Artio Global Investors on Thursday reported $26.6 billion in assets under management as of March 31, down 12% from the prior quarter and off 48% from the year before.
For the latest quarter, market-related gains of $2.3 billion couldn't offset net outflows of $6 billion, which accelerated from outflows of $4.8 billion for the prior quarter and $3.2 billion from the year-earlier quarter.
Those outflows were focused on Artio's two biggest strategies, the firm's international equity offerings, whose performance has struggled in recent years. Richard Pell, Artio's chairman, CEO and chief investment officer, noted in an earnings release Thursday, that both strategies have “solidly outperformed” year to date.
For the quarter, Artio's International Equity I strategy, with net outflows of $3 billion, ended the period with AUM of $6.5 billion, or 24% of the company's overall assets. Artio's International Equity II strategy, meanwhile, with net outflows of $3.4 billion, ended the period with $8.5 billion, or 32% of overall assets.
Meanwhile, Artio's high-grade fixed-income and high-yield strategies enjoyed net inflows of $128 million and $413 million, respectively, ending the period with combined assets of $10.7 billion, or 40% of overall assets.
By investment vehicle, Artio's retail funds proved relatively resilient during the latest quarter, slipping 4% since Dec. 31, to $12.8 billion. Separate accounts, meanwhile, saw deeper cuts, falling 20% to $7.9 billion, while subadvisory accounts tumbled 31% to $1.6 billion. Institutional commingled accounts, meanwhile, dropped 12% — in line with Artio's overall fall in AUM — to $4.3 billion.
For the latest quarter, net income attributable to Artio Global Investors, by GAAP accounting standards, came to $4.6 million, down 44% from the prior quarter and off 79% from the year before. Revenue, meanwhile, came to $43.9 million down 15% from the prior quarter and off 47% from the year before.
