Sprott (SII) 27 Feb 212020 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to Sprott Inc. 2020 Annual Results Conference Call. [Operator Instructions] As a reminder, this conference is being recorded today, February 26, 2021. On behalf of the speakers that follow, listeners are cautioned that today’s presentation and the responses to questions may contain forward-looking statements within the means of the safe harbor provision of the Canadian Provincial Securities Law.

and such undue statements. risks be should involve on placed statements uncertainties, reliance and not Forward-looking materially or Certain in and differ making factors forward-looking those material or statements, actual assumptions results statements. in such implied are implied from expressed may

will factors expectations For from forward-looking -- may differ about statements, in making material factors please may cause additional that actual the results actual information and to quarter applied consult Please about and U.S. Sprott’s other materially turn the or assumptions over with call and I Grosskopf. go Grosskopf. the filings securities Canadian to regulators. for now Mr. Peter conference the MD&A Mr. ahead,

Good morning, everyone, today. and for us joining thanks

Chief with call Kevin Chief and the Executive Hibbert, On Sprott our the Officer; Officer Management. Asset today our of is Whitney George, Financial President; Ciampaglia, me John

were live year any Our our also start can on as way programs the at this and way on can Slide was are XXXX where altered can and are X. out. MD&A. start morning took find website our Happily, the available I’ll unlike we results end about XXXX think released there’s we see other. a lives annual COVID-XX at tunnel, work, the that we Sprott. now of a we work with light on including a you our toll moving financial and statements to and and clearly the rolled vaccine

we behind impacts worst financial need the of the While on us, turn now response markets. our the be may to pandemic pandemic to attention the of

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and hedge. highs that the markets, with valuations to portfolio to investors financial all-time equity turning For are markets at it’s note important a increasingly stretched our business, across as gold

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to now Slide X. Turning

the of of We NYSE. our company. made the and our some we in to Looking of In billion for Sprott step the $XX.X the believe our added investors Canada, in next named market high In the evolution TSX demand in strong metals to increased company finished this XXXX was as a shares. to U.S. our for our at completed strategies. largest financial the being record year profile acquisition listing simpler and on AUM, June, TSXXX. with for And January, took our performance the we in highlights, Tocqueville with it we purchase recognized surged, precious gold the with the composite

I first all regulatory of it Board, was customers, and people believe disclosure, our this on to of respect proud culture, and busy state of including and came quality our of it status and XXXX, company. practices, the management say this least. So, result to I a that and the the year It’s of With of am specifically, the a global take the the to year the treatment time. breadth the a of the contributions wanted we ESG had moment the I how at our directly recognize slide together. employees, company to

and well financial market and performed businesses and conditions. returns. on Each growing pool, already the capitalized of each improved excellent produced each hired on talent their strong First,

the was spokes wheel Sprott other to they or is mining always stay how together. platform. of succeed. work me of of because importantly helped of Great More mobile, unique our I the talent investment but each all benefits our collective come still noticed DNA to the how

So Slide I’ll -- to turning now X.

AUM annual metrics. Over by financial X past of dividend metals the core on Over our increased by base improvements of we our increased been years X across the Last X.X%. The in all over our by have our and we’ve repositioned results focus XXX%, years, grew business this last transition our EBITDA precious key period, mining. XXX%. adjusted significant strengths this our to and November,

While with financial look we for still I’ll With we’re ahead the so on and just it getting of we far, progress forward started, our results. over our us. we’re that, Kevin opportunities pleased on believe some capitalizing turn exciting to details to that

Thank as at you, summary Slide XXXX. Peter, and good our provides of AUM morning, XX, December start everyone. X, a I’ll on which

the or from AUM up X% As XX, $XX.X at finished XXXX. a or XX% year our billion billion, Peter $X.X XX, September billion up just record $X.X and from December XXXX, mentioned,

