Westwood(US:WHG)2024-02-15 02:47Financial Data and Key Metrics Changes - Total revenues for Q4 2023 were $23.2 million, up from $21.9 million in Q3 2023 and $20.5 million in Q4 2022, driven by higher average assets under management following acquisitions [32][33] - Comprehensive income for Q4 2023 was $2.6 million or $0.32 per share, compared to $3.4 million or $0.41 per share in Q3 2023, reflecting higher income taxes [34] - Economic earnings for Q4 2023 were $5.2 million or $0.63 per share, down from $6.3 million or $0.77 per share in Q3 2023, but improved from a loss of $0.7 million or $0.09 per share in Q4 2022 [35][36] Business Line Data and Key Metrics Changes - The wealth management division had strong client retention and its best year of new business in many years, with over $450 million of new and existing client assets [19][20] - The institutional channel experienced net quarterly outflows of $122 million, primarily due to client rebalancing in US value strategies [21] - The intermediary channel had net outflows of $168 million for the quarter, driven by outflows in tactical growth and income opportunity [25] Market Data and Key Metrics Changes - Firm-wide assets under management totaled $16.6 billion at quarter end, consisting of $15.5 billion in assets under management and $1.1 billion in assets under advisement [38] - Assets under management experienced net outflows of $1.3 billion but had market appreciation of $2 billion [40] - The fourth quarter showed a positive shift in investor sentiment, with many stocks posting new highs, indicating a potential change in market dynamics [15][29] Company Strategy and Development Direction - The company is focusing on diversifying its offerings with new initiatives such as Managed Investment Solutions and the Westwood Energy Secondaries Fund [8][10] - There is a strong emphasis on leveraging technology to enhance sales efforts and improve client engagement [43][46] - The company aims to capitalize on the growing interest in energy investments and has seen an increase in institutional inquiries for energy products [24][47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2024, anticipating a healthy pipeline and a shift in investor attitudes that could lead to new asset flows [30][29] - The company is prepared to benefit from high-quality equity market rallies while protecting capital during uncertain times [16] - Management noted that the year-end rally provided solid proof of shifting investor sentiment, which could positively impact future performance [15][29] Other Important Information - The Board of Directors approved a regular cash dividend of $0.15 per common share, payable on April 3, 2024 [41] - The company reported a solid financial position with cash and short-term investments totaling $53.1 million and a debt-free balance sheet [40] Q&A Session Summary Question: Focus on marketing and flows post-Salient acquisition - Management highlighted the use of technology to enhance sales efforts and improve visibility into sales activities and flows [43][44][46] Question: Energy fund performance and asset designation - The energy fund will be available through institutional channels, mutual funds, and SMAs, with recent inquiries indicating renewed interest [47][48]