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Uncertain Global Markets Not Deterring AMG from Adding Assets

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Assets under management

Affiliated Managers Group (AMG) has been consistently adding assets in spite of highly uncertain global markets. The company attracts capital mainly from institutional clients and has stemmed the outflows by delivering consistent returns.

It announced that net cash flows from clients stood at $0.6 billion in the June quarter. The company’s assets under management rose to $648 billion compared to $642 billion in the previous quarter. The assets were mainly driven by positive market changes of $8.4 billion, partially offset by a strong dollar.

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Mutual funds contribute

On an absolute basis, the mutual fund segment saw the highest inflow of $1.8 billion, followed by net inflows for the high net worth segment of $1.7 million in 2Q16. The institutional segment saw outflows of $2.9 million. All three segments saw a revival in their valuations as the markets improved after the stock market rout in the first quarter.

For 2015, AMG saw cash outflows of $3.0 billion. Negative market changes led to a fall of $15.7 billion in valuations. Its assets fell in line with market performance. In comparison, its competitors reported the following assets under management:

  • BlackRock (BLK): $4.5 trillion
  • T. Rowe Price (TROW): $773 billion
  • Bank of New York Mellon (BK): $1.7 trillion

Together, these companies form 0.66% of the SPDR S&P 500 ETF (SPY).

Affiliate count rises

Unlike other asset managers with their own product offerings and fund management offerings, Affiliate Managers Group invests in boutique investment management firms to generate superior returns for investors. The number of the company’s boutique affiliates has risen over the past decade.

During the June quarter, Affiliated Managers Group added outstanding new affiliates, including Winton Capital Management and Capula Investment Management. In 2016, the company announced the addition of Baring Asia. It’s the largest dedicated Asian private equity firm with an 18-year traffic record of alpha generation and forward prospects.

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