下產生投資組合 Alpha。在我們 40 多年的歷史中，這種方法為我們的客戶帶來了卓越的複合報酬率。

While the overall economic backdrop for asset managers has certainly been challenging these past few years, we feel really good about the significant progress we've made so far and the terrific opportunities that lie ahead.

儘管過去幾年資產管理公司的整體經濟背景無疑面臨著挑戰​​，但我們對迄今為止所取得的重大進展以及未來的絕佳機會感到非常滿意。

We'll look first at capital market conditions. The Fed's rate adjustments have created difficulties for equities and fixed income alike. Taken together with the Fed Chairman, Powell's comments, the Fed actions strained bond prices as rising interest rates pushed yields up and prices lower.

我們先來看看資本市場狀況。聯準會的利率調整給股票和固定收益都帶來了困難。結合聯準會主席鮑威爾的言論，聯準會的行動對債券價格造成壓力，因為利率上升推高了收益率並降低了價格。

The equity market experienced a sharp rise in volatility and price pressures as sentiment shifted lower. Selling waves did not differentiate between styles or market capitalizations. They were driven largely by fears of an interest rate trajectory that might be higher for longer.

隨著情緒走低，股市的波動性和價格壓力急遽上升。拋售浪潮不區分風格或市值。他們主要是擔心利率軌跡可能會在更長時間內保持在較高水準。

Against this backdrop of market volatility across a broad spectrum of securities and sectors, 80% of our US value strategies outperformed their benchmarks in the third quarter and remain ahead over the trailing one year period.

在各種證券和行業市場波動的背景下，我們 80% 的美國價值策略在第三季的表現優於基準，並在過去一年中保持領先。

Over the trailing five-year period, all our US value strategies with track records extending into this length are ahead of their benchmarks. Our US value investment team is highly experienced with remarkably long tenures, averaging 11 years at Westwood and double that amount of time in overall investment experience.

在過去的五年裡，我們所有擁有如此長紀錄的美國價值策略都領先於基準。我們的美國價值投資團隊經驗豐富，任職時間非常長，平均在 Westwood 工作了 11 年，整體投資經驗是這段時間的兩倍。

Our research driven culture along with a team-based portfolio management approach and history of promoting from within underpin our investment process. These are the elements that have allowed us to smoothly transition portfolio management of our SMidCap and AllCap strategies.

我們的研究驅動文化以及基於團隊的投資組合管理方法和內部晉升的歷史支撐著我們的投資流程。這些因素使我們能夠順利過渡 SMidCap 和 AllCap 策略的投資組合管理。

A long tenured portfolio manager recently left Westwood, but we seamlessly adjusted by bringing in two other long-tenured team members, each of them with more than 25 years of investment experience.

一位長期任職的投資組合經理最近離開了 Westwood，但我們透過引入另外兩名長期任職的團隊成員進行了無縫調整，他們每人都擁有超過 25 年的投資經驗。

SMidCap and AllCap have strong long-term track records ahead of their respective benchmarks over the trailing 1, 5, 7, and 10 years, and since inception. Within our multi-asset team, the group's scale and asset allocation was clearly on display in their overall performance results.

SMidCap 和 AllCap 在過去 1 年、5 年、7 年和 10 年以及自成立以來都擁有領先於各自基準的強勁長期業績記錄。在我們的多元資產團隊中，集團的規模和資產配置在整體績效結果中得到了清楚的體現。

Two of our three strategies outperformed for the quarter and all three are outperforming for the trailing three-year period. As of September 30, all three ranked in the top 40% of their Morningstar peer categories for trailing three years and the top 26% for trailing five years and top 21% for the trailing seven years.

我們的三項策略中有兩項在本季度表現出色，而這三種策略在過去三年中均表現出色。截至 9 月 30 日，這三者在過去三年中均位列晨星同行類別前 40%，過去五年位列前 26%，過去七年位列前 21%。

Our absolute return strategies all performed well in an environment where the S&P 500 dropped more than 3%. They performed as expected, highlighting an ability to protect investor capital in times of uncertainty.

