PZENA INV MGMT CL A (PZN, Financial) filed Quarterly Report for the period ended 2010-06-30.
Pzena Inv Mgmt Cl A has a market cap of $431 million; its shares were traded at around $6.7 with a P/E ratio of 20.9 and P/S ratio of 6.8. The dividend yield of Pzena Inv Mgmt Cl A stocks is 1.8%.PZN is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
While our operating company has historically not been subject to U.S. federal and certain state income taxes, it has been subject to New York City Unincorporated Business Tax. As a result of our reorganization, we are subject to taxes applicable to C-corporations. As such, our effective tax rate has increased as a result of our reorganization. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount more likely than not to be realized. As of June 30, 2010 and December 31, 2009, the Companys valuation allowance against the deferred tax asset associated with our acquisition of operating company units in conjunction with the offering and subsequent exchanges was $63.6 million and $60.3 million, respectively.
Beginning in the second half of 2007 and continuing through the quarter ended March 31, 2009, the performance of our investment strategies was negatively impacted by significant volatility in the equity markets. Performance prior to March 31, 2009 was influenced by our overweight investment exposure to the financial services sector in particular. Subsequent to March 31, 2009, all of our investment strategies experienced substantial improvement in their performance, and significantly outperformed their respective benchmarks. As a result, our assets under management increased by $2.5 billion, or 23.6%, from $10.6 billion at June 30, 2009, to $13.1 billion at June 30, 2010, due to positive performance of $2.2 billion and net inflows of $0.3 billion.
For the three months ended June 30, 2010, we experienced net outflows of $0.3 billion, consisting of gross outflows of $1.0 billion, offset by gross inflows of $0.7 billion. Our institutional accounts experienced gross outflows of $0.5 billion, which were offset by $0.3 billion in gross inflows. For the six months ended June 30, 2010, we experienced net outflows of $0.4 billion, consisting of gross outflows of $1.8 billion, offset by gross inflows of $1.4 billion. Our institutional accounts experienced gross outflows of $0.8 billion, which were offset by $0.7 billion in gross inflows. Institutional gross outflows are frequently due to a wide range of client decisions. For the three and six months ended June 30, 2010, these decisions included: rebalancing to target portfolio weight following a strong performance period, adoption of de-risking strategies, adjustment of portfolio target weights, and changes by plan decision-makers and investment committees. The institutional gross inflows were mainly attributable to existing client contributions.
For the three months ended June 30, 2010, our retail accounts experienced $0.5 billion in gross outflows and $0.4 billion in gross inflows. For the six months ended June 30, 2010, our retail accounts experienced $1.0 billion in gross outflows and $0.7 billion in gross inflows.
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Pzena Inv Mgmt Cl A has a market cap of $431 million; its shares were traded at around $6.7 with a P/E ratio of 20.9 and P/S ratio of 6.8. The dividend yield of Pzena Inv Mgmt Cl A stocks is 1.8%.PZN is in the portfolios of John Keeley of Keeley Fund Management, Chuck Royce of Royce& Associates, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
As of June 30, 2010, we had approximately $4.1 million in unrecorded compensation expense related to unvested operating company phantom units issued pursuant to our deferred compensation plan, operating company Class B unit and option grants issued under our 2006 Plan, and Class A stock and option grants issued under our 2007 Plan. We expect that the amortization of the existing unvested amounts will be approximately $1.3 million for the remainder of 2010, $2.6 million for 2011, and $0.1 million for 2012, with a negligible amount amortized thereafter.While our operating company has historically not been subject to U.S. federal and certain state income taxes, it has been subject to New York City Unincorporated Business Tax. As a result of our reorganization, we are subject to taxes applicable to C-corporations. As such, our effective tax rate has increased as a result of our reorganization. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount more likely than not to be realized. As of June 30, 2010 and December 31, 2009, the Companys valuation allowance against the deferred tax asset associated with our acquisition of operating company units in conjunction with the offering and subsequent exchanges was $63.6 million and $60.3 million, respectively.
Beginning in the second half of 2007 and continuing through the quarter ended March 31, 2009, the performance of our investment strategies was negatively impacted by significant volatility in the equity markets. Performance prior to March 31, 2009 was influenced by our overweight investment exposure to the financial services sector in particular. Subsequent to March 31, 2009, all of our investment strategies experienced substantial improvement in their performance, and significantly outperformed their respective benchmarks. As a result, our assets under management increased by $2.5 billion, or 23.6%, from $10.6 billion at June 30, 2009, to $13.1 billion at June 30, 2010, due to positive performance of $2.2 billion and net inflows of $0.3 billion.
For the three months ended June 30, 2010, we experienced net outflows of $0.3 billion, consisting of gross outflows of $1.0 billion, offset by gross inflows of $0.7 billion. Our institutional accounts experienced gross outflows of $0.5 billion, which were offset by $0.3 billion in gross inflows. For the six months ended June 30, 2010, we experienced net outflows of $0.4 billion, consisting of gross outflows of $1.8 billion, offset by gross inflows of $1.4 billion. Our institutional accounts experienced gross outflows of $0.8 billion, which were offset by $0.7 billion in gross inflows. Institutional gross outflows are frequently due to a wide range of client decisions. For the three and six months ended June 30, 2010, these decisions included: rebalancing to target portfolio weight following a strong performance period, adoption of de-risking strategies, adjustment of portfolio target weights, and changes by plan decision-makers and investment committees. The institutional gross inflows were mainly attributable to existing client contributions.
For the three months ended June 30, 2010, our retail accounts experienced $0.5 billion in gross outflows and $0.4 billion in gross inflows. For the six months ended June 30, 2010, our retail accounts experienced $1.0 billion in gross outflows and $0.7 billion in gross inflows.
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