Acadian Asset Management Inc. · NYSE:AAMI
Acadian Asset Management — BrightSphere Investment Group — Q3 2021 Earnings Presentation
31 slides from Acadian Asset Management's earnings presentation, Oct 28, 2021
Slide 1: BrightSphere Reports Financial and Operating Results for the Third Quarter Ended September 30, 2021
Contact: Elie Sugarman ir@bsig.com (617) 369-7300 Exhibit 99.1 BrightSphere Reports Financial and Operating Results for the Third Quarter Ended September 30, 2021 • U.S. GAAP earnings per share of $2.76 for the quarter, compared to $0.46 for Q3'20, driven by gain on sale of Affiliates • ENI earnings
Slide 2: Dividend Declaration
Dividend Declaration The Company’s Board of Directors approved a quarterly interim dividend of $0.01 per share payable on December 30, 2021 to shareholders of record as of the close of business on December 17, 2021. Conference Call Dial-in The Company will hold a conference call and simultaneous web
Slide 3: Forward Looking Statements
Forward Looking Statements This communication includes forward-looking statements which may include, from time to time, anticipated revenues, margins, operating expense and variable compensation ratios, cash flows or earnings growth profile, anticipated performance of the Company’s business and the
Slide 4: Q3 2021 Earnings Presentation
Q3 2021 EARNINGS PRESENTATION October 28, 2021 4
Slide 5: Q3'21 Highlights
Q3'21 Highlights BrightSphere Highlights • U.S. GAAP EPS of $2.76 for Q3'21 compared to $0.46 for Q3'20; increase driven by gain on sale of Affiliates • ENI EPS of $0.28 for the quarter compared to $0.30 for Q3'20(1) • Completed the sales of TSW, ICM and Campbell • Acadian Asset Management (“Acadian
Slide 6: U.S. GAAP Statement of Operations
U.S. GAAP Statement of Operations ($ in millions, unless otherwise noted) Three Months Ended Q3'21 vs. Q3'20 September 30, September 30, June 30, Increase 2021 2020 (Decrease) 2021 • Total revenue decreased (7.5)% from Management fees $ 111.4 $ 123.3 (9.7)% $ 111.6 Q3'20 primarily due to lower Perfo
Slide 7: Acadian Financial Highlights
Acadian Financial Highlights • Quant & Solutions segment is comprised of Acadian operating business • Segment NCCF of $(0.7) billion with annualized revenue impact of $(1.6) million for Q3'21 compared to $(2.4) billion with annualized revenue impact of $(11.0) million for Q3'20; AUM increased 19.6%
Slide 8: Acadian Platform Overview
Acadian Platform Overview Business Overview • Leading, at-scale investment manager with a track record of over 35 years and $113.7 billion in AUM as of September 30, 2021 • Quant-focused investment platform with strength across team, technology and data, offering unique capabilities in long- only ac
Slide 9: Investment Outperformance across YTD, 1-, 3-, 5-, and 10-Year Horizons
Investment Outperformance across YTD, 1-, 3-, 5-, and 10-Year Horizons (1) Acadian Product Performance % Beating Benchmark (Revenue-Weighted) 100% 89% 88% 88% 90% 85% 81% 80% 70% 60% 50% 40% 30% 20% 10% —% YTD 1-Year 3-Year 5-Year 10-Year ___________________________________________________________ P
Slide 10: History of Strong AUM Growth
History of Strong AUM Growth $B Acadian's Total Ending AUM 2011 - September 30, 2021 $120.0 $113.7 $108.1 $110.0 $102.2 $100.0 $97.7 $90.0 $86.2 $80.0 $75.0 $70.3 $70.0 $66.8 $65.2 $60.0 $51.9 $50.0 $42.2 $40.0 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 09/30/21 10
Slide 11: Diversified Asset Base
Diversified Asset Base AUM by Client Type AUM by Client Location $B $B Public/Government Commingled Europe $51.3 Trust/UCIT $18.8 $25.4 USA $74.1 Asia $5.2 Australia Corporate/ $7.4 Union AUM by Strategy Other $15.6 Other $8.3 Sub-advisory $B $8.2 $13.1 Developed Markets $86.4 Emerging Markets $27.3
Slide 12: Investment Capabilities
Investment Capabilities Diversified Quant offerings including ESG-focused strategies Capability Attributes & Approach • Leverage numerous behavioral factors grounded in sound investment theory and psychological underpinnings; factors supported by observations from a range of disciplines, including s
Slide 13: Disciplined Execution of Long-Term Growth Strategy
Disciplined Execution of Long-Term Growth Strategy Continue • Leveraging broad quant capabilities to provide exposures and solutions sought by clients Harnessing our • Highly scalable offerings with substantial capacity and global demand Unique Quant Capabilities • Leveraging data and technology in
Slide 14: Key Performance Metrics
Key Performance Metrics Key Performance Metrics(1) ($ in millions, unless otherwise noted) Three Months Ended September 30, Three Months Ended June 30, Increase Increase U.S. GAAP Basis 2021 2020 (Decrease) 2021 (Decrease) Revenue $ 117.9 $ 127.5 (7.5)% $ 133.3 (11.6)% Pre-tax income from cont. ops.
