Artio Global Investors Inc. : Artio Global Investors Reports Third Quarter 2011 Results; Announces Quarterly Dividend of $0.06 Per Share
10/27/2011| 07:05am US/Eastern
Recommend:
0
Artio Global Investors Inc. (NYSE: ART) ("Artio Global Investors",
together with its subsidiaries, "Artio Global" or the "Company") today
reported its results for the quarter ended September 30, 2011.
FinancialUpdate
Adjusted1 net income attributable to Artio Global Investors
of $15.9 million, or $0.27 per diluted share, for the third quarter of
2011 (GAAP net income attributable to Artio Global Investors of $6.4
million, or $0.11 per diluted share)
Assets under management of $34.3 billion as of September 30, 2011
Investment management fees of $65.6 million for the third quarter of
2011
Effective fee rate2 of 62.4 basis points for the third
quarter of 2011
Adjusted operating margin of 50.0% for the third quarter of 2011
Quarterly dividend of $0.06 per share on Class A common stock
The Company's GAAP results include a previously announced compensation
charge (the "Compensation Charge") of $7.6 million related to
organizational changes designed to lower the Company's operating costs
and more efficiently manage resources for current business conditions.
The Compensation Charge reduced GAAP net income attributable to Artio
Global Investors by $0.08 per diluted share for the third quarter of
2011. The Company's adjusted results exclude the Compensation Charge.
The Company's adjusted results for all periods assume the Principals'3
non-controlling interests have been fully exchanged for shares of Class
A common stock and exclude the amortization of restricted stock units
("RSUs") granted at the time of the Company's initial public offering
("IPO"). Adjusted results are presented to provide more meaningful
comparisons between periods.
The Company's adjusted non-operating loss for the third quarter of 2011
of $4.7 million (GAAP non-operating loss of $6.2 million) includes
non-operating losses of $4.3 million on seed capital investments,
primarily reflecting market depreciation.
For the third quarter of 2011, adjusted net income attributable to Artio
Global Investors was $15.9 million, or $0.27 per diluted share, a
decrease of 32% and 31%, respectively, from adjusted net income
attributable to Artio Global Investors of $23.3 million, or $0.39 per
diluted share, for the second quarter of 2011, and a decrease in each
case of 33% from adjusted net income attributable to Artio Global
Investors of $23.8 million, or $0.40 per diluted share, for the third
quarter of 2010.
On a GAAP basis, net income attributable to Artio Global Investors for
the third quarter of 2011 was $6.4 million, or $0.11 per diluted share,
a decrease of 70% and 69%, respectively, from net income attributable to
Artio Global Investors of $21.2 million, or $0.36 per diluted share, for
the second quarter of 2011, and a decrease in each case of 68% from
adjusted net income attributable to Artio Global Investors of $20.0
million, or $0.34 per diluted share, for the third quarter of 2010.
For the first nine months of 2011, adjusted net income attributable to
Artio Global Investors was $63.4 million, or $1.06 per diluted share, a
decrease in each case of 16% from adjusted net income attributable to
Artio Global Investors of $75.7 million, or $1.26 per diluted share, for
the first nine months of 2010.
On a GAAP basis, net income attributable to Artio Global Investors for
the first nine months of 2011 was $49.6 million, or $0.85 per diluted
share, a decrease of 14% and 25%, respectively, from net income
attributable to Artio Global Investors of $57.8 million, or $1.13 per
diluted share, for the first nine months of 2010.
The following tables compare the Company's GAAP results and adjusted
results. See Exhibits 3 - 5 of this news release for a reconciliation of
GAAP results to adjusted results.
Three Months Ended
(in millions, except per share amounts)
Sep. 30, 2011
Sep. 30, 2010
% Change
Jun. 30, 2011
% Change
Revenue4, GAAP
$
63.8
$
80.9
(21
%)
$
78.2
(18
%)
Operating income, GAAP
$
21.2
$
39.9
(47
%)
$
36.8
(42
%)
Operating income, adjusted
$
31.9
$
42.5
(25
%)
$
39.5
(19
%)
Net income attributable to Artio Global Investors, GAAP
$
6.4
$
20.0
(68
%)
$
21.2
(70
%)
Net income attributable to Artio Global Investors, adjusted
$
15.9
$
23.8
(33
%)
$
23.3
(32
%)
Diluted EPS, GAAP
$
0.11
$
0.34
(68
%)
$
0.36
(69
%)
Diluted EPS, adjusted
$
0.27
$
0.40
(33
%)
$
0.39
(31
%)
Nine Months Ended
(in millions, except per share amounts)
Sep. 30, 2011
Sep. 30, 2010
% Change
Revenue4, GAAP
$
224.1
$
249.9
(10
%)
Operating income, GAAP
$
97.2
$
128.2
(24
%)
Operating income, adjusted
$
113.1
$
136.5
(17
%)
Net income attributable to Artio Global Investors, GAAP
$
49.6
$
57.8
(14
%)
Net income attributable to Artio Global Investors, adjusted
$
63.4
$
75.7
(16
%)
Diluted EPS, GAAP
$
0.85
$
1.13
(25
%)
Diluted EPS, adjusted
$
1.06
$
1.26
(16
%)
Business Update5
Four of the Company's nine eligible mutual funds6 were in
the top quartile of Lipper performance rankings for the three-year
period ended September 30, 2011
Five of the Company's nine eligible mutual funds7 were in
the top third of Lipper performance rankings for the five-year period
ended September 30, 2011
Net client cash outflows were $4.2 billion for the third quarter of
2011
Management Commentary
"The third quarter saw sharply lower equity markets and a return to
heightened levels of volatility," said Richard Pell, Chairman, Chief
Executive Officer and Chief Investment Officer. "Against this market
backdrop, it proved to be a challenging quarter for our International
Equity strategies, although we were pleased to see some moderation in
outflows from our open International Equity II strategy. We continue to
have a high degree of conviction in our portfolio positioning,
particularly around the rise of the emerging market consumer, taking a
considered long?term approach even at the risk of short?term
underperformance."
"We are encouraged by the potential for growth within our fixed income
strategies that will serve to diversify our business. During the third
quarter, our High Grade Fixed Income strategy increased its asset base,
and produced another quarter of strong performance relative to its peer
group. After the recent sell?off, high yield is increasingly being
viewed as under?priced, with industry fund flows swinging back to
positive since quarter end. Given our strategy's strong long?term
performance, we believe that we are well?positioned to participate."
