Q1 2025 Westwood Holdings Group Inc Earnings Call
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Unknown Executive: Good day and thank you for standing by.
Good day, and thank you for standing by.
Jill Meyer: Welcome to the Westwood Holdings Group first quarter 2025 earnings call. At this time, all participants are on a listen-only mode. After the speaker's presentation, there will be a question and answer session.
Speaker Change: Welcome to the Westwood Holdings Group first quarter 2025 earnings call.
At this time all participants are in a listen only mode.
Speaker Change: After the Speakers' presentation, there'll be a question and answer session.
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Unknown Executive: Please be advised that today's conference is being recorded.
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Jill Meyer: I'd now like to hand the conference over to your host today, Jill Meyer, Corporate Secretary. Please go ahead.
Jill Meyer: I'd now like to hand, the conference over to your host today Jill Meyer Corporate Secretary. Please go ahead.
Jill Meyer: Thank you and welcome to our first quarter 2025 earnings conference call. The 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 issued earlier today, as well as in our Form 10-Q for the quarter ended March 31, 2025, that will be filed with the Securities and Exchange Commission.
Jill Meyer: Thank you and welcome to our first quarter of 2025 earnings Conference call.
Jill Meyer: 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 issued earlier.
Jill Meyer: Today as well as in our Form 10-Q for the quarter ended March 31st 2025 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 your cost.
Jill Meyer: We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. You are cautioned not to place undue reliance on forward-looking statements.
Jill Meyer: And not to place undue reliance on forward looking statements.
Jill Meyer: 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 measures is included at the end of our press release issued earlier today.
Jill Meyer: And 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 measures is included at the end of our press release issued earlier today.
Jill Meyer: On the call today, we have Brian Casey, our Chief Executive Officer, and Terry Forbes, our Chief Financial Officer.
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: I will now turn the call over to Brian.
Brian Casey: Good afternoon, and thank you for joining us for Westwood's first quarter 2025 earnings I'm pleased to share our results and key developments from the past quarter as well as our outlook for the remainder of the year. Before we dive into the details, I would like to highlight a few key points that we'll be discussing. We'll be talking about the strategic plan.
Brian Casey: Good afternoon, and thank you for joining us for Westwood's first quarter 2025 earnings call I'm pleased to share our results and key developments from the past quarter as well as our outlook for the remainder of the year.
Brian Casey: Before we dive into the details I would like to highlight a few key points that we will be discussing today.
Brian Casey: We successfully launched the Westwood Liberté Global Equity ETF, ticker symbol BEFREE, at the end of the quarter, offering a distinctive approach to global equity investing that limits exposure to authoritarian regimes while maintaining broad market exposure. Our first ETF, Westwood Salient Enhanced Midstream Income, ticker symbol M D S T, reached its one year anniversary with strong traction among income seeking investors, while our second ETF, Enhanced Energy Income, ticker symbol W E E I, is nearing its one year anniversary. Asset levels in our first two ETFs now exceed $100 million.
Brian Casey: We successfully launched the Westwood Liberte global equity ETF ticker symbol be free at the end of the quarter offering a distinctive approach to global equity investing that limits exposure to authoritarian regimes, while maintaining broad market exposure.
Brian Casey: Our first ETF Westwood salient enhanced midstream income ticker symbol M. D. S. T reached its one year anniversary with strong traction among income seeking investors, while our second ETF enhanced energy income ticker symbol W. E.
Brian Casey: Is nearing its one year anniversary.
Brian Casey: Asset levels in our first two etfs now exceed $100 million.
Brian Casey: We won a significant sub advisory mandate with nearly a billion dollars in small cap value, which funded on the second to last day of the quarter.
Brian Casey: We want a significant sub advisory mandate with nearly a $1 billion.
Brian Casey: Mall cap value, which funded on the second to last day of the quarter.
Brian Casey: The Texas Stock Exchange, TXSE, in which we are an investor, took a significant step forward with its Form 1 application for registration as a National Securities Exchange being publicly released by the SEC on April 4.
Brian Casey: The Texas stock Exchange, TX FC and which we're an investor took a significant step forward with its form one application for registration as a national Securities exchange being publicly released by the FCC on April four.
