Acadian Asset Management Inc. · NYSE:AAMI
Acadian Asset Management — BrightSphere Investment Group — Q2 2021 Earnings Presentation
27 slides from Acadian Asset Management's earnings presentation, Jul 29, 2021
Slide 1: BrightSphere Reports Financial and Operating Results for the Second Quarter Ended June 30, 2021
Contact: Elie Sugarman ir@bsig.com (617) 369-7300 Exhibit 99.1 BrightSphere Reports Financial and Operating Results for the Second Quarter Ended June 30, 2021 • U.S. GAAP earnings per share of $6.42 for the quarter, compared to $0.23 for Q2'20, driven by the gain on sale of Landmark Partners (“Landm
Slide 2: Dividend Declaration
Dividend Declaration The Company’s Board of Directors approved a quarterly interim dividend of $0.01 per share payable on September 24, 2021 to shareholders of record as of the close of business on September 10, 2021. Conference Call Dial-in The Company will hold a conference call and simultaneous w
Slide 3: Forward Looking Statements
Forward Looking Statements This communication includes forward-looking statements which may include, from time to time, the expected closing of the Campbell Global disposition, anticipated revenues, margins, operating expense and variable compensation ratios, cash flows or earnings growth profile, a
Slide 4: Q2 2021 Earnings Presentation
Q2 2021 EARNINGS PRESENTATION July 29, 2021 4
Slide 5: Q2'21 Highlights
Q2'21 Highlights BrightSphere Highlights • U.S. GAAP EPS of $6.42 for Q2'21 compared to $0.23 for Q2'20; increase driven by the gain on sale of Landmark • ENI EPS of $0.40 for the quarter compared to $0.24 for Q2'20(1) ◦ TSW would have contributed $0.06 to ENI EPS for Q2'21 if not classified as disc
Slide 6: U.S. GAAP Statement of Operations
U.S. GAAP Statement of Operations ($ in millions, unless otherwise noted) Three Months Ended Q2'21 vs. Q2'20 June 30, June 30, March 31, Increase 2021 2020 (Decrease) 2021 • Total revenue increased 8.7% from Management fees $ 111.6 $ 118.6 (5.9)% $ 103.8 Q2'20 primarily due to market Performance fee
Slide 7: Disciplined Execution of Long-Term Growth Strategy
Disciplined Execution of Long-Term Growth Strategy Focus on High- • Quant & Solutions(1) Demand Quant & ◦ Leveraging broad quant capabilities to provide exposures and solutions sought by clients Solutions ◦ Highly scalable offerings with substantial capacity and global demand ◦ Leveraging data and t
Slide 8: Segment Highlight: Quant & Solutions
Segment Highlight: Quant & Solutions • Segment NCCF of $(1.3) billion with annualized revenue impact of $(2.5) million for Q2’21 compared to $0.3 billion with annualized revenue impact of $(7.1) million for Q2’20; AUM increased 28.5% from Q2'20 as a result of strong market performance • Investment p
Slide 9: Key Performance Metrics
Key Performance Metrics Key Performance Metrics(1) ($ in millions, unless otherwise noted) Three Months Ended June 30, Three Months Ended March 31, Increase Increase U.S. GAAP Basis 2021 2020 (Decrease) 2021 (Decrease) Revenue $ 133.3 $ 122.6 8.7 % $ 109.7 21.5 % Pre-tax income from cont. ops. attri
Slide 10: ENI Revenue
ENI Revenue Commentary • ENI revenue includes management fees, performance fees, and our share of earnings from equity-accounted Affiliate • Q2'21 ENI revenue of $133.4 million increased from Q2'20 by 11% primarily due to an increase in performance fees • Management fees decreased (6)% from Q2'20 pr
Slide 11: 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 $47.8 million in Q2'21 from $57.6 million in Q2’20 reflecting dispositions and expense discipline; Q2'21 O
Slide 12: ENI Variable Compensation
ENI Variable Compensation Commentary • Variable compensation is typically awarded based on contractual percentage of each Affiliate’s ENI earnings before variable compensation plus Center bonuses and also includes a contractual split of certain performance fees ◦ Affiliate variable compensation incl
Slide 13: Affiliate Key Employee Distributions
Affiliate Key Employee Distributions Commentary • Represents employees’ share of profit from their respective Affiliate, in some cases following an initial preference to BSIG(1) • Q2'21 Distribution Ratio of 6.0% lower than Q2'20 mainly due to dispositions • We continue to expect the full-year Distr
Slide 14: Balance Sheet Management
Balance Sheet Management Balance Sheet(1) Capital ($M) June 30, 2021 December 31, 2020 Assets Cash and cash equivalents $ 1,175.4 $ 371.3 • June 30 net leverage ratio (third party borrowings and Restricted cash 1.6 1.6 revolving credit facility, net of total cash and cash Investment advisory fees re
Slide 15: Supplemental Information
Supplemental Information 15
Slide 16: Segment Information for Q2'21 and Q2'20
Segment Information for Q2'21 and Q2'20 Three Months Ended June 30, 2021 Three Months Ended June 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 (3) ENI R
Slide 17: Segment Information for Q1'21
Segment Information for Q1'21 Three Months Ended March 31, 2021 Reconciling ($ in millions, unless otherwise noted) Quant & Solutions Other(4) Items(1) Total U.S. GAAP (3) ENI Revenue $ 103.5 $ 6.3 $ (0.1) $ 109.7 ENI Operating Expenses 39.1 9.7 3.1 51.9 Earnings before variable compensation 64.4 (3
Slide 18: Assets Under Management Rollforward by Segment
Assets Under Management Rollforward by Segment ($ in billions, unless otherwise noted) Three Months Ended June 30, 2021 June 30, 2020 March 31, 2021 Quant and Solutions Beginning balance $ 111.5 $ 78.7 $ 107.0 Gross inflows 2.7 3.3 2.2 Gross outflows (4.7) (3.7) (6.4) Reinvested income and distribut
Slide 19: Reconciliations and Disclosures
Reconciliations and Disclosures 19
Slide 20: 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) June 30, June 30, March 31, 2021 2020 2021 1i. Exclude non-cash expenses representing U.S. GAAP net income attributable to controlling interests $ 532.7 $ 18.9 $ 27.0 changes in the value of
Slide 21: 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 June 30, June 30, March 31, 2021 2020 2021 U.S. GAAP net income per share $ 6.42 $ 0.23 $ 0.33 Adjustments to reflect the economi
Slide 22: 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 June 30, June 30, March 31, 2021 2020 2021 U.S. GAAP operating expense $ 97.2 $ 92.7 $ 77.2 Less: items excluded from ENI Non-ca
Slide 23: 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 June 30, June 30, March 31, 2021 2020 2021 U.S. GAAP pre-tax income from continuing operations $ 34.6 $ 36.0 $ 27.6
Slide 24: Reconciliations from U.S. GAAP to Non-GAAP Measures (cont.)
Reconciliations from U.S. GAAP to Non-GAAP Measures (cont.) Reconciliation of per-share TSW U.S. GAAP Net Income to TSW Economic Net Income ($) Three Months Ended June 30, 2021 TSW U.S. GAAP net income per share $ 0.04 Adjustments to reflect the economic earnings of the Company: i. Non-cash key empl
Slide 25: 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 26: 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 27: 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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