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