Q3 2024 Westwood Holdings Group Inc Earnings Call
And the answer session. If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad fuels.
If you would like to withdraw your question Press Star one again.
Speaker Change: I would now like to turn conference over to Joe <unk>. Please go ahead.
Joe: Thank you and welcome to our third quarter 2024 earnings Conference call.
Speaker Change: Following discussion will include forward looking statements that are subject to known and unknown risks uncertainties and other factors, which may cause actual results to be materially different from those contemplated by the forward looking statements additional information concerning the factors that could cause such a difference is included in our press release.
Speaker Change: Issued earlier today as well as in our Form 10-Q for the quarter ended September 32024 that will be filed with the securities and Exchange Commission, we undertake no obligation to publicly update or revise any forward looking statements, whether as a result of new information future events or otherwise.
Speaker Change: You are cautioned not to place undue reliance on forward looking statements. In addition in accordance with SEC rules concerning non-GAAP financial measures. The reconciliation of our economic earnings and economic earnings per share to the most comparable GAAP measure is included at the end of our press release issued earlier today.
Speaker Change: On the call today, we have Brian Casey, our Chief Executive Officer, and Terry Forbes, Our Chief Financial Officer, I will now turn the call over to Brian Casey.
Brian Casey: Good afternoon, and thanks for joining us for Westwood <unk> third quarter 2024 earnings call I'm very pleased to share our results and key developments from the past quarter as well as share our outlook for the rest of the year before we dive into the details just a few key highlights from the quarter.
Brian Casey: Total assets under management reached $17 7 billion up 5% from the prior quarter, marking our highest level in six years.
Brian Casey: We continue to execute our share repurchase program, returning approximately $273000 to shareholders by buying back 21879 shares.
Our sales teams achieved strong institutional gross flows over $1 billion year to date and our current pipeline has increased to nearly $2 billion.
Brian Casey: Successful launch and growth of two energy Etfs with Mds T crossing $50 million of AUM, passing a critical trading volume threshold.
Brian Casey: We formed a joint venture partnership Westwood engineered beta or webs to expand our platform with innovative defined volatility Etfs.
Brian Casey: We have lots of exciting news to share. So let me start off by highlighting our long term performance.
as well as share our outlook for the rest of the year. Before we dive into the details, just a few key highlights from the quarter.
Speaker Change: The fed cut its benchmark rate by half a point on September 18, citing progress from fighting inflation, and noting slowing job gains.
Total Act of Center Management reached 17.7 billion, a 5% from the prior quarter, marking our highest level in six years.
Speaker Change: This led to a significant drop in yields with the 10 year treasury yield falling from four 4% to $3 seven 8%, while the two year treasury dropped from 475% to three 6%.
We continue to execute our share-reportures program, returning approximately $273,000 to shareholders by buying back $21,879 shares.
Our sales team to achieve strong institutional growth flows over a billion dollars year today, and our current pipeline has increased to nearly 2 billion.
Speaker Change: After being inverted for two years, the treasury yield curve has now returned to its typical upward slope.
Speaker Change: <unk> grade corporate credit outperformed high yield while government bonds and municipal issues trailed.
Successful launch and growth of two energy ETS, with NDST crossing 50 million in AUM, passing a critical trading volume threshold.
Speaker Change: The U S stock market continued on its upward trend in the third quarter with domestic equity indices reached a new all time highs the market broadened out with small and mid cap stocks outperforming large caps and value stocks outperforming growth.
We form a joint venture partnership, westward engineer beta, or webs, to expand our platform with innovative, defined volatility ETS. We have lots of exciting news to share, so let me start off by highlighting our long-term performance.
Speaker Change: The shift in market dynamics aligns well with our investment approach, which focuses on high quality companies across market capitalization and asset classes.
Speaker Change: The Fed cut its benchmark rate by half a point on September 18, citing progress on fighting inflation and noting slowing job gains.
Speaker Change: Most of our U S value strategies have outperformed their benchmarks over the longer term in our small cap and smid cap strategies are firmly placed in the top third among peers and their morningstar peer categories over trailing three year periods.