Brian Casey: We welcome two new board members, Hale Hoke and Katherine Murray, whose extensive experience in finance, investment management and corporate governance will further strengthen our leadership We look forward to working with you. The US stock market hit record highs in February but declined sharply through the quarter end. Transforming what started as an optimistic period into one marked by concerns about potential policy changes and slowing economic growth. Despite strong corporate earnings growth in the fourth quarter of 2024, the S&P 500 fell about eight and a half percent in the latter part of the quarter. While the small cap Russell 2000 declined nearly 12%.
We welcome two new board members Hale Hoak, and Katherine Murray, who has extensive experience in finance investment management and corporate governance will further strengthen our leadership team.
Brian Casey: The U S stock market hit record highs in February but declined sharply during the quarter and transforming what started as an optimistic period under one marked by concerns about potential policy changes and slowing economic growth.
Despite strong corporate earnings growth in the fourth quarter of 2020 for the S&P 500 fell about eight 5% in the latter part of the quarter.
Brian Casey: While the small cap Russell 2000 declined nearly 12%.
Brian Casey: Large cap stocks outperform small caps and value stocks outperform growth across the capitalization spectrum. Fixed income finished the quarter with positive returns, showing the benefits of diversification in the current environment.
Brian Casey: Large cap stocks outperformed small caps and value stocks outperformed growth across the capitalization spectrum.
Brian Casey: Fixed income finished the quarter with positive returns showing the benefits of diversification in the current environment.
Brian Casey: Looking at our long term performance, I'm pleased to report that our investment strategies continue to demonstrate strength across multiple asset classes of time. In our U.S. value strategies, approximately 40% are in the top third in their respective peer categories over trailing three-year periods. Our small cap and mid cap strategies continue to post strong Morningstar rankings, with both firmly positioned in the top third over the trailing three year period. Our multi-asset strategies are also delivering solid results, with half of them achieving better than 50% rankings for the trailing three-year period and three-quarters holding top quartile rankings over the trailing five-year period among either Morningstar or eVestment peers.
Brian Casey: Looking at our long term performance I am pleased to report that our investment strategies continue to demonstrate strength across multiple asset classes or time periods.
Brian Casey: And our U S value strategies, approximately 40% are in the top third and their respective peer categories over trailing three year periods.
Brian Casey: Our small cap and smid cap strategies continue to post strong Morningstar rankings with both firmly positioned in the top third over the trailing three year periods.
Brian Casey: Our multi asset strategies are also delivering solid results with half of them achieving better than 50% rankings for the trailing three year period, and three quarters holding top quartile rankings over the trailing five year period.
Brian Casey: Neither morningstar or investment peers.
Brian Casey: Our largest multi-asset strategy, Income Opportunity, ranks in the top decile since inception among Morningstar peers, demonstrating its long-term strength and consistency. Multi-asset income has also been strong, finishing in the top decile of its Morningstar and eVestment category, respectively, for the trailing three-year period. Our energy strategies continue to perform well among peers with solid absolute returns. Meanwhile, Enhanced Midstream Income, MDST, and Enhanced Energy Income, WEEI, have delivered solid yields to income-focused investors.
Our largest multi asset strategy income opportunity ranks in the top decile since inception, among morningstar peers, demonstrating its long term strength and consistency.
Brian Casey: Multi asset income has also been strong finishing in the top decile of its Morningstar and investment category, respectively for the trailing three year period.
Brian Casey: Our energy strategy has continued to perform well among peers with solid absolute returns. Meanwhile, enhanced midstream income Mds tea and enhanced energy income Debbie.
Brian Casey: We have delivered solid yields to income focused investors.
Brian Casey: Looking ahead, we expect continued market uncertainty driven by the uncertainty around tariffs and their impact on global economies.
Brian Casey: Looking ahead, we expect continued market uncertainty driven by the uncertainty around tariffs and their impact on global economies. We believe our focus on high quality businesses positions us well for the future and remain vigilant in monitoring risks at the macro level in an effort to protect our clients capital.