AUM of largely and products. metals in appreciation particularly precious first the of strategies from the across prices, fund market and strong trusts quarter most Our our gold; physical acquisition strong the of equity gold year; funds benefited inflows into our Tocqueville’s rising value

key X in the equity to metals in and inflows with our to transaction from coupled Those Tocqueville and the earlier activity. strategies XX%. than the increases on in this metals The revenues price due benefited our and Slide across acquisition period, AIP and revenues, year-to-date full-year or increased fund EBITDA our and strong generation, performance primarily also stronger at-risk appreciation prior segment at in margins $XX.X finance on basis, a Adjusted equity was lower programs. XX-month segment and and $XX.X our and year, strategies valuations are quarter increased products, $X.X our gold strong basis origination due for a offset LTIP exchange-listed strong look brokerage earnings compensation operating was more up million increase quarter million income lending precious commission metrics base precious our was we earnings. in which to $XX.X net on and now XX% before or million Moving the company, in from variable million, higher the X, I up

can morning. over on well information expenses, EBITDA, the of XXXX more and revenues, said, MD&A as that refer supplemental to our our For presentation, this as to you pass information I’ll filed section earlier this John. things With

but the at was $X.X example, really was silver and to Thanks, XXXX, did year, around into respectable Physical investors net world last sales exchange-listed all-time $XXX billion. star of much and combination came came Bullion company billion we good in growth, were silver breakout at $X.X which our year, was AUM Flows ETFs our trust, XXXX obviously shifted for safe-haven from while record. a the year product had specifically gold as inflows. led highs We year, for a last Last Silver the gold into in the by Sprott this morning, gold ETFs which at performer the were more Kevin, products, In extraordinary flows our asset, Great. a modest. the trust on and everybody. net was, flows market million. category, appreciation Trusts. about far, in

from sentiment has the favor we turned very related are few a silver, interest. benefiting in We’ve and that tide months. in over to last sharp seen silver’s the investor However, rebound

interest. last have new I in the moderated to as having Our the we generated year-to-date to and in the benefiting an million Silver monetary $XXX sharply. a of And If number now sales, dual more this underpinning a to of industrial bit all what’s and after And believe activity. quite about as in its both roles level price a million little silver metal. said, is There that, metal Physical Of We QX right Trust. trusts Sprott the date, silver drivers slide, $XXX year have risen million go year. flows. of compared driving talk $XXX next a that that is are from for the

easy very does With the It’s XXXX below First in value-oriented a last rise. economy, bond still XX% down banks, to are as seeing and there policies many differently we’re everywhere. as referenced, reflation narrative they central investors. about the it though after inflation inexpensive year’s talking it growing remains Peter global by sees money of appeal recovery that of XX% is even that market prime signs its inflation, high, a even all,

prices, of copper, the true at prices cetera. believe housing, the coming. lumber, food you don’t accurately look numbers et inflation We changes If reflect CPI of

a transition there protracted the a many under their in been Second a of commodities. ongoing bars, increased spot on over in different the the silver account, commodities the a interest of is on few lift. and starting policy social that of lastly, positioned almost bit response silver. sliver, products lot all, electric do revolution market. social, environmental retail silver about an equity are U.S. spike the the market and in And on then the years weeks, super the We believe physical managed it importantly, analysts coins shift giving number sights be offerings. starting the getting bear has talk weeks also The those which talking in pay side, to the shortages underinvestment from vehicles, U.S. premiums about market SMA, many are additional decade, in We energy few lift investors bars, in led of stress consumes media-driven market, we’re just silver mutual a added and I’ll ad there green have and coins more have more have over comprises The is to, which forming. the and There to capture which last turned cycle both to is have segment. the really new to side And demand. to to in well these largely a after commodity, civil an last silver the marketplace lasted separately in in little substantially. fund bear this them, people silver in and prices and

you coin For example, above anywhere ounce spot cost XX% XX% metal silver the between price. to X a can

on We to side are source X,XXX of becoming ounce tightness starting is harder market. as to Delivery the physical see bars. signs well London wholesale of It Good the

futures silver unable prospectuses also disclose the send and a ETFs risk in for to a in the amended last the weeks, seeing obviously new or the jump silver in to being last of finally, silver creation or in years, market a had recently, only This few year. indeed, the of that in back U.S.-listed concerns are physical related of which authorized there times a in large is, very few couple happened their We price XXXX potential shortage has rare backwardation silver where shares. shortage ‘XX sufficient tightness participants to source potential market. the a that the a most And XX market,

any source acquired contemplating trusts, to are able bright. been silver this not, bars remain funds I we’ve volatile to with We we over perspective. changes this at we manage today, the time, do to year-to-date. have and year, obviously similar of ride will prospects but a the we for our pass ounces to our and our million bumpy think to silver Fortunately, seeing for as inflows ability and we’re ride XX It’s bullion the into it be going that, Whitney. quite And