Speaker Change: This led to a significant drop in yields with the 10-year treasury yield following from 4.4% to 3.78%. Well, the 2-year treasury dropped from 4.75% to 3.6% per cent.
Speaker Change: Our multi asset strategies are also delivering solid results all alternative income and multi asset income strategy is ranked in the top third and their Morningstar peer categories for the last three years and credit opportunities finished in the top decile of its investment category for the same three year period.
Speaker Change: After being inverted for two years, the Treasury yield curve has now returned to its typical upward slope. Investment grade corporate credit out performed high yield while government bonds and municipal issues trailed.
Speaker Change: And the income alternative space, our global real estate and real estate income strategies. Each boast strong three year track records and both are top decile performers in their respective investment categories.
The US stock market continued on a separate trend in the third quarter with domestic equity indices reaching new all-time highs. The market brought now with small and mid-calf stocks outperforming large caps and value stocks outperforming growth.
Speaker Change: Looking ahead, we expect continued uncertainty driven by political concerns both domestically and abroad. However, we believe that our focus on high quality businesses with strong free cash flows high returns on invested capital and the ability to deliver strong returns to shareholders positions us well for the future.
The shift in market dynamics aligns well with our investment approach, which focuses on high quality companies across market capitalization, the NASA classes.
Speaker Change: Most of our US values strategies have outperform their benchmarks over the longer term, and our small cap and smid cap strategies are firmly placed in the top third among peers and their morning stark peer categories over trailing for your periods.
Speaker Change: We remain vigilant in monitoring risks at the macro level within sectors and industries and at the company level.
Speaker Change: Turning now to our distribution channels, our institutional channel delivered net inflows of $197 million.
Speaker Change: Our multi-aths at strategies are also delivering solid results. Our alternative income and multi-aths at income strategies ranked in the top third in their Morningstar Pure Categories for the last three years, and credit opportunities finished in the top death file of its investment category for the same three year period.
Speaker Change: We are particularly excited about several new mandates, including a $200 million mandate for smid, CIP and $100 million mandate for a smid SMA.
Speaker Change: Institutional gross sales are over $1 billion year to date through September our pipeline remains robust and currently tops out at nearly $2 billion.
In the income alternative space, our global real estate and real estate income strategies, each boast strong through your track records and both are top-desolved performers in their respective investment categories.
Speaker Change: We see encouraging developments for small cap prospects and theres traction in our CIP vehicle Who's AUM is up tenfold this year.
Looking ahead, we expect continued uncertainty driven by political concerns both domestically and abroad. However, we believe that our focus on high-quality businesses with strong free cash flows, high returns on a vested capital and the ability to deliver strong returns to shareholders.
Speaker Change: We are also finding increased interest in our managed investment solutions or Ms capability from large institutions, which is really encouraging with.
We've completed phase one of the managed investment solutions technology build.
Resistance Us Well for the Future. We remain vigilant and monitoring risks at the macro level within sectors and industries and at the company level.
Speaker Change: And are conducting lots of discovery meetings with plan sponsors as we work to bring in our first client.
Speaker Change: Right now we are in discussions with potential investors and we aim to secure our first client in the coming months.
Speaker Change: Turning now to our distribution channels, our institutional channel delivered net inflows of 197 million. We are particularly excited about several new mandates, including a $200 million mandate for Smith, CIT, and a $100 million mandate for a Smith, SMA.
Speaker Change: I am pleased to report that our first energy Secondaries private fund, which launched in November of 2023 has already begun making distributions to investors.
Speaker Change: <unk> was 100% invested as of June 30, and has delivered positive metrics in terms of net multiple on invested capital.
Institutional gross fails are over $1 billion a year today through September. Our pipeline remains robust and currently passed out at nearly 2 billion.
Speaker Change: Internal rate of return IRR and distributed to paid in capital DPI.
We see encouraging developments for small cap prospects and their traction in our SIDG IT vehicle whose AUM is a tenfold this year.
Speaker Change: Current estimates are that we will return, 25% or more of committed capital in the first 12 months of the fund's life, which is well above original expectations.