"On the equity side, we also remain confident that our four US Equity
strategies are well-positioned to generate inflows, given the strength
of their three- and five-year track records. Although US investors
currently lack focus on the asset class, we are encouraged by the early
stage inquiries that we are seeing from European investors."
"Additionally, we announced organizational changes during the third
quarter designed to right?size our business and repurchased stock as
part of our ongoing capital management."
Third Quarter of 2011 Comparison with Third Quarter of 2010
Assets Under Management and Net Client Cash Flows
Assets under management were $34.3 billion as of September 30, 2011,
down $19.6 billion, or 36%, from $53.9 billion as of September 30, 2010,
due to net client cash outflows and market depreciation.
Net client cash outflows for the third quarter of 2011 were $4.2
billion, driven primarily by net client cash outflows from our
International Equity I and II strategies, and our High Yield strategy.8
Revenues and Other Operating Income
Revenues and other operating income for the third quarter of 2011
totaled $63.8 million, down 21% from $80.9 million for the third quarter
of 2010. The decrease was driven primarily by lower investment
management fees of $65.6 million for the third quarter of 2011, down 18%
from $80.2 million for the third quarter of 2010, due primarily to lower
average assets under management.
Expenses
Employee Compensation and Benefits
For the third quarter of 2011, adjusted employee compensation and
benefits expenses were $17.7 million, down 20% from $22.2 million for
the third quarter of 2010. The decrease was due primarily to lower
incentive compensation accruals, partly offset by accruals related to
the Company's long-term incentive plan implemented in 2011.
GAAP employee compensation and benefits expenses for the third quarter
of 2011 were $28.4 million, up 15% from $24.8 million for the third
quarter of 2010, due primarily to the Compensation Charge, partly offset
by the reasons noted above.
Shareholder Servicing and Marketing Expenses
Shareholder servicing and marketing expenses for the third quarter of
2011 were $4.7 million, down 6% from $5.0 million for the third quarter
of 2010, driven primarily by lower marketing expenses and a decline in
custody fees.
General and Administrative Expenses
General and administrative expenses for the third quarter of 2011 were
$9.5 million, a decrease of 16% from $11.2 million for the third quarter
of 2010, due primarily to a decline in client-related trading errors and
lower professional fees.
Income Taxes
For the third quarter of 2011, the adjusted effective tax rate was
41.4%, 2.0 percentage points lower than the 43.4% adjusted effective tax
rate for the third quarter of 2010. The decrease was due primarily to a
lower apportionment of income for state and local tax purposes in the
third quarter of 2011.
The GAAP effective tax rate was 64.9% for the third quarter of 2011,
17.5 percentage points higher than the 47.4% GAAP effective tax rate for
the third quarter of 2010. The increase was due primarily to a larger
impact in the third quarter of 2011 from the write-off of deferred tax
assets related to the vesting of RSUs granted at the time of the IPO, at
prices below their grant date fair value, and the inability to record a
tax benefit on non-operating losses attributable to the non-controlling
interests' economic ownership in the Consolidated Investment Products.
Third Quarter of 2011 Comparison with Second Quarter of 2011
Assets Under Management
Assets under management were $34.3 billion as of September 30, 2011, a
decrease of $12.6 billion, or 27%, from $46.8 billion as of June 30,
2011, due to market depreciation of $8.4 billion and net client cash
outflows of $4.2 billion.
Revenues and Other Operating Income
Revenues and other operating income for the third quarter of 2011
totaled $63.8 million, down 18% from $78.2 million for the second
quarter of 2011, driven primarily by lower investment management fees.
Investment management fees were $65.6 million for the third quarter of
2011, down 16% from $78.2 million for the second quarter of 2011, due
primarily to a decrease in average assets under management.
Expenses
Employee Compensation and Benefits
For the third quarter of 2011, adjusted employee compensation and
benefits expenses were $17.7 million, down 24% from $23.2 million for
the second quarter of 2011, due primarily to a decrease in incentive
compensation accruals.
GAAP employee compensation and benefits expenses for the third quarter
of 2011 were $28.4 million, up 10% from $25.8 million for the second
quarter of 2011, due primarily to the Compensation Charge, partly offset
by the reason noted above.
Shareholder Servicing and Marketing Expenses
Shareholder servicing and marketing expenses for the third quarter of
2011 were $4.7 million, a decrease of 9% from $5.2 million for the
second quarter of 2011, due primarily to a decrease in marketing
expenses.
General and Administrative Expenses
General and administrative expenses were $9.5 million for the third
quarter of 2011, a decrease of 9% from $10.4 million for the second
quarter of 2011, due primarily to lower professional fees.
Income Taxes
For the third quarter of 2011, the adjusted effective tax rate was
41.4%, 0.5 percentage points higher than the 40.9% adjusted effective
tax rate for the second quarter of 2011.
The GAAP effective tax rate was 64.9% for the third quarter of 2011,
24.3 percentage points higher than the 40.6% GAAP effective tax rate for
the second quarter of 2011, due primarily to the write-off of deferred
tax assets related to the vesting of RSUs granted at the time of the
IPO, at a price below their grant date fair value, and the inability to
record a tax benefit on non-operating losses attributable to the
non-controlling interests' economic ownership in the Consolidated
Investment Products.
Liquidity and Capital
As of September 30, 2011, the Company had cash and cash equivalents
(excluding amounts held in consolidated investment products) of $89.2
million, investments held for deferred compensation of $9.8 million and
an undrawn $100.0 million committed revolving credit facility. During
the third quarter of 2011, in accordance with the terms of the credit
agreement, the Company repaid $4.5 million of its term debt facility,
reducing the outstanding balance to $42.0 million.
Total stockholders' equity on the Statement of Financial Position was
$153.7 million as of September 30, 2011, compared to $103.6 million as
of December 31, 2010.
Share Repurchase
During the third quarter of 2011 the Company repurchased and retired
773,939 shares of Class A common stock at an average cost of $8.77 in
connection with the 3,000,000 share repurchase program previously
announced. As of September 30, 2011, the Company retains authorization
to repurchase 2,226,061 shares of its common stock through December 31,
2013.
Shares
As of September 30, 2011, the total number of shares of Class A and
Class B common stock outstanding was 59,251,113.