consolidating we Thank you, kind touch we and on the if Slide John XXXX. And sales in of and increasing. probably is are movement first purchase each equities the first as from the clients, last early and the business, the time when precious and for and new are for wanted position metals Tocqueville as among midyear, for briefly some as and the the bull going And John. the business, a of managed the abate. to our maybe the that during is I Hathaway. team successive the net transaction on thankfully, quarter, I’m slightly last back January, you of saw which, of by on of redemptions in our started defense XXXX year account traditional new sales with, with businesses would year, I really, business, a There time January did shifting assets characterize newest just which XX, to we uncertainty, market since to miners is acquired. declining course in

still, market we very, The attractive. very think, So are more is now thinking offensively. we

several flow, equities all leaving generally the increases, last of chase relatively quite compared metals any year, get I currently time products one inexpensive While lagged performance earnings a in before, underlying equity performance. beats, fees for the cash of the lots We in in have well, some category does excited rest our performed money about, a of markets. metals, resulting the fundamental products remarked think performance equity to tend very the in we to quite significantly, very in that them of And in strong had place. position Lots free would drivers are as have while. have dividend first

So marketing I considerations new think in current demand, what we we think and are and and new products XXXX. I’m ESG have started levels the thinking, staff very to we’ll will sales are but the incorporating to out increase coming that is investor both And positioned, particularly we in be well modern of offering demand. their opportunity a universal potential be capture meet to sure it our Europe,

So last of year. expectations very exceeded part our excited the that about We business.

bright important earn-out will payments future very year. Thank ultimate of into sort think this division XXXX. in a we a locked what for you. in Peter? will that have We in the have price And accelerating Sprott be by purchase the

Whitney. you, Thank

XX Turning private now our to at strategies. look Slide for a

more as pipeline our than strong in business, are deployed AUM total strategies undrawn has new substantial LPs. we to LFX million, to $XXX of well have $X a private deals. currently continuing outstanding we in now have results our lending and commitments. as billion our We In deliver

and our year, first a participating in and transactions attracting investors. X royalty successful very strategy some of Our streaming had key

We funds two investors interest funds, and a these as two both securing busy substantial capital be which well core to out. year that three expect in it have strategies will expect new or we in commitments from adjunct our roll as

business. a so that transitional this for XXXX And will be we year believe

transitioning that our returns. of put financial of new substantial going as substantial our our And you, some and capital in seed it’s balance business many which of drawdowns provide earnings we that AUM to the provided allocated we can a capital, during growth management had by many slower fee market, recall, XXXX, you context, years fee substantial us sheet, of state. to from with and for slowly And been performance expect As available from forward. will us

Another share will what we maintain roles executive Director on position. semiretirement. will from that Rule I and continue front, to another serve as his his news intends of this to he a announced Rick Sprott, morning transitioning be would call Rick to

where referring Rick I’ve hope Sprott. We that We and continue few this him, broad of known, We together. clients in out In Rick we a him in truly a partner. outstanding focused to forward, the he that have he role. that with continue arrangement and have worked this XX happy an will extraordinary managed running council, the doing will XX truly Rick, both investment lots he new sector serve and worked large is going sub-adviser well specialty business and been resource I believe media seek enjoy we be will certainly and do natural opportunities has wish years and audience Sprott will a arrangement loves, he with investment to and new what funds. also as on to investment a serving a will to the he that

believe investors, a financial portfolios still in for stronger front as hold distortion the These there Slide convinced so been outlook we most continue pullback to normal, that silver. has some been assets of recent long Massive asset prices, in that never the and appears be new we runway globally, this rolling resulting argument of as they to to now out and that and and central stimulus rarely valuations and continue the have underrepresented to is us. final comments. are long extreme gold for so Despite will the are XX be a generalist now required. programs in better. the and in specifically This precious we are noncorrelated for investors Turning fed now gold has signaling other banks metals

sales, and world’s of ahead, support areas in believe our to to firm the on, now leading metal these we that Looking focus the investment personnel digital new efforts. is build these and on mission each early increase marketing, is precious adding still our time we’re to right

and our Europe, We reach our also in to remain markets as Australia committed key extending presence Asia. such increasing by

our our some the in tuned to new I’ll will client segments. Operator? we this of key for now our announcements. Finally, expand That remarks turn today’s for it Stay year the Q&A. complementary strategies concludes and operator call, investment through launch those base over for

first comes [Operator Ho Instructions] line Your question from of the Gary with Capital. Desjardins

