Artio Global Investors Inc (ART, Financial) filed Quarterly Report for the period ended 2010-03-31.
Artio Global Investors Inc has a market cap of $612.1 million; its shares were traded at around $22.07 with and P/S ratio of 1.9. The dividend yield of Artio Global Investors Inc stocks is 0.3%.ART is in the portfolios of Chuck Royce of Royce& Associates, Lee Ainslie of Maverick Capital, Murray Stahl of Horizon Asset Management, RS Investment Management.
Prior to the IPO, each Principal had a 15% Class B profits interest in Investment Adviser, which was accounted for as compensation for financial accounting purposes. Immediately prior to the IPO, each Principal exchanged his Class B profits interest for a 15% non-voting Class A membership interest in Holdings (New Class A Units). Subsequent to the IPO, the Principals New Class A Units, representing an approximate 26% interest in Holdings, are accounted for by us as non-controlling interests.
As of March 31, 2010, AuM was up 45% as compared to March 31, 2009, primarily reflecting the impact the global economic recovery has had on the market value of the assets we manage, which has also resulted in a 34% increase in average AuM over the same period. In addition, we experienced net client cash inflows of $95 million for the first quarter of 2010. While our net client cash flows are influenced by a number of factors, including client asset allocation preferences and the performance of our products, we expect a more constructive market environment in 2010 to support increased search activity industry-wide compared to 2009. During the first quarter, we saw early evidence of this in certain of our strategies. For example, our Global Equity and Fixed Income strategies experienced meaningful increases in Request for Proposal (RFP) activity compared to 2009 average levels. For our International Equity strategies, first quarter 2010 RFP activity was consistent with 2009 average levels.
Our effective fee rate for the three months ended March 31, 2010, increased over the corresponding period in 2009, due primarily to a greater proportion of our average AuM being within our proprietary and institutional commingled fund vehicles, both of which have higher average fee rates than our overall blended rate. The proportion of our proprietary fund assets increased to approximately 44% of average AuM in the three months ended March 31, 2010, from approximately 43% in the three months ended March 31, 2009. Our commingled funds increased to approximately 16% of average AuM in the three months ended March 31, 2010, from approximately 15% of average AuM in the three months ended March 31, 2009.
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Artio Global Investors Inc has a market cap of $612.1 million; its shares were traded at around $22.07 with and P/S ratio of 1.9. The dividend yield of Artio Global Investors Inc stocks is 0.3%.ART is in the portfolios of Chuck Royce of Royce& Associates, Lee Ainslie of Maverick Capital, Murray Stahl of Horizon Asset Management, RS Investment Management.
Highlight of Business Operations:
Artio Global Investors Inc. (Investors or the Company) and subsidiaries (collectively, we, us or our) comprises Investors and its three subsidiaries, Artio Global Holdings LLC (Holdings), an intermediate holding company, Artio Global Management LLC (Investment Adviser), a registered investment adviser under the Investment Advisers Act of 1940, and Artio Capital Management LLC. Holdings is approximately 74% owned by Investors, 13% owned by Richard Pell, our Chairman, Chief Executive Officer and Chief Investment Officer (Pell), and 13% owned by Rudolph-Riad Younes, our Head of International Equity (Younes, together with Pell, the Principals). The Principals interests are reflected in the Consolidated Financial Statements as non-controlling interests. Investment Adviser and Artio Capital Management LLC are wholly owned subsidiaries of Holdings.Prior to the IPO, each Principal had a 15% Class B profits interest in Investment Adviser, which was accounted for as compensation for financial accounting purposes. Immediately prior to the IPO, each Principal exchanged his Class B profits interest for a 15% non-voting Class A membership interest in Holdings (New Class A Units). Subsequent to the IPO, the Principals New Class A Units, representing an approximate 26% interest in Holdings, are accounted for by us as non-controlling interests.
As of March 31, 2010, AuM was up 45% as compared to March 31, 2009, primarily reflecting the impact the global economic recovery has had on the market value of the assets we manage, which has also resulted in a 34% increase in average AuM over the same period. In addition, we experienced net client cash inflows of $95 million for the first quarter of 2010. While our net client cash flows are influenced by a number of factors, including client asset allocation preferences and the performance of our products, we expect a more constructive market environment in 2010 to support increased search activity industry-wide compared to 2009. During the first quarter, we saw early evidence of this in certain of our strategies. For example, our Global Equity and Fixed Income strategies experienced meaningful increases in Request for Proposal (RFP) activity compared to 2009 average levels. For our International Equity strategies, first quarter 2010 RFP activity was consistent with 2009 average levels.
Our effective fee rate for the three months ended March 31, 2010, increased over the corresponding period in 2009, due primarily to a greater proportion of our average AuM being within our proprietary and institutional commingled fund vehicles, both of which have higher average fee rates than our overall blended rate. The proportion of our proprietary fund assets increased to approximately 44% of average AuM in the three months ended March 31, 2010, from approximately 43% in the three months ended March 31, 2009. Our commingled funds increased to approximately 16% of average AuM in the three months ended March 31, 2010, from approximately 15% of average AuM in the three months ended March 31, 2009.
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