Speaker Change: We are also finding increased interest in our managed investment solutions or MIS capability from large institutions, which is really encouraging.
Speaker Change: We continue to observe opportunities in the market and we are considering the timing for future initiatives.
Speaker Change: with completed phase one of the managed development solutions technology build and are conducting lots of discovery meetings with plant sponsors as we work to bring in our first client.
Speaker Change: And our intermediary channel, we had quarterly net outflows of $325 million.
Speaker Change: There were a few bright spots, particularly for our MLP strategies, where our mutual fund recorded $10 million in positive net flows.
Speaker Change: Right now, we are in discussions with potential investors and we aim to secure our first client in the coming months.
Speaker Change: Our Mds T. ETF has crossed the $50 million AUM threshold and is averaging over 10000 shares and daily trading volume both critical thresholds for platform inclusion with many broker dealers.
Speaker Change: I'm pleased to report that our first energy secondary's private fund, which launched in November of 2023, has already begun making distributions to investers.
We're seeing continued growth in our multi asset and real estate funds, especially for our income opportunity real estate income and energy Etfs, which offer attractive options for yield conscious buyers.
Speaker Change: The fund was 100% invested as of June 30 and has delivered positive metrics in terms of the net multiple on invested capital, M-O-I-C, internal rate of return, IRR, and distributed the paid-in capital, D-B-I.
Speaker Change: We're also experiencing increased interest in our small cap and smid cap strategies as many broker dealers appreciate theyre attractive valuations relative to other equities.
Current estimates are that we will return 25% or more of committed capital in the first 12 months of the funs life, which is well above original expectations. We continue to observe opportunities in the market and are considering the timing for future initiatives.
Speaker Change: It's worth noting that while we face continued challenges with outflows in areas tactical growth the magnitude of those outflows has decreased compared to the previous quarter.
In our intermediary channel we had quarterly net outflows of 325 million. There were a few bridespots, particularly for our MLP strategies, where our mutual fund recorded 10 million in positive net flows.
Speaker Change: We believe Westwood is well positioned to ride the likelihood of a multiyear tailwind in the energy space with our full suite of energy product offerings via mutual funds Etfs private funds and separate account strategies. We're convinced we're at the right place at the right time with the right solutions to solve our COO.
Speaker Change: Our MDSP ETF has crossed the $50 million AUM threshold and is averaging over 10,000 shares in daily trading volume, both critical thresholds for platform inclusion with many broker dealers.
Speaker Change: Clients needs and maximize our ability to capture market share.
Speaker Change: And our wealth management Division, we had net outflows of 44 million. However on a positive note we on boarded a new $10 million plus relationship and our new business pipeline continues to grow.
We're seeing continued growth in our multi-asset and real estate funds, especially for our income opportunity, real estate income, and energy ETFs, which offer attractive options for yield to the entire estate.
I'd like to take a moment to address a leadership change in our wealth management business Lea Ben It will be stepping down as president of Westwood wealth management at the end of this year and we thank her for her contributions over the past eight years I will reassume executive level responsibility for this division leveraging my direct experiences in managing <unk>.
We're also experiencing increased interest in our small cap and smid cap strategies, as many broker dealers appreciate their attractive valuations relative to other equities.
Speaker Change: It's worth noting that while we face continued challenges without flows in areas tactical growth, the magnitude of those outflows has decreased compared to the previous quarter.
Speaker Change: Toward wealth from $19 96 to 2013, we've implemented.
Speaker Change: Centered appropriate internal changes to ensure a smooth transition and continued excellent service for our clients.
Speaker Change: We believe Westwood is well positioned to ride the likelihood of a multi-year tailwind in the energy space.
Speaker Change: Looking at significant events, we're really excited about the upcoming launch of managed investment solutions with.
with our full-sweet of energy product offerings via mutual funds, ETS, private funds, and separate account strategies. We are convinced we're at the right place at the right time with the right solutions, the Solvar client needs, and maximise our ability to capture market share.
Speaker Change: We've conducted many meetings with prospects, including discussions with Premier National consultants.
Speaker Change: The reception has been overwhelmingly positive and we aim to secure our first Ms client in the coming months.