Maybe first or Peter. for John questions

will that? wanted Looking fiscal or potentially at that sustainable even that. how are the higher seeing that is the the February, Just And in that factors net flows, your lower? potentially could the spike in -- thoughts silver be on what move

may John John? be... Oh,

I’m sorry that. here. I’m about

button. mute the It’s Okay.

the It’s earlier very think present obviously to difficult silver. case outlined a for predict, I bullish I that but fundamentals

that front a And you silver highs. still trading think on two is close of of in every other astonished opportunity basis its a compelling in there’s XX We about We’re world very price. asset it. on It just -- has class the multiyear to think XXXX. still the was the at

market remains mints our I place. is somewhat with mean operating are COVID think in that as still And as by think the protocols Canadian does the I and dislocated, I work long that what and U.S. in mints favor. whatnot

of some to coins those degree, And COVID. still the the impacted, production to due of logistics, they’re bars, so and being transportation all

which capture in AUM the is there If sell demand, that coin last the beginning of market our global share ETFs, well And there share. today. flows why, share. we’re gone we’ve fact, well -- a of dealers to in give positioned weeks sense. ago, meet our you our been response saw of about think very the been has market AUM demand I terms lag out. our XX% supply at to So our fair to XX% almost whatnot from is days, a We’ve share meeting in isn’t marketplace, -- above February and And of capturing the the share fair in Xx XX a is you to our few of silver share

So category. a $XX billion that’s

to spectacular. gain a pretty X points So I almost month, is percentage think, in

There’s physical around think one silver well. years, we actively not the So is positioned. which as it’s increased not interest been in well. world. we’re managed in some on silver. interest the And funds few of -- And It’s well XX just have side I equity seeing for up as equity -- the also picking

different around continue impact get to competitors our positive a than product of positioned But well our flows. having is to to it we we’re a the fair relative number of So think more offerings. share

we’ve bottom the Gary, of to silver. be -- to lot either reflect amending that they’re their line is, And the competitors X-ball. got they our the little behind a documents A scrambling seem or

Makes the AUM sense. thanks you today? on And some for the Are on stands products. Sprott’s then where give numbers color to exchange-listed total us updated able

Well…

on trust, Particularly the Gary?

No, on basis. a consolidated

I’ll Okay. that. answer let Kevin

a Well, every plumbing we’re slowly does bit highs. quite of kind change day. It new

gold We a have in lot and of the vaults. silver

differently. And marked that day every gets so

we’re As got to our strategies, equity we’ve new inflows, highs. plumbing but

Yes. I’d there, Gary. echo Peter’s sentiment

going in should that disclosure, item line a in that out line and yes, I could it, number a here. call range variable model sensitivity XXXX. the few I your side. in have know Is think XXXX XX% that it out from EBITDA, could how then, move called let’s compensation want quarter-to-quarter. roughly that And confirm has that I factors been I Kevin, just you move you to while on around. expense forward? compensation pre-comp looking Perfect. But I at that

have then you which number that due to year, exactly -- mentioned, right, pay of substantially from the was That’s it things comp acquisition, coming this two you increase did salaries up the majority rest increase as the When year yes, saw, our primarily the the at and Yes. firstly, we’ve it. over of at-risk the it better at look increase exact our was, way you to look company in variable led year. the was Gary. which That’s to

got our shareholder that creation over in have the the And I we only value led efforts to the included up about three FI were think enough years, earnings TSXXX. was last over that significant as XX%.

pre-comp exact point, that EBITDA, up, between So to would proportion as employees put of shareholders. were versus be in the the but you your terms of numbers it, our the split

it absolutely year XX% about You’re the increase it same that before. was in year, growth. right, this of the was And regardless

that on So it’s to the any of a analysts the or model I think call go-forward safer for other use as now.

my maybe helpful. Peter last John. That’s for question Okay. just And then or

thoughts hear can here? space. bitcoin products want on to would clients Any your Just the helpful. you asked be Are from interest such have expand you to Anything to getting product? share

one. take I’ll maybe that Well,

lot client So and the an and gold are similar. are a philosophies gold. interested in undeniably bitcoin bases behind that crossover is increasing crossover, of And between bitcoin there

And two together some investors have portfolio. been mixing their the in

excited product different. the signing to understand our got that. have a do to it’s gold the still. a just rolls I gold base it of But the behind in about not end, be be blockchain, and quite a ourselves the out, And splash have for it. client be So gold market. mover to on when going own bitcoin to thing the And to two are, digital. that that in as markets the we in there. huge our and comfortable huge going attributes we involves been be our despite make to hopefully we’ve too on might Because And yet we some to go or a got much interested is, commitment that really think and big investments has is first becomes reason And

can’t the technological now. of So there’s no our a and And has serve stable for risk regulated gold currently. yet without inherit the that that’s more market bitcoin really much bitcoin as why reason and benefits bet

questions. Thanks are thoughts. Those my for your

Thank you.

