AMG's AUM rises 4% in quarter, 32% in 2012

Affiliated Managers Group had combined assets under management of $431.8 billion for its money management affiliates as of Dec. 31, up 3.8% from the prior quarter and 31.9% higher than the year before, the holding company said in an earnings statement Tuesday.

The company's institutional AUM totaled $254.3 billion, a 4.3% increase over three months earlier and 23.7% above a year earlier.

For the latest period, AMG reported net inflows of roughly $5.07 billion and $10.58 billion in market gains. The company reported $10.9 billion in net inflows in the third quarter.

AMG reported “economic net income,” which it defines as net income plus amortization, deferred taxes related to intangible assets and other affiliate-related expenses, of $136.5 million for the fourth quarter, up 149% from the third quarter and up 47.6% from the fourth quarter 2011.

Revenue in the latest quarter came to $491 million, up 3.1% from the prior quarter and 22% higher than the fourth quarter 2011.

“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,” Sean M. Healey, AMG's chairman and CEO, said in a news release.

Daniel Fannon, analyst at Jefferies & Co. said in commentary that inflows at AMG, while moderate, remained strong despite being below Jefferies' estimate, reflecting what he called “the lumpy nature of an institutional client base.”

Of all net inflows, $3.18 billion — or 62.7% — came from institutional clients.

“Flows remain broad-based in the quarter across global, international and alternative products,” Mr. Fannon added.