Acadian Asset Management Inc. · NYSE:AAMI
Acadian Asset Management — BrightSphere Investment Group — Q1 2021 Earnings Presentation
29 slides from Acadian Asset Management's earnings presentation, Apr 29, 2021
Slide 1: BrightSphere Reports Financial and Operating Results for the First Quarter Ended March 31, 2021
1 Contact: Elie Sugarman ir@bsig.com (617) 369-7300 Exhibit 99.1 BrightSphere Reports Financial and Operating Results for the First Quarter Ended March 31, 2021 • U.S. GAAP earnings per share of $0.33 for the quarter, compared to $0.38 for Q1'20 • ENI earnings per share of $0.34 for the quarter, com
Slide 2: Dividend Declaration and Conference Call Dial-in
2 Dividend Declaration The Company’s Board of Directors approved a quarterly interim dividend of $0.01 per share payable on June 25, 2021 to shareholders of record as of the close of business on June 11, 2021. Conference Call Dial-in The Company will hold a conference call and simultaneous webcast t
Slide 3: Forward Looking Statements
3 Forward Looking Statements This communication includes forward-looking statements which may include, from time to time, the expected closing of the Investment Counselors of Maryland and Landmark Partners dispositions, anticipated revenues, margins, operating expense and variable compensation ratio
Slide 4: Q1 2021
4 Q1 2021 EARNINGS PRESENTATION April 29, 2021
Slide 5: Q1'21 Highlights
5 • U.S. GAAP EPS of $0.33 for Q1'21 compared to $0.38 for Q1'20 • ENI EPS of $0.34 for the quarter compared to $0.30 for Q1'20(1) • Announced divestiture of Landmark; sale expected to close in the second quarter of 2021 ◦ BrightSphere expected to receive approximately $724 million including co-inve
Slide 6: U.S. GAAP Statement of Operations
6 • Total revenue decreased (10.6)% from Q1'20 primarily due to lower management fees which were impacted by dispositions, partially offset by positive market returns in the past 12 months • Operating expenses decreased (1.2)% from Q1'20 primarily due to dispositions and a reduction in G&A expense a
Slide 7: Disciplined Execution of Long-Term Growth Strategy
7 Disciplined Execution of Long-Term Growth Strategy • Quant & Solutions ◦ Leveraging broad quant capabilities to provide exposures and solutions sought by clients • Liquid Alpha ◦ Differentiated fundamental strategies with strong long-term alpha generation remain attractive ◦ Evolving product mix i
Slide 8: Differentiated, Well-Positioned Segments
8 Differentiated, Well-Positioned Segments(1) ___________________________________________________________ Please see Definitions and Additional Notes (1) The segments above reflect the announced divestitures of Landmark Partners and Investment Counselors of Maryland. Landmark Partners, previously in
Slide 9: Segment Highlight: Quant & Solutions
9 Equal-Weighted 60% 68% 84% 3-Year 5-Year 10-Year 0% 50% 100% Revenue-Weighted 57% 84% 91% 3-Year 5-Year 10-Year 0% 50% 100% Segment Highlight: Quant & Solutions • Segment NCCF of $(3.6) billion for Q1'21 compared to $1.5 billion for Q1'20 partly driven by re-balancing and asset reallocation from s
Slide 10: Segment Highlight: Liquid Alpha
10 Asset-Weighted 34% 16% 95% 3-Year 5-Year 10-Year 0% 50% 100% Segment Highlight: Liquid Alpha Revenue-Weighted 28% 13% 92% 3-Year 5-Year 10-Year 0% 50% 100% • Segment NCCF of $1.2 billion for Q1'21 compared to $(1.1) billion for Q1'20 • Decline in segment AUM to $28.9 billion at March 31, 2021 com
Slide 11: Key Performance Metrics
11 Key Performance Metrics Key Performance Metrics(1) ($ in millions, unless otherwise noted) Three Months Ended March 31, Three Months Ended December 31, U.S. GAAP Basis 2021 2020 Increase (Decrease) 2020 Increase (Decrease) Revenue $ 131.2 $ 146.7 (10.6) % $ 141.0 (7.0) % Pre-tax income from cont.
Slide 12: ENI Revenue Commentary
12 ENI Revenue Commentary • ENI Revenue includes management fees, performance fees, and our share of earnings from equity-accounted Affiliates • Q1'21 ENI revenue of $131.3 million decreased from Q1'20 by (9.3)% primarily due to a decrease in management fees • Management fees decreased (12.1)% from
Slide 13: ENI Operating Expenses
13 ENI Operating Expenses(3) Three Months Ended March 31, Three Months Ended December 31, ($M) 2021 2020 Increase (Decrease) 2020 Increase (Decrease)$M % of MFs(2) $M % of MFs(2) $M % of MFs(2) Fixed compensation and benefits $ 28.8 23.0 % $ 38.8 27.2 % (26)% $ 32.6 24.6 % (12)% G&A expenses (excl.