我們的絕對回報策略在標準普爾 500 指數下跌超過 3% 的環境下都表現良好。它們的表現符合預期，凸顯了在不確定時期保護投資者資本的能力。

New strategies posted positive results while the third slip just 38 basis points for the quarter, placing them in strong relative positions against their peer universes. The Fed higher for longer stance could well prompt US corporations to continue moving towards the convertibles asset class when raising capital.

新策略取得了積極成果，而第三個策略在本季僅下滑了 38 個基點，使它們相對於同業處於強勢地位。聯準會長期升息很可能會促使美國企業在籌集資金時繼續轉向可轉換資產類別。

A dynamic shift like this would benefit our alternative income strategy by increasing the supply from traditional convertible issues and also expanding issuance from new sectors and industries. All of this could create opportunities for investment teams with the kind of long-standing relationships and deep expertise that we have at Westwood.

像這樣的動態轉變將透過增加傳統可轉換債券的供應以及擴大新部門和產業的發行量，有利於我們的另類收入策略。所有這些都可以為投資團隊創造機會，讓我們擁有像 Westwood 這樣的長期合作關係和深厚的專業知識。

Our Tactical Growth and Tactical Plus funds are designed to help investors sidestep market downturns. As you know, equity valuations remain above historical averages and we remain vigilant as the road ahead could be bumpy. If global economies enter a synchronized recession and markets correct, we expect these strategies to shine as investors look to protect capital.

我們的 Tactical Growth 和 Tactical Plus 基金旨在幫助投資者避免市場低迷。如您所知，股票估值仍高於歷史平均水平，我們保持警惕，因為未來的道路可能會崎嶇不平。如果全球經濟同步衰退且市場出現調整，我們預計這些策略將在投資者尋求保護資本時大放異彩。

I'd like to take a moment to talk about Chris Guptill who passed away suddenly this summer. Chris was founder, Co-Chief Investment Officer, and Co-Chief Executive Officer of Broadmark Asset Management. The majority owned subsidiary we acquired in last year's Salient transaction.

我想花點時間談談今年夏天突然去世的克里斯古普蒂爾(Chris Guptill)。 Chris 是 Broadmark 資產管理公司的創辦人、聯合首席投資長兼聯合執行長。我們在去年的 Salient 交易中收購了控股子公司。

As planned, Chris's long-term colleagues and partners, Rick Damico and Rick Cortez have taken over the roles they shared with him as CIO and CEO, respectively.

按照計劃，Chris 的長期同事和合作夥伴 Rick Damico 和 Rick Cortez 已分別接任與他共同擔任 CIO 和 CEO 的職位。

The Tactical growth and Tactical plus strategies led by Chris for the last 18 years are now being managed by Rick Damico, Rick Cortez, and Dyer Kennedy. All three are committed to their time-tested disciplined investment process based on the four pillars of valuation, monetary policy, investor sentiment, and volume and breadth-based momentum.

過去 18 年由 Chris 領導的戰術成長和戰術加戰略現在由 Rick Damico、Rick Cortez 和 Dyer Kennedy 負責管理。這三者都致力於基於估值、貨幣政策、投資者情緒以及基於數量和廣度的動力四大支柱的經過時間考驗的嚴格投資流程。

Chris was well respected and will long be remembered for its friendship, leadership, investment acumen, and disciplined work ethic.

克里斯因其友誼、領導能力、投資敏銳度和紀律嚴明的職業道德而備受尊敬，並將長期被人們銘記。

Our Westwood Salient strategies outperformed their benchmarks this quarter. Global Real Estate and Select Income funds performed especially well and have topped 30% Morningstar peer rankings year to date, top 15% over the trailing one year and top 10% of the trailing three years.

