Most major publicly traded money managers saw a boost in their assets under management and their profits in the first three months of 2011, driven by a robust equities market as well as positive inflows.
Total first-quarter AUM for the 13 publicly traded managers reporting as of April 29 was up 4% from the last quarter of 2010, according to a Goldman Sachs research report.
The winners and losers among publicly traded money managers are becoming more clearly defined as the market environment becomes less volatile and companies stand on their investment track records, said Michael Kim, New York-based analyst at Sandler O'Neill & Partners LP.
Among the winners in terms of asset growth, Mr. Kim counts Affiliated Managers Group Inc. and Franklin Resources Inc., which reported first-quarter AUM growth of 6.2% and 5%, respectively.
Both companies had even more dramatic AUM increases when looking at the year ended March 31, with 30.7% for AMG and 20% for Franklin.
Mr. Kim said the two companies' increases have been driven by positive performance across various asset groups.
On the other hand, he ranks Janus Capital Group among the losers because of poor performing equity strategies and funds. “Janus has had widespread performance problems,” said Mr. Kim.
Janus suffered net outflows of $2.7 billion for the first quarter of 2011, the seventh straight quarter of net outflows.
On a positive note overall, senior officials at money management firms and analysts said investors are taking on more risk and thus invested in higher-fee asset classes such as active equities and alternatives during the first quarter.
Craig Siegenthaler, an analyst with Credit Suisse, New York, believes the equity market rebounds have set the stage for continued growth in equity inflows for the second quarter and beyond.
“We expect the short-term derisking phase to transition back into a multiyear rerisking cycle given the near-term rebound in global equities,“ he said.
Those moves help money managers because active equity strategies command higher fees than passive investments.