<!-- Swiftype Variables -->

Money Management

BrightSphere Investment Group’s AUM up 8% for quarter despite outflows

Updated with correction.

BrightSphere Investment Group reported $222.3 billion in assets under management as of March 31, up 7.8% from three months earlier but down 7.4% from March 31, 2018, the company's earnings statement Thursday showed.

The increase in AUM in the quarter ended March 31 was the result of market appreciation of $17.8 billion offset by net outflows of $1.8 billion.

By comparison, the firm experienced net outflows of $5.7 billion in the fourth quarter and net inflows of $1.9 billion in the first quarter of 2018.

By asset class, U.S. equity experienced $1.7 billion in net outflows for the quarter, compared to $3.3 billion in net outflows in the fourth quarter and net outflows of $1.6 billion during the first quarter of 2018.

Fixed income had net outflows of $800 million in the first quarter, net outflows of $100 million in the prior quarter and net inflows of $700 million in the year-earlier quarter.

Alternative investment strategies experienced $100 million in net inflows for both the first and fourth quarters, and net inflows of $2.7 billion in the quarter ended March 31, 2018.

BSIG's global and non-U.S. equity strategies had combined net inflows of $600 million in the quarter; net outflows of $2.4 billion in the fourth quarter; and net inflows of $100 million in the first quarter of 2018.

Broken down by asset class, BSIG had $117.6 billion in global and non-U.S. equities as of March 31, up 10.1% from Dec. 31 but down 6.9% from March 31, 2018. U.S. equities, meanwhile, totaled $67.8 billion in assets, up 8.3% from Dec. 31 but down 11.5% from the same period the year prior.

Alternatives totaled $24 billion in AUM at the end of the first quarter, up 0.8% from the end of the fourth quarter and up 3% from the year-earlier period. Fixed income had $12.9 billion in assets, down 1.5% from Dec. 31 and down 7.2% from March 31, 2018.

"We took a number of steps during the quarter to streamline and simplify our business and position BrightSphere for its next phase of growth," said Guang Yang, BrightSphere's president and CEO, in the statement. "We have rationalized our structure and functions ... to focus on activities that can drive organic growth and, year-over-year, our total costs declined by approximately $3 million.

The company has also initiated its plan to redomicile to the U.S. and expects the process to be completed in the third quarter, Mr. Yang said.

Management fee revenue totaled $207.5 million, up 1.7% for the quarter but down 15.3% for the year.

Revenue on a GAAP basis was $207.2 million for the first quarter, down 3.4% from the previous quarter and down 17% from the year-earlier period. Net income was $52.7 million for the first quarter vs. $23 million in the previous quarter and $57.3 million for the first quarter of 2018.