Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were $24.3 million, an increase from $23.1 million in Q2 2025 and $23.7 million in Q3 2024, driven by higher average assets under management [14] - Net income for Q3 2025 was $3.7 million, or $0.41 per share, compared to $1 million, or $0.12 per share in Q2 2025, and $0.1 million in Q3 2024 [15] - Economic earnings for Q3 2025 were $5.7 million, or $0.64 per share, compared to $2.8 million, or $0.32 per share in Q2 2025, and $1.1 million, or $0.13 per share in Q3 2024 [15] Business Line Data and Key Metrics Changes - The enhanced midstream income ETF, MDST, surpassed $150 million in assets under management and maintained an annualized indicated dividend yield exceeding 10% [4][10] - The Income Opportunity Fund, WHGIX, received a Morningstar ratings upgrade to four stars and maintained a top decile ranking since inception [4][6] - The private fundraising initiative exceeded the annual goal by 1.5 times through September 30, 2025 [9] Market Data and Key Metrics Changes - Year-to-date net sales improved by 17% compared to last year and by 57% compared to 2023 [8] - The institutional channel experienced negative net flows this quarter, primarily due to sub-advisory business rebalancing [8] - The intermediary channel had success with private fundraising, contributing significantly to overall performance [9] Company Strategy and Development Direction - The company is focusing on expanding its ETF platform and has launched 11 new sector funds to provide investors with more precise control over risk and sector exposure [11] - The strategy emphasizes unlocking opportunities in undervalued segments, particularly small-cap stocks and broader value styles [7] - The company aims to enhance operational efficiencies and reduce costs while evaluating paths to improve services moving into 2026 [10] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding investment opportunities shifting towards undervalued segments as market dynamics evolve [7] - The company anticipates continued stability with existing clients and expects to win more mandates in mid-cap for defined contribution plans [8] - Management acknowledged the disappointing outflows concentrated in the large-cap area but highlighted a strong pipeline for new business totaling $1.6 billion [22] Other Important Information - The Board of Directors approved a regular cash dividend of $0.15 per common share, payable on January 2, 2026 [17] - The company reported a solid financial position with cash and liquid investments totaling $39.2 million and a debt-free balance sheet [16] Q&A Session Summary Question: ETF Success and Future Leverage - The company has worked hard to grow its ETF business through traditional channels and is close to gaining access to one of the largest wirehouse platforms [19][20] Question: Outflows and New Business Pipeline - Management acknowledged the disappointing outflows but emphasized a strong pipeline for new business and successful private fundraising initiatives [22]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $23.3 million, down from $25.6 million in Q4 2024 and up from $22.7 million in Q1 2024, reflecting a decrease due to lower performance-based fees and an increase due to higher average assets under management [21][22] - Net income for Q1 2025 was $500,000 or $0.05 per share, compared to $2.1 million or $0.24 per share in Q4 2024 and $2.3 million or $0.27 per share in Q1 2024 [21][22] - Economic earnings were $2.5 million or $0.29 per share in Q1 2025, compared to losses of $3.4 million or $0.39 per share in Q4 2024 and $3 million or $0.36 per share in Q1 2024 [21][22] Business Line Data and Key Metrics Changes - The firm reported assets under management and advisement totaling $18 billion, with $17 billion in assets under management and $1 billion in assets under advisement [22] - Institutional assets accounted for 53% of total assets under management, wealth management assets for 24%, and mutual fund assets for 23% [22] - The wealth management business saw inflows of $56 million in Q1 2025, with net flows of -$157 million [13] Market Data and Key Metrics Changes - The U.S. stock market hit record highs in February but declined sharply through the quarter, with the S&P 500 falling about 8.5% and the Russell 2000 declining nearly 12% [7][8] - Fixed income finished the quarter with positive returns, highlighting the benefits of diversification [8] Company Strategy and Development Direction - The company launched the Westwood Libertay Global Equity ETF, which aims to limit exposure to authoritarian regimes while maintaining broad market exposure [5][16] - The firm is focusing on high-quality businesses and expects continued market uncertainty driven by tariffs and their impact on