On September 29, 2011, in accordance with the Company's certificate of
incorporation, 16,755,844 shares of Class C common stock held by our
former sole stockholder, GAM Holding AG, were converted to an equal
amount of shares of Class A common stock.
For purposes of calculating adjusted earnings per diluted share, the
Principals' New Class A Units, held in the intermediate holding company
as of the beginning of the period are assumed to have been fully
exchanged into shares of Class A common stock on the first day of the
period.
Dividend
On October 24, 2011, the Board of Directors declared a dividend of $0.06
per share on the Class A common stock for the third quarter of 2011,
which is payable on November 22, 2011, to stockholders of record as of
the close of business on November 9, 2011.
Teleconference and Webcast Details
The Company will host a conference call for analysts and investors to
review third quarter 2011 results, today, October 27, 2011, beginning at
8:00 a.m. (Eastern Time). The call will be open to the public and can be
accessed by dialing +1-888-680-0860 (inside the United States) or
+1-617-213-4852 (outside the United States). The number should be dialed
at least ten minutes prior to the start of the call. The passcode for
the call will be 15606585. A simultaneous webcast of the call (on a
listen-only basis), as well as an audio replay, will be available at www.ir.ArtioGlobal.com.
About Us
Artio Global Investors is the indirect holding company of Artio Global
Management LLC ("Artio Global"), a registered investment adviser that
actively invests in global equity and fixed income markets, primarily
for institutional and intermediary clients. Headquartered in New York,
Artio Global has offices in Los Angeles, Toronto, London and Sydney.
Best known for International Equity, Artio Global also offers a select
group of other equity and fixed income investment strategies, including
Global Equity, a series of US Equity strategies, High Grade Fixed
Income, High Yield and Local Emerging Markets Debt. Access to these
strategies is offered through a variety of investment vehicles including
separate accounts, commingled funds and mutual funds.
Since 1995 our investment professionals have built a successful
long-term track record by taking an unconventional approach to
investing. Based on a philosophy of style-agnostic investing across a
broad range of opportunities, we have consistently pursued a global
approach that we believe provides critical insights, thereby adding
value for clients over the long term.
In addition to historical information, this news release may, and the
related remarks do, contain forward?looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding the intrinsic value of our common stock,
investor behavior, net client cash flows, our compensation costs and
adjusted compensation ratio, future tax rate, use of our free cash flow,
potential share repurchases and declaration of dividends. These
forward?looking statements are based on the Company's current
assumptions, expectations and projections about future events. Words
like "believe", "anticipate", "intend", "estimate", "expect", "project",
and similar expressions are used to identify forward?looking statements,
although not all forward-looking statements contain these words. These
forward?looking statements discuss matters that necessarily involve a
number of risks and uncertainties that could cause actual results to
differ materially from those expressed or implied by the forward?looking
statements.
Among the factors that could cause actual results to differ from those
expressed or implied by a forward?looking statement are those described
in the sections entitled "Risk Factors" and "Management's Discussion and
Analysis of Financial Condition and Results of Operations" in the
Company's report on Form 10?K (File No. 001?34457) filed with the
Securities and Exchange Commission on February 25, 2011. Other unknown
or unpredictable factors also could have material adverse effects on the
Company's future results, performance, or achievements.
Any forward?looking statements in this news release and the related
remarks speak only as of the date of this news release. The related
remarks may contain information about the Company subsequent to
September 30, 2011. The Company is not under any obligation and does not
intend to make publicly available any update or other revisions to any
forward?looking statements to reflect circumstances existing after the
date of this release or to reflect the occurrence of future events even
if experience or future events make it clear that any expected results
expressed or implied by those forward?looking statements will not be
realized.
Fund Performance and Other Disclaimers
Lipper rankings are for Class I mutual fund shares with three- and
five-year track records only. Other classes may have different
performance characteristics. Lipper, a wholly-owned subsidiary of
Reuters, provides independent insight on global collective investments
including mutual funds, retirement funds, hedge funds and fund fees and
expenses to the asset management and media communities. Lipper ranks the
performance of mutual funds within a classification of funds that have
similar investment objectives. Rankings are historical with capital
gains and dividends reinvested and do not include the effect of loads.
If an expense waiver was in effect, it may have had a material effect on
the total return or yield for the period.
Morningstar rankings are for Class I mutual fund shares with a minimum
three-year track record. For each mutual fund with at least a three-year
history, Morningstar calculates a Morningstar Rating? based on a
Morningstar Risk-Adjusted Return measure that accounts for variation in
a fund's monthly performance (including the effects of sales charges,
loads, and redemption fees), placing more emphasis on downward
variations and rewarding consistent performance. The top 10% of funds in
each category receive 5 stars, the next 22.5% receive 4 stars, the next
35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10%
receive 1 star. (Each share class is counted as a fraction of one fund
within this scale and rated separately, which may cause slight
variations in the distribution percentages.) The Overall Morningstar
Rating for a mutual fund is derived from a weighted average of the
performance figures associated with its three-, five- and ten-year (if
applicable) Morningstar Rating metrics. A fund's independent Morningstar
Rating metric is then compared against the mutual fund universe
breakpoints to determine its hypothetical rating.
This news release is not, and should not be considered, sales material
and is not an offer or a solicitation for any securities.
1 See Exhibits 3 - 5 of this news release for a
reconciliation of the Company's U.S. GAAP results to its non-GAAP
adjusted results ("adjusted").
2 Effective fee rate is defined as annualized investment
management fees (based on the number of days in the period) divided by
the average assets under management for the period.
3 Richard Pell, Chairman, Chief Executive Officer and Chief
Investment Officer, and Rudolph-Riad Younes, Head of International and
Global Equities, are collectively referred to as the "Principals".
4 Represents total revenues and other operating income.
5 See section entitled "Fund Performance and Other
Disclaimers" and Exhibit 8 of this news release for further information
about Lipper and Morningstar rankings.
6 Class I mutual fund shares with a three-year track record;
other classes may have different performance characteristics.
7 Class I mutual fund shares with a five-year track record;
other classes may have different performance characteristics.
8 See Exhibit 7 for more information on "Assets under
Management by Investment Strategy".