我們的 Westwood Salient 策略本季的表現優於其基準。全球房地產和精選收益基金表現尤其出色，今年迄今在晨星同業排名中名列前 30%，在過去一年中名列前 15%，在過去三年中名列前 10%。

Our Energy Infrastructure strategies benefited as crude oil rebounded by over 30%, and they ranked among a small group of asset classes that posted positive absolute returns for the quarter. Asset outflows continue in the MLP space as investors take profits following a period of strong performance, but we believe MLP fundamentals to performance potential remain attractive.

我們的能源基礎設施策略受益於原油反彈超過 30%，並且躋身於本季絕對回報為正的一小部分資產類別之列。由於投資者在經歷一段時期的強勁表現後獲利了結，MLP 領域的資產繼續外流，但我們認為 MLP 的基本面和業績潛力仍然有吸引力。

These Westwood's strategies are specifically designed to provide investors with alternative sources of income, along with inflation protection via exposure to real assets, low correlations to traditional asset classes, and market volatility mitigation, and that is exactly what they've been doing.

Westwood 的這些策略專門設計用於為投資者提供替代收入來源，以及透過接觸實體資產、與傳統資產類別的低相關性以及緩解市場波動來提供通膨保護，而這正是他們一直在做的事情。

Our wealth division performance was mixed with half of our strategies outperforming their benchmarks, even as they provided exposure to LargeCap blue chip equities, consistent with the investment objectives of our high net worth client base.

我們的財富部門表現參差不齊，我們的策略中有一半的表現優於基準，儘管它們提供了大盤藍籌股的投資，這與我們高淨值客戶群的投資目標一致。

Our wealth division has made great strides in supporting clients while bringing on new clients and improving efficiency. We've made a lot of progress in building out an RIA platform to efficiently serve a wider range of client needs.

我們的財富部門在支持客戶、吸引新客戶和提高效率方面取得了長足進展。我們在建立 RIA 平台以有效滿足更廣泛的客戶需求方面取得了很大進展。

We're especially pleased that our holistic wealth management services and our nimbleness in reacting to client needs is resonating with the younger entrepreneurial clients. For example, the last five relationships we've onboarded with over $10 million have all been clients in their 30s and 40s.

我們特別高興的是，我們的整體財富管理服務以及對客戶需求的靈活反應引起了年輕創業客戶的共鳴。例如，我們最近建立的 5 個超過 1000 萬美元的客戶關係都是 30 多歲和 40 多歲的客戶。

As a result of these efforts, Westwood Trust economic earnings increased 8% year over year. As mentioned previously, Vista Bank has now completed its acquisition of Charis holdings and our ownership stake in Charis means that we are now a shareholder investor bank.

由於這些努力，Westwood Trust 的經濟收入年增了 8%。如前所述，Vista Bank 現已完成對 Charis Holdings 的收購，我們在 Charis 中的股權意味著我們現在是一家股東投資銀行。

This is known as an entrepreneur's bank serving North, Central, and West Texas through 14 banking locations. Our partnership with Vista brings us a range of services to deepen our client relationships, including access to a robust private banking practice for Vista's ultra-high net worth clients.

這家企業家銀行透過 14 個銀行分店為德州北部、中部和西部提供服務。我們與 Vista 的合作夥伴關係為我們帶來了一系列服務來加深我們的客戶關係，包括為 Vista 的超高淨值客戶提供強大的私人銀行業務服務。

Shifting now to distribution. Our institutional channel experienced net outflows of $133 million, primarily due to redemptions in our US value strategies, including a few partial redemptions and a loss of two clients, one to a passive ETF strategy and one to a broader change in asset allocation strategy.

現在轉向分發。我們的機構管道淨流出1.33 億美元，主要是由於我們的美國價值策略的贖回，包括一些部分贖回和兩名客戶的損失，一名客戶轉向被動ETF 策略，另一名客戶則因資產配置策略的更廣泛變化而損失。

Outflows were partially offset by US value inflows, primarily for SmallCap. Our overall client base remained stable and following the recent transition, our distribution and portfolio management team has worked hard and successfully to retain key consultant approvals for SMidCap. And as a result, we had no SMidCap client losses.

