Q2 2024 Brightsphere Investment Group Inc Earnings Call Transcript
Key Points
- BrightSphere Investment Group Inc (BSIG) reported a 61% increase in ENI per share compared to the year-ago quarter, driven by higher management fee revenue and share repurchases.
- The company's average AUM increased by approximately 13% compared to the second quarter of 2023, with management fee revenue increasing by 14%.
- Operating expenses were kept generally flat year-over-year, showcasing effective expense discipline and operating leverage.
- Acadian's investment performance was strong, with 86%, 92%, and 93% of its strategies by revenue outperforming their respective benchmarks over three, five, and ten-year periods.
- BrightSphere Investment Group Inc (BSIG) repurchased 11% of its outstanding shares since December 2023, reflecting a commitment to maximizing shareholder value.
- Net client cash flows were flat for the second quarter, with large inflows and outflows offsetting each other.
- The company faces ongoing pressures from managed volatility strategies and client rebalancing in rising equity markets.
- There is uncertainty in the demand for emerging market strategies due to geopolitical concerns and mixed client opinions.
- The cash balance of $72 million is not significantly high, limiting immediate capital allocation flexibility.
- The company does not have a specific formula for share buybacks and remains opportunistic, which may lead to uncertainty in capital return strategies.
Welcome to the BrightSphere Investment Group earnings conference call and webcast for the second quarter 2024. During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. (Operator Instructions) Please note that this call is being recorded today, Thursday, August 1, 2024 at 11:00 AM Eastern Time.
I would now like to turn the call over to Melody Huang, Senior Vice President, Director of Finance and Investor Relations. Please go ahead, Melody.
Good morning and welcome to BrightSphere's conference call to discuss our results for the second quarter ended June 30, 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.
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