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MONEY MANAGEMENT

AMG reports 17.4% AUM growth in year, buoyed by new affiliates

Affiliated Managers Group reported total assets under management of $753.5 billion as of March 31, up 9.5% from three months earlier and up 17.4% from a year earlier, the company said in its earnings statement Monday.

The company's institutional AUM totaled $444.8 billion, up 11% from March 31 and up 20.4% from the same time a year ago. Mutual fund AUM, meanwhile, totaled $201.6 billion as of March 31, up 7.1% from three months earlier and up 11% from 12 months earlier. The remaining assets are from high-net-worth clients.

In the earnings statement, AMG chairman and CEO Sean M. Healey attributed the annual growth in AUM to “positive organic growth from net client cash flows over the period, the long-term track records of alpha generation by our affiliates, and the addition of excellent new affiliates.” AMG in the third quarter acquired the minority equity interests in five hedge fund managers from Petershill Fund I, managed by Goldman Sachs Asset Management, upping the firm’s AUM by about $55 billion.

AMG closed on investments in Capula Investment Management, Mount Lucas Management and CapeView Capital during year-end 2016. The company also completed its purchase of interests in Winton Group and Partner Fund Management in October.

Net outflows for the fourth quarter were $1.3 billion, vs. net outflows of $4.1 billion for the fourth quarter and net inflows of $5.1 billion for the first quarter of 2016.

The quarter’s outflows were driven by $4.6 billion in outflows from U.S. equities and $1.1 billion in outflows from global equities, partially offset by net inflows of $4.2 billion into alternatives and inflows of $200 million into multiasset class and other investments. Institutional net outflows totaled $4 billion.

Revenue for the quarter was $544.3 million, compared to $550.3 million for the previous quarter and $545.4 million for the same period of 2016. Net income, meanwhile, was $122.5 million for the first quarter of 2017, compared to $150.2 million for the previous quarter and $104 million for the same period of 2016.