Assets Keep Fleeing Affiliated Managers Group
In the asset management business, keeping your clients is the most important measure of success. Affiliated Managers Group (NYSE: AMG) has had to deal with a high level of client outflows over the past year, and even though asset levels seemed to have stabilized last quarter after markets recovered to some extent, the company still hasn't been able to return to its high-water mark in terms of assets under management.
Coming into Monday's second-quarter financial report, AMG shareholders wanted to see continued signs of a rebound from the tough period at the end of 2018. Some of AMG's numbers still looked weak, but the long-term strategy that the asset manager is following still looks solid.
Affiliated Managers Group's second-quarter results showed the ongoing challenges the asset manager faces. Consolidated revenue was down a bit more than 1% to $591.9 million, which actually held up quite a bit better than the much larger top-line decline that most of the following the stock were looking to see. Net income fell 8% to $107.7 million, and AMG's preferred net economic earnings metric was $3.33 per share, down almost 8% from year-ago levels.
Quelle Fool.com
