Q3 2024 Affiliated Managers Group Inc Earnings Call Transcript
Key Points
- Affiliated Managers Group Inc (AMG) reported an 18% growth in economic earnings per share, showcasing strong business momentum and effective capital allocation strategies.
- The company raised $7 billion in new capital for its affiliates, indicating strong demand for its specialized private market strategies.
- AMG's business mix is evolving towards secular growth areas, with alternative strategies now contributing significantly to earnings.
- The company has a robust pipeline of new investment opportunities, particularly in private markets and liquid alternatives.
- AMG's US wealth platform is well-positioned to capitalize on the increasing client demand for alternative strategies, with over $5 billion in assets from alternative products.
- AMG experienced net client cash outflows of $3 billion in the third quarter, although this was an improvement from the previous year.
- The company faces industry headwinds in active equities, which offset some of the growth in alternatives.
- Performance fees for the year are expected to be below the historical average due to underperformance in certain absolute return strategies.
- Despite strong fundraising, AMG's differentiated long-only strategies saw net outflows of approximately $10 billion in equities.
- The company's performance fee earnings are subject to significant macroeconomic events, which could impact future results.
Greetings, and welcome to the AMG third quarter 2024 earnings call. (Operator Instructions) As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Patricia Figueroa, Head of Investor Relations for AMG. Thank you. You may begin.
Good morning, and thank you for joining us today to discuss AMG's results for the third quarter of 2024. Before we begin, I'd like to remind you that during this call, we may make a number of forward-looking statements, which could differ from our actual results materially, and AMG assumes no obligation to update these statements.
Also, please note that nothing on this call constitutes an offer of any products, investment vehicles, or services of any AMG affiliates. A replay of today's call will be available on the Investor Relations section of our website, along with a copy of our earnings release and a reconciliation of any non-GAAP financial measures, including any earnings guidance announced on this call. In
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