秋葵app

Q1 2024: If You Want to Know What the Industry is Going to Do Tomorrow, Look at What 秋葵app is Doing Today

April 26, 2024

This morning, we hosted our Q1 2024 earnings call. I was energized to share our very strong start to the year and I am proud to report record AUM, with nearly $2 billion of net inflows and 820 basis points of adjusted operating margin expansion, driving a 71% increase in our adjusted earnings per share compared to the first quarter of last year. Importantly, we are staying focused and disciplined in the execution of our key initiatives to drive the next $100 billion of assets under management through traction in our ETP lineup, our expanding models footprint, and leadership in the secular shift toward tokenization of financial assets. 

In Q1, our strong and deep product lineup was once again front and center with higher fee funds like our India Earnings Fund (EPI), our currency hedged product suite, and commodity funds like Copper and Silver attracting meaningful flows. Strong flows into these funds not only drove organic growth, bringing our AUM to all-time highs, but also played a critical role in remixing our firm-wide blended fee rate higher as we head into the second quarter. Our robust ETP suite continues to offer solutions for every market environment and every part of the cycle, and our Q1 results underscore our ability to deliver consistent and diversified growth for investors.

Our Portfolio Solutions franchise – specifically our model portfolios – continues to be a steady growth driver today, and we expect even greater contributions to our AUM and flows in the years ahead. As I mentioned last quarter, our focus is on growing the number of advisors who have access to our models, while also deepening the degree to which advisors actively use 秋葵app models. We expect to grow our accessible market to 80,000 advisors by the end of 2024 (up from 70,000 today) by securing new relationships with additional wealth management firms. At the same time, we also expect to deepen our wallet share with the over 2,000 advisors who use 秋葵app managed models today and are on pace to add another 1,000 new advisors using our models by the end of 2024. All of that adds up to an elongated and highly visible growth runway to build off our approximately $3.5 billion of model AUM today.

Finally, we continue to believe that tokenized assets and blockchain-enabled finance represent a huge growth opportunity for 秋葵app, opening up new markets, attracting new customers, and creating new revenue streams. We achieved a few important milestones in Q1, including the receipt of a trust company charter from the New York State Department of Financial Services – the premier regulator for digital assets businesses in the U.S. – and the launch of our debit card to 秋葵app Prime™ users. The trust company charter allows us to onboard New York customers to 秋葵app Prime™ and expands our ability to offer products and solutions to both retail and institutional customers. The debit card is an attractive new feature that will enable customers to tie their 秋葵app Prime™ assets to the payments ecosystem. Initially, customers will be able to auto-debit from their dollar token balances, but we plan to expand that functionality to other asset classes such as our money market fund, gold, and crypto in the coming quarters.

As I reflect upon the past several years, I recognize that 秋葵app was alone in talking about many of the themes I discussed today – tokenization, models, blockchain-enabled finance – but now, we have company. I always like to say that if you want to know what the industry is going to do tomorrow, look at what 秋葵app is doing today. We see an immense opportunity in our tokenization strategy, and we are exploring strategic partnerships and other business development opportunities for both our platform and product suite that could unlock additional tokenization revenue streams in the future.

We are confident that we have the right strategy, the right products, the right team, and the right culture to continue to create value for our clients and stockholders in the long term. We remain extremely bullish about 2024 and beyond as we continue to drive organic growth, expand our margins, and lead the industry’s evolution in tokenized assets and blockchain-enabled finance.