Acadian Asset Management Inc.

And welcome to the Acadian Asset Management Incorporated Earnings Conference Call and Webcast for the fourth quarter, 2024. During the call, all participants will be in a listen-only mode. After the presentation, we will conduct a question and answer session. To be added to the queue, please press star followed by the number one at any time during the call. And if you need to reach an operator, simply press star zero. Please note that this call is being recorded today, Thursday, February 6th, 2025 at 11 a.m. Eastern Time. I would now like to turn the call over to Melody Huang, Senior Vice President and Director of Finance and Investor Relations. Please go ahead, Melody.

Good morning and welcome to Acadian Asset Management Inc's conference call to discuss our results for the fourth quarter ended December 31, 2024. Before we get started, Please note that we may make forward-looking statements about our business and financial performance. Each forward-looking statement is subject to risk and uncertainties that could cause actual results to differ materially from those projected. Additional information regarding this risk and uncertainties appears in our SEC filings including the Form 8-K filed today containing the earnings release, our 2023 Form 10-K, and our Form 10-Q for each of the first, second, and third quarters of 2024. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update them as a result of new information of future events. We may also reference certain non-GAAP financial measures. Information about any non-GAAP measures referenced, including a reconciliation of those measures to GAAP measures, can be found on our website, along with the slides that we will use as part of today's discussion. Finally, Nothing herein shall be deemed to be an offer or solicitation to buy any investment products. Kelly Young, our President and Chief Executive Officer, will lead the call. And now, I'm pleased to turn the call over to Kelly.

Thanks, Melody. Good morning, everyone, and thanks for joining us today. As I take on the role of CEO of Acadian Asset Management, Inc., I'm mindful of the incredible journey that has brought us here. Acadian has been around for nearly 40 years. And for most of that time, we've been under the umbrella and brand name of another holding company. But today marks the first time that Acadian releases earnings as a standalone company. Our firm has been built on an impressive performance track record through various market cycles. We have a stellar reputation among institutional investors, and we're the only standalone publicly traded systematic manager. The BrightSphere chapter closed at the end of last year, and today I'm delighted to share Acadian's results for the fourth quarter and to update you on our long-term growth strategy. Since this is the first Acadian's earnings call, I'll also introduce you to Acadian's CIO, Brendan Bradley, and Brendan will walk you through our investment performance. Finally, Melody Hung will close with an update on our capital allocation, and after my closing remarks, we'll move to Q&A. I'm happy to report that we ended 2024 on a high note. During Q4, AAMI achieved the highest level of quarterly ENI EPS in the firm's history. ENI per share was $1.30 compared to 77 cents in the fourth quarter of 2023. The 69% increase in ENI per share compared to the year-ago quarter was primarily driven by 50% growth in ENI. And ENI for the fourth quarter of 2024 was $49 million, a $16 million increase from prior year, primarily driven by higher ENI management fee revenue and higher incentive fees. Adjusted EBITDA of $73 million was up 41% from Q4 of 2023. Higher AUM from both market appreciation and investment returns over the last 12 months also drove the fall year 2024 ENI and adjusted EBITDA increase. Acadian's 2024 ENI was $106 million and adjusted EBITDA was $177 million for the 12 months ended December 31st, 2024, a 40% and 32% increase respectively from the prior year. Record ENI EPS of $2.76 for the full year represented a 55% increase compared to 2023 and was additionally driven by the company's accretive share repurchases. Net client cash flows for the fourth quarter of 2024 were positive by $900 million, as Acadian continued to produce consecutive quarters of net inflows. Total positive MCCF were $1.8 billion in 2024, the first positive annual net flow since 2019, which was driven by Acadian's highest ever gross sales year of 21 billion in 2024. This success is a testament of our proven investment process, as well as Acadian's world-class investment and distribution teams. As a systematic investing pioneer, Acadian was among the first firms in the world to apply data and technology to the systematic evaluation of global assets. This edge enables Acadian to deliver strong, risk-adjusted returns that help our clients meet their long-term investment goals. Now, let me introduce you to our Chief Investment Officer, Brendan Bradley, who's going to walk you through Acadian's investment performance this quarter.