Exhibit - 1
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Consolidated Statements of Income
(unaudited, in thousands, except share and per share amounts or as
noted)
Three Months Ended
% Change From
Nine Months Ended
% Change From
Sep. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2010
Revenues and other operating income:
Investment management fees
$
65,576
$
80,173
$
78,209
(18
%)
(16
%)
$
225,561
$
249,301
(10
%)
Net gains (losses) on securities held for deferred compensation
(1,798
)
722
(56
)
NM
NM
(1,435
)
582
NM
Foreign currency gains (losses)
6
35
(2
)
(83
%)
NM
(14
)
13
NM
Total revenues and other operating income
63,784
80,930
78,151
(21
%)
(18
%)
224,112
249,896
(10
%)
Expenses:
Employee compensation and benefits
28,387
24,772
25,812
15
%
10
%
82,217
74,588
10
%
Shareholder servicing and marketing
4,708
5,031
5,163
(6
%)
(9
%)
14,736
15,177
(3
%)
General and administrative
9,470
11,224
10,357
(16
%)
(9
%)
29,999
31,954
(6
%)
Total expenses
42,565
41,027
41,332
4
%
3
%
126,952
121,719
4
%
Operating income before income tax expense
21,219
39,903
36,819
(47
%)
(42
%)
97,160
128,177
(24
%)
Non-operating loss
(6,190
)
(431
)
(156
)
NM
NM
(5,781
)
(1,740
)
NM
Income before income tax expense
15,029
39,472
36,663
(62
%)
(59
%)
91,379
126,437
(28
%)
Income taxes
9,753
18,717
14,869
(48
%)
(34
%)
41,373
49,376
(16
%)
Net income
5,276
20,755
21,794
(75
%)
(76
%)
50,006
77,061
(35
%)
Net income attributable to non-controlling interests in AGH (1)
319
756
719
(58
%)
(56
%)
1,807
19,239
(91
%)
Net loss attributable to non-controlling interests in CIP (2)
(1,456
)
-
(75
)
NM
NM
(1,396
)
-
NM
Net income attributable to Artio Global Investors
$
6,413
$
19,999
$
21,150
(68
%)
(70
%)
$
49,595
$
57,822
(14
%)
Net income per share attributable to Artio Global Investors:
Basic
$
0.11
$
0.34
$
0.36
(68
%)
(69
%)
$
0.85
$
1.14
(25
%)
Diluted
$
0.11
$
0.34
$
0.36
(68
%)
(69
%)
$
0.85
$
1.13
(25
%)
Weighted average shares used in net income per share attributable
to Artio Global Investors:
Basic
58,157,478
58,678,738
58,392,969
(1
%)
0
%
58,300,638
50,906,739
15
%
Diluted (3)
58,403,338
59,012,436
58,576,859
(1
%)
0
%
58,430,802
51,136,951
14
%
NM - Not Meaningful
Assets under management ($ in millions)
$
34,252
$
53,860
$
46,835
(36
%)
(27
%)
$
34,252
$
53,860
(36
%)
Average assets under management ($ in millions) (4)
$
41,670
$
51,004
$
49,783
(18
%)
(16
%)
$
47,829
$
52,945
(10
%)
Effective fee rate (basis points) (5)
62.4
62.4
63.0
63.1
63.0
Effective tax rate
64.9
%
47.4
%
40.6
%
45.3
%
39.1
%
Employee compensation and benefits as a percentage of total
revenues and other operating income (6)
44.5
%
30.6
%
33.0
%
36.7
%
29.8
%
Operating margin (7)
33.3
%
49.3
%
47.1
%
43.4
%
51.3
%
1. Represents non-controlling interests in Artio Global Holdings LLC.
2. Represents non-controlling interests in Consolidated Investment
Products.
3. The effect of the assumed conversion of the Principals' New Class
A units was antidilutive for the three and nine months ended Sep.
30, 2011 and 2010, and the three months ended Jun. 30, 2011.
4. Average assets under management for a period is computed on the
beginning-of-first-month balance and all end-of-month balances in
the period.
5. Effective fee rate is defined as annualized investment management
fees (based on the number of days in the period) divided by the
average assets under management for the period.
6. Calculated as employee compensation and benefits expense divided
by total revenues and other operating income.
7. Calculated as operating income before income tax expense divided
by total revenues and other operating income.
Exhibit - 2
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Non-GAAP Adjusted Consolidated Statements of Income
(unaudited, in thousands, except share and per share amounts or as
noted)
Three Months Ended
% Change From
Nine Months Ended
% Change From
Sep. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2010
Revenues and other operating income:
Investment management fees
$
65,576
$
80,173
$
78,209
(18
%)
(16
%)
$
225,561
$
249,301
(10
%)
Net gains (losses) on securities held for deferred compensation
(1,798
)
722
(56
)
NM
NM
(1,435
)
582
NM
Foreign currency gains (losses)
6
35
(2
)
(83
%)
NM
(14
)
13
NM
Total revenues and other operating income
63,784
80,930
78,151
(21
%)
(18
%)
224,112
249,896
(10
%)
Expenses:
Employee compensation and benefits
17,714
22,177
23,168
(20
%)
(24
%)
66,276
66,222
0
%
Shareholder servicing and marketing
4,708
5,031
5,163
(6
%)
(9
%)
14,736
15,177
(3
%)
General and administrative
9,470
11,224
10,357
(16
%)
(9
%)
29,999
31,954
(6
%)
Total expenses
31,892
38,432
38,688
(17
%)
(18
%)
111,011
113,353
(2
%)
Operating income before income tax expense
31,892
42,498
39,463
(25
%)
(19
%)
113,101
136,543
(17
%)
Non-operating loss
(4,734
)
(431
)
(81
)
NM
NM
(4,385
)
(1,740
)
(152
%)
Income before income tax expense
27,158
42,067
39,382
(35
%)
(31
%)
108,716
134,803
(19
%)
Income taxes
11,245
18,267
16,109
(38
%)
(30
%)
45,350
59,121
(23
%)
Net income
15,913
23,800
23,273
(33
%)
(32
%)
63,366
75,682
(16
%)
Net income attributable to non-controlling interests in AGH (1)
-
-
-
NM
NM
-
-
NM
Net loss attributable to non-controlling interests in CIP (2)
-
-
-
NM
NM
-
-
NM
Net income attributable to Artio Global Investors
$
15,913
$
23,800
$
23,273
(33
%)
(32
%)
$
63,366
$
75,682
(16
%)
Net income per diluted share attributable to Artio Global Investors
$
0.27
$
0.40
$
0.39
(33
%)
(31
%)
$
1.06
$
1.26
(16
%)
Weighted average diluted shares used in net income per share
attributable to Artio Global Investors
59,603,338
60,212,436
59,776,859
(1
%)
0
%
59,630,802
60,240,248
(1
%)
NM - Not Meaningful
Assets under management ($ in millions)
$
34,252
$
53,860
$
46,835
(36
%)
(27
%)
$
34,252
$
53,860
(36
%)
Average assets under management ($ in millions) (3)
$
41,670
$
51,004
$
49,783
(18
%)
(16
%)
$
47,829
$
52,945
(10
%)
Effective fee rate (basis points) (4)
62.4
62.4
63.0
63.1
63.0
Effective tax rate
41.4
%
43.4
%
40.9
%
41.7
%
43.9
%
Employee compensation and benefits as a percentage of total
revenues and other operating income (5)
27.8
%
27.4
%
29.6
%
29.6
%
26.5
%
Operating margin (6)