Brian Casey: Our institutional channel delivered exceptional results in the first quarter, with gross sales of $960.5 million and net inflows of $758.8 million. We are particularly excited about several significant wins, including a large sub advisory mandate that funded with nearly a billion dollars in our small cap value strategy. We also won two defined contribution plans in our SMIDCAP strategy, with funding anticipated in the second quarter. Our pipeline remains robust across multiple strategies. Looking ahead, we anticipate continued mandates and SMIDCAP value for defined contribution driven by the largest national consultant.
Brian Casey: Our institutional channel delivered exceptional results in the first quarter with gross sales of $965 million and net inflows of $758 8 million, we're particularly excited about several significant wins, including a large sub advisory mandate that funded with nearly a $1 billion.
Brian Casey: In our small cap value strategy.
Brian Casey: We also want to defined contribution plans and our smid cap strategy with funding anticipated in the second quarter.
Brian Casey: Our pipeline remains robust across multiple strategies.
Brian Casey: Looking ahead, we anticipate continued mandates on smid cap value for defined contribution plans driven by the largest national consultants. We continue to have constructive conversations regarding our managed investment solutions mif's capability with clients and prospects and we anticipate initial.
Brian Casey: We continue to have constructive conversations regarding our Managed Investment Solutions MIS capability with clients and prospects, and we anticipate initial funding in 2025. We are also witnessing renewed interest in energy in both public and private strategies, and we expect continued progress with existing clients as we expand our presence with public plans, OCIOs, and multifamily offices.
Speaker Change: Ending in 2025.
Speaker Change: We are also witnessing renewed interest in energy in both public and private strategies and we expect continued progress with existing clients as we expand our presence with public clouds, <unk> and multifamily offices.
Brian Casey: In our intermediary channel, we achieved 233.1 million in gross sales and 4.5 million in net inflows, marking the best performing sales quarter for the intermediary team since 2022. And we saw particular strength in energy and real asset products. Our MLP Mutual Fund, SMLPX, experienced a strong quarter within the intermediary channel. Our tactical growth strategy also picked up momentum in March, becoming the gross sales leader and net positive in flows for the month, a trend that has continued into April. The tailwinds in the energy space, combined with the breadth of Westwood offerings, are appealing to intermediary clients, particularly those in the family office and RIAC.
Speaker Change: And our intermediary channel, we achieved $233 1 million in gross sales and $4 5 million in net inflows, marking the best performing sales quarter for the intermediary team since 2022, and we saw particular strength in energy and real asset products.
Speaker Change: Our MLP mutual fund SMA RPX experienced a strong quarter within the intermediary channel our tactical growth strategy also picked up momentum in March becoming the gross sales leader in net positive flows for the month a trend that has continued into April.
Speaker Change: The tailwind is any energy space combined with the breadth of Westwood offerings are appealing to intermediary clients, particularly those in the family office space.
Brian Casey: Our MDFT ETF has surpassed asset thresholds required by some platforms. And after achieving its one-year record in the second quarter, it will be eligible for National Broker-Dealer Platform. Additionally, our well-rounded offerings within the multi-asset and tactical suite of products are well positioned for equity market volatility.
Speaker Change: Space.
Speaker Change: Our MD FTE ETF had surpassed asset thresholds required by some platforms and after achieving its one year record in the second quarter. It will be eligible for national broker dealer platforms. Additionally, our well rounded offerings within the multi asset and tactical suite of products are.
Speaker Change: We are well positioned for equity market volatility.
Brian Casey: Turning to our wealth management business, we saw inflows of 56 million in the first quarter of 2025, with net flows of minus 157.
Speaker Change: Turning to our wealth management business, we saw inflows of $56 million in the first quarter of 2025 with net flows of minus $157 million.
Brian Casey: We are on track to meet our gross inflow target for the calendar year. We have reduced costs and our new CRM system has demonstrated increased efficiency for our advisors and client service team as we continue to make it more robust, providing both cost savings and enhanced workflow capabilities. With the first full quarter utilizing our new client portal, we're seeing progressive client utilization and enjoying a substantially reduced annual cost.
Speaker Change: We are on track to meet our gross inflow target for the calendar year, we have reduced costs in our new CRM system has demonstrated increased efficiency for our advisors and client service team as we continue to make it more robust providing both cost savings and enhanced workflow capabilities.
