UPDATE 3-Affiliated Managers Q1 profit more than doubles

Tue Apr 26, 2011 12:45pm EDT

* Q1 cash EPS $1.60 vs Street view $1.59

* Raises forecast for 2011 cash EPS

* Shares up 4 percent in midday trading (Adds CEO comments, details on guidance, byline)

By Ross Kerber

BOSTON, April 26 (Reuters) - Asset manager Affiliated Managers Group Inc (AMG.N) said first-quarter profit more than doubled, boosted by acquisitions and an accelerating inflow of cash from investors.

The company also raised its guidance for 2011 profit, helping send its shares up 4 percent in midday trading. Chief Executive Sean Healey said on a conference call with analysts that the company's expansion efforts abroad have brought in new cash from investors worldwide. The inflow, he said, shows "this strategy is clearly working."

AMG is still reviewing investing in wealth-management businesses, Healey said, reiterating past comments.

Boston-based AMG said it earned $39.1 million in the first quarter, up from $17.5 million a year earlier.

Cash net income, the figure followed by many analysts that accounts for amortization, taxes and other factors, was $85.1 million, or $1.60 a share, compared with $50.8 million, or $1.14 a share, a year earlier.

Analysts polled by Thomson Reuters I/B/E/S had expected cash net income of $1.59 per share.

Revenue was $426.3 million, up from $251 million a year earlier, driven by deals like Affiliated's $775 million purchase of fund-of-funds manager Pantheon Ventures last year.

The company said it had a net inflow of $6.5 billion to its affiliated funds in the quarter, up from $4.7 billion in the 2010 fourth quarter.

Assets were $339.8 billion at the end of the quarter, up from $320 billion at the end of 2010.

The inflow figure is likely to catch investors' attention. A varied flow picture has begun to emerge among asset managers.

Last week, T Rowe Price Group (TROW.O) reported an inflow of $5.8 billion in the first quarter, down from $6.9 billion in the previous quarter. Janus Capital Group (JNS.N) reported an outflow of $2.7 billion, after an outflow of $4.7 billion in the previous quarter.

"When all is said and done, AMG will be at the high end of organic growth" among its peers, said Jefferies & Co. analyst Daniel Fannon in a telephone interview after the results. He had expected AMG to report an inflow of $5 billion in the quarter.

On the conference call, AMG Chief Financial Officer Jay Horgen said the company is raising its guidance for 2011 cash earnings per share by 10 cents, to between $6.90 and $7.70 per share.

AMG shares were up 4 percent at $109.42 in midday trading. (Reporting by Ross Kerber; editing by Matthew Lewis and John Wallace)

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