Wednesday, January 30, 2013
AMG Saw More Positive Flows at Year's End
Reported by Ben Geier
Earnings reports keep coming in, with Affiliated Managers Group
] joining the throngs of firms looking to tout accomplishments from the last quarter at 2012 as a whole.
In a news release sent out Tuesday, the Boston, Massachusetts-based acquirer highlighted the $5.1 billion in flows it had in Q4, bringing the total flows for 2012 to $30.1 billion.
AMG had $432 billion AUM as of the end of 2012.
“AMG’s results for the fourth quarter and full year 2012 reflected strong performance across all areas of our business and the excellent execution of our growth strategy, including continued outstanding growth from net client cash flows, the ongoing expansion of our global distribution platform, and the significant deployment of capital through our new investments strategy,” stated Sean Healey
, AMG's chairman and CEO.
For more details, check out the press release below.
Company Press Release
AMG Reports Financial and Operating Results for the Fourth Quarter and Full Year 2012
BOSTON, January 29, 2013 – Affiliated Managers Group, Inc. (NYSE: AMG) today reported its financial and operating results for the fourth quarter and full year 2012.
For the fourth quarter of 2012, Economic earnings per share (“Economic EPS”) were $2.55, compared to $1.76 for the same period of 2011, while diluted earnings per share for the fourth quarter of 2012 were $1.40, compared to $0.77 for the same period of 2011. For the fourth quarter of 2012, Economic net income was $136.5 million, compared to $92.5 million for the same period of 2011. For the fourth quarter of 2012, Net income was $75.0 million, compared to $40.3 million for the same period of 2011. For the fourth quarter of 2012, EBITDA was $182.1 million, compared to $116.3 million for the same period of 2011. (Economic EPS, Economic net income, and EBITDA are defined in the attached tables, along with comparisons to the appropriate GAAP measure.)
For the year ended December 31, 2012, Economic net income was $408.8 million, while EBITDA was $543.4 million, and Net income was $174.0 million. For the year ended December 31, 2011, Economic net income was $351.0 million, while EBITDA was $471.3 million, and Net income was $164.9 million.
Net client cash flows for the fourth quarter of 2012 were $5.1 billion, and flows for the year ended December 31, 2012 were $30.1 billion. The aggregate assets under management of AMG’s affiliated investment management firms were approximately $432 billion at December 31, 2012.
“AMG’s results for the fourth quarter and full year 2012 reflected strong performance across all areas of our business and the excellent execution of our growth strategy, including continued outstanding growth from net client cash flows, the ongoing expansion of our global distribution platform, and the significant deployment of capital through our new investments strategy,” stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “Our Economic earnings per share were a record $7.71 for the year, an increase of 16% over 2011, and going forward, we see excellent opportunities to generate further growth in earnings and shareholder value through both the organic growth of our Affiliates as well as the addition of outstanding new Affiliates.”
“Our Affiliates produced strong investment performance in the areas which are most attractive to global clients for the alpha-generating portions of their portfolios, including global and emerging markets equities and alternatives, which collectively generate over 70% of our EBITDA,” Mr. Healey added. “With industry-leading long-term track records in these product areas at Affiliates such as Tweedy, Browne, Harding Loevner, and Genesis in equities, and ValueAct, AQR, and BlueMountain in alternatives, we are well-positioned for continued strong organic growth. In addition, our alternative products delivered excellent absolute returns and meaningful performance fees during the year.”
Mr. Healey continued, “Our global distribution strategy, which complements Affiliate-level marketing efforts with the centralized platform of AMG’s global franchise, has now generated exceptional organic growth from net client cash flows for eleven consecutive quarters – including over $30 billion of net client cash flows in 2012, a period in which investor risk appetite remained broadly muted. The strategic investment we have made over the past five years in extending the breadth and depth of our Affiliates’ marketing reach around the globe has generated substantial incremental new business in every coverage region, and with new offices in Dubai and Zurich and additional resources in Germany and Switzerland within the past year, we expect continued momentum going forward. Given the increasing client demand for differentiated, alpha-generating strategies from specialist firms, and the significant opportunities we see to win new business and market share around the world, we will continue to add capabilities in key markets and channels globally in 2013.”
“Finally, we were very pleased with the successful execution of our new investments strategy in 2012, with the addition of Veritable, Yacktman, and our significant additional investment in BlueMountain,” Mr. Healey concluded. “Our forward new investment pipeline is strong and diverse, and includes traditional, alternative, and wealth management firms globally. We are making excellent progress in this area as we actively evaluate an array of prospective Affiliates, and we will continue to benefit from our reputation as the partner of choice to the best boutique firms around the world. Given AMG’s unique competitive position and our outstanding track record of Affiliate investments, we are confident in our ability to add materially to our earnings growth through accretive Affiliate investments going forward.”
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