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Money Management

OMAM’s assets up 3% for quarter despite outflows

OM Asset Management reported $243 billion in assets under management as of Dec. 31, an increase of 3% from Sept. 30 and up 1.1% from Dec. 31, 2016, said the company's earnings statement released Thursday.

The company attributed its quarterly growth to market appreciation of $10.8 billion.

OMAM had net outflows of $3.7 billion for the fourth quarter vs. net inflows of $500 million for the previous quarter and net inflows of $1.5 billion for the year-earlier quarter.

James J. Ritchie, OMAM's chairman and interim CEO, said in the earnings statement that "the fourth quarter was challenging from an AUM flow perspective." However, he said he was "pleased with our progress executing on our growth strategy in 2017."

"We saw meaningful inflows in multiple affiliate products that were seeded as part of OMAM's growth initiatives, including a large ACWI ex-U.S. mandate sourced by our global distribution team," he added.

The company also announced Thursday that Stephen H. Belgrad was named president and CEO of OMAM.

Broken down by strategy, global equities had $126.2 billion in AUM as of Dec. 31, up 4% from three months prior and up 31% from the year prior; U.S. equities had $81.2 billion in AUM as of Dec. 31, up 1% from Sept. 30 but down 1% from Dec. 31, 2016.

Alternatives, meanwhile, had $22.1 billion in assets, up 4.5% from Sept. 30 but down 54% from Dec. 31, 2016. Fixed income had $13.5 billion in assets as of Dec. 31, flat from three months earlier but down 3% from a year earlier.

Revenue totaled $249.2 million for the quarter, up 11.6% from the previous quarter and up 33.5% from the year-earlier period.

OMAM posted a net loss of $48.8 million for the fourth quarter, compared to net income of $18.7 million for the third quarter and net income of $186.6 million for the fourth quarter of 2016.