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Affiliated Managers 'swimming against the current' in terms of industry flow trends, says CEO


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Affiliated Managers 'swimming against the current' in terms of industry flow trends, says CEO

is "swimming against the current" in terms of client cash flowscompared to trends in the asset management industry, Chairman and CEO Sean Healey said on a conference call todiscuss first-quarter earnings.

The company reported positive netclient cash flows of $5.1 billion for the first quarter. The institutional distributionchannel had net inflows of $285 million, the mutual fund channel had netinflows of $3.4 billion and the high-net-worth channel had inflows of $1.3billion in the first quarter.

AffiliatedManagers' strong first-quarter inflows stood out compared to the rest of theindustry, as analysts expected most traditional asset managers to reportoutflows for the period. According to Morningstar, investors of actively managed long-termfunds to the tune of $40.58 billion during the quarter.

Other topics of interest on the call included any impactfrom a potential Brexit and the company's pipeline for new investments.

AffiliatedManagers completed investments in Systematica Investments and Baring Asia in the first quarter, and remains open tomore investments in boutique firms globally. The company makes equityinvestments in boutique investment management firms, which it refers to as itsaffiliates.

"Wecontinue to have a strong and growing pipeline of new opportunities, includingsome that got pushed from the fourth quarter given the market volatility,"COO Nathaniel Dalton said.

"Whilevolatile markets create challenges, they also reveal opportunities and thetransaction environment remains highly favorable for AMG," the CEO said. Fundingfor such investments should not be a problem, he said.

Turningto a potential U.K. exit from the EuropeanUnion, Healeysaid in response to a question that he does not foresee any major disruptionand that the U.K.-based affiliates are making contingency plans.

"It'ssomething that, of course, we will all pay attention to, but not something thatwe're losing a lot of sleep over," the CEO concluded.