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Och-Ziff AUM inches down in quarter as net outflows continue

Dan Och
Daniel S. Och

Och-Ziff Capital Management Group's assets under management fell 1.5% in the quarter and declined 17% in the year ended Sept. 30 to $32.7 billion, the firm's earnings report released Thursday showed.

Net outflows in the quarter ended Sept. 30 totaled $920 million, fund distributions were $46 million and investment appreciation was $484 million for a net decline of $482 million, the earnings report showed. Net outflows for the quarter ended June 30 were $1.376 billion, fund distributions were $31 million and investment gains were $687 million for a net decline of $722 million. Net outflows for the quarter ended Sept. 30, 2016 were $3.4 billion, fund distributions were $339 million and investment gains were $1.1 billion for a net decline of $2.7billion.

During the 12 months ended Sept. 30, net outflows totaled $9.1 billion, fund distributions were $300 million and investment gains were $2.9 billion for a net decline of $6.6 billion. By comparison, Och-Ziff's net asset decline was $8.7 billion in the year ended June 30.

Och-Ziff's AUM as of Sept. 30 was down $15.6 billion, or 32.3%, compared to the firm's peak AUM of $48.3 billion as of March 31, 2015.

Assets managed in the company's multistrategy hedge funds fell 37% to $14.6 billion in the year ended Sept. 30.

By contrast, assets managed in other Och-Ziff strategies rose during the year: institutional credit funds rose 30.7% to $9.5 billion; real estate funds grew 21% to $2.6 billion; and opportunistic credit funds increased 3% to $5.4 billion.

Och-Ziff estimated that its assets under management declined to $32.1 billion as of Nov. 1 with net outflows of $1 billion and investment appreciation of $296 million in October.

"We are pleased with the solid results we posted in the third quarter across strategies and geographies," said Daniel S. Och, the firm's chairman and CEO, in a news release accompanying third-quarter results.

"The trend continued with strong performance in October and we are optimistic that this performance will resonate," Mr. Och added.