BrightSphere Investment Group Inc. (NYSE:BSIG) Q1 2022 Earnings Conference Call May 5, 2022 11:00 AM ET

Company Participants

Elie Sugarman - Head, Strategy and Corporate Development

Suren Rana - President and Chief Executive Officer

Conference Call Participants

Kenneth Lee - RBC

Michael Cyprys - Morgan Stanley

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the BrightSphere Investment Group Earnings Conference Call and Webcast for the First Quarter 2022. [Operator Instructions] Please note this call is being recorded today, Thursday, May 5, 2022 at 11 a.m. Eastern Time. I now would like to turn the meeting over to Elie Sugarman, Head of Strategy and Corporate Development. Please go ahead, Elie.

Elie Sugarman

Good morning and welcome to BrightSphere’s conference call to discuss our results for the first quarter ended March 31, 2022.

Before we get started, please note that we may make forward-looking statements about our business and financial performance. Each forward-looking statement is subject to risks and uncertainties that could cause actual results to differ materially from those projected. Additional information regarding these risks and uncertainties appears in our SEC filings, including the Form 8-K filed today containing the earnings release and our 2021 Form 10-K. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update them as a result of new information or future events. We may also reference certain non-GAAP financial measures. Information about any non-GAAP measure referenced, including a reconciliation of those measures to GAAP measures, can be found on our website, along with the slides that we will use as part of today’s discussion. Finally, nothing herein shall be deemed to be an offer or solicitation to buy any investment products.

Suren Rana, our President and Chief Executive Officer, will lead the call and now please turn the call over to Suren. Suren?

Suren Rana

Thanks, Elie. Good morning, everyone. Thank you for joining us today. I will start off with the financial highlights on Slide 5 of the presentation deck as usual. We reported ENI per share of $0.52 for 1Q ‘22 compared to $0.27 for 1Q ‘21. The increase in EPS compared to 1Q ‘21 was primarily driven by share repurchases, including the large tender offer we did in the fourth quarter of 2021. And also performance fee was stronger in 1Q ‘22 compared to 1Q ‘21.

Turning to our investment performance, we are pleased that our multifactor client investment process continues to produce outperformance for our clients across most of our strategies through what was a very challenging macro and geopolitical environment. As of March 31, ‘22, 96%, 86%, 88% and 90% of our strategies by revenue beat their benchmarks over the prior 1, 3, 5 and 10-year periods respectively. Our net client cash flows in 1Q ‘22 were negative to $2.2 billion, but the annualized revenue impact of the flow was negative $1.1 million, which is about 0.3% of Acadian’s management fee revenue for 2021.