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Westwood(WHG) - 2024 Q4 - Earnings Call Transcript
WHGWestwood(WHG)2025-02-13 03:31
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Financial Data and Key Metrics Changes - Total revenues for Q4 2024 were 25.6million,upfrom25.6 million, up from 23.7 million in Q3 2024 and 23.2millioninQ42023,drivenbyhigheraverageassetsundermanagementandperformancefees[32]−ComprehensiveincomeforQ42024was23.2 million in Q4 2023, driven by higher average assets under management and performance fees [32] - Comprehensive income for Q4 2024 was 2.1 million, or 0.24pershare,comparedto0.24 per share, compared to 0.1 million, or 0.01pershareinQ32024,andanetlossof0.01 per share in Q3 2024, and a net loss of 2.6 million, or 0.32pershareinQ42023[33]−EconomicearningsforQ42024were0.32 per share in Q4 2023 [33] - Economic earnings for Q4 2024 were 3.4 million, or 0.39pershare,comparedto0.39 per share, compared to 1.1 million, or 0.13pershareinQ32024,and0.13 per share in Q3 2024, and 2.8 million, or 0.34pershareinQ42023[33]BusinessLineDataandKeyMetricsChanges−Theinstitutionalteamwonandfundedeightmandatestotalingover0.34 per share in Q4 2023 [33] Business Line Data and Key Metrics Changes - The institutional team won and funded eight mandates totaling over 600 million in 2024, a 100% increase from the previous year [7] - The Westwood Salient Enhanced Midstream Income ETF reached 73millioninassetsbyyear−end,exceedingfirst−yeartargets[17]−WealthmanagementexperiencedanuptickinnetflowsduringQ42024,continuingintoDecember[17]MarketDataandKeyMetricsChanges−Firmwideassetsundermanagementtotaled73 million in assets by year-end, exceeding first-year targets [17] - Wealth management experienced an uptick in net flows during Q4 2024, continuing into December [17] Market Data and Key Metrics Changes - Firmwide assets under management totaled 17.6 billion at quarter-end, with 16.6billioninassetsundermanagementand16.6 billion in assets under management and 1 billion in assets under advisement [34] - Assets under management included institutional assets of 8.3billion(508.3 billion (50%), wealth management assets of 4.4 billion (26%), and mutual fund assets of 3.9billion(243.9 billion (24%) [35] - The company experienced net outflows of 0.8 billion in assets under management and 211millioninassetsunderadvisement,offsetbymarketappreciationof211 million in assets under advisement, offset by market appreciation of 1.9 billion and 92millionrespectively[35]CompanyStrategyandDevelopmentDirection−Thecompanyisfocusedonstrengtheningcoreinfrastructurewhilepursuingstrategicgrowth,includingthelaunchofnewETFsandmanagedinvestmentsolutions[19][26]−TheacquisitionofSalientPartners′assetmanagementbusinesscontinuestoexceedexpectations,enhancingcapabilitiesinenergyandrealestateincomestrategies[23][25]−ApartnershipwithETFveteranBenFultonaimstoscaleWestwood′sETFplatform,offeringinnovativestrategies[26][28]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementexpressedacautiouslyoptimisticoutlook,citingbenigncreditconditionsandattractiveequityvaluations[14]−Thecompanynotedthatasthepost−COVIDbullmarketmatures,investorsmayshiftfocustowardsqualitycompanies,whichalignswiththecompany′sinvestmentstyle[15]−Theenergysectorisviewedaspresentingattractiveopportunities,withstrongfundamentalssupportingpositiveoutlooksforenergystrategies[24]OtherImportantInformation−Theboardapprovedaregularcashdividendof92 million respectively [35] Company Strategy and Development Direction - The company is focused on strengthening core infrastructure while pursuing strategic growth, including the launch of new ETFs and managed investment solutions [19][26] - The acquisition of Salient Partners' asset management business continues to exceed expectations, enhancing capabilities in energy and real estate income strategies [23][25] - A partnership with ETF veteran Ben Fulton aims to scale Westwood's ETF platform, offering innovative strategies [26][28] Management's Comments on Operating Environment and Future Outlook - Management expressed a cautiously optimistic outlook, citing benign credit conditions and attractive equity valuations [14] - The company noted that as the post-COVID bull market matures, investors may shift focus towards quality companies, which aligns with the company's investment style [15] - The energy sector is viewed as presenting attractive opportunities, with strong fundamentals supporting positive outlooks for energy strategies [24] Other Important Information - The board approved a regular cash dividend of 0.15 per common share, payable on April 1, 2025 [36] - The company was recognized as a Pensions and Investments Best Places to Work in Money Management for the 10th year [29] Q&A Session Summary - No specific questions or answers were documented in the provided content, thus no summary can be provided for this section.