資金流出被美國價值流入（主要是小型股）部分抵銷。我們的整體客戶群保持穩定，並且在最近的過渡之後，我們的分銷和投資組合管理團隊努力工作並成功地保留了 SMidCap 的關鍵顧問批准。因此，我們沒有出現 SMidCap 客戶損失。

In fact, we remain under consideration for several DC plan allocations in both SMidCap and SmallCap. Overall institutional outflows improved, but an industry-wide lack of inflows to these categories have negatively affected net flows.

事實上，我們仍在考慮中小型股和小型股的多項 DC 計劃分配。整體機構資金流出有所改善，但全行業缺乏這些類別的資金流入，對淨流量產生了負面影響。

The overall market environment continues to be challenging for gathering new flows, given recession fears along with an attractive 5% risk-free rate of return in cash products. As investors begin preparing to deploy capital differently, our pipeline has grown this quarter, reflecting increased search activity. Put some context around this growth in the pipeline. It literally grew 10 times in three months.

考慮到經濟衰退的擔憂以及現金產品 5% 的無風險回報率，整體市場環境對於吸引新資金仍面臨挑戰。隨著投資者開始準備以不同的方式部署資本，我們的管道在本季有所成長，反映出搜尋活動的增加。圍繞這一增長提供一些背景資訊。它實際上在三個月內增長了 10 倍。

We have two large searches in the $200 million to $400 million size range now, and we're particularly excited about those. Capitalized on this trend, we've added a seasoned sales professional, Pete McCarthy, to the institutional team. We know that he is seasoned because he previously worked here at Westwood and is coming back to resume his coverage of the Northeast.

我們現在有兩項規模在 2 億至 4 億美元範圍內的大型搜索，我們對此感到特別興奮。利用這一趨勢，我們在機構團隊中增加了經驗豐富的銷售專業人士 Pete McCarthy。我們知道他經驗豐富，因為他以前在韋斯特伍德工作過，現在回來繼續報道東北地區。

Our institutional team is also working hard to expand our presence and brand awareness from the OCIO, Outsourced Chief Investment Officer, and multifamily office spaces.

我們的機構團隊也努力透過 OCIO、外包首席投資長和多家族辦公空間擴大我們的影響力和品牌知名度。

Intermediary flows continue to feel the impact of a buyers' strike due to economic uncertainty and higher cash yields offering attractive safe haven for risk-averse investors.

由於經濟不確定性和較高的現金收益率為規避風險的投資者提供了有吸引力的避風港，中介資金流繼續受到買家罷工的影響。

Westwood has been outperforming peers as measured by redemption as a percentage of assets under management in the key categories where our strategies compete. Despite these headwinds, our team continues to work hard and wholesaler activity remains robust. Financial advisors may not be allocating many client funds and the non-cash strategies, but they're exploring investment opportunities for an environment in which cash is no longer the most attractive option.

在我們的策略競爭的關鍵類別中，以贖回佔管理資產的百分比來衡量，Westwood 的表現一直優於同業。儘管存在這些不利因素，我們的團隊仍繼續努力工作，批發商活動仍然強勁。財務顧問可能不會分配大量客戶資金和非現金策略，但他們正在探索現金不再是最具吸引力的選擇的環境中的投資機會。

Overall, our intermediary channel experienced net outflows of $159 million for the quarter, driven primarily by taxable growth and MLP redemptions.

總體而言，我們的中介通路本季淨流出 1.59 億美元，這主要是由應稅成長和 MLP 贖回推動的。

Outflows were partially offset by demand for our SmallCap, Select Income, and Alternative Income strategies.

