Release Details

Company Reports Economic EPS of $3.61; EPS of $2.72 for Fourth Quarter,

Economic EPS of $12.55; EPS of $9.28 for Full Year 2015

WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Feb. 2, 2016-- Affiliated Managers Group, Inc. (NYSE: AMG) today reported its financial and operating results for the fourth quarter and full year 2015.

For the fourth quarter of 2015, Economic earnings per share (“Economic EPS”) were $3.61, compared to $3.55 for the same period of 2014, and diluted earnings per share for the fourth quarter of 2015 were $2.72, compared to $3.02 for the same period of 2014. For the fourth quarter of 2015, Economic net income was $197.0 million, compared to $200.0 million for the same period of 2014. For the fourth quarter of 2015, Net income was $150.3 million, compared to $172.6 million for the same period of 2014. For the fourth quarter of 2015, EBITDA was $263.1 million, compared to $278.9 million for the same period of 2014. (Economic EPS, Economic net income, and EBITDA are defined in the attached tables, along with reconciliations to the most directly comparable GAAP measure.)

For the year ended December 31, 2015, Economic net income was $691.2 million, EBITDA was $942.2 million, and Net income was $516.0 million. For the year ended December 31, 2014, Economic net income was $644.4 million, EBITDA was $900.8 million, and Net income was $452.1 million.

Net client cash flows for the fourth quarter of 2015 were $(6.8) billion. AMG’s aggregate assets under management were approximately $628 billion at December 31, 2015, pro forma for investments which have since closed.

“Notwithstanding declines in global equity markets in 2015, AMG generated strong Economic earnings per share, including $3.61 for the fourth quarter and $12.55 for the full year, representing year-over-year earnings growth of 10%,” stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. “AMG’s record earnings in 2015 included $691 million in Economic net income and nearly $1 billion in EBITDA. Against a challenging market backdrop in the second half of the year, our results reflect the diversity of our business and the successful execution of our growth strategy, including the long-term investment outperformance of our Affiliates and significant deployment of capital through our new investments strategy. Through the addition of six outstanding new Affiliates, we have meaningfully increased the earnings power of our business, further enhanced the breadth of our return-oriented products and the global footprint of our Affiliates, and deepened our exposure to some of the most attractive areas of the asset management industry.”

“Our fourth quarter net client cash flows were impacted by elevated retail outflows, which were due to a combination of broader industry trends and one-off events, including a fund closure at an Affiliate. Net flows were positive for the institutional and high net worth channels, despite large idiosyncratic redemptions from a small number of institutional clients,” Mr. Healey continued. “Looking ahead, however, in spite of ongoing market volatility we continue to see substantial client interest in our Affiliates’ strategies, particularly across AMG’s areas of strategic focus, global equities and alternatives, where we have a strong book of prospective new business and excellent investment performance across our Affiliates.”

“We were very pleased with the successful execution of our new investments strategy during the year, with the addition of an exceptional group of traditional, alternative, and wealth management Affiliates – including Systematica, Ivory, Abax, myCIO, and Baker Street in 2015, as well as the recent announcement of our partnership with Baring Asia, the largest dedicated Asian private equity firm,” Mr. Healey remarked. “These transactions generated meaningful earnings accretion while further diversifying our return-oriented product set. Going forward, we continue to have an excellent pipeline of new investments, including both traditional and alternative firms globally.”

“Looking ahead, even in the midst of a volatile market environment, we are well-positioned to continue to generate strong long-term earnings growth and meaningful additional shareholder value through the execution of our business strategy,” Mr. Healey concluded. “We have outstanding scale and diversity across attractive product areas, high-quality Affiliates with excellent long-term performance track records, a global distribution strategy which gives our boutique partners a competitive advantage in gathering assets around the world, and a unique opportunity to make accretive investments in new Affiliates.”

About AMG

AMG is a global asset management company with equity investments in leading boutique investment management firms. AMG’s innovative partnership approach allows each Affiliate’s management team to own significant equity in their firm while maintaining operational autonomy. AMG’s strategy is to generate growth through the internal growth of existing Affiliates, as well as through investments in new Affiliates. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. As of December 31, 2015, AMG’s aggregate assets under management were approximately $628 billion, pro forma for investments which have since closed, in more than 500 investment products across a broad range of investment styles, asset classes and distribution channels. For more information, please visit the Company’s website at www.amg.com.

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the federal securities laws. These statements include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources and other non-historical statements. You can identify these forward-looking statements by the use of words such as “outlook,” “guidance,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “projects,” “intends,” “plans,” “estimates,” “anticipates” or the negative version of these words or other comparable words. Actual results and the timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements due to a number of factors, including changes in the securities or financial markets or in general economic conditions, the availability of equity and debt financing, competition for acquisitions of interests in investment management firms, the ability to close pending investments, the investment performance and growth rates of our Affiliates and their ability to effectively market their investment strategies, the mix of Affiliate contributions to our earnings and other risks, uncertainties and assumptions, including those described under the section entitled “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2014, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC’s website at www.sec.gov. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in our filings with the SEC. We undertake no obligation to publicly update or review any forward-looking statements, whether as a result of new information, future developments or otherwise, except as required by applicable law.

From time to time, AMG may use its website as a distribution channel of material Company information. AMG routinely posts financial and other important information regarding the Company in the Investor Relations section of its website at www.amg.com and encourages investors to consult that section regularly.

Financial Tables Follow

A teleconference will be held with AMG’s management at 8:00 a.m. Eastern time today. Parties interested in listening to the teleconference should dial 1-877-407-8291 (U.S. calls) or 1-201-689-8345 (non-U.S. calls) starting at 7:45 a.m. Eastern time. Those wishing to listen to the teleconference should dial the appropriate number at least ten minutes before the call begins.

The teleconference will also be available for replay beginning approximately one hour after the conclusion of the call. To hear a replay of the call, please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415 (non-U.S. calls) and provide conference ID 13628339. The live call and replay of the session, and additional financial information referenced during the teleconference, can also be accessed via AMG’s website at http://www.amg.com/InvestorRelations/.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160202005871/en/

Source: Affiliated Managers Group, Inc.

Affiliated Managers Group, Inc.
Investor and Media Relations:
Alexandra Lynn
Selene Oh
+1 617-747-3300
ir@amg.com
pr@amg.com