After struggling to generate income in the first quarter, most traditional managers saw their revenues rise in the three months ended June 30, a Pensions & Investments analysis of earnings reports found.
Among 18 traditional money managers that reported second-quarter earnings by Aug. 8, all but two firms recorded higher revenues than in the prior quarter. Bank of New York Mellon Corp. saw revenues for its investment management business drop only slightly, nearly 1%, to $829 million. Meanwhile, BrightSphere Investment Group Inc.'s revenues were flat for the quarter, at $207.1 million.
Invesco Ltd., Atlanta, led the pack in revenue growth, up 18.5% quarter over quarter. The gains were primarily attributed to its acquisition of OppenheimerFunds, which closed May 24. That deal also brought Invesco's total assets under management to $1.2 trillion, a 25.5% increase.
Affiliated Managers Group Inc., which has 37% of its total AUM in alternatives, saw its revenue grow 9% during the quarter to $591.9 million. AMG's assets were down slightly, 0.3%, in the quarter to $772.2 billion as of June 30. Also, AllianceBernstein LP's revenue grew 7.8% to $857.8 million during the three months ended June 30, while the firm's total assets grew 4.7% to $580.8 billion.
Revenues during the first quarter were a different story, as all but five of the 19 traditional managers tracked by P&I reported a drop in revenue from the prior quarter.
Additionally, among traditional and alternative money managers alike, all but one of 25 firms that reported second-quarter earnings by Aug. 8, saw their assets under management increase during the second quarter — a continuation from the first quarter.
Most money managers that experienced a sharp decline in AUM and revenues in the fourth quarter, "recovered with the market's gains in the first half of the year," said Brooks K. Hamner, a vice president on the investment management team at Mercer Capital Management Inc., a business valuation and financial advisory services firm in Memphis.