資金流出部分被我們的小型股、精選收入和另類收入策略的需求所抵銷。

Recap, this market environment has caused many investors to take a pause and industry activity has slowed overall. Market fluctuations may impact revenues or AUM temporarily. Our focus remains on executing our investment disciplines and delivering strong client service.

回顧一下，這種市場環境導致許多投資者暫停，產業活動整體放緩。市場波動可能暫時影響收入或資產管理規模。我們的重點仍然是執行我們的投資紀律和提供強大的客戶服務。

We think this is a great time to deepen existing relationships and forge new relationships with added offerings. As part of our efforts to diversify our product range and revenue sources, we began to build out our private market capabilities and are exploring the actively managed ETF space.

我們認為這是加深現有關係並透過增加產品建立新關係的好時機。作為我們產品範圍和收入來源多元化努力的一部分，我們開始建立我們的私人市場能力，並正在探索主動管理的 ETF 領域。

We expect that our initial product focus in these areas will leverage the deep experience of our energy infrastructure team. And in private markets, we've launched a new strategy called the Westwood Energy Secondaries Fund. This product blends our in-depth bottom-up investment process.

我們預計，我們在這些領域的初始產品重點將利用我們能源基礎設施團隊的豐富經驗。在私募市場，我們推出了一項名為 Westwood Energy Secondaries Fund 的新策略。該產品融合了我們深入的自下而上的投資流程。

With our ability to source investments, our reputation as a leading institutional investor and public energy markets and our strong relationships with leading sponsors, it allow us unique access to energy-related private investments.

憑藉我們獲取投資的能力、我們作為領先機構投資者和公共能源市場的聲譽以及我們與主要贊助商的牢固關係，這使我們能夠獲得與能源相關的私人投資的獨特機會。

We believe it's an exciting time to invest in oil and gas because institutional investors are selling fossil fuel-related investments for ESG and other non-fundamental reasons, which creates a supply-demand imbalance and provides opportunities for secondary investors. And two, the outlook for commodity prices is bullish due to a global underinvestment in recent years.

我們認為，現在是投資石油和天然氣的令人興奮的時機，因為機構投資者出於ESG 和其他非基本面原因出售化石燃料相關投資，這造成了供需不平衡，並為二級投資者提供了機會。第二，由於近年來全球投資不足，大宗商品價格前景看漲。

And finally, valuations are historically low. While companies see elevated levels of profitability which opens an opportunity to buy mature assets at large discounts in the secondary market. Also excited to share a significant development with the potential to transform our business.

最後，估值處於歷史低點。雖然公司看到獲利水準提高，但這提供了在二級市場上以大幅折扣購買成熟資產的機會。我們也很高興能夠分享一項具有改變我們業務潛力的重大發展。

Earlier today, we unveiled our latest addition, the cutting-edge Managed Investment Solutions team. The Managed Investment Solutions Chicago-based team boasts an average of 25 years of institutional experience. It proven track records and providing customized index solutions for institutional clients, including public plans, sovereign wealth funds, corporate pension plans, defined contribution plans, endowments, foundations, and consultant groups.

今天早些時候，我們公佈了最新成員，即尖端的管理投資解決方案團隊。 Managed Investment Solutions 總部位於芝加哥的團隊擁有平均 25 年的機構經驗。它擁有良好的業績記錄，並為機構客戶提供客製化的指數解決方案，包括公共計劃、主權財富基金、企業退休金計劃、固定繳款計劃、捐贈基金、基金會和顧問團體。

Managed Investment Solutions' consultative and customized approach has gained the trust of clients and the team has developed several asset management capabilities. Our Managed Investment Solutions business is an important addition to our product suite, allowing clients to access different market and thematic exposures.

Managed Investment Solutions 的諮詢和客製化方法贏得了客戶的信任，團隊開發了多項資產管理能力。我們的管理投資解決方案業務是我們產品套件的重要補充，使客戶能夠接觸不同的市場和主題。

Our new capability is adaptable, transparent, and tailored to address the shifting needs of a multifaceted client base. Managed Investment Solutions teams approach is a commitment to understand client needs in-depth and assess current exposures and overarching objectives to ensure that desired outcomes align with the prospects portfolio as a whole.