global economies [10][11] - The company is expanding its ETF platform and has seen strong traction in its existing ETFs, particularly the MDST ETF, which has surpassed asset thresholds required by some platforms [13][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's strategic positioning and the value provided to clients, despite a challenging market environment [19] - The firm anticipates continued growth in its SMID cap product and a robust pipeline across multiple strategies [32][33] - Management highlighted the importance of their Managed Investment Solutions team, which had over 30 prospect meetings in Q1 2025 [32] Other Important Information - The firm reported cash and liquid investments totaling $26.9 million and a debt-free balance sheet [23] - A regular cash dividend of $0.15 per common share was approved, payable on July 1, 2025 [23] Q&A Session Summary Question: Can you provide more details on the flows in the small cap strategy and the potential for other mandates? - Management noted a significant sub-advisory mandate win in the small cap product, which is expected to help in overall marketing and has contributed to a pipeline of over $1 billion [26][27] Question: What are the expectations for growth in the MDST ETF and its qualification for national platforms? - Management indicated that they are making progress in getting onto several platforms and anticipate exponential growth if successful in securing larger platforms [28][29][30]

Financial Data and Key Metrics Changes - Total revenues for Q1 2025 were $23.3 million, down from $25.6 million in Q4 2024 and up from $22.7 million in Q1 2024, reflecting lower performance-based fees and higher average assets under management [21] - Net income for Q1 2025 was $500,000 or $0.05 per share, compared to $2.1 million or $0.24 per share in Q4 2024 and $2.3 million or $0.27 per share in Q1 2024 [21][22] - Economic earnings for Q1 2025 were $2.5 million or $0.29 per share, compared to losses of $3.4 million or $0.39 per share in Q4 2024 and $3 million or $0.36 per share in Q1 2024 [21][22] Business Line Data and Key Metrics Changes - The firm reported assets under management and advisement totaling $18 billion, with $17 billion in assets under management and $1 billion in assets under advisement [22] - Institutional assets accounted for 53% of total assets under management, while wealth management and mutual fund assets represented 24% and 23%, respectively [22] - The firm experienced net inflows of $600 million in assets under management during the quarter, alongside market depreciation of $300 million [22] Market Data and Key Metrics Changes - The U.S. stock market reached record highs in February but declined sharply by the end of the quarter, with the S&P 500 falling about 8.5% and the Russell 2000 declining nearly 12% [7] - Fixed income investments finished the quarter with positive returns, highlighting the benefits of diversification [7] Company Strategy and Development Direction - The company launched the Westwood Libertay Global Equity ETF, which aims to limit exposure to authoritarian regimes while maintaining broad market exposure [5][15] - The firm is focusing on high-quality businesses and anticipates continued market uncertainty due to tariff-related risks [10] - The company is expanding its ETF platform and has seen strong traction in its existing ETFs, particularly the MDST ETF, which has surpassed asset thresholds for national platforms [13][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's strategic positioning and the value provided to clients, despite a challenging market environment [19] - The firm is optimistic about growth in its ETF business and the institutional channel, with a robust pipeline exceeding $1 billion [11][32] - Management noted that the first quarter is typically a challenging expense quarter due to various costs, but they remain excited about future growth pathways [31] Other Important Information - The firm welcomed two new board members with extensive experience in finance and investment management [17] - A regular cash dividend of $0.15 per common share was approved, payable on July 1, 2025 [22] Q&A Session Summary Question: Can you provide more details on the flows in the small cap strategy and the potential for other mandates? - Management highlighted a significant sub-advisory mandate win in the small cap product, which is expected to enhance overall marketing efforts and has contributed to a robust pipeline exceeding $1 billion [26] Question: What are the expectations for growth in the MDST ETF and its qualification for national platforms? - Management confirmed that the MDST ETF is now on several platforms and is in discussions for larger platforms, which could lead to exponential growth [28][29]