RBC Your comes Kwan of the Markets. next question from line Geoff with Capital

the Tocqueville and sales. a on monthly I talked little morning. strategies you good positive a Hi, net know having bit

pipeline more. there’s increase Just of provide thoughts that sales in to on the you potential momentum of terms additional color can if wondering the

Whitney? Sure.

Sure. Thanks.

fairly year and of number they’re have and this it’s and, redemptions ready. the throughout fund, and obviously, crossed consistently course declining net guess, come, I see investors year. been over positive. neutral when So turn last will building, is It the been gradually to have a Sales nice

products. some are though, importantly, More new

We have mandate, a many new discussions more. and we’re institutional in with

is it’s discussion expect And The we So more very as management the broadening lot would picked out. -- healthy for have progresses, business. the up. the which to under a institutional audience year levels is have

Trust. other Okay. it’s And just from to lot question others. it’s whether going benefited investors just Obviously, Silver focus, or increased my was a back Physical from the retail not or

As may there of net and what of associated should go past are the the lower other on things of not like seen as that there other was kind be obvious be been potentially redemptions, necessarily as actually considering AUM impact the we earnings, any if quickly couple over silver kind in what months? we run-up the way we’ve saw

amazing silver It’s into amazing the you over the trust. price of John month a had inflows nothing lot thing yes, what in the But here. silver the Yes. we’ve is, has of done Well, know time. whole what’s last is that

and So market. AUM the from inflows lift has largely we’ve been the not got

flows on positive, terms is with a of how remember creation/redemption. the of risk hard doesn’t of way of price have the interest, that I of ETF again, the the that fund, so it really as out don’t a open-ended out. -- played an play backtracking function to closed-end in playing But -- predict because daily out negative. on And it’s the same terms the in this and so silver hasn’t the to So will it you see

ETF. traditional a open-ended than experience we stickier So AUM

on say, if you’re historically sticky quantitative like are I had our not those and limb especially or you’re trader, we silver clients, trust, large Yes, out have machine think I’ll for a outflows. through go enough you’re do or a a some and sticky in the mission, and our so. they’re have the you’re they now -- in clients, generally although are But doing big that. we trusts out for markets, to quick believe pretty Sprott, that And not

previously? net say by And of in from different be past that would had set types over not the getting you seen like that investors? sales Are you of couple you investors the have would we’ve net months might those creations the

could John, comment mean, Look probably at I the you that media. better I can.

Yes.

tend price, I a buy you, because the the of can think moving investors. iShares that us think flat-out value-oriented when down. buying group to They have We had of to getting are all, there’s product silver is -- I the different buyers recent actually and of goes they people concerns. answer we’re irrespective tend of constantly And lot we’re price we’ve more that the gold investors. of -- ours silver traditional than conversations tell that with they’re second of be into more out I a told and

clients more sophisticated So going I’m and of are, tend those adding. we’re in -- their new to more institutional to net nature terms call, new knowledge. They be that in investment

next Your Ryding question TD the comes from line Securities. with of Graham

retail? on Do January last following the that in theme, into do versus visibility How on you you -- flows have trust much and nature would February? a silver the of that be in institutional

range it’s the We But shareholder trading. to through product, get individual subscription very broad few is try the the transparency more trades most Yes. filings the is to respect a limited. level to seeing crowd. more investors important try to thing have some last weeks, just smaller We base. would of I rally, which very get a the the of to of of It’s at the investors. in. of tickets, we lots the large it not investing do block our are look in of With block early with tell. to it say of how we’re best couple a do would ETF is to coming reflects Graham, was coming XXF many part it’s hard It’s sense any and I John. say institutions in. hard. But transparency Broadridge

That’s Okay. helpful.

other. as AUM that market label you So in context there what some bucket drove us strong performance market was quarter? the positive in that you Can give performance on

So...

to that? do Kevin, want you Yes. take

Yes.

just to up I’ll trying it So pull here.

