UPDATE 1-Affiliated Managers profit beats estimates

Tue Jul 31, 2012 9:05am EDT

* Economic EPS $1.66 vs est $1.64

* AUM $385 bln vs $350 bln year earlier

July 31 (Reuters) - Asset manager Affiliated Managers Group Inc's quarterly profit fell but managed to beat analysts' expectations as the company managed to maintain the inflow of new client money.

Net income fell to $6.6 million, or 12 cents per share, for the second quarter, from $45.5 million, or 85 cents per share, a year earlier. Adjusted net income was 82 cents per share.

On the economic basis used by some analysts, the company earned $1.66 per share, compared with $1.71 a year earlier. Analysts expected $1.64 on this basis, according to Thomson Reuters I/B/E/S.

Main Street investors, whose nest eggs were decimated by falling share prices in the wake of the credit crisis, have pulled their cash out of funds tied to the stock market. This has hurt asset managers who earn fees on actively managed equity funds.

But companies that offer a wider range of products such as exchange-traded funds and alternative assets like private equity and hedge funds, have attracted customer money.

AMG, which offers products across the globe and in a wide range of sectors -- including alternative managers like AQR, BlueMountain Capital Management, said inflows for the quarter were $7.1 billion.

AMG ended the quarter with $385 billion in assets under management.

Shares of the company closed at $108.86 on Monday on the New York Stock Exchange.