Artio Global Investors reports asset drop; CEO steps down to focus on CIO role
By Kevin Olsen | October 30, 2012 5:33 pm
Artio Global Investors on Tuesday reported $17.7 billion in assets under management as of Sept. 30, down 16% from the prior quarter and off 48% from the year before.
For the latest quarter, market-related gains of $800 million were offset by net outflows of $4.3 billion, which improved from net outflows of $4.5 billion in the prior quarter, but were worse than net outflows of $4.2 billion in the third quarter of 2011, according to its third quarter earnings statement.
The outflows were focused on Artio's two biggest strategies, whose performance has struggled in recent years.
For the quarter, Artio's International Equity I strategy, with net outflows of $1.25 billion, ended the period with $3.75 billion of AUM, or 21% of the company's overall assets. Artio's International Equity II strategy, meanwhile, with net outflows of $2.54 billion, ended the period with $3.1 billion, or 17.5% of overall assets. Those two strategies had $10.8 billion and $13 billion, respectively, at the end of the third quarter of 2011.
Artio's high-yield strategies were its only offerings to see an increase in AUM, to a combined $4.6 billion from $4.4 billion. However, net outflows were $18 million while market-related gains were $201 million.
For the latest quarter, net income attributable to Artio Global Investors, by generally accepted accounting principles, came to a $52.1 million loss, down from a $1.5 million gain in the prior quarter and a $6.4 million gain from the year before. Revenue, meanwhile, came to $26.9 million down 18% from the prior quarter and off 58% from the year before.
Separately, the company announced that Richard Pell will step down as chairman and CEO, effective Nov. 1, and focus exclusively on his chief investment officer role. Tony Williams, president and COO, will take over as CEO and join the company's board of directors. It could not be learned whether he will retain his previous duties, or who might replace him.
Francis Ledwidge, lead independent director of the company, will assume the role of chairman.
Mr. Pell has been CIO since 1995 and CEO since 2007. He will take on a more active role in the day-to-day management of the firm's international equity strategies.
“Generating long-term investment performance for our clients remains the key determinant of the success of our business. Accordingly, we believe that our clients and shareholders are best served if my time is devoted exclusively to that endeavor,” Mr. Pell said in a news release.
Spokesman Neil Shapiro could not be immediately reached for additional information.