Acadian Asset Management Inc. · NYSE:AAMI
Acadian Asset Management — BrightSphere Investment Group — Q2 2024 Earnings Presentation
31 slides from Acadian Asset Management's earnings presentation, Aug 1, 2024
Slide 1: BrightSphere Reports Second Quarter 2024 Financial and Operating Results
1 Contact: Investor Relations ir@bsig.com (617) 369-7300 Exhibit 99.1 BrightSphere Reports Financial and Operating Results for the Second Quarter Ended June 30, 2024 • U.S. GAAP earnings per share of $0.29 for the quarter, compared to $0.27 for Q2'23 • U.S. GAAP net income attributable to controllin
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 September 27, 2024 to shareholders of record as of the close of business on September 13, 2024. Conference Call Dial-in The Company will hold a conference call and simultaneous
Slide 3: Forward-Looking Statements
3 Forward-Looking Statements This communication includes forward-looking statements which may include, from time to time, anticipated revenues, margins, operating expense, variable compensation and distribution ratios, cash flows or earnings growth profile, anticipated performance and growth of the
Slide 4: Q2 2024
4 Q2 2024 EARNINGS PRESENTATION August 1, 2024
Slide 5: Q2'24 Highlights
5 • U.S. GAAP EPS of $0.29 for Q2'24 compared to $0.27 for Q2'23 • ENI EPS of $0.45 for the quarter compared to $0.28 for Q2'23 • Systematic Credit’s U.S. and Global High Yield strategies continued to build good track records and a third strategy, U.S. Investment Grade strategy, was seeded in July 2
Slide 6: U.S. GAAP Statement of Operations
6 U.S. GAAP Statement of Operations ($ in millions, unless otherwise noted) Three Months Ended June 30, June 30, Increase (Decrease) March 31, 2024 2023 2024 Management fees $ 105.5 $ 92.8 13.7 % $ 102.2 Performance fees 2.8 2.2 27.3 % 3.1 Consolidated Funds’ revenue 0.7 1.3 (46.2) % 0.4 Total reven
Slide 7: Acadian Financial Highlights and Investment Performance
7 Revenue-Weighted 86% 92% 93% 3-Year 5-Year 10-Year 0% 50% 100% Equal-Weighted 77% 83% 88% 3-Year 5-Year 10-Year 0% 50% 100% Acadian Financial Highlights • Net flows were flat with $1.4 million annualized revenue impact for Q2'24 compared to net flows of $0.1 billion with annualized revenue impact
Slide 8: Acadian Platform Overview
8 Acadian Platform Overview • Leading, at-scale, systematic investment manager with a track record of over 35 years and $112.6 billion in AUM as of June 30, 2024 • Quant-focused investment platform offering unique capabilities in active equities, credit and alternatives; including recently launched
Slide 9: Systematic Investing Capabilities Built On People, Data, Clarity
9 Systematic Investing Capabilities Built On PEOPLE DATA CLARITY Economic intuition & insights of a talented, experienced, diverse group of investors: 100+ person investment team | 1600+ years’ collective experience 100+ advanced analytical degrees Extensive data repository supplemented by alternati
Slide 10: Diversified Asset Base
10 Developed Markets 77.4% Emerging Markets 22.6% USA 65.0% Europe 13.1% Asia 8.0% Australia 6.9% Other 6.9% Public/Government 44.1% Commingled Trust/UCITS 24.6% Corporate/ Union 11.8% Sub-advisory 9.9% Other 9.5% AUM by Client Type AUM by Client Location Total: $112.6 billion(1) Diversified Asset B
Slide 11: Diversified Quant Offerings
11 Equity strategies apply insights from over 35 years of systematic investing experience combined with the power of data Global, Emerging Markets, Non-US, Regional Managed volatility portfolios seek to deliver active returns and lower volatility based on both the mispricing of risk and stock fundam
Slide 12: Sector Tailwinds Expected to Support Organic Long-term Growth
12 Sector Tailwinds Expected to Support Organic Long-term Growth Alpha Secular Trends Anticipated Impact for Acadian Acadian Brand and Barriers to Entry Organic Growth Applying Data and Expertise to New Capabilities Explosive Growth in Alternative Data Continued Development of Advanced Techniques: M
Slide 13: Disciplined Execution of Long-Term Growth Strategy
13 • Leveraging broad quant capabilities to provide exposures and solutions sought by clients ◦ Ongoing initiatives including Equity Alternatives and Systematic Credit strategies • Highly scalable offerings with substantial capacity and global demand Disciplined Execution of Long-Term Growth Strateg
Slide 14: Key Performance Metrics
14 Key Performance Metrics Key Performance Metrics(1) ($ in millions, unless otherwise noted) Three Months Ended June 30, Three Months Ended March 31, U.S. GAAP Basis 2024 2023 Increase (Decrease) 2024 Increase (Decrease) Revenue $ 109.0 $ 96.3 13.2 % $ 105.7 3.1 % Pre-tax income attributable to con
Slide 15: ENI Revenue
