BrightSphere Investment Group reported $225 billion in assets under management as of June 30, up 1.2% from three months earlier but down 4% for the year, the company's earnings statement released Thursday showed.
The increase in AUM in the quarter was the result of market appreciation of $5.6 billion offset by net outflows of $2.9 billion.
By comparison, the firm experienced net outflows of $1.8 billion in the first quarter and net outflows of $4.1 billion in the second quarter of 2018.
By asset class, the firm's U.S. equity business had $2.6 billion in net outflow for the quarter, compared to $1.7 billion in net outflow in the first quarter and net outflow of $3.9 billion during the second quarter of 2018.
During a conference call with analysts, Suren Rana, BSIG's chief financial officer, said outflows in the second quarter resulted in an annualized negative revenue impact of $14.4 million for the company.
The problem in the second quarter, he said, was that outflows primarily were from higher-fee strategies such as long/short equity as investors derisked their portfolios; inflows were more concentrated in lower-fee strategies, such as fixed income and large-cap value equity.
BSIG's global and non-U.S. equity strategies had combined net outflows of $800 million in the quarter; net inflows of $600 million in the first quarter; and net outflows of $500 million in the same quarter a year earlier.
Fixed income had net inflows of $800 million in the second quarter, net outflows of $800 million in the prior quarter and net inflows of $100 million in the year-earlier quarter.
Alternative investment strategies had $300 million in net outflows for the quarter ended June 30 vs. net inflows of $100 million in the prior quarter and net inflows of $200 million in second quarter 2018.