AMG assets flat for quarter, down 6.3% for year

Affiliated Managers Group on Monday reported $772.2 billion in assets under management as of June 30, a slight drop of 0.3% from March 31 and a 6.3% decline from a year earlier, the company reported in its quarterly earnings statement.

Total net outflows during the second quarter were $15.1 billion, compared to net outflows of $7.4 billion the previous quarter and net inflows of $4.3 billion in the second quarter.

Institutional net outflows during the three months ended June 30 were $9.7 billion, while net outflows from retail products were $5.5 billion. AMG saw net inflows from high-net-worth clients of $100 million.

The second quarter outflows were "driven primarily by ongoing performance headwinds in quantitative strategies across liquid alternatives and global equities," said Jay C. Horgen, president and CEO, in a statement.

Overall, alternatives saw net outflows of $7.4 billion in the second quarter vs. net outflows of $2.9 billion in the first quarter and net inflows of $2.6 billion in the quarter ended June 30, 2018.

Global equity strategies saw net outflows of $6 billion in the three months ended June 30 vs. net outflows of $3.4 billion in the previous quarter and net inflows of $1.9 billion in the year-earlier quarter. U.S. equities experienced $2.3 billion in net outflows compared to $1.4 billion in net outflows in the first quarter and $400 million in net outflows in the quarter ended June 30, 2018.

Multiasset and fixed income were the only asset classes to report net inflows in the second quarter. These strategies had net inflows of $600 million, compared to net inflows of $300 million in the previous quarter and net inflows of $200 million in the year-earlier quarter.

On July 8, AMG completed its acquisition of an equity interest in Garda Capital Partners, a hedge fund manager with $4 billion in assets that specializes in fixed-income relative-value strategies for institutional investors.

AMG had $288.2 billion of AUM in alternatives as of June 30, $268.2 billion in global equities, $109.8 billion in U.S. equities and $106 billion in multiasset and fixed income.

Institutional AUM totaled $447.8 million, down 0.9% from the prior quarter and down 6.2% over the year-earlier quarter. Retail mutual fund assets totaled $208.9 million, down 0.6% from the first quarter and down 9.6% from the quarter ended June 30, 2018. Remaining assets, $115.5 million, were with high-net-worth clients, representing a 2.9% increase over last quarter and about flat compared to the year-earlier quarter.

AMG reported revenue of $591.9 million in the first quarter, up 9% from the previous quarter and down 1.4% over the second quarter of 2018.

The company reported net income of $107.7 million, compared to a net loss of $201 million during the first quarter and net income of $117 million during the second quarter of 2018.