50.0
%
52.5
%
50.5
%
50.5
%
54.6
%
1. Represents non-controlling interests in Artio Global Holdings LLC.
2. Represents non-controlling interests in Consolidated Investment
Products.
3. Average assets under management for a period is computed on the
beginning-of-first-month balance and all end-of-month balances in
the period.
4. Effective fee rate is defined as annualized investment management
fees (based on the number of days in the period) divided by the
average assets under management for the period.
5. Calculated as employee compensation and benefits expense divided
by total revenues and other operating income.
6. Calculated as operating income before income tax expense divided
by total revenues and other operating income.
Exhibit - 3
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Adjusted Consolidated
Statements of Income
(unaudited, in thousands, except share and per share amounts)
See Exhibit 5 for notes describing adjustments set forth below.
Three Months Ended Sep. 30, 2011
Three Months Ended Sep. 30, 2010
Three Months Ended Jun. 30, 2011
GAAP
Adjustments
Adjusted
GAAP
Adjustments
Adjusted
GAAP
Adjustments
Adjusted
Revenues and other operating income:
Investment management fees
$
65,576
$
-
$
65,576
$
80,173
$
-
$
80,173
$
78,209
$
-
$
78,209
Net gains (losses) on securities held for deferred compensation
(1,798
)
-
(1,798
)
722
-
722
(56
)
-
(56
)
Foreign currency gains (losses)
6
-
6
35
-
35
(2
)
-
(2
)
Total revenues and other operating income
63,784
-
63,784
80,930
-
80,930
78,151
-
78,151
Expenses:
Employee compensation and benefits
28,387
(10,673
)
(a)
17,714
24,772
(2,595
)
(a)
22,177
25,812
(2,644
)
(a)
23,168
Shareholder servicing and marketing
4,708
-
4,708
5,031
-
5,031
5,163
-
5,163
General and administrative
9,470
-
9,470
11,224
-
11,224
10,357
-
10,357
Total expenses
42,565
(10,673
)
31,892
41,027
(2,595
)
38,432
41,332
(2,644
)
38,688
Operating income before income tax expense
21,219
10,673
31,892
39,903
2,595
42,498
36,819
2,644
39,463
Non-operating loss
(6,190
)
1,456
(e)
(4,734
)
(431
)
-
(431
)
(156
)
75
(e)
(81
)
Income before income tax expense
15,029
12,129
27,158
39,472
2,595
42,067
36,663
2,719
39,382
Income taxes
9,753
1,492
(b)
11,245
18,717
(450
)
(b)
18,267
14,869
1,240
(b)
16,109
Net income
5,276
10,637
15,913
20,755
3,045
23,800
21,794
1,479
23,273
Net income attributable to non-controlling interests in AGH
319
(319
)
(c)
-
756
(756
)
(c)
-
719
(719
)
(c)
-
Net loss attributable to non-controlling interests in CIP
(1,456
)
1,456
(e)
-
-
-
-
(75
)
75
(e)
-
Net income attributable to Artio Global Investors
$
6,413
$
9,500
$
15,913
$
19,999
$
3,801
$
23,800
$
21,150
$
2,123
$
23,273
Net income per diluted share attributable to Artio Global Investors
$
0.11
$
0.27
$
0.34
$
0.40
$
0.36
$
0.39
Weighted average diluted shares used in net income per share
attributable to Artio Global Investors
58,403,338
1,200,000
(d)
59,603,338
59,012,436
1,200,000
(d)
60,212,436
58,576,859
1,200,000
(d)
59,776,859
Exhibit - 4
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Reconciliation of GAAP to Non-GAAP Adjusted Consolidated
Statements of Income
(unaudited, in thousands, except share and per share amounts)
See Exhibit 5 for notes describing adjustments set forth below.
Nine Months Ended Sep. 30, 2011
Nine Months Ended Sep. 30, 2010
GAAP
Adjustments
Adjusted
GAAP
Adjustments
Adjusted
Revenues and other operating income:
Investment management fees
$
225,561
$
-
$
225,561
$
249,301
$
-
$
249,301
Net gains (losses) on securities held for deferred compensation
(1,435
)
-
(1,435
)
582
-
582
Foreign currency gains (losses)
(14
)
-
(14
)
13
-
13
Total revenues and other operating income
224,112
-
224,112
249,896
-
249,896
Expenses:
Employee compensation and benefits
82,217
(15,941
)
(a)
66,276
74,588
(8,366
)
(a)
66,222
Shareholder servicing and marketing
14,736
-
14,736
15,177
-
15,177
General and administrative
29,999
-
29,999
31,954
-
31,954
Total expenses
126,952
(15,941
)
111,011
121,719
(8,366
)
113,353
Operating income before income tax expense
97,160
15,941
113,101
128,177
8,366
136,543
Non-operating loss
(5,781
)
1,396
(e)
(4,385
)
(1,740
)
-
(1,740
)
Income before income tax expense
91,379
17,337
108,716
126,437
8,366
134,803
Income taxes
41,373
3,977
(b)
45,350
49,376
9,745
(b)
59,121
Net income
50,006
13,360
63,366
77,061
(1,379
)
75,682
Net income attributable to non-controlling interests in AGH
1,807
(1,807
)
(c)
-
19,239
(19,239
)
(c)
-
Net loss attributable to non-controlling interests in CIP
(1,396
)
1,396
(e)
-
-
-
-
Net income attributable to Artio Global Investors
$
49,595
$
13,771
$
63,366
$
57,822
$
17,860
$
75,682
Net income per diluted share attributable to Artio Global Investors
$
0.85
$
1.06
$
1.13
$
1.26
Weighted average diluted shares used in net income per share
attributable to Artio Global Investors
58,430,802
1,200,000
(d)
59,630,802
51,136,951
9,103,297
(d)
60,240,248
Exhibit - 5
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Notes to Reconciliation of GAAP to Non-GAAP Adjusted Consolidated
Statements of Income
Management believes the Non-GAAP adjustments set forth below provide
more meaningful comparisons between periods. Additional information
on the
reorganization of the Company's ownership structure and the relating
non-recurring items are discussed in the Company's prospectus dated
September 23, 2009.
