Q1 2024 Westwood Holdings Group Inc Earnings Call Transcript
Key Points
- Assets under management and advisement reached $17.1 billion, the highest in six years, indicating strong growth and market confidence.
- Launched the Westwood Celiant Enhanced Midstream Income Fund, an active ETF, which has seen trading volumes exceeding expectations and competitive pricing with an all-in expense ratio of 80 basis points.
- Strong performance in U.S. Value strategies, with all relevant track records outperforming their benchmarks over multiple time periods, enhancing the company's competitive position in the market.
- High client retention rate at 97% in wealth management, supported by targeted engagement efforts and new business initiatives, demonstrating strong client satisfaction and loyalty.
- Positive net flows in institutional and intermediary channels, with a healthy pipeline of over $1.3 billion in business opportunities, suggesting potential for future growth.
- Reported a modest decline in gross inflows and an increase in net outflows, primarily due to seasonal factors such as tax payments and required distributions.
- Experienced mixed performance in debt markets, with fixed income yields at attractive levels but dependent on the trajectory of interest rate changes, adding uncertainty to future performance.
- Absolute returns for energy infrastructure were initially weak, although they recovered later in the quarter, indicating potential volatility in this investment category.
- Incurred significant expenses related to the launch of new business initiatives, including the ETF and Managed Investment Solutions, which impacted earnings for the quarter.
- Despite a solid financial position, faced challenges with seasonal increases in employee compensation and benefits expenses, which affected net earnings compared to the previous quarter.
Good day, and thank you for standing by, and welcome to the First Quarter 2020 for Westwood Holdings Group earnings conference call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session to ask a question. During the session, you need to press star one on your telephone. You will then hear an automated message device, in your hand is raised to withdraw your question, please press star one again. Please be advised that this conference is being recorded. I would now like to hand the call over to your speaker today, Jill Meyer, SVP, Director of fiduciary services. Please go ahead.
Thank you, and welcome to our first quarter 2024 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
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