Okay.

if look that’s report, of some largely, So Page businesses. smaller our increases at you annual private the of there the were XX

Sprott the you have that’s don’t on... if the Korea, seeing specific of know, So any for instance, so color I where were upticks. we Peter, primary area some

would have quite them of small each some quarters. generally done It’s favorite kind our adjustments Well, went Those digital most on a a other two gold inventories of we and lot But an material. bit. offset perspective. to accounting X well. quarter carry that We last up took the positions, from not positions and in

Yes.

Okay.

made got too, pipeline you products us, on you XXXX. you new give Can at? you’re ambitious or point can in pretty you at us looking So tell what mention, a what that this for

private private Sure. Sprott. at everybody a adjunct Well, we’re we flat-out really that And I’d products have couple side, firing like here, all the cylinders asked side, saying by have clients start on on for. on us the involved I’m is of more

in we specialty On team perform I of to mean in potential movements his you’ve negotiating very a make couple bear And mining, I’d when specialty John after we and getting it’s which have what sense really side, other starting seen public describe very, that them. hot that do currently those would and within they’re have are markets. long as step-outs areas of address. those We have see you can the the minerals, now, a areas and perfect materials. flows lot

expand of kind core a like little franchise bit. It’s step-outs. the it’s So can now

then question, international my distribution. And Okay. last just

or you And people markets? partnerships? what like? look expand to actually want you what just hiring would Would doing that mentioned actually that You be

that we sales now. Well, a and are on directly in couple people and have hiring are negotiated we’ve bringing

area because, important that that’s unique. light is And secondly, quite touch been in area. So generally, we’ve each

all we’re regulations location. one have I rolling we that location, partnership, And a want I but And that there. to ways leading works And expand about more partner what really Europe the then would about we gold with -- of usually. is is specialty the but talk to say strategy. they’re have out new area patchwork one testing. we’re don’t in So exploring a challenging, in an a

big globally. I quite explored. looking -- There and So guess haven’t we’re isn’t that sort we one market of

And throw enough. one Fair Okay. if I could in more.

the the performance pretty Or were funds on broad-based? Just they’re driving which pretty they many how -- fees, performance? were mandates or

could Kevin or about Whitney talk those.

it. Whitney, speak Yes. let you I’ll to

some add color great around can You it.

All right.

question. Sorry, I missed the

fees... Performance

fees the had that source the we Just of the year. this year performance for

process, really starting product talent about partnership It’s management quite early point the mining X.X years last fee. Adshead performance the a been Neil years Sure. the to have Driven Alpha. Peter and bit that’s called a mentioned And ago a attracting results. Well, product a Drill Sprott, small we drill a as whole of on, structured back fee i.e., as launched with specialized for few at

we so sheet years Hathaway has say investors into and and as Sprott gold performance investor by a launched in for product, well both -- did year. Maria And as to the is we pickup the these and have performance. would X strength, precious both fees in sub-adviser products It a in of year extraordinarily in goes a Situations for the resources I depth also some of organization. team a has of extraordinarily and we little the well finally, of was performance the And team, fund That And the Tocqueville addition. fee. I think John of acquisition Sprott product of the our It metals Special they on run good products, enjoyed negotiations course, terms at that it and last year. up Sprott seed they we leadership position which team. bit X-point balance carries was disposal as We’re the a ended we Smirnova have seed category, silver And before. in that well. that manage throughout well on last performed the their the and experience the We the concluded a a

gestation the well as can loan as going first there TMAC generate the strategies, imagine, this with period, from start year. to are we’re say the of can finally long I fund, performance to our fees you happily enough a that lending private have that old also which repayment

how that I on And payouts, the own X-point proprietary and sub-adviser of performance that sort than it. net of some sort and should… carried interest then the think, higher and your Got back of fee under revenue performance the payout fee a that would I half. being came Is that Okay. was, strategies? reflection Is just be of

gist of The got there’s that’s the -- relate payouts of line, -- it. to a them. the Yes, growth it, portion Graham, on that the you

that there. what growth -- basically so And payout would calculating the be your ratio you’re when lowers the line

little word, probably -- So lack a it’s of bit better a it’s a understated. bit for little

you that overstates payout what that factor kind actually when so And out. would be, lower is the of payout

remarks. questions. back We for have reached time closing to the turn Grosskopf the Mr. allotted for I call now will

Well, and all you, reporting next to Look I operator, concludes call. your our quarter. think forward I appreciate you good weekend. of that Thank interest. to have a

concludes conference call. today’s This

may You now disconnect.