Slide 15: ENI Revenue
ENI Revenue Commentary • ENI revenue includes management fees, performance fees, and our share of earnings from equity-accounted Affiliate • Q3'21 ENI revenue of $117.4 million decreased from Q3'20 by (7)% primarily due to dispositions • Management fees decreased (10)% from Q3'20 primarily due to a
Slide 16: ENI Operating Expenses
ENI Operating Expenses Commentary • Total ENI operating expenses reflect Affiliate operating expenses and Center expenses (excluding variable compensation) • ENI Operating expenses decreased to $47.0 million in Q3'21 from $58.1 million in Q3'20 reflecting dispositions and expense discipline; Q3'21 O
Slide 17: ENI Variable Compensation
ENI Variable Compensation Commentary • Variable compensation is typically awarded based on contractual percentage of each Affiliate’s ENI earnings before variable compensation plus Center bonuses and also includes a contractual split of certain performance fees ◦ Affiliate variable compensation incl
Slide 18: Affiliate Key Employee Distributions
Affiliate Key Employee Distributions Commentary • Represents employees’ share of profit from their respective Affiliate, in some cases following an initial preference to BSIG(1) • Q3'21 Distribution Ratio of 11.5% higher than Q3'20 mainly due to dispositions adjustment and mix of earnings • We conti
Slide 19: Balance Sheet Management
Balance Sheet Management Balance Sheet(1) Capital ($M) September 30, 2021 December 31, 2020 Assets Cash and cash equivalents $ 1,422.5 $ 371.3 • September 30 net leverage ratio (third party borrowings Restricted cash 1.6 1.6 and revolving credit facility, net of total cash and cash Investment adviso
Slide 20: Supplemental Information
Supplemental Information 20
Slide 21: Segment Information for Q3'21 and Q3'20
Segment Information for Q3'21 and Q3'20 Three Months Ended September 30, 2021 Three Months Ended September 30, 2020 Quant & Reconciling Total U.S. Quant & Reconciling Total U.S. ($ in millions, unless otherwise noted) Solutions Other(4) Items(1) GAAP (3) Solutions Liquid Alpha Other(4) Items(1) GAAP
Slide 22: Segment Information for Q2'21
Segment Information for Q2'21 Three Months Ended June 30, 2021 Reconciling ($ in millions, unless otherwise noted) Quant & Solutions Other(4) Items(1) Total U.S. GAAP (3) ENI Revenue $ 111.1 $ 22.3 $ (0.1) $ 133.3 ENI Operating Expenses 38.3 9.5 13.5 61.3 Earnings before variable compensation 72.8 1
Slide 23: Assets Under Management Rollforward by Segment
Assets Under Management Rollforward by Segment ($ in billions, unless otherwise noted) Three Months Ended September 30, 2021 September 30, 2020 June 30, 2021 Quant and Solutions Beginning balance $ 117.8 $ 91.7 $ 111.5 Gross inflows 2.8 2.7 2.7 Gross outflows (4.2) (5.7) (4.7) Reinvested income and
Slide 24: Reconciliations and Disclosures
Reconciliations and Disclosures 24
Slide 25: Reconciliations from U.S. GAAP to Non-GAAP Measures
Reconciliations from U.S. GAAP to Non-GAAP Measures(1)(2) Three Months Ended ENI Adjustments ($ in millions) September 30, September 30, June 30, 2021 2020 2021 1i. Exclude non-cash expenses representing U.S. GAAP net income attributable to controlling interests $ 229.5 $ 37.2 $ 532.7 changes in the
Slide 26: Reconciliations from U.S. GAAP to Non-GAAP Measures (cont.)
Reconciliations from U.S. GAAP to Non-GAAP Measures(1) (cont.) Reconciliation of per-share U.S. GAAP Net Income to Economic Net Income per share(2) ($) Three Months Ended September 30, September 30, June 30, 2021 2020 2021 U.S. GAAP net income per share $ 2.76 $ 0.46 $ 6.42 Adjustments to reflect th
Slide 27: Reconciliations from U.S. GAAP to Non-GAAP Measures (cont.)
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 September 30, September 30, June 30, 2021 2020 2021 U.S. GAAP operating expense $ 89.2 $ 93.3 $ 97.2 Less: items excluded from E
Slide 28: Reconciliations from U.S. GAAP to Non-GAAP Measures (cont.)
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 September 30, September 30, June 30, 2021 2020 2021 U.S. GAAP pre-tax income from continuing operations $ 57.4 $ 41
Slide 29: Definitions and Additional Notes
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 the
Slide 30: Definitions and Additional Notes
Definitions and Additional Notes 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 Adju
Slide 31: Definitions and Additional Notes
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 ear
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