In our wealth management division, we had net outflows of 44 million. However, on a positive note, we onboarded a new $10 million plus relationship in our new business pipeline continues to grow.
We took the first steps towards building out our ETF platform during the second quarter with the rollout of two energy Etfs Westwood's salient enhanced midstream income Etfs on the NYSE ticker symbol Mds tea and Westwood salient enhanced energy income ETF on the NASDAQ ticker symbol.
I'd like to take a moment to address a leadership change in our wealth management business. Leah Bennett will be stepping down as President of Westwood wealth management at the end of this year and we thank her for her contributions over the past eight years.
Speaker Change: W E E.
Speaker Change: Both have been well received and continue to gain traction.
Speaker Change: I will reassign executive level responsibility for this division, leveraging my direct experiences in managing Westwood Well from 1996 to 2013. We've implemented appropriate internal changes to ensure a smooth transition and continued excellent service for our clients.
Speaker Change: Our Mds see ETF has crossed $50 million in AUM and its average volume has been solid most recently averaging over 10000 shares traded on a daily basis, which are considered critical thresholds for platform inclusion with many broker dealers.
Speaker Change: We expect this momentum to continue propelling AUM higher over the coming quarters.
Looking at significant events, we're really excited about the upcoming launch of managed investment solutions. We've conducted many meetings with prospects including discussions with premier national consultants.
Speaker Change: Another of our new initiatives as an expanded relationship with <unk> a pioneer of the ETF industry grew invesco powershares from $200 million in AUM to over $80 billion between 2005 and 2013.
Speaker Change: The reception has been overwhelmingly positive and we aim to secure our first MIS client in the coming months.
Speaker Change: We took the first steps towards building out our ETF platform during the second quarter, with the rollout of two energy ETFs.
Speaker Change: Then consulted with us on our first Etfs.
And recently approached us with an innovative product idea.
Westwood Salient and Hans Mids Green and CometiF on the NYSE Pickersimble MDST and Westwood Salient and Hanst Energy in CometiF on the NASDAQ Pickersimble WEEI.
Speaker Change: As a result, we formed a joint venture partnership Westwood engineered beta or webs, which will expand our ETF platform with two new innovative defined volatility Etfs.
Speaker Change: Christa ran our recently hired head of ETF distribution in National accounts, and a longtime partner events will lead the sales initiative.
Both have been well received and continued again traction.
Our MDSCETF has crossed 50 million in A-U-M and its average volume has been solid. Most recently averaging over 10,000 shares traded on a daily basis, which are considered critical thresholds for platform inclusion with many broker dealers.
Speaker Change: We're very excited about the potential for this experienced team.
Speaker Change: Putting it all together, we see significant opportunities ahead, our traditional strategies are performing well our pipeline is primed and we are really excited about our new investment offerings many of them well positioned for investors looking to invest cash that has been on the sidelines.
Speaker Change: We expect this moment to continue propelling AEM higher over the coming quarters.
Another of our new initiatives is an expanded relationship with Ben Folt, a pioneer of the ETF industry, who grew in Vesco Power Shares from 200 million in AUM to over 80 billion between 2005 and 2013.
Speaker Change: We're particularly eager to see our new Etfs grow as we appeal to a different audience and build awareness efficiently via digital marketing efforts.
Speaker Change: We believe that our diverse range of strategies, our expanding product lineup and our commitment to delivering value to our clients position us well for the future.
Then consulted with us on our first ETFs.
and recently approached us with an innovative product idea.
Speaker Change: We are also looking forward to writing the potential multiyear tailwind in the energy space, where we have a full suite of product offerings across vehicles.
As a result, we formed a joint venture partnership, Westwood, Engineer Beta, or Webbs, which will expand our ETF platform with two new innovative defined volatility ETFs.
Speaker Change: Thank you for your time today and for your continued interest in Westwood.
Speaker Change: Now turn the call over to Terry Forbes our CFO.
Chris Durant, a recently hired head of ETF distribution in national accounts, and a long-time partner of Benz will lead the sales initiative.