Speaker Change: With the first full quarter utilizing our new client portal, we're seeing progressive client utilization and enjoying a substantially reduced annual cost.
Brian Casey: Moving beyond our core business segments, I'd like to highlight several transformative initiatives and milestones that demonstrate our continued commitment to innovation and strategic growth. Our ETF business continues to gain momentum with our first ETF, Westwood Salient Enhanced Midstream Income, MDST, reaching its one year anniversary with an annualized distribution rate of 10.5% as of March 28, 2025. The fund has delivered on its objective of providing a steady stream of income and has gained strong traction among income-seeking investors. The Web's Defined Volatility ETFs, which launched in December 2024, are performing as expected given the challenging market environment with increased volatility and market losses.
Speaker Change: Moving beyond our core business segments I'd like to highlight several transformative initiatives and milestones that demonstrate our continued commitment to innovation and strategic growth.
Speaker Change: Our ETF business continues to gain momentum with our first ETF Westwood enhanced midstream income MD ft, reaching its one year anniversary with an annualized distribution rate of 10, 5% as of March 28 2025.
Speaker Change: Fund has delivered on its objective of providing a steady stream of income and has gained strong traction among income seeking investors.
Speaker Change: The webs defined volatility Etfs, which launched in December 2024 are performing as expected given the challenging market environment with increased volatility and market losses. These etfs expand our platform and address investor demand for more sophisticated volatility managed solutions.
Brian Casey: These ETFs expand our platform and address investor demand for more sophisticated volatility-managed solutions.
Brian Casey: The launch of our Westwood Liberté Global Equity ETF, BeFree, at the end of the quarter marks an important expansion of our ETF platform. BeFree offers a distinctive, data-driven approach to global equity investing by seeking to limit exposure to authoritarian regimes while maintaining broad market exposure. This strategy aligns with investors who prioritize risk management and recognize the long-term economic benefits of investing in countries with strong institutions, civil liberties, and rule of law.
Speaker Change: The launch of our Westwood Libertad global equity ETF be free at the end of the quarter marks an important expansion of our ETF platform be free offers a distinctive data driven approach to global equity investing by seeking to limit exposure to authoritarian regimes, while maintaining broad market.
Speaker Change: Exposure this strategy aligns with investors to prioritize risk management and recognize the long term economic benefits of investing in countries with strong institutions civil liberties and rule of law.
Brian Casey: On April the 4th, the Texas Stock Exchange, Texas Form 1 application for registration at the National Securities Exchange was publicly released by the FCC. TXI is the first fully integrated exchange to file with the SEC for registration in 20 years. And Westwood is the only Texas-based publicly traded asset management and wealth firm investing in the exchange, and we're excited to be part of this exciting future.
Speaker Change: On April 4th the Texas stock exchange taxi form one application for registration as a national Securities Exchange was publicly released by the FCC.
Speaker Change: <unk> is the first fully integrated exchange to file with the SEC for registration in 20 years and Westwood is the only Texas based publicly traded asset management and wealth firm investing in the exchange and we're excited to be part of this exciting future.
Brian Casey: Last, we recently welcomed two new board members to our board of directors, Hale Hogue and Katherine Murray. Hale brings over 25 years of experience as an investor in both private and publicly traded companies, while Katherine contributes over 33 years of experience as a senior finance executive in the energy sector and public accounting. Their diverse perspectives and industry knowledge will help guide Westwood's continued growth.
Speaker Change: Last we recently welcomed two new board members to our board of directors.
Speaker Change: And Catherine Murray Hill brings over 25 years of experience as an investor in both private and publicly traded companies while Catherine contributes over 33 years of experience as a senior finance executive in the energy sector and public accounting.
Speaker Change: <unk> diverse perspectives and industry knowledge will help guide Westwood's continued growth welcome Hal and Kathryn.
Brian Casey: Welcome Hal and Kathy.
Brian Casey: and a heartfelt thanks to Dick Frank, who chose not to stand for re-election after serving our board faithfully for 19 years. Dick has been a great mentor to me and our manage and he's become a great. I will miss seeing him every quarter, but I hope that he enjoys his well-deserved retirement.
Speaker Change: And a heartfelt thanks to <expletive> Frank who chose not to stand for reelection after serving our board faithfully for 19 years.
