UPDATE 2-AMG Q3 profit surges amid flows, acquisitions

* Q3 Economic EPS $1.50, up from $1.05 a year ago

* Analysts had expected EPS $1.50

* New flows totaled about $5.5 bln in quarter

* AMG CEO to assume role of chairman next year

* Shares up 0.8 pct
(Adds details about earnings, share price, CEO quote)

By Svea Herbst-Bayliss

BOSTON, Oct 26 (BestGrowthStock) – Affiliated Managers Group
(AMG.N: ), which owns stakes in money management firms, said on
Tuesday that its third-quarter profit (Read more your timing to make a profit.) nearly doubled, helped by
acquisitions and investors’ fresh demand for its portfolios.

Net income jumped 91 percent to $34 million during the
third quarter from $17.7 million a year ago.

Cash earnings per share, the number that the company and
investment analysts focus on most, rose to $1.50 from $1.05 a
year ago. That number excludes the effect of factors such as
amortization and depreciation. Analysts had expected $1.50,
according to Thomson Reuters I/B/E/S.

Affiliated Managers, known as AMG, has recently stepped up
the pace of takeovers and most recently took a stake in Trilogy
Global Advisors during the third quarter.

New stakes were partly responsible for boosting assets
under management by 40 percent to $279.6 billion from $199.3
billion a year ago.

But investor appetite also returned as clients added $5.5
billion in new money to AMG’s portfolios.

During the third quarter many money managers reported fresh
interest as clients were slowly putting their money to work
again after the financial crisis of 2008.

At rival asset managers Invesco Ltd (IVZ.N: ) clients added
$4.9 billion during the quarter while T. Rowe Price (TROW.O: )
took in $8 billion in new assets, the companies said.

“Our results reflect the successful execution of our growth
strategy, including accretion from investments in new
affiliates as well as the strong organic growth of our existing
affiliates,” AMG CEO Sean Healey said in a statement.

The company already owns stakes in investment manager Third
Avenue Management, hedge fund firm AQR Capital Management, and
other entities.

Healey, who has presided over the company’s stepped-up pace
of acquisitions, will become chairman of the company’s board in
January, succeeding AMG