Several asset management firms reported increases in their assets under management for 2005.
• Legg Mason Inc. reported $850.8 billion in assets under management as of Dec. 31, 135% higher than the $362 billion reported at the end of 2004 and up 103% from Sept. 30. The increase reflects the Dec. 1 swap of the firm's brokerage assets for Citigroup's $400.8 billion asset management operations and the November purchase of European hedge fund-of-funds manager Permal, which added $19.3 billion in assets. Legg Mason's "legacy" asset managers, led by Western Asset Management, saw assets under management climb 19% to $430.7 billion for calendar year 2005, with $61.8 billion in net inflows.
• Bank of America Corp.'s global wealth and investment management unit reported assets under management of $482 billion at the end of the fourth quarter, up 5.5% from three months earlier, according to a filing with the Securities and Exchange Commission. Bank of America's assets increased 6.8% for the entire year. The company attributed the growth to net inflows and market appreciation.
cFranklin Resources Inc. reported $464.8 billion in assets under management as of Dec. 31, up 2.6% from the third quarter and up 15.6% from year-end 2004, according to a news release. Franklin cited an increase in equity, fixed-income and "hybrid" assets.
• T. Rowe Price Group Inc. reported a record $269.5 billion in assets under management as of Dec. 31, up 4.6% over the past quarter and up 14.6% from the end of 2004. Mutual fund assets rose 17% during 2005 to $170.2 billion, helped by $12.5 billion in inflows, according to a news release. U.S. equity funds accounted for $9.7 billion of those inflows, with international equity funds garnering another $2.1 billion. Also, lifecycle fund assets surged $4.8 billion to $8.4 billion. The firm's net profit for the year was $430.9 million, up 28% from 2004.
• Old Mutual Asset Management reported a record $226.3 billion in assets under management at the end of 2005, up 23% from the year before. Net inflows for its 20 boutique money management subsidiaries totaled $26.3 billion for the year, while investment returns accounted for another $15.3 billion, according to a news release. Those gains came despite the loss of $6.2 billion in value equity assets toward the end of the year, when the directors of the Clipper Fund terminated OMAM subsidiary Pacific Financial Research as the fund's adviser after three senior PFR portfolio managers left the firm.
• Affiliated Managers Group Inc. reported $184.3 billion in assets under management for its money management subsidiaries at the end of 2005, up 5.1% from Sept. 30 and up 42% from Dec. 31, 2004. Investments in new money management subsidiaries added $27.9 billion during the year; net inflows into existing subsidiaries accounted for $10.9 billion; and investment performance added $19.3 billion, according to a news release. Discontinuing a low-margin currency overlay strategy offered by subsidiary First Quadrant shaved $3.6 billion from assets under management, leaving the firm with a $54.5 billion gain for the year. AMG had $119.1 million in net income for 2005, up 54% over the previous year.
• Janus Capital Group Inc. reported $148.5 billion in assets under management as of Dec. 31, up 6.5% from Sept. 30 and up 6.8% from the end of 2004. Excluding money market assets, net inflows into long-term strategies rose $2 billion for the year, following a $20.6 billion outflow in 2004, according to a news release. It was the first year with positive net long-term inflows since 2000. Quantitative subsidiary INTECH continued to dominate the group's inflows, pulling in $5.2 billion for the latest quarter and $16.1 billion for the full year. But according to the release, CEO and CIO Gary Black welcomed signs of "sales momentum across the board." For the fourth quarter, Janus' non-INTECH, non-money market strategies saw net sales narrow to $900 million from $3.4 billion in the third quarter, while outflows for the year narrowed to $14.1 billion from $29.2 billion. Adjusting for exceptional items, the company's net income for 2005 was $113.1 million, down 17% from the previous year.
• Cohen & Steers Inc. reported $20.5 billion in assets under management at the end of the fourth quarter, up 1.6% from the third quarter and up 12% from the end of 2004, according to a news release. The annual increase was driven by an uptick in non-U.S. REIT assets, which totaled $6.2 billion at the end of the year, a 30% increase from one year ago.