Affiliated Managers Group Inc. announced that it is initiating a quarterly cash dividend and expanding its share repurchase program as its fourth-quarter 2016 economic net income climbed year over year.
The company reported fourth-quarter 2016 net income attributable to the controlling interest of $150.2 million, up from $147.5 million in the prior-year quarter.
Fourth-quarter 2016 EPS was flat at $2.67.
Economic net income in the fourth quarter of 2016 reached $211.2 million, compared with $195.8 million in the year-ago quarter. Fourth-quarter 2016 economic EPS was $3.80, compared with $3.59 in the prior-year quarter.
The S&P Capital IQ consensus normalized EPS estimate for the fourth quarter of 2016 was $3.71.
Fourth-quarter 2016 revenue fell year over year to $550.3 million from $589.8 million.
The company posted net client cash outflows of $4.1 billion in the fourth quarter of 2016. Chairman and CEO Sean Healey said the "modest" outflows seen during the most recent quarter was largely due to anticipated seasonal client redemptions and realization activity in private equity and similar strategies.
The company's aggregate AUM were approximately $727 billion at Dec. 31, 2016, pro forma for investments which have since closed.
For 2016, the company posted net income attributable to the controlling interest of $472.8 million, compared with $509.5 million in 2015.
EPS for 2016 was $8.57, compared with $9.17 in 2015.
Economic net income in 2016 stood at $703.6 million, compared with $687.2 million. Economic EPS for the most recent year was $12.84, compared with $12.47 the prior year.
The S&P Capital IQ consensus normalized EPS estimate for 2016 was $12.75.
In addition, the company announced that it will start paying quarterly cash dividends to its shareholders. For the first quarter of 2017, the company declared a cash dividend of 20 cents per common share. The dividend is payable Feb. 23 to shareholders of record as of the close of business on Feb. 9.
The board also expanded the company's share repurchase authorization to 4 million shares.