The Motley Fool fool.com 04 Aug, 2022 00:15 am

Sculptor Capital Management (SCU) Q2 2022 Earnings Call Transcript

SCU earnings call for the period ending June 30, 2022.

That being said, incentive income is, of course, based on absolute performance, and our multi-strategy funds are in a year-to-date loss position.But when we think about the combination of recurring earnings, the value of our balance sheet or NAV, and of course, the potential incentive income after variable bonuses that we can earn in any period of time across any number of funds.And that's by making attractive investments for our clients by being stewards of our clients' capital and protecting it, by showcasing the value of our investment capabilities, and doing that with a strong balance sheet, reasonable earnings profile, excluding incentive income, and earnings power with the benefit of incentive income.We also had incentive income realizations of $44.

As an offset, we had compensation expense directly linked to this incentive income, which increased our compensation expense versus our normal minimum quarterly fixed bonus accruals.As we discussed last quarter, this pace during the year is a more sensible prudent approach to our dividend policy, as it better aligns dividend payments with earnings, given the timing of incentive income and bonus expenses.

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