Terry Forbes: Thanks, Brian and good afternoon, everyone. Today, we reported total revenues of $23 7 million for the third quarter of 2024 compared to $22 7 million in the second quarter and $21 $9 million in the prior year's third quarter revenues increased from both periods prints.
We're very excited about the potential for this experience team.
Putting it all together, we see significant opportunities ahead. Our traditional strategies are performing well, our pipeline is primed, and we are really excited about our new investment offerings. Many of them will position for investors looking to invest cash that has been on the sidelines.
Terry Forbes: Fleet due to higher average assets under management or.
Our third quarter comprehensive income $1 million or <unk> <unk> per share compared with a loss of $2 2 million or <unk> 27 per share in the second quarter on higher revenues and changes in the fair value of contingent consideration offset by higher income taxes.
We're particularly eager to see our new ETFs grow as we appeal to a different audience and build awareness efficiently be a digital marketing efforts.
We believe that our diverse range of strategies are expanding product lineup and our commitment to delivering value to our clients' position as well for the future. We are also looking forward to writing the potential multi-year tailwind in the energy space, where we have a full suite of product offerings across vehicles.
Terry Forbes: non-GAAP economic earnings were $1 1 million or <unk> 13 per share in the current quarter versus losses of $5 million or <unk> <unk> per share in the second quarter.
Terry Forbes: Our third quarter comprehensive income of <unk> one.
Speaker Change: Thank you for your time today and for your continued interest in Westwood. I'll now turn the call over to Terry Forbes or CFO.
$1 million or <unk> <unk> per share compared with last year's third quarter of $3 4 million or <unk> 41 per share due to higher revenues and changes in the fair value of contingent consideration offset by higher employee compensation and benefits expense and receipt of life insurance proceeds in 2023.
Thanks Brian and good afternoon everyone. Today we reported totaled avenues of 23.7 million from 3rd quarter of 2024 compared to 22.7 million in the second quarter and 21.9 million in the prior year, 3rd quarter.
Terry Forbes: Economic earnings for the quarter were $1 1 million or <unk> 13 per share compared with $6 5 million or <unk> 80 per share in the third quarter of 2023.
Revenue is increased from both periods principally due to higher average asset undermanage.
Our third quarter comprehensive income, 0.1 million or 1 cent per share, paired with a loss of 2.2 million or 27 cents per share in the second quarter on higher revenues, the exchanges and the fair value of contingent considerations offset by higher income taxes.
Terry Forbes: Firm wide assets under management, and advisement totaled $17 7 billion at quarter end, consisting of assets under management of $16 8 billion in assets under advisement of $1 billion.
Terry Forbes: Assets under management consisted of institutional assets of $8 5 billion or 51% of the total wealth management assets of $4 4 billion or 26% of the total and.
Non-gap economic earnings were 1.1 million or 13 times per share in the current quarter versus losses of 0.5 million or 6 cents per share in the second quarter.
Terry Forbes: Our mutual fund assets of $3 9 billion or 23% of the total.
Terry Forbes: Over the quarter, our assets under management experienced market appreciation of $1 1 billion and net outflows of $2 1 billion and our assets under advisement experienced market appreciation of $39 million and net outflows of $66 million.
Our third quarter comprehensive income of...
0.1 million or 1 cent per share compared with last year's third quarter of 3.4 million per 41 cent per share.
Future Higher Revenue and Changes in the Fair Value of Contitual Consideration, all set by Higher Employee Compensation and Benefits expense and the receipt of Life Insurance Proceeds in 2023.
Terry Forbes: Our financial position continues to be very solid with cash and short term investments at quarter end totaling $48 3 million and a debt free balance sheet.
Economic earnings for the quarter were 1.1 million or 13 times per share compared with 6.5 million or 80 cents per share the third quarter of 2023.
Terry Forbes: Okay.
Terry Forbes: I'm happy to announce that our board of directors approved a regular cash dividend of <unk> 15 per common share payable on January three 2025 to stockholders of record on December <unk> 2020 for.
Firm White Assets Under Management and Advisements told 17.7 billion a quarter n consisting of Assets Under Management of 16.8 billion an Assets Under Advisement of 1 billion.
