Financial Data and Key Metrics Changes - AMG reported economic earnings per share of 4.21,reflectinga53 billion in net inflows, primarily from private markets fundraising at affiliates like Pantheon and Comvest [18][19] - In the liquid alternatives segment, performance remains strong, with expectations for increased client demand for differentiated return sources [19][57] - Global equities faced net outflows of 6.5billion,withredemptionsconcentratedingrowth−orientedstrategies,althoughU.S.equitiesshowedlong−termperformanceresilience[20][54]MarketDataandKeyMetricsChanges−Netclientcashoutflowsforthequartertotaled8.8 billion, with 6.5billionexcludingcertainquantitativestrategies[18]−Thecompanynotedthatthemarketenvironmenthasshifted,impactingclientbehaviorandportfolioconstructionstrategies[8][10]CompanyStrategyandDevelopmentDirection−AMG′sstrategyfocusesoninvestinginadiversifiedgroupofindependentmanagersacrossvariousassetclasses,enhancingearningspowerandstability[7][12]−TherecentminorityinvestmentinPeppertreeCapitalManagementalignswithAMG′sstrategytoincreaseparticipationinprivatemarketsandrealassets[12][13]−Thecompanyemphasizesdisciplinedcapitalallocationandhasreturnedsignificantcapitaltoshareholders,repurchasingover25220 million, including 23millionfromnetperformancefeeearnings[21]−Thecompanyexpectsfourth−quarteradjustedEBITDAtorangebetween330 million and $380 million, reflecting strong net performance fee earnings [22][23] Q&A Session Summary Question: Capital deployment opportunities in the current environment - Management noted that the pipeline for new opportunities remains full, with a focus on high-quality independent firms and strategic partnerships [30][34] Question: Outlook for performance fees and future growth - Performance fee earnings are expected to be strong, driven by absolute return products, with increasing client demand for uncorrelated return streams [37][40] Question: Investor sentiment across asset classes - Management indicated mixed sentiment, with strong performance in U.S. equities and challenges in global equities, while private markets and liquid alternatives show strong fundraising and client interest [50][54] Question: Impact of higher interest rates on debt and investments - The company maintains a strong balance sheet with a majority of fixed-rate debt, and liquidity is viewed as increasingly valuable in the current market environment [61][66] Question: Fundraising outlook for private markets - Management expects continued strong fundraising in private markets, particularly in infrastructure and real assets, while noting a shift towards quality-focused investments [71][73]
Affiliated Managers (AMG)2022-11-07 18:51