15 ENI Revenue • ENI revenue includes management fees and performance fees • Q2'24 ENI revenue of $108.3 million increased from Q2'23 by 14%; primarily due to higher management fees driven by higher average AUM • Management fees increased 14% from Q2'23 reflecting a 13% increase in average AUM drive
Slide 16: ENI Operating Expenses
16 ENI Operating Expenses Three Months Ended June 30, Three Months Ended March 31, ($M) 2024 2023 Increase (Decrease) 2024 Increase (Decrease)$M % of MFs(2) $M % of MFs(2) $M % of MFs(2) Fixed compensation and benefits $ 24.3 23.0 % $ 23.7 25.5 % 3% $ 23.5 23.0 % 3% G&A expenses (excl. sales-based c
Slide 17: ENI Variable Compensation
17 ENI Variable Compensation ($M) Three Months Ended June 30, Three Months Ended March 31, 2024 2023 Increase (Decrease) 2024 Increase (Decrease) Cash variable compensation $ 25.5 $ 21.4 19% $ 24.9 2% Add: Non-cash equity-based award amortization 1.9 1.3 46% 1.7 12% Variable compensation 27.4 22.7 2
Slide 18: Affiliate Key Employee Distributions
18 Affiliate Key Employee Distributions Three Months Ended June 30, Three Months Ended March 31, ($M) 2024 2023 Increase (Decrease) 2024 Increase (Decrease) Earnings after variable compensation (ENI operating earnings) $ 29.4 $ 21.1 39% $ 29.2 1% Less: Affiliate key employee distributions (2.1) (1.2
Slide 19: Balance Sheet
19 Balance Sheet ($M) June 30, 2024 December 31, 2023 Assets Cash and cash equivalents $ 71.6 $ 146.8 Investment advisory fees receivable 112.3 143.4 Right of use assets 54.2 57.2 Investments 67.9 64.7 Other assets 171.8 164.1 Assets of consolidated Funds 55.3 35.2 Total assets $ 533.1 $ 611.4 Liabi
Slide 20: Supplemental Information
20 Supplemental Information
Slide 21: Segment Information for Q2'24 and Q2'23
21 Segment Information for Q2'24 and Q2'23 Three Months Ended June 30, 2024 Three Months Ended June 30, 2023 ($ in millions, unless otherwise noted) Quant & Solutions Other(4) Reconciling Items(1) Total U.S. GAAP (3) Quant & Solutions Other(4) Reconciling Items(1) Total U.S. GAAP (3) ENI Revenue $ 1
Slide 22: Segment Information for Q1'24
22 Three Months Ended March 31, 2024 ($ in millions, unless otherwise noted) Quant & Solutions Other(4) Reconciling Items(1) Total U.S. GAAP (3) ENI Revenue $ 105.3 $ — $ 0.4 $ 105.7 ENI Operating Expenses 45.7 3.8 4.7 54.2 Earnings before variable compensation 59.6 (3.8) (4.3) 51.5 Variable compens
Slide 23: Assets Under Management Rollforward
23 Assets Under Management Rollforward ($ in billions, unless otherwise noted) Three Months Ended June 30, 2024 June 30, 2023 March 31, 2024 Total Beginning balance $ 110.4 $ 97.5 $ 103.7 Gross inflows 8.3 2.0 4.3 Gross outflows (9.1) (2.8) (4.7) Reinvested income and distributions 0.8 0.9 0.8 Net f
Slide 24: Reconciliations and Disclosures
24 Reconciliations and Disclosures
Slide 25: Reconciliation of U.S. GAAP Net Income to Economic Net Income
25 Three Months Ended ($ in millions) June 30, June 30, March 31, 2024 2023 2024 U.S. GAAP net income attributable to controlling interests $ 11.0 $ 11.4 $ 14.6 Adjustments to reflect the economic earnings of the Company: Non-cash key employee-owned equity and profit interest revaluations(2) 5.9 (0.
Slide 26: Reconciliations from U.S. GAAP to Non-GAAP Measures (cont.)
26 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 ($) Three Months Ended June 30, June 30, March 31, 2024 2023 2024 U.S. GAAP net income per share $ 0.29 $ 0.27 $ 0.37 Adjustments to reflect the economi
Slide 27: Reconciliation of U.S. GAAP Operating Expense to ENI Operating Expense
27 Reconciliations from U.S. GAAP to Non-GAAP Measures(1) (cont.) Reconciliation of U.S. GAAP Operating Expense to ENI Operating Expense ($ in millions) Three Months Ended June 30, June 30, March 31, 2024 2023 2024 U.S. GAAP operating expense $ 88.4 $ 75.9 $ 82.8 Less: items excluded from ENI Non-ca
Slide 28: Reconciliation of U.S. GAAP Pre-tax Income to Pre-tax ENI
28 Reconciliation of U.S. GAAP Pre-tax Income to Pre-tax ENI ($ in millions) Three Months Ended June 30, June 30, March 31, 2024 2023 2024 U.S. GAAP pre-tax income $ 17.1 $ 17.0 $ 21.8 Adjustments to reflect the economic earnings of the Company: Non-cash key employee-owned equity and profit interest
Slide 29: References to “BrightSphere,” “BSIG” or the “Company” refer to BrightSphere Investment Group Inc.; references
29 Definitions and Additional Notes References to “BrightSphere,” “BSIG” or the “Company” refer to BrightSphere Investment Group Inc.; references to “BSUS” or the “Center” refer to the holding company excluding our Affiliate. BrightSphere currently operates its business through one asset management
Slide 30: The Company adjusts its income tax expense to reflect any tax impact of its
30 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 31: ENI earnings before variable compensation ENI earnings before variable compensation is calculated as ENI
31 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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