Speaker Change: <unk> has been a great mentor to me and our management team and it's become a great friend.
Speaker Change: I will miss seeing him every quarter, but I hope that he enjoys his well deserved retirement.
Brian Casey: Thank you, Dick, for all you have done for our share.
Speaker Change: Thank you <expletive> for all you have done for our shareholders.
Brian Casey: In closing, as we reflect on the first quarter of 2025 and look ahead, we remain confident in our strategic positioning as a firm and the value we provide to our Our diverse range of strategies, expanding product lineup and dedication to delivering strong performance. We are particularly excited about the growth of our ETF platform, the momentum in our energy strategies, and the robust pipeline in our institutional and intermediary as Westwood celebrates 42 years in business. We remain committed to our core principles of delivering value to our clients through high quality investments. Despite the challenging market environment, we believe the shift away from the Magnificent Seven and toward more value-oriented investment plays to our strengths as active managers focusing on quality and value.
Speaker Change: In closing as we reflect on the first quarter of 2025 and look ahead, we remain confident in our strategic positioning as a firm and the value we provide to our clients.
Our diverse range of strategies, expanding product lineup and dedication to delivering strong performance position us well for the future.
Speaker Change: We are particularly excited about the growth of our ETF platform the momentum in our energy strategies and the robust pipeline in our institutional and intermediary channels.
Speaker Change: As Westwood celebrates 42 years in business, we remain committed to our core principles of delivering value to our clients through high quality investment solutions. Despite the.
Speaker Change: Challenging market environment, we believe the shift away from the magnificent seven and toward more value oriented investment plays to our strengths as active managers focusing on quality and value.
Brian Casey: With our strong foundation and innovative offerings, we are well positioned to navigate market uncertainties and deliver for our clients and shareholders in the months and years ahead.
Speaker Change: With our strong foundation and innovative offerings, we are well positioned to navigate market uncertainty and deliver for our clients and shareholders in the months and years ahead.
Brian Casey: Thank you for your continued support and confidence in Westwood.
Speaker Change: For your continued support and confidence in Westwood I will now turn the call over to Terry Forbes our CFO.
Terry Forbes: I will now turn the call over to Terry Forbes, our CFO. Thanks, Brian, and good afternoon, everyone. Today, we reported total revenues of $23.3 million for the first quarter of 2025, compared with $25.6 million in the fourth quarter and $22.7 million in the prior year's first quarter. Revenues decreased from the fourth quarter due to lower performance-based fees and increased from last year's first quarter due to higher average assets under management. Our first quarter income of $0.5 million or $0.05 per share compared with $2.1 million or $0.24 per share in the fourth quarter on lower revenues and higher operating expenses, offset by lower income taxes and changes in the fair value of contingent consideration.
Terry Forbes: Thanks, Brian and good afternoon, everyone. Today, we reported total revenues of $23 3 million for the first quarter of 2025, compared with $25 6 million in the fourth quarter and $22 7 million in the prior year's first quarter revenues decreased from the fourth quarter due to lower performance based.
Terry Forbes: Fees and increased from last year's first quarter due to higher average assets under management.
Terry Forbes: Our first quarter income of <unk> 5 million or <unk> <unk> per share compared with $2 1 million or <unk> 24 per share in the fourth quarter on lower revenues and higher operating expenses offset by lower income taxes and changes in the fair value of contingent consideration.
Terry Forbes: Non-GAAP economic earnings were $2.5 million or $0.29 per share in the current quarter versus losses of $3.4 million or $0.39 per share in the fourth quarter. Our first quarter income of $0.5 million or $0.05 per share compared with last year's first quarter of $2.3 million or $0.27 per share due to changes in the fair value of contingent consideration 2024 offset by higher revenues and lower income tax. Economic earnings for the quarter were $2.5 million, or $0.29 per share, compared with $3 million, or $0.36 per share in the first quarter of 2024. Firmwide assets under management and advisement total $18 billion a quarter end, consisting of assets under management of $17 billion and assets under advisement of $1 billion.
Terry Forbes: non-GAAP economic earnings were $2 5 million or 29 per share in the current quarter versus losses of $3 4 million or <unk> 39 per share in the fourth quarter.
