Affiliated Managers Group reported total assets under management of $593.8 billion as of Sept. 30, down 7.6% from three months earlier and down 1% from a year earlier, the company said in its earnings statement Monday.
The company's institutional AUM totaled $337.4 billion, down 8% from June 30 and down 2.4% from Sept. 30, 2014. Mutual fund AUM, meanwhile, totaled $176.1 billion as of Sept. 30, down 8.2% from three months earlier and down 1.8% from a year earlier. The remaining AUM is from high-net-worth clients.
Net outflows for the quarter ended Sept. 30 were $5.1 billion, compared with net inflows of $4.1 billion for the previous quarter and net inflows of $5 billion for the third quarter of 2014.
“Industrywide risk aversion impacted our net client cash flows during the quarter, as inflows to our affiliates' global equity and alternative strategies were offset by retail outflows from U.S. equities, as well as redemptions by several institutional clients, which repositioned their portfolios during the quarter,” said Sean M. Healey, chairman and CEO of AMG, in the earnings statement.
Separately, AMG announced that it had agreed to buy equity stakes in three money managers: hedge fund manager Systematica Investments, which has $8.8 billion in assets under management; South Africa equity manager Abax Investments, with $5.4 billion; and absolute-return manager Ivory Investment Management, with $3.6 billion. AMG bought its stake in Systematica from BlueCrest Capital Management; further information on the other equity stakes could not be learned by press time.
The company did not disclose how much of a stake it acquired in each firm. These transactions have no effect on AMG's third-quarter earnings.
“We were very pleased to announce investments in Systematica, Abax and Ivory,” Mr. Healey added in the earnings statement. “These new affiliates collectively deepen our exposure to some of the most attractive areas of the asset management industry, including especially global equities and alternatives.”
Revenue for the quarter ended Sept. 30 was $613.1 million, down 5.2% from the previous quarter and down 4.2% from the year-earlier quarter.
AMG reported economic net income, a non-GAAP metric, which it defines as net income plus amortization, deferred taxes related to intangible assets and other affiliate-related expenses, of $160.8 million, down 6.2% from the previous quarter but up 2.6% from the same quarter a year earlier.
On a net income basis, AMG reported $109 million for the quarter, down 15.3% from the previous quarter but up 5.6% from the quarter ended Sept. 30, 2014.