(a)
Adjustments to exclude the amortization expense associated with the
RSUs awarded at the time of the IPO from all periods presented, as
the granting of
the awards was one-time in nature.
The three and nine months ended Sep. 30, 2011 also exclude the
Compensation Charge, as this was non-recurring.
(b)
The adjustments to income taxes for all periods presented reflect
the tax effect of the assumed full exchange of the Principals'
non-controlling interests for
Class A common stock on the first day of the respective period,
since prior to such exchange, income tax expense excludes the U.S.
federal and state
taxes for the income attributable to the Principals and an
adjustment to reflect the tax effects of excluding the amortization
expense associated with the
RSUs awarded at the time of the IPO.
The three and nine months ended Sep. 30, 2011 also include an
adjustment to reflect the tax effect of excluding the Compensation
Charge.
(c)
Adjustment to eliminate the Principals' non-controlling interests
which are assumed to be exchanged for Class A common stock on the
first day of the
respective period.
(d)
Diluted shares outstanding assumes the Principals have fully
exchanged their New Class A Units in Artio Global Holdings LLC for
shares of the Company's
Class A common stock.
(e)
Adjustments to eliminate third party investors' economic interests
in the Consolidated Investment Products from both Net loss
attributable to non-controlling
interests in the Consolidated Investment Products and Non-operating
loss. Management believes these adjustments provide a more useful
measure for
comparing Non-operating loss between periods.
Exhibit - 6
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Assets under Management by Investment Vehicle
(unaudited, in millions)
Three Months Ended
% Change From
Nine Months Ended
% Change From
Sep. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2010
Proprietary Funds
Beginning assets under management
$
21,192
$
21,030
$
22,854
1
%
(7
%)
$
23,013
$
24,482
(6
%)
Gross client cash inflows
1,085
1,160
1,136
(6
%)
(4
%)
4,009
4,838
(17
%)
Gross client cash outflows
(2,887
)
(2,045
)
(2,739
)
(41
%)
(5
%)
(8,099
)
(6,884
)
(18
%)
Net client cash flows
(1,802
)
(885
)
(1,603
)
(104
%)
(12
%)
(4,090
)
(2,046
)
(100
%)
Transfers between investment vehicles
(38
)
-
-
NM
NM
(38
)
-
NM
Total client cash flows
(1,840
)
(885
)
(1,603
)
(108
%)
(15
%)
(4,128
)
(2,046
)
(102
%)
Market appreciation (depreciation)
(3,888
)
2,620
(59
)
NM
NM
(3,421
)
329
NM
Ending assets under management
15,464
22,765
21,192
(32
%)
(27
%)
15,464
22,765
(32
%)
Institutional Commingled Funds
Beginning assets under management
8,285
7,842
9,374
6
%
(12
%)
9,236
9,198
0
%
Gross client cash inflows
60
199
104
(70
%)
(42
%)
317
667
(52
%)
Gross client cash outflows
(919
)
(302
)
(1,149
)
NM
20
%
(2,492
)
(1,098
)
(127
%)
Net client cash flows
(859
)
(103
)
(1,045
)
NM
18
%
(2,175
)
(431
)
NM
Transfers between investment vehicles
38
22
(22
)
73
%
NM
226
22
NM
Total client cash flows
(821
)
(81
)
(1,067
)
NM
23
%
(1,949
)
(409
)
NM
Market appreciation (depreciation)
(1,695
)
1,133
(22
)
NM
NM
(1,518
)
105
NM
Ending assets under management
5,769
8,894
8,285
(35
%)
(30
%)
5,769
8,894
(35
%)
Separate Accounts
Beginning assets under management
14,221
16,001
14,768
(11
%)
(4
%)
16,801
17,854
(6
%)
Gross client cash inflows
111
308
31
(64
%)
NM
277
1,411
(80
%)
Gross client cash outflows
(1,232
)
(688
)
(677
)
(79
%)
(82
%)
(4,149
)
(2,161
)
(92
%)
Net client cash flows
(1,121
)
(380
)
(646
)
(195
%)
(74
%)
(3,872
)
(750
)
NM
Transfers between investment vehicles
-
(22
)
22
100
%
(100
%)
(188
)
(22
)
NM
Total client cash flows
(1,121
)
(402
)
(624
)
(179
%)
(80
%)
(4,060
)
(772
)
NM
Market appreciation (depreciation)
(2,262
)
2,012
77
NM
NM
(1,903
)
529
NM
Ending assets under management
10,838
17,611
14,221
(38
%)
(24
%)
10,838
17,611
(38
%)
Sub-advisory Accounts
Beginning assets under management
3,137
4,122
4,332
(24
%)
(28
%)
4,357
4,459
(2
%)
Gross client cash inflows
33
184
66
(82
%)
(50
%)
250
877
(71
%)
Gross client cash outflows
(434
)
(236
)
(1,300
)
(84
%)
67
%
(2,054
)
(790
)
(160
%)
Net client cash flows
(401
)
(52
)
(1,234
)
NM
68
%
(1,804
)
87
NM
Transfers between investment vehicles
-
-
-
NM
NM
-
-
NM
Total client cash flows
(401
)
(52
)
(1,234
)
NM
68
%
(1,804
)
87
NM
Market appreciation (depreciation)
(555
)
520
39
NM
NM
(372
)
44
NM
Ending assets under management
2,181
4,590
3,137
(52
%)
(30
%)
2,181
4,590
(52
%)
Total Assets under Management
Beginning assets under management
46,835
48,995
51,328
(4
%)
(9
%)
53,407
55,993
(5
%)
Gross client cash inflows
1,289
1,851
1,337
(30
%)
(4
%)
4,853
7,793
(38
%)
Gross client cash outflows
(5,472
)
(3,271
)