Terry Forbes: Our first quarter income of <unk> 5 million or <unk> <unk> per share compared with last year's first quarter of $2 3 million or <unk> 27 per share due to changes in the fair value of contingent consideration 'twenty 'twenty, four offset by higher revenues and lower income taxes.
Economic earnings for the quarter were $2 5 million or <unk> 29 per share compared with $3 million or <unk> 36 per share in the first quarter of 2024.
Terry Forbes: Firm wide assets under management, and advisement totaled $18 billion at quarter end, consisting of assets under management of $17 billion in assets under advisement of $1 billion.
Terry Forbes: Assets under management consisted of institutional assets of $9 billion or 53% of the total, wealth management assets of $4.1 billion or 24% of the total, and mutual fund assets of $3.9 billion or 23% of the total. Over the quarter, our assets under management experienced net inflows of $0.6 billion and market depreciation of $0.3 billion. And our assets under advisement experienced market depreciation of $8 million and net outflows of $1 million.
Assets under management consisted of institutional assets of $9 billion or 53% of the total wealth management assets of $4 1 billion or 24% of the total and mutual fund assets of $3 9 billion or 23% of the total.
Terry Forbes: Over the quarter, our assets under management experienced net inflows of <unk> 6 billion and market depreciation of <unk> 3 billion.
Terry Forbes: And our assets under advisement experienced market depreciation of $8 million and net outflows of $1 million.
Terry Forbes: Our financial position continues to be solid with cash and liquid investments at quarter end totaling $26.9 million and a debt-free balance.
Terry Forbes: Our financial position continues to be solid with cash and liquid investments at quarter end totaling $26 9 million and a debt free balance sheet.
Terry Forbes: I'm happy to announce that our board of directors approved a regular cash dividend of 15 cents per common share payable on July 1, 2025 to stockholders of record on June 2, 2025.
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 July one 2025 to stockholders of record on June <unk> 2025.
Terry Forbes: That brings our prepared comments to a close.
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 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.
Terry Forbes: We encourage you to review our investor presentation we have posted on our website, reflecting quarterly highlights, as well as discussion of our business, product development, and longer term trends and revenues and earnings.
Unknown Executive: We thank you for your interest in our company and we'll open the line to questions. As a reminder, if you'd like to ask a question at this time, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 1 1 again.
Terry Forbes: As a reminder, if you'd like to ask a question at this time. Please press star one one on your telephone and wait for your name to be announced to withdraw your question. Please press star one again.
Macrae Sykes: We have a question from Macrae Sykes with Gabelli. Good afternoon, gentlemen, and congratulations on that mandate win. That's great. My question is around that. Could you just give a little more color as to kind of flows in that strategy? So what's the opportunity going forward as you manage this bucket? And then secondly, are you able to use that headline win as leverage for potentially other mandates as well? I just sort of curious as to what the expectations are for sales velocity with that headline.
Speaker Change: We have a question from Macrae Sykes with Gabelli.
Macrae Sykes: Good afternoon, gentlemen, and congratulations on that mandate win Thats great.
Speaker Change: My question is around that.
Could you just give a little more color as to kind of the flows in that strategy. So what's the opportunity going forward as you manage this bucket and then secondly are you able to use that headline win.
Speaker Change: Leverage for potentially other mandates as well just sort of curious as to what the expectations are for sales velocity with that headlines. Thank you.
Brian Casey: Thank Thanks, Matt. We appreciate it. Appreciate your question.
Speaker Change: Yes.
Speaker Change: Thanks, Matt we appreciate it I appreciate your question.
Brian Casey: That was a very nice blend in our small cap product and it is a sub advisory mandate. for a large, well-recognized firm that we're excited to partner with. Certainly, anytime we see headlines like that, it does help us in our overall marketing. And we have, our pipeline now is still over a billion dollars, with much of that in our SMID product, and we continue to see a lot of growth there.
Speaker Change: A very nice win in our small cap product and it is a sub advisory mandate.
Speaker Change: For a large well recognized firms that we're excited to partner with.
Certainly anytime we see headlines like that it does help us in our overall marketing.
