BrightSphere Investment Group plc (NYSE:BSA) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET


BrightSphere Investment Group plc (NYSE:BSA) Q4 2018 Earnings Conference Call Transcript


Loading Event

Loading Transcript


Ladies and gentlemen, thank you for standing by. Welcome to the BrightSphere Investment Group Earnings Conference Call and Webcast for the Fourth Quarter and Year-Ended 2018. During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question-and-answer session. (Operator Instructions) Please note that this call is being recorded today, February 7 at 10:00 a.m. Eastern Time.

I would now like to turn the meeting over to Brett Perry man, Head of IR. Please go ahead, Brett.

Brett Perryman

Thank you. Good morning, and welcome to BrightSphere's conference call to discuss our results for the fourth quarter and full year ended December 31, 2018.

(Forward-Looking Cautionary Statements)

During this call, we will discuss non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release, which is available on the IR section of our website, where you will also find the slides that we will use as part of our discussion this morning.

Today's call will be led by Gang Yang, our President and CEO; Saran Rena, our CFO; Aidan Riordan, Head of Affiliate Management; and Dan Ma honey, our Head of Finance.

I will now turn the call over to Gang.

Guang Yang

Thanks, Brett. Good morning, and thank you for joining our call. Before we turn to our Q4 results, let's spend a minute on BrightSphere's highlights and why we believe this is a attractive business with strong growth potential.

Our diversified multi-Affiliates business has over $200 billion in assets under management and seven widely recognized at-scale Affiliates. Together, they offer more than 100 investment strategies across a range of investment styles, asset classes and geographies to more than 850 institutional and sub-advisory clients from 30 countries. Our unique operating model where our affiliates own equity and share profit aligns our interests and provides meaningful incentives for long-term growth.

This strength have provided stability to our business across market cycles, including challenging periods of market volatility, such as the one our industry experienced last quarter. In the face of difficult market environments, BrightSphere generated solid financial results, which we will discuss in a minute. Finally, we have a strong balance sheet, with ample financial capacity, which will help support our growth going forward.

Turning to the next page. BrightSphere has a broad global reach that offers significant expansion opportunities. We and our affiliates have 20 offices around the globe, serving sophisticated institutional investors in key international markets. We see meaningful potential in leveraging our scale to enhance our presence in underserved, high-growth areas, such as the Asia-Pacific region.

The next slide sets out greater detail about the steps we have taken and plan to take to reposition our business for the future. First, we will focus on organic growth, seeking to serve more clients with a greater range of products to meet their evolving needs. We will expand our Global Distribution capabilities, again, with the view to achieving greater penetration in high-demand markets, such as APAC region. We will also continue