AMG's assets rise 1.5% on record net inflows

Affiliated Managers Group on Tuesday reported combined assets under management of $469.5 billion for its money management affiliates as of June 30, up 1.5% from the prior quarter on the strength of record net inflows.

AUM was 22% higher than the second quarter of 2012.

The company's institutional AUM totaled $267.5 billion, a 0.3% decrease from three months earlier but up 19.5% from the quarter ended June 30, 2012, the holding company said in an earnings statement. Mutual fund assets totaled $142.8 billion, up 6% from the prior quarter and 31.6% above the second quarter of 2012.

Net inflows were a record $13.1 billion in the latest quarter, breaking the previous high mark of $12 billion in the first quarter; net inflows in the second quarter of last year were $7.1 billion. Market losses were $5.6 billion, compared with $19.4 billion in market gains in the previous quarter and declines of $14 billion in the year-earlier quarter.

“Economic net income,” defined by AMG as net income plus amortization, deferred taxes related to intangible assets and other affiliate-related expenses, totaled $121.6 million, down 2.1% from the first quarter but up 38% from the year-earlier quarter.

Revenue came to $541 million, up 7.7% from the prior quarter and 25.9% above the second quarter last year.

Analysts praised the company's inflows. “Flows were broad based in the quarter across U.S., global, international and alternative products,” Jefferies & Co. analyst Daniel Fannon said in a note to clients. “Notably, new mandates were again realized across all coverage regions.”

In a separate note, William Katz of Citigroup Global Markets wrote, “The $13.2 billion translates into 11% annualized organic growth, clearly best in class among those reporting second quarter to date.”