Speaker Change: We have our pipeline now is is still over $1 billion with much of that in our smid product and we continue to see a lot of growth there.
Brian Casey: Anything further back? Yes.
Speaker Change: Anything further.
Brian Casey: Oh, one more thing. I apologize.
Speaker Change: Yes, one more thing I apologize.
Macrae Sykes: On the MDST, nice growth there.
Brian Casey: And you mentioned that you're qualified for some of the national platforms. Maybe you could just talk about that next step and expectations for growth in those two vehicles. Sure. Well, we have been working really hard. We hired Chris Duran last year, and he has been terrific in getting us onto a number of platforms. And they all have a little bit different requirements, and some depend on volume, some depend on assets under management, some depend on length of track record. And so we've really sorted through all of that and made some great progress. I think we're on four or five different platforms now, and we're in discussions to make it to some of the bigger platforms, including one of the wires.
Speaker Change: Nice growth there and you mentioned that Youre qualified for some of the national platforms.
Speaker Change: Maybe you could just talk about that next step and expectations for growth in those two vehicles.
Speaker Change: Sure well, we have been working really hard we hired Chris ran last year and he has been terrific and getting us onto a number of platforms.
Speaker Change: And they all have a little bit different requirements and it depends some depend on volume some defend on assets under management. Some have depend on the length of track record and so we've really sorted through all of that and made some great progress I think around four or five different platforms now and where.
Speaker Change: And discussions too.
Speaker Change: Make it to some of the bigger platforms, including one of the wires and if we're successful in doing that we have the potential to have really exponential growth in that product. So we're super excited about it.
Brian Casey: And if we're successful in doing that, we have the potential to have really exponential growth in that product. So we're super excited about it.
Unknown Executive: Great, thank you.
Speaker Change: Great. Thank you.
Unknown Executive: That concludes today's question and answer session.
Speaker Change: That concludes today's question and answer session I would like to turn the call back to Brian Casey for closing remarks.
Brian Casey: I'd like to turn the call back to Brian Casey for closing remarks. Well, great. Thank you. I appreciate everybody being on the call today.
Well great. Thank you I appreciate everybody being on the call today, and just a reminder that first quarters.
Brian Casey: And just a reminder that first quarter's seasonally always a tough expense quarter as we have taxes associated with stock vesting, bonuses, 401k, HSA matches, and we also don't have the opportunity to earn performance fees like we did in the fourth quarter. But we're sure excited about our five primary pathways to growth, which include our traditional pipeline, which is over a billion dollars, and we anticipate further growth in our Smith product. Our ETF business is growing, and MDST is now on several platforms with more approvals in the process. And our MIS team, Managed Investment Solutions, had over 30 prospect meetings during the first quarter.
Speaker Change: Seasonally always a tough expense quarter as we have taxes associated with stock best paying bonuses for one K HSA matches.
Speaker Change: We also don't have the opportunity to earn performance fees like we did in the fourth quarter.
Speaker Change: We are so excited about our five primary pathways to growth, which include our traditional pipeline, which is over $1 billion and we anticipate further growth in our smid product are.
Speaker Change: Our ETF business is growing and <unk> now on several platforms with more approvals in the process.
Speaker Change: At our MSP managed divestment solutions had over 30 prospect meetings during the first quarter.
Brian Casey: Three of those prospective clients are very interested in talking further and seeking approval for an allocation to our MIS team. We continue to expand our private equity business, and lastly, our wealth business is adding technology, people, and new processes to really strengthen our competitiveness.
Speaker Change: Three of those prospective clients are very interested in talking further in seeking approval for an allocation to Rms team.
Terry Forbes: Continuing to expand our private equity business and lastly, our wealth business is adding technology people and new processes to really strengthen our competitiveness. So thanks again for making time to join our call today. Please reach out to Terry or me or visit Westwood Green Dot com to access our filings for more information on web.
Brian Casey: So thanks again for making time to join our call today. Please reach out to Terry or me or visit westwoodgroup.com to access our filings and for more information on Westwood. Have a great day, and thanks for your time.
Speaker Change: Have a great day and thanks for your time.
Unknown Executive: This concludes today's conference call. Thank you for participating. You may now disconnect.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.
Speaker Change: Okay.