Affiliated Managers : AMG Reports Financial and Operating Results for the First Quarter of 2017

Affiliated Managers Group Inc. (ticker: AMG, exchange: New York Stock Exchange)
News Release - 01-May-2017

Company Reports EPS of $2.13; Economic EPS of $3.21

WEST PALM BEACH, FL, May 1, 2017 - Affiliated Managers Group, Inc. (NYSE: AMG) today reported its financial and operating results for the quarter ended March 31, 2017.

For the first quarter of 2017, diluted earnings per share were $2.13, compared to $1.90 for the same period of 2016, and Economic earnings per share ('Economic EPS') were $3.21, compared to $2.92 for the same period of 2016. For the first quarter of 2017, Net income was $122.5 million, compared to $104.0 million for the same period of 2016. For the first quarter of 2017, Economic net income was $183.2 million, compared to $159.3 million for the same period of 2016. For the first quarter of 2017, Adjusted EBITDA was $243.8 million, compared to $215.7 million for the same period of 2016. For the first quarter of 2017, Revenue was $544.3 million, compared to $545.4 million for the same period of 2016. For the first quarter of 2017, Aggregate revenue, which includes revenue from consolidated Affiliates as well as Equity method revenue (which represents asset-based fees and performance fees earned by Affiliates accounted for under the equity method), was $1.4 billion, compared to $1.0 billion for the same period of 2016. (Economic EPS, Economic net income, and Adjusted EBITDA are defined in the attached tables, along with reconciliations to the most directly comparable GAAP measure.)

Net client cash flows for the first quarter of 2017 were $(1.3) billion. AMG's aggregate assets under management were approximately $754 billion at March 31, 2017.

AMG repurchased approximately $80 million in stock, or 0.5 million common shares, during the first quarter of 2017. The Company initiated a cash dividend in the first quarter, and today, announced a second-quarter cash dividend of $0.20 per common share, payable May 25, 2017 to stockholders of record as of the close of business on May 11, 2017.

'AMG had a strong start to 2017, including year-over-year growth of 10% in our Economic earnings per share, which were $3.21 for the first quarter,' stated Sean M. Healey, Chairman and Chief Executive Officer of AMG. 'Through successful execution across all aspects of our growth strategy, our assets under management have grown 17% since the first quarter of 2016 to a record $754 billion - reflecting positive organic growth from net client cash flows over the period, the long-term track records of alpha generation by our Affiliates, and the addition of excellent new Affiliates.'

'Our positive net flows into alternative strategies were offset by elevated outflows from U.S. equity strategies, resulting in modest outflows overall for the quarter,' Mr. Healey continued. 'Our Affiliates generated excellent investment performance across their industry-leading product sets, particularly in alternatives and global equities. We continue to see strong client demand across a diverse array of liquid and illiquid alternative strategies, and while our Affiliates' equity products saw overall outflows during the quarter, client appetite remains robust for differentiated equity strategies focused on non-U.S. markets. Lower correlations, higher volatility, and the shift from monetary to fiscal policy worldwide will favor the abilities of skilled active managers, providing an increasingly constructive environment for performance-oriented managers running truly active strategies to generate excess returns. As global clients continue to seek outperformance from value-added strategies for the alpha portions of their portfolios, the best alpha managers will gain increasing market share, and given their long-term records of investment outperformance in attractive return-oriented areas, we expect our Affiliates to benefit from this trend.'

'Finally, we have an outstanding ongoing opportunity to enhance our earnings growth and the diversity of our business through accretive investments in new Affiliates. With our unique competitive position and track record of successful partnerships, our opportunity set remains unmatched in the industry. Through our disciplined commitment to prudent capital allocation, consistent return of capital to shareholders, and enhancing the organic growth of our Affiliates, we are positioned to generate substantial shareholder value ahead.'

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 shareholder value through the growth of existing Affiliates, as well as through investments in new Affiliates and additional investments in existing Affiliates. In addition, AMG provides centralized assistance to its Affiliates in strategic matters, marketing, distribution, product development and operations. As of March 31, 2017, AMG's aggregate assets under management were approximately $754 billion in more than 550 investment products across a broad range of investment styles, asset classes, and client types. 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,' 'pending investments,' '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, 2016, 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 atwww.amg.com and encourages investors to consult that section regularly.

Financial Tables Follow

A teleconference will be held with AMG's management at 8:30 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 8:15 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 13661068. The live call and replay of the session, and additional financial information referenced during the teleconference, can also be accessed via AMG's website athttp://www.amg.com/InvestorRelations/.

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Complete Press Release with Financial Tables
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