Q1 2024 Brightsphere Investment Group Inc Earnings Call Transcript
Key Points
- BrightSphere Investment Group Inc reported a significant increase in ENI per share, rising 57% compared to the year-ago quarter, primarily driven by increased management fee revenue due to higher AUM from market appreciation.
- AUM increased to $110 billion, up 6.5% from the end of 2023, demonstrating strong asset growth.
- The company successfully repurchased approximately 10% of its outstanding shares, enhancing shareholder value through share buybacks.
- Acadian's investment performance remains robust with 83%, 91%, and 93% of strategies outperforming their benchmarks across three, five, and ten-year periods respectively.
- BrightSphere Investment Group Inc launched new investment strategies, including a global high-yield strategy, showing proactive expansion in their offerings.
- Despite overall positive performance, the company experienced net client cash outflows in some strategies, offsetting inflows in other areas.
- ENI and EPS for Q1 2024 were lower compared to Q4 2023, attributed to seasonality and timing of performance fees which are typically earned in the fourth quarter.
- The managed volatility strategy continues to face challenges, contributing to outflows due to a prolonged risk-on market environment that does not favor low beta strategies.
- Emerging market strategies are witnessing reduced client interest and slower sales, reflecting underperformance relative to developed markets.
- BrightSphere faces ongoing pressure from institutional de-risking trends, particularly from pension plans reallocating from equities to fixed income, which could impact future asset inflows.
Ladies and gentlemen, thank you for standing by, and welcome to the BrightSphere Investment Group earnings conference call and webcast for the first-quarter 2024. (Operator Instructions) Please note that this call is being recorded today, Thursday, May 2, 2024 at 11:00 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.
Good morning, and welcome to BrightSphere conference call to discuss our results for the first quarter ended March 31, 2024. Before we get started, please note that we may make forward-looking statements about our business and financial performance. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected.
Additional information regarding this risk and uncertainties appears in our SEC filings, including the Form 8-K filed today containing
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