Financial Data and Key Metrics Changes - Total revenues for Q4 2025 were $27.1 million, an increase from $24.3 million in Q3 and $25.6 million in Q4 2024, driven by investor interest in ETFs and private energy secondaries funds [15] - Fiscal 2025 total revenues reached $97.8 million, compared to $94.7 million in 2024, attributed to higher average assets under management [15] - Q4 income was $1.9 million, or $0.21 per share, down from $3.7 million, or $0.41 per share in Q3, and $2.1 million, or $0.24 per share in Q4 2024 [16][17] - Economic earnings for Q4 were $3.3 million, or $0.36 per share, compared to $3.4 million, or $0.39 per share in Q4 2024 [17] Business Line Data and Key Metrics Changes - The ETF franchise exceeded $200 million, with the latest ETF, Enhanced Income Opportunity, contributing to this growth [4][12] - Managed Investment Solutions team secured its first institutional client, indicating growth in this business line [4] - Institutional channel gross sales grew by 36% year-over-year, reflecting strong traction with institutional investors [8] Market Data and Key Metrics Changes - The S&P 500 rose less than 3% in Q4 but ended the year up 18%, indicating a mixed market environment [5] - The firm experienced net outflows of $1 billion in assets under management, offset by $1 billion in market appreciation [18] - Assets under management totaled $17.4 billion, with institutional assets making up 50% of the total [17][18] Company Strategy and Development Direction - The company is focused on high-quality businesses with strong fundamentals, positioning itself well for future market uncertainties [7] - A disciplined, multiyear evolution of the wealth division is underway to enhance client experience and scalability [12] - The launch of new ETFs and private equity funds reflects the company's commitment to innovation and expanding its market opportunities [12][14] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the disappointing outflows in Q4, primarily from the Large Cap Value product, which has struggled in a narrow market environment [22] - The company remains optimistic about its pipeline, with new clients and significant funding expected in the near future [22] - Management emphasized the importance of high-quality companies and the potential for attractive shareholder returns in the current market [8] Other Important Information - The board approved a regular cash dividend of $0.15 per common share, payable on April 1, 2026 [18] - The firm maintains a solid financial position with cash and liquid investments totaling $44.1 million and a debt-free balance sheet [18] Q&A Session Summary Question: What are the reasons behind the outflows in Q4? - Management noted that over 80% of the outflows were from the Large Cap Value product, which has struggled against a low-quality market environment [22] Question: What is the outlook for new client acquisitions? - Management highlighted a new client bringing in $200 million and a defined contribution plan expected to fund $450 million, indicating a strong pipeline [22] Question: How is the company positioned for future growth? - Management expressed confidence in the strategic positioning and value proposition, with a focus on high-quality investment solutions and expanding ETF offerings [14][22]

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]