(5,865
)
(67
%)
7
%
(16,794
)
(10,933
)
(54
%)
Net client cash flows
(4,183
)
(1,420
)
(4,528
)
(195
%)
8
%
(11,941
)
(3,140
)
NM
Transfers between investment vehicles
-
-
-
NM
NM
-
-
NM
Total client cash flows
(4,183
)
(1,420
)
(4,528
)
(195
%)
8
%
(11,941
)
(3,140
)
NM
Market appreciation (depreciation)
(8,400
)
6,285
35
NM
NM
(7,214
)
1,007
NM
Ending assets under management
$
34,252
$
53,860
$
46,835
(36
%)
(27
%)
$
34,252
$
53,860
(36
%)
Exhibit - 7
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Assets under Management by Investment Strategy
(unaudited, in millions)
Three Months Ended
% Change From
Nine Months Ended
% Change From
Sep. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2010
International Equity I
Beginning assets under management
$
15,768
$
17,420
$
17,298
(9
%)
(9
%)
$
18,781
$
21,656
(13
%)
Gross client cash inflows
186
416
182
(55
%)
2
%
800
1,068
(25
%)
Gross client cash outflows
(1,767
)
(1,204
)
(1,643
)
(47
%)
(8
%)
(5,672
)
(3,676
)
(54
%)
Net client cash flows
(1,581
)
(788
)
(1,461
)
(101
%)
(8
%)
(4,872
)
(2,608
)
(87
%)
Transfers between investment strategies
-
-
-
NM
NM
-
-
NM
Total client cash flows
(1,581
)
(788
)
(1,461
)
(101
%)
(8
%)
(4,872
)
(2,608
)
(87
%)
Market appreciation (depreciation)
(3,408
)
2,562
(69
)
NM
NM
(3,130
)
146
NM
Ending assets under management
10,779
19,194
15,768
(44
%)
(32
%)
10,779
19,194
(44
%)
International Equity II
Beginning assets under management
19,546
20,552
22,243
(5
%)
(12
%)
23,272
24,716
(6
%)
Gross client cash inflows
361
554
384
(35
%)
(6
%)
1,627
2,708
(40
%)
Gross client cash outflows
(2,507
)
(1,101
)
(3,053
)
(128
%)
18
%
(7,922
)
(4,577
)
(73
%)
Net client cash flows
(2,146
)
(547
)
(2,669
)
NM
20
%
(6,295
)
(1,869
)
NM
Transfers between investment strategies
(39
)
-
-
NM
NM
(39
)
50
(178
%)
Total client cash flows
(2,185
)
(547
)
(2,669
)
NM
18
%
(6,334
)
(1,819
)
NM
Market appreciation (depreciation)
(4,316
)
2,994
(28
)
NM
NM
(3,893
)
102
NM
Ending assets under management
13,045
22,999
19,546
(43
%)
(33
%)
13,045
22,999
(43
%)
High Grade Fixed Income
Beginning assets under management
4,885
5,652
5,036
(14
%)
(3
%)
5,088
5,293
(4
%)
Gross client cash inflows
305
157
229
94
%
33
%
682
779
(12
%)
Gross client cash outflows
(185
)
(521
)
(594
)
64
%
69
%
(1,012
)
(1,077
)
6
%
Net client cash flows
120
(364
)
(365
)
133
%
133
%
(330
)
(298
)
(11
%)
Transfers between investment strategies
1
-
104
NM
(99
%)
100
10
NM
Total client cash flows
121
(364
)
(261
)
133
%
146
%
(230
)
(288
)
20
%
Market appreciation (depreciation)
152
178
110
(15
%)
38
%
300
461
(35
%)
Ending assets under management
5,158
5,466
4,885
(6
%)
6
%
5,158
5,466
(6
%)
High Yield
Beginning assets under management
5,246
4,241
5,304
24
%
(1
%)
4,907
3,516
40
%
Gross client cash inflows
409
628
502
(35
%)
(19
%)
1,620
2,604
(38
%)
Gross client cash outflows
(962
)
(357
)
(499
)
(169
%)
(93
%)
(2,030
)
(1,449
)
(40
%)
Net client cash flows
(553
)
271
3
NM
NM
(410
)
1,155
(135
%)
Transfers between investment strategies
(1
)
-
(104
)
NM
99
%
(100
)
(10
)
NM
Total client cash flows
(554
)
271
(101
)
NM
NM
(510
)
1,145
(145
%)
Market appreciation (depreciation)
(527
)
408
43
NM
NM
(232
)
259
(190
%)
Ending assets under management
4,165
4,920
5,246
(15
%)
(21
%)
4,165
4,920
(15
%)
Global Equity
Beginning assets under management
1,037
817
1,066
27
%
(3
%)
1,025
618
66
%
Gross client cash inflows
14
76
8
(82
%)
75
%
41
454
(91
%)
Gross client cash outflows
(16
)
(17
)
(20
)
6
%
20
%
(50
)
(64
)
22
%
Net client cash flows
(2
)
59
(12
)
(103
%)
83
%
(9
)
390
(102
%)
Transfers between investment strategies
39
-
-
NM
NM
39
(50
)
178
%
Total client cash flows
37
59
(12
)
(37
%)
NM
30
340
(91
%)
Market appreciation (depreciation)
(220
)
115
(17
)
NM
NM
(201
)
33
NM
Ending assets under management
854
991
1,037
(14
%)
(18
%)
854
991
(14
%)
Exhibit - 7
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Assets under Management by Investment Strategy
(unaudited, in millions)
Three Months Ended
% Change From
Nine Months Ended
% Change From
Sep. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2010
Jun. 30, 2011
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2010
US Equity
Beginning assets under management
235
222
274
6
%
(14
%)
227
81
180
%
Gross client cash inflows
12
20
23
(40
%)
(48
%)
71
180
(61
%)
Gross client cash outflows
(21
)
(66
)
(56
)
68
%
63
%
(88
)
(77
)
(14
%)
Net client cash flows
(9
)
(46
)
(33
)
80
%
73
%
(17
)
103
(117
%)
Transfers between investment strategies
-
-
-
NM
NM
-
-
NM
Total client cash flows
(9
)
(46
)
(33
)
80
%
73
%
(17
)
103
(117
%)
Market appreciation (depreciation)
(57
)
14
(6
)
NM
NM
(41
)
6
NM
Ending assets under management
169
190
235
(11
%)
(28
%)
169
190
(11
%)
Other(1)
