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Money Management

BrightSphere posts 1% dip in AUM despite nearly $2 billion in net inflows

BrightSphere Investment Group, formerly OM Asset Management, reported $240.1 billion in assets under management as of March 31, down 1.2% from Dec. 31 and down 3.8% from a year earlier, said the company's earnings statement released Thursday.

The company attributed the decrease in AUM primarily to market depreciation.

BrightSphere had net inflows of $1.9 billion for the first quarter, vs. net outflows of $3.7 billion for the fourth quarter and net outflows of $2.5 billion for the year-earlier quarter.

"The first quarter of 2018 was marked by strong financial and operating results, as well as the successful transition of our management team and our new brand name, BrightSphere Investment Group," said Steve Belgrad, president and CEO, in the earnings statement. "Notwithstanding volatility in the equity markets, our affiliates continue to generate strong long-term investment performance."

Broken down by asset class, BrightSphere had $126.3 billion in international equities as of March 31, flat from Dec. 31 but up 20% from March 31, 2017; U.S. equities had $76.6 billion in assets, down 5.7% from Dec. 31 and down 6.7% from a year ago; alternatives had $23.3 billion, up 5.4% from Dec. 31 but down 52.6% from March 31, 2017; and fixed income had $13.9 billion, up 3% from the end of the previous quarter and up 5.3% from the end of the first quarter of 2017.

Revenue on a U.S. GAAP basis was $249.7 million for the quarter ended March 31, flat from the previous quarter but up 27.3% from the year-earlier period. Net income, meanwhile, was $57.3 million, vs. a net loss of $48.8 million for the fourth quarter and net income of $21.4 million for the first quarter of 2017.