我們的新功能適應性強、透明且量身定制，可以滿足多方面客戶群不斷變化的需求。管理投資解決方案團隊的方法是致力於深入了解客戶需求並評估當前風險和整體目標，以確保期望的結果與整個前景投資組合保持一致。

By identifying trade-offs between various methodologies, investment solutions fine tunes answers to fit the customer's unique goals and objectives. We're energized by the opportunities this new development brings to Westwood. We continue to diversify our product offerings.

透過確定各種方法之間的權衡，投資解決方案可以微調答案以適應客戶的獨特目的和目的。這項新開發案為 Westwood 帶來的機會讓我們倍感振奮。我們繼續使我們的產品多樣化。

We're working hard to broaden our client base and we continue to enhance our revenue streams. We believe that current market conditions are right for the successful introduction of Managed Investment Solutions and our new team members are ready to go, officially joining Westwood next week.

我們正在努力擴大我們的客戶群，並持續增強我們的收入來源。我們相信，目前的市場條件適合成功引入管理投資解決方案，我們的新團隊成員已做好準備，將於下週正式加入 Westwood。

It represents another important entry for Westwood into a substantial market segment that is signaling strong demand for our solutions business, and it fits nicely within our existing investment capabilities. As you know, our primary focus has long been to deliver superior risk-adjusted returns, excellent client service, and an expanded array of investment opportunities and solutions.

它代表著 Westwood 進入一個重要細分市場的另一個重要舉措，表明對我們解決方案業務的強勁需求，並且非常適合我們現有的投資能力。如您所知，長期以來，我們的主要重點是提供卓越的風險調整回報、卓越的客戶服務以及更多的投資機會和解決方案。

We continue to invest in strategic initiatives to improve our business and underpin Westwood's return to a long-term growth trajectory, and we're looking forward to keeping you updated on our progress. Thanks again for your time today and for your interest in Westwood.

我們繼續投資於策略舉措，以改善我們的業務並支持 Westwood 回歸長期成長軌跡，我們期待向您通報我們的最新進展。再次感謝您今天抽出寶貴時間以及對韋斯特伍德的興趣。

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

現在我將把電話轉給我們的財務長 Terry Forbes。

Thanks, Brian, and good afternoon, everyone. Today we reported total revenues of $21.9 million for the third quarter of 2023 compared to $21.9 million in the second quarter and $15.4 million in the prior year's third quarter.

謝謝布萊恩，大家下午好。今天，我們報告 2023 年第三季的總收入為 2,190 萬美元，而第二季為 2,190 萬美元，去年第三季為 1,540 萬美元。

Revenues were comparable to the second quarter, revenues were higher than last year third quarter, reflecting higher average AUM following the acquisition of Salient Partners' asset management business during the fourth quarter of last year. Our third quarter comprehensive income of $3.4 million (sic - see press release, "4.4") or $0.41 per share, compared favorably with $2.9 million or $0.36 per share in the second quarter due to the receipt of life insurance proceeds, offset by changes in the fair value of contingent consideration.

營收與第二季相當，營收高於去年第三季度，反映去年第四季收購Salient Partners資產管理業務後平均資產管理規模較高。我們第三季的綜合收益為340 萬美元（原文如此，請參閱新聞稿「4.4」）或每股0.41 美元，與第二季的290 萬美元或每股0.36 美元相比，由於收到了人壽保險收益，被人壽保險收益的變動所抵銷。或有對價的公允價值。

Non-GAAP economic earnings were $6.3 million or $0.77 per share in the current quarter versus $5.7 million or $0.7 per share in the second quarter. Our third quarter comprehensive income was $3.4 million (sic - see Press Release, "4.4") or $0.41 per share compared favorably with last year's third quarter loss of $1.2 million, or $0.15 per share, primarily due to higher revenues in insurance proceeds, offset by changes in the fair value of contingent consideration and higher employee compensation and benefits expenses.