Slide 14: ENI Variable Compensation
14 ENI Variable Compensation(1) ($M) Three Months Ended March 31, Three Months Ended December 31, 2021 2020 Increase (Decrease) 2020 Increase (Decrease) Cash variable compensation $ 26.3 $ 26.7 (1)% $ 26.6 (1)% Add: Non-cash equity-based award amortization 1.6 4.2 (62)% 3.3 (52)% Variable compensati
Slide 15: Affiliate Key Employee Distributions
15 Affiliate Key Employee Distributions(2) Three Months Ended March 31, Three Months Ended December 31, ($M) 2021 2020 Increase (Decrease) 2020 Increase (Decrease) Earnings after variable compensation (ENI operating earnings) $ 47.9 $ 44.0 9% $ 48.7 (2)% Less: Affiliate key employee distributions (3
Slide 16: Balance Sheet
16 Balance Sheet(1) ($M) March 31, 2021 December 31, 2020 Assets Cash and cash equivalents $ 450.5 $ 391.3 Restricted cash 1.6 1.6 Investment advisory fees receivable 120.7 112.6 Right of use assets 80.1 82.3 Investments 114.6 115.1 Other assets 296.9 312.3 Assets of Affiliate held for sale 241.6 24
Slide 17: Supplemental Information
17 Supplemental Information
Slide 18: Segment Information for Q1'21 and Q1'20
18 Segment Information for Q1'21 and Q1'20 Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 ($ in millions, unless otherwise noted) Quant & Solutions Liquid Alpha Other(4) Reconciling Items(1) Total U.S. GAAP (3) Quant & Solutions Liquid Alpha Other(4) Reconciling Items(1) Total U
Slide 19: Segment Information for December 31, 2020
19 Three Months Ended December 31, 2020 ($ in millions, unless otherwise noted) Quant & Solutions Liquid Alpha Other(4) Reconciling Items(1) Total U.S. GAAP (3) ENI Revenue $ 96.9 $ 35.8 $ 6.9 $ 1.4 $ 141.0 ENI Operating Expenses 39.7 10.8 10.5 10.9 71.9 Earnings before variable compensation 57.2 25
Slide 20: Assets Under Management Rollforward by Segment
20 Assets Under Management Rollforward by Segment ($ in billions, unless otherwise noted) Three Months Ended March 31, 2021 March 31, 2020 December 31, 2020 Quant and Solutions Beginning balance $ 107.4 $ 101.9 $ 95.4 Gross inflows 2.2 3.7 3.1 Gross outflows (6.4) (3.1) (5.0) Reinvested income and d
Slide 21: Reconciliations and Disclosures
21 Reconciliations and Disclosures
Slide 22: Reconciliation of U.S. GAAP Net Income to Economic Net Income
22 Three Months Ended ($ in millions) March 31, March 31, December 31, 2021 2020 2020 U.S. GAAP net income attributable to controlling interests $ 27.0 $ 32.6 $ 198.0 Adjustments to reflect the economic earnings of the Company: Non-cash key employee-owned equity and profit interest revaluations(3) 3
Slide 23: Reconciliation of per-share U.S. GAAP Net Income to ENI
23 Reconciliations from U.S. GAAP to Non-GAAP Measures(1) (cont.) Reconciliation of per-share U.S. GAAP Net Income to Economic Net Income(2) ($) Three Months Ended March 31, March 31, December 31, 2021 2020 2020 U.S. GAAP net income per share $ 0.33 $ 0.38 $ 2.42 Adjustments to reflect the economic
Slide 24: Reconciliation of U.S. GAAP Operating Expense to ENI Operating Expense
24 Reconciliations from U.S. GAAP to Non-GAAP Measures(1) (cont.) Reconciliation of U.S. GAAP Operating Expense to ENI Operating Expense(2) ($ in millions) Three Months Ended March 31, March 31, December 31, 2021 2020 2020 U.S. GAAP operating expense $ 94.1 $ 95.2 $ 107.0 Less: items excluded from E
Slide 25: Reconciliation of U.S. GAAP Pre-tax Income to Pre-tax ENI
25 Reconciliations from U.S. GAAP to Non-GAAP Measures(1)(cont.) Reconciliation of U.S. GAAP pre-tax income from continuing operations to Pre-tax ENI(2) ($ in millions) Three Months Ended March 31, March 31, December 31, 2021 2020 2020 U.S. GAAP pre-tax income from continuing operations $ 32.2 $ 13.
Slide 26: Reconciliation of per-share Landmark U.S. GAAP Net Income to Landmark ENI
26 Reconciliation of per-share Landmark U.S. GAAP Net Income to Landmark Economic Net Income ($) Three Months Ended March 31, March 31, 2021 2020 Landmark U.S. GAAP net income per share $ 0.03 $ 0.18 Adjustments to reflect the economic earnings of the Company: i. Non-cash key employee-owned equity a
Slide 27: Definitions and Non-GAAP Measures Notes
27 Definitions and Additional Notes References to “BrightSphere,” “BSIG” or the “Company” refer to BrightSphere Investment Group Inc.; references to “OM plc” or “Parent” refer to Old Mutual plc, the Company’s former parent; references to “BSUS” or the “Center” refer to the holding company excluding
Slide 28: Adjusted EBITDA and Segment ENI Definitions
28 The Company adjusts its income tax expense to reflect any tax impact of its ENI adjustments. Adjusted EBITDA Adjusted EBITDA is defined as economic net income before interest, income taxes, depreciation and amortization. The Company notes that its calculation of Adjusted EBITDA may not be consist
Slide 29: ENI Earnings Before Variable Compensation Definitions
29 Definitions and Additional Notes ENI earnings before variable compensation ENI earnings before variable compensation is calculated as ENI revenue, less ENI operating expense. ENI variable compensation ratio The ENI variable compensation ratio is calculated as variable compensation divided by ENI
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