Beginning assets under management
118
91
107
30
%
10
%
107
113
(5
%)
Gross client cash inflows
2
-
9
NM
(78
%)
12
-
NM
Gross client cash outflows
(14
)
(5
)
-
(180
%)
NM
(20
)
(13
)
(54
%)
Net client cash flows
(12
)
(5
)
9
(140
%)
NM
(8
)
(13
)
38
%
Transfers between investment strategies
-
-
-
NM
NM
-
-
NM
Total client cash flows
(12
)
(5
)
9
(140
%)
NM
(8
)
(13
)
38
%
Market appreciation (depreciation)
(24
)
14
2
NM
NM
(17
)
-
NM
Ending assets under management
82
100
118
(18
%)
(31
%)
82
100
(18
%)
Total Assets under Management
Beginning assets under management
46,835
48,995
51,328
(4
%)
(9
%)
53,407
55,993
(5
%)
Gross client cash inflows
1,289
1,851
1,337
(30
%)
(4
%)
4,853
7,793
(38
%)
Gross client cash outflows
(5,472
)
(3,271
)
(5,865
)
(67
%)
7
%
(16,794
)
(10,933
)
(54
%)
Net client cash flows
(4,183
)
(1,420
)
(4,528
)
(195
%)
8
%
(11,941
)
(3,140
)
NM
Transfers between investment strategies
-
-
-
NM
NM
-
-
NM
Total client cash flows
(4,183
)
(1,420
)
(4,528
)
(195
%)
8
%
(11,941
)
(3,140
)
NM
Market appreciation (depreciation)
(8,400
)
6,285
35
NM
NM
(7,214
)
1,007
NM
Ending assets under management
34,252
53,860
46,835
(36
%)
(27
%)
34,252
53,860
(36
%)
1. Other includes the Local Emerging Markets Debt Fund, Global
Credit Opportunities Fund, Other International Equity and Other
strategies.
Exhibit - 8
ARTIO GLOBAL INVESTORS INC. AND SUBSIDIARIES
Mutual Fund Performance Data (1)
Morningstar Ratings /
Funds in Total Universe (# of Funds)
Lipper Percentile Rankings (PR) / Funds in Total Universe (# of
Funds)
YTD
1-Year
3-Year
5-Year
10-Year
# of
# of
# of
# of
# of
# of
Fund (3)
Rating
Funds
Category
PR
Funds
PR
Funds
PR
Funds
PR
Funds
PR
Funds
Classification
Artio International Equity Fund, Class A (2)
3
893
Foreign Large Blend
100
358
100
347
92
303
78
256
12
152
International Large-Cap Core
Artio International Equity Fund, Class I (2)
3
893
Foreign Large Blend
100
358
100
347
92
303
74
256
8
152
International Large-Cap Core
Artio International Equity II Fund, Class A
3
893
Foreign Large Blend
100
358
100
347
89
303
59
256
NA
NA
International Large-Cap Core
Artio International Equity II Fund, Class I
3
893
Foreign Large Blend
99
358
99
347
87
303
54
256
NA
NA
International Large-Cap Core
Artio Global Equity Fund, Class A
3
978
World Stock
100
118
100
111
60
100
64
74
NA
NA
Global Large-Cap Growth
Artio Global Equity Fund, Class I
3
978
World Stock
99
118
97
111
57
100
63
74
NA
NA
Global Large-Cap Growth
Artio Microcap Fund, Class A
2
784
Small Growth
81
739
11
723
16
655
42
529
NA
NA
Small-Cap Core
Artio Microcap Fund, Class I
2
784
Small Growth
80
739
10
723
14
655
38
529
NA
NA
Small-Cap Core
Artio Smallcap Fund, Class A
3
784
Small Growth
90
739
80
723
23
655
17
529
NA
NA
Small-Cap Core
Artio Smallcap Fund, Class I
3
784
Small Growth
89
739
77
723
19
655
14
529
NA
NA
Small-Cap Core
Artio Midcap Fund, Class A
3
784
Mid-Cap Growth
9
312
4
305
13
270
36
224
NA
NA
Mid-Cap Core
Artio Midcap Fund, Class I
3
784
Mid-Cap Growth
8
312
3
305
13
270
30
224
NA
NA
Mid-Cap Core
Artio Multicap Fund, Class A
2
1,727
Large Growth
54
793
27
790
14
687
23
577
NA
NA
Multi-Cap Core
Artio Multicap Fund, Class I
3
1,727
Large Growth
48
793
23
790
11
687
16
577
NA
NA
Multi-Cap Core
Artio Global High Income Fund, Class A
4
602
High Yield Bond
86
494
95
491
50
424
16
349
NA
NA
High Current Yield
Artio Global High Income Fund, Class I
4
602
High Yield Bond
85
494
93
491
44
424
10
349
NA
NA
High Current Yield
Artio Total Return Bond Fund, Class A
4
1,241
Intermediate Term Bond
11
578
7
574
45
490
21
390
4
275
Intermediate Investment Grade Debt
Artio Total Return Bond Fund, Class I
5
1,241
Intermediate Term Bond
8
578
5
574
37
490
16
390
2
275
Intermediate Investment Grade Debt
Note: Data as of September 30, 2011
NA: Not applicable
1.
Lipper, a wholly-owned subsidiary of Reuters, provides independent
insight on global collective investments including mutual funds,
retirement funds, hedge funds and fund fees and expenses to the
asset management and media communities. Lipper ranks the performance
of mutual funds within a classification of funds that have similar
investment objectives. Rankings are historical with capital gains
and dividends reinvested and do not include the effect of loads. If
an expense waiver was in effect, it may have had a material effect
on the total return or yield for the period.
The Artio Local Emerging Markets Debt Fund was launched in May 2011
and is not yet ranked or rated in any of the above categories.
Artio Global Investors Inc. Investor Relations: Peter
Sands, 212-297-3891 Head of Investor Relations ir@artioglobal.com or Media
Relations: Neil Shapiro, 212-754-5423 Intermarket
Communications nshapiro@Intermarket.com
Recommend:
