UBS Global Asset Management on Tuesday reported 569 billion Swiss francs ($644 billion) in assets under management as of March 31, up 1.8% from Dec. 31 and down 3.6% from the previous year.
Net inflows of 5.6 billion francs and positive market movements more than offset negative currency movements in the first quarter.
UBS Global saw net equity inflows of 3.7 billion francs in the quarter, compared to inflows of 2.3 billion francs for the quarter ended Dec. 31 and outflows of 1.1 billion francs in the first quarter of 2010. Equity inflows went primarily into passive global and Swiss equity strategies. Fixed-income inflows were about 800 million francs, up from about 600 million francs the previous quarter but less than the 4.4 billion francs a year earlier, while net outflows from multiasset strategies were 1.4 billion francs, down from outflows of 1.6 billion francs the previous quarter and 3.2 billion francs a year ago.
Net inflows for the first quarter include a transfer of 1.8 billion francs related to a multimanager alternative fund to UBS Global Asset Management from the company's wealth management & Swiss bank division.
Operating income dropped 8.5% to 496 million francs in the first quarter, as management and performance fees fell in alternative and quantitative investment and global real estate. Operating income was down 4.8% from a year ago. Operating expenses for the latest quarter was 373 million francs, down 5.3% from three months earlier and 3.1% from a year ago.
Pre-tax profit was 124 million francs, down 16.2% from the previous quarter and 9.5% from a year ago.
Separately, Affiliated Managers Group reported a record $340 billion in assets under management for its money management affiliates as of March 31, up 6.3% from the prior quarter and up 46% from the year before.
The holding company said its affiliates pulled in net inflows for the quarter of roughly $6.5 billion, up from $4.7 billion for the prior quarter and a sharp reversal from net outflows of $1.5 billion for the first quarter of 2010.
The latest quarter's inflows were the firm's second highest on record, just below the $6.6 billion AMG garnered during the fourth quarter of 2006, confirmed spokeswoman Laura O'Brien.
For the latest quarter, institutional clients accounted for $4.3 billion in net outflows and retail investors added $2.2 billion. High-net-worth investors, meanwhile, pulled roughly $13 million from the group's affiliates.
As of March 31, institutional clients accounted for 62.6% of overall AUM and 58% of earnings before interest, taxes, depreciation and amortization; the corresponding numbers for retail investors were 26.7% and 33%. High-net-worth investors accounted for 10.7% of AUM and 9% of EBITDA.
In a news release, Sean M. Healey, chairman and CEO, cited the strengths of AMG's offerings in global and emerging markets equities, as well as alternative strategies, as factors behind the group's growing momentum, with $17 billion in net client cash inflows over the past 12 months.
He said alternatives-focused affiliates — including AQR Capital Management, First Quadrant, BlueMountain Capital Management and ValueAct Capital — posted “especially strong results during the quarter.”
For the latest quarter, net income (controlling interest) came to $39.1 million, down 37% from the prior quarter — reflecting a decline in performance-related fees from their seasonal fourth-quarter peak — but up 123% from the year-earlier quarter.
Revenues came to $426.3 million, up 1.3% from the prior quarter and up 70% from the year before.