Affiliated Managers Group Inc. (NYSE:MGR) Q1 2016 Earnings Conference Call - Preliminary Transcript

May 03, 2016 • 08:00 am ET

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Affiliated Managers Group Inc. (NYSE:MGR) Q1 2016 Earnings Conference Call - Preliminary Transcript

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Presentation
Operator
Operator

Greetings and welcome to the AMG's First Quarter 2016 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host Ms. Selene Oh, Vice President, Investor Relations for AMG. Please go ahead.

Executive
Selene Oh

Thank you for joining AMG to discuss the results for the first quarter of 2016. In this conference call, certain matters discussed will constitute forward-looking statements. Actual results could differ materially from those projected due to a number of factors including, but not limited to, those referenced in the company's Form 10-K and other filings we make with the SEC from time to time. We assume no obligation to update any forward-looking statements made during the call.

AMG will provide on its website at www.amg.com a replay of the call and a copy of the announcement of our results for the quarter as well as a reconciliation of any non-GAAP financial measures to the most directly comparable GAAP financial measures. With us on the line to discuss the company's results for the quarter are Sean Healey, Chairman and Chief Executive Officer Nate Dalton, President and Chief Operating Officer and Jay Horgen, Chief Financial Officer.

With that, I'll turn the call over to Sean Healey.

Executive
Sean M. Healey

Thanks, Selene, and good morning, everyone. AMG reported economic earnings per share of $2.94 for the first quarter of 2016 which is an increase over the first quarter of 2015 notwithstanding declines in global market indices over the past year. Assets under management were $642 billion at quarter end, an increase of 5% in the quarter driven by a successful execution across all aspects of our growth strategy including the completion of two new Affiliate investments during the quarter and the excellent investment performance and net flows of our existing Affiliates.

As Jay will describe further even in a relatively difficult environment for the asset management industry, we see continued earnings growth ahead. We were very pleased with our net client cash flows of over $5 billion into our Affiliates actively-managed strategy this quarter which were notable especially given the muted investor risk appetite across the industry more broadly. With more than $110 billion in net inflows over the past five years, we continue to benefit from the ongoing success of our global distribution strategy including the marketing efforts of our Affiliates as well as the strength of our global distribution platform.

And importantly our organic growth also reflects the quality of our boutique Affiliates and the impact of our strategic focus on high value rapid alpha generating products including global equities and alternatives. The best boutique firms have a competitive advantage in generating excess returns in these product areas as demonstrated by the outstanding long-term performance records of our Affiliates and it is clear from AMG's organic growth results that clients continue to prefer boutiques across a range of differentiated return oriented strategies.

The advantages