Terry Forbes: That brings our prepared comments to a close we encourage you to review our investor presentation, we have posted on our website, reflecting quarterly highlights as.
Assets on the management consisted of institutional assets of 8.5 billion or 51% of the total, wealth management assets of 4.4 billion or 26% of the total, and mutual fund assets is 3.9 billion or 23% of the total.
Terry Forbes: As well as discussion of our business product development and longer term trends in revenues and earnings. We thank you for your interest in our company and we'll open the line to questions.
Speaker Change: Thank you we will now begin the question answer session.
Speaker Change: Over the quarter, our assets under management experienced market appreciation of 1.1 billion, and that outflows is 0.1 billion. And our assets under advisement experienced market appreciation of 39 million, and that outflows is 66 million.
If you'd like to ask a question. Please press star one on your telephone keypad to raise your hand and joined the queue.
Speaker Change: Thank you Victoria question, Cynthia cracks for one again.
Our financial position continues to be very solid with cash and short-term investments at quarter end total in 48.3 million in the debt-free balance sheet.
Speaker Change: Our first question comes from the line.
Speaker Change: <unk>.
Okay Kimco.
Speaker Change: Line is now open.
Speaker Change: I'm happy to announce that our board of directors approved a regular cash dividend of 15 cents per common share. Payable on January 3rd, 2025 to stockholders of records on December 2nd, 2024.
Speaker Change: Good afternoon, gentlemen, thanks for taking my question.
Speaker Change: Was wondering if you could just unpack the organic pipeline a little bit you have a number of moving pieces there whether it's.
Speaker Change: The new Etfs initiative on the $2 billion pipeline.
That brings our prepared comments to applause. We encourage you to review our best representation with post in our website, reflecting quarterly highlights.
Speaker Change: So if you could just give us a little more color on maybe over the next six months, how you see some of those elements materializing in terms of the organic flows and what number would be.
as well as discussion of our business, product development and longer-term trends in revenues and earnings. We thank you for your interest in our company and we'll open the line to questions.
Speaker Change: Good for your expectations in terms of some of those things you have in place now to growth.
Thank you. We will now begin the question and answer session. If you would like to ask a question, please press our one on your telephone keybed to raise your hand and join the queue. If you would like to withdraw your question, please press our one again.
Speaker Change: Hi, Matt Thanks for your question.
Speaker Change: Yes, I would say that primarily the pipeline consists of.
Speaker Change: U S value opportunities in the mid and small cap space.
Speaker Change: And while I'd.
Speaker Change: I'd love to guess as to what led.
Speaker Change: James.
Speaker Change: All of that will come in.
Speaker Change: [inaudible]
Speaker Change: That's pretty.
Tough to do I would just say that the marketplace has really embraced.
Our first question comes from the line, MacRainSides.
Speaker Change: The cities that we created a few years ago they have embraced.
Tom Tom, GAMCO.
Speaker Change: The Lionish Network in the Horde.
Oh good afternoon, gentlemen. Thanks for taking my question.
Speaker Change: What accounts.
I was wondering if you could just unpack the organic pipeline a little bit, you know, you have a number of moving pieces there whether it's MIS, the new ETF initiative
Speaker Change: And we have a lot of good opportunities.
The pipeline we have.
Speaker Change: Sure.
Speaker Change: Ben top rated by one of the consulting firms.
Speaker Change: and the $2 billion pipeline. So it just gives a little more collar on maybe over the next six months how you see some of those elements materializing in terms of the organic flows and what number would be kind of good for your expectations in terms of some of those things you have in place now to grow.
Speaker Change: Recently.
Speaker Change: We've been trying to get in for a long time. So that's great News and then we're on the preferred list of a couple of other consultants. So we continue to see a really good pipeline.
Speaker Change: Opportunities from a number of the top tier consultants.
I'm back, thanks for your questions. I would say the primearily, the pipeline consists of U.S. value opportunities in this mid and small cap space.
Great and just one follow up you have about $50 million on your balance sheet.
Speaker Change: Obviously, you see the value of growing your ETF franchise in terms of having enough assets in there to reach certain levels.
Speaker Change: and while I'd love to guess as to what levels of that will come in, I think that's pretty tough to do. I would just say that the marketplace has really embraced.
Speaker Change: I was just curious to see what this new initiative.
Speaker Change: Fulton.
Speaker Change: Is that going to require some more substantive seeding capital in and do you feel like.
Speaker Change: You have enough to to manage that.
The CITs that we created a few years ago, they have embraced separate accounts and we have a lot of good opportunities in the pipeline.
Speaker Change: Yeah.
Speaker Change: Yes, we have.
Speaker Change: With a lot of good opportunities for seed capital from some of the people that Ben has worked with for a long time.
Speaker Change: So at this point, it's not a concern.
Speaker Change: been top rated by one of the consulting firms.
Speaker Change: Okay.
recently that we've been trying to get in for a long time, so that's great news. And then we are on the preferred list of a couple of other consultants. So we continue to see a really good pipeline of opportunities from a number of the top tier consultants.
Speaker Change: Okay anything else Barry.
Oh, that's it.
Speaker Change: Okay. Thanks for your question.
Speaker Change: Again, if you would like to ask a question. Please press <unk>.
Speaker Change: One agenda.
Speaker Change: He joined the queue.
Speaker Change: Great, just one follow-up, you have about 50 million on your balance sheet. You obviously see the value growing your ETF, franchise in terms of having enough assets in there to reach certain levels.
Speaker Change: There are no question at this time.
Speaker Change: Brian Casey I turn the call back over to Keith.
Keith: Thank you I would just say in closing we're excited about the pipeline in our traditional business, which as I said nearly $2 billion in size and our U S value smid and small cap products are in high demand and we're seeing robust search activity.
I was just curious to see what this new initiative of this Revolting is that going to require some more substantive seating capital and do you feel like?
Speaker Change: You have enough to manage that.
Keith: We believe we have a good shot at closing a high percentage of this pipeline.
We have, uh, we're in touch with a lot of good opportunities for seed capital from some of the people that have been as wounded for a long time. So at this point, it's not a concern.
Keith: Made commitments to two of the highest growth segments within asset management. One is custom index solutions, which is one of the fastest growers in the industry. Our team is fully staffed in Chicago and we're working hard to get our first client and then secondly, the ETF universe.
Speaker Change: Hey, big out back.
Keith: <unk> had 10 trillion in size in the U S and we just partnered with one of the founders of the ETF industry been Fulton, we're excited to work with Ben and to have his colleague of 10 years, Chris DRAM, leading our ETF and national account sales efforts. So.
All that's it.
Okay, thanks for your question.
Speaker Change: and the
and I'm going to ask you a question.
Speaker Change: [inaudible]
Keith: So we're very excited about where we are and we appreciate your interest in Westwood. Please contact me or Terry directly or check our website Westwood group Dot com for all of our filings or to learn more about us. Thanks for your time.
Dernol furthered the question at this time Brian Casey has heard the call back over to you.
Thank you, I just thank closing work side of pipeline and our traditional business which is the other extent nearly 2 billion in size
Speaker Change: This concludes today's conference call you may now disconnect.
and our U.S. values, mid and small cap products are in high demand and we're seeing robust search activity. Well, we believe we have a good shot at closing a high percentage of this pipeline.
We made commitments to two of the highest growth segments within asset management. One is custom index solutions, which is one of the fastest growers in the industry. Our team is fully staffed in Chicago and we're working hard to get our first client. And in second, late ATF Universe.
recently had 10 trillion in size of the U.S. and we've just partnered with one of the founders of the ETF industry, Ben Fulton. We're excited to work with Ben and to have his colleague in 10 years, Chris Durand, leading our ETF and National Accounts, failed efforts.
Speaker Change: So we're very excited about where we are. We appreciate your interest and Westwood, please contact me or Terry Directly or check our website, westwoodgroup.com for all of our findings or to learn more about us. Thanks for your time.
This concludes this on British call to get out this call.
Please wait, the conference will begin shortly.
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