Four money management firms announced increases in assets under management for 2006.
AllianceBernstein Holding had $716.9 billion in assets under management as of Dec. 31, up 8.7% from the previous quarter and up 24% from the year before. The firm reported net inflows of $10.6 billion for the quarter - institutions accounted for $6.3 billion of that total; retail investors, $2.3 billion; and high-net-worth clients, $2 billion. Net inflows for the year totaled $47.8 billion - institutions contributed $27.2 billion; retail investors, $12.2 billion; and high-net-worth clients, $8.4 billion. Revenue for the latest quarter came to $1.19 billion, up 27% from the prior quarter and up 30% from the year before. Net income came to $421.4 million, up 67% from the prior quarter and up 45% from the year before.
Franklin Resources had $552.9 billion in assets under management as of Dec. 31, up 8.1% from the previous quarter and up 19% from the year before. The firm reported net inflows of $10 billion for the quarter, up from inflows of $2.4 billion for the prior quarter and $5.8 billion for the fourth quarter of 2005. Revenue for the latest quarter came to $1.43 billion, up 10% from the prior quarter and up 21% from the year before. Net income came to $426.8 million, up 12% from the prior quarter and up 34% from the year before.
Janus Capital Group reported $167.7 billion in assets under management as of Dec. 31, up 5.9% from the previous quarter and up 13% from the year before. For the quarter, market appreciation of $10.6 billion offset net outflows of $1.2 billion, while for the year ended Dec. 31, the firm reported net sales of $2.3 billion and market appreciation of $16.8 billion. INTECH, the group's quantitative equity manager, remained the strongest contributor, with net inflows of $3.6 billion for the latest quarter and $16.1 billion for the year. The firm's growth/blend equity strategies, meanwhile, had outflows of $4.7 billion for the quarter and outflows of $7.8 billion for the year. That disparity in fortunes left INTECH's $62.3 billion in assets under management, within hailing distance of the $66.8 billion in Janus' flagship growth/blend strategies. Net income for the quarter ended Dec. 31 came to $37.7 million, up 28% from the prior quarter and up 13% from the year before. Revenue came to $241.2 million, up 5.3% from the prior quarter and up 7.1% from the year before.
Legg Mason reported record assets under management of $944.8 billion as of Dec. 31, up 6% from the prior quarter and up 11% from the year before, said spokeswoman Mary Athridge. The firm reported record net client inflows of $23 billion for the quarter, which, combined with $30.9 billion of market appreciation, lifted assets under management by $53.4 billion from its Sept. 30 total. Western Asset Management, Legg Mason's bond subsidiary, had record inflows of $23 billion for the quarter, while the firm's equity strategies saw outflows of roughly $1 billion. In a news release, Legg Mason Chairman Raymond "Chip" Mason cited a $39.4 million rise in performance fees, mostly from hedge fund-of-funds unit Permal Group, as a major factor behind the quarterly rise in the holding company's revenue and income. Permal has enjoyed strong growth, with $28.5 billion in assets under management as of Dec. 31, up almost 50% over the past 12 months.
Baltimore-based Legg Mason reported record revenue of $1.13 billion for the quarter, up 10% from the prior quarter and up 64% from the year before. Likewise, net income totaled $174.6 million for the quarter, up 22% from the prior quarter and up 49% from the year before, excluding the one-time gain from the sale of Legg mason's brokerage business.
After a few quarters of missing the market's consensus earnings estimate, prompting selloffs of the firm's shares, Legg Mason's stock price jumped more than 4% in early trading today, while the broader market remained flat.