本季非 GAAP 經濟收益為 630 萬美元，即每股 0.77 美元，第二季為 570 萬美元，即每股 0.7 美元。我們第三季的綜合收益為340 萬美元（原文如此- 參見新聞稿，「4.4」）或每股0.41 美元，而去年第三季的虧損為120 萬美元，即每股0.15 美元，主要是由於保險收益收入增加，抵消了由於或有代價公允價值的變化以及員工薪酬和福利費用的增加。

Revenues and expenses were higher following the acquisition of Salient Partners' asset management business in 2022. Economic earnings for the quarter were $6.3 million or $0.77 per share compared with $0.8 million or $0.10 per share in the third quarter of 2022.

2022 年收購Salient Partners 的資產管理業務後，收入和支出有所增加。該季度的經濟收益為630 萬美元，即每股0.77 美元，而2022 年第三季的經濟收益為80 萬美元，即每股0.10 美元。

Firmwide assets under management and advisement totaled $15.5 billion at quarter end, consisting of assets under management of $14.4 billion and assets under advisement of $1.1 billion.

截至季末，全公司管理和諮詢資產總額為 155 億美元，其中管理資產為 144 億美元，諮詢資產為 11 億美元。

Assets under management consisted of institutional assets of $6.7 billion or 47% of the total, wealth management assets of $3.8 billion or 26% of the total, and mutual fund assets of $3.9 billion or 27% of total.

管理資產中，機構資產67億美元，佔總資產的47%；理財資產38億美元，佔總資產的26%；共同基金資產39億美元，佔總資產的27%。

Over the quarter, our assets under management experienced market depreciation of $0.3 billion and net outflows of $289 million. And our assets under advisement experienced market appreciation of $2 million and net outflows of $63 million.

本季度，我們管理的資產經歷了 3 億美元的市場貶值和 2.89 億美元的淨流出。我們所顧問的資產經歷了 200 萬美元的市場升值和 6,300 萬美元的淨流出。

Our financial position continues to be very solid with cash and short-term investments at quarter end totaling $48.5 million and a debt-free balance sheet.

我們的財務狀況仍然非常穩健，季末的現金和短期投資總額為 4,850 萬美元，資產負債表無債務。

I'm happy to announce that our Board of Directors approved a regular cash dividend of $0.15 per common share payable on January 3, 2024, to stockholders of record on December 1, 2023.

我很高興地宣布，我們的董事會批准於 2024 年 1 月 3 日向 2023 年 12 月 1 日登記在冊的股東派發每股普通股 0.15 美元的定期現金股息。

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

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演示文稿，其中反映了季度亮點以及對我們的業務、產品開發以及收入和收益的長期趨勢的討論。

We thank you for your interest in our company. And we'll open the line to questions.

我們感謝您對我們公司的興趣。我們將開放提問熱線。

Thank you. (Operator Instructions) Mac Sykes, GAMCO.

謝謝。 （操作員說明）Mac Sykes，GAMCO。

Well, good afternoon, Brian and Terry.

嗯，下午好，布萊恩和特里。

Good afternoon, Mac.

下午好，麥克。

So I have two questions. I'll just ask them together because they're obviously linked. My first is, how should we think about the revenue cost dynamics with this new group that's just been brought in? And then on the revenue side, how should we think about the revenue generation from that? Is that -- I assume that's kind of a consultant basis points fee on AUM?

所以我有兩個問題。我會一起問他們，因為他們顯然是有連結的。我的第一個問題是，我們應該如何考慮這個剛引進的新團隊的收入成本動態？然後在收入方面，我們該如何考慮由此產生的收入？我認為這是 AUM 的顧問基點費用嗎？

Yes. So I would look at it like we're hiring three people at market rates and we're opening a very small office in Chicago. So the cost of the office will be minimal.

是的。所以我會認為我們正在以市場價格僱用三個人，並且我們將在芝加哥開設一個非常小的辦公室。因此，辦公室的成本將是最低的。

And I would look at it as these are three investment professionals that have 25 years-plus experience, they've done a lot of things in their career, but what they did in their prior life was they built an index solutions business at their prior -- former employer, where they grew the business from 0 to over $100 billion in AUM.

我認為這三位投資專業人士擁有 25 年以上的經驗，他們在職業生涯中做了很多事情，但他們在之前的生活中所做的是建立了指數解決方案業務——前雇主，他們將業務的資產管理規模從0 成長到超過1000 億美元。

The average fee on the assets that they managed was very wide ranging. It was anywhere from 3 basis points to 55 basis points. And they do a lot of interesting things like tax-managed and sector focus thematic, all kinds of different approaches. So it's an exciting new business line for us.

他們管理的資產的平均費用差異很大。其幅度從 3 個基點到 55 個基點不等。他們做了很多有趣的事情，例如稅務管理和行業重點主題，以及各種不同的方法。所以這對我們來說是一個令人興奮的新業務線。

It's certainly not a change to our business. It's a new business line, and we've been known as active managers for 40 years. And we intend to continue delivering superior risk-adjusted returns in the active space.

這當然不會改變我們的業務。這是一個新的業務領域，40 年來我們一直被稱為主動式基金經理人。我們打算繼續在活躍領域提供卓越的風險調整回報。

But we also have a history of solving problems for clients, and this group has a great history of creative problem solving for their clients. And so we're excited for them to join Westwood. They start next Monday, and we'll hit the ground running.

但我們也有為客戶解決問題的歷史，而這個團隊也有為客戶創意解決問題的悠久歷史。因此，我們很高興他們加入 Westwood。他們下週一開始，我們將立即開始工作。

Right. And then typically, to -- on a mandate like this -- sorry, I mean, as again mandate, what is the sort of lead time for securing them in terms of when they start to prospect and get that solution and then implement it?

正確的。然後，通常，在這樣的任務中，抱歉，我的意思是，再次要求，從他們開始尋找並獲得該解決方案然後實施它的時間來看，確保他們安全的準備時間是多少？

I think probably the first 90 days, we'll be getting all of the operational aspects of the business up and running and then they'll be reaching out and talking to the folks in the industry that they know well. And if they have the same kind of success that they had at their prior shop, we should start to see some flows at the end of next year.

我認為可能在前 90 天，我們將啟動並運行業務的所有營運方面，然後他們將與他們熟悉的行業人士接觸並交談。如果他們取得了與之前商店相同的成功，我們應該會在明年年底開始看到一些流量。

Great. Thank you very much. Happy Halloween.

偉大的。非常感謝。萬聖節快樂。

Thank you. (Operator Instructions) And speakers, I see no further questions in the queue, I would now like to turn the conference back to your CEO, Brian Casey, for closing remarks.

謝謝。 （操作員說明）各位發言者，我在隊列中沒有看到更多問題，我現在想將會議轉回給你們的首席執行官布萊恩·凱西 (Brian Casey) 發表閉幕詞。

Okay. Well, thanks, everybody, for taking some time to listen to our call today. If you have any further questions, please look at our website, westwoodgroup.com, or call myself or Terry Forbes. Have a great day. Thanks.

好的。好的，謝謝大家今天抽出時間來聽我們的電話。如果您還有任何疑問，請造訪我們的網站 westwoodgroup.com，或致電我本人或 Terry Forbes。祝你有美好的一天。謝謝。

This concludes today's conference call. Thank you all for participating. You may now disconnect and have a pleasant day.

今天的電話會議到此結束。感謝大家的參與。您現在可以斷開連接並度過愉快的一天。