Westwood(US:WHG)2024-08-01 05:02Financial Data and Key Metrics Changes - Total revenues for Q2 2024 were $22.7 million, unchanged from Q1 2024 and up from $21.9 million in Q2 2023 [23] - The comprehensive loss for Q2 2024 was $2.2 million or $0.27 per share, compared to income of $2.3 million or $0.27 per share in Q1 2024 and income of $2.9 million or $0.36 per share in Q2 2023 [24] - Firm-wide assets under management and advisement totaled $16.8 billion, with $15.8 billion in assets under management and $1 billion in assets under advisement [25] Business Line Data and Key Metrics Changes - The wealth management business experienced net outflows of $89 million, with a third attributed to expected tax payments and required minimum distributions [8] - Institutional and intermediary distribution channels had net outflows of $193 million, with $100 million coming from a 25-year institutional client rebalancing from equities to fixed income [9] - The MLP and Energy Infrastructure strategy showed improvement in performance and peer rankings, with positive net inflows reported in mutual funds [10][11] Market Data and Key Metrics Changes - The S&P 500 rose, but returns were concentrated among a few mega-cap growth stocks, leading to performance disparity [5] - The Russell 1000 Growth Index gained 8.3%, while the Russell 2000 Value Index declined 3.6% [5] - Market depreciation of $51 million affected assets under management, alongside net outflows of $0.3 billion [25] Company Strategy and Development Direction - The company is focusing on expanding its ETF offerings and has made a strategic hire to lead ETF sales and distribution [15][27] - Plans to launch managed investment solutions capability are underway, with a robust pipeline of new business exceeding $1 billion [10][31] - The investment in the Texas Stock Exchange is seen as a strategic move to capitalize on the growing Texas economy and potential synergies [17][28] Management's Comments on Operating Environment and Future Outlook - The current market presents challenges but also opportunities, particularly in the energy sector, which is expected to enter a secular bull market [20] - Management expressed confidence in the future, highlighting the importance of high-quality investments and the potential for growth in SmallCap and SMidCap strategies [19][12] - The company is optimistic about the upcoming launch of new products and the expansion of its investment strategies [18][31] Other Important Information - The company returned approximately $1.1 million to shareholders through a share repurchase program, buying back 86,000 shares [19] - A regular cash dividend of $0.15 per common share was approved, payable on October 1, 2024 [26] Q&A Session Summary Question: Future ETF Strategy - The company plans to expand its ETF offerings and is considering converting existing products into ETFs, with a focus on monthly income and attractive yields [27] Question: Texas Stock Exchange Investment - The investment in the Texas Stock Exchange is viewed as a long-term opportunity for capital appreciation and potential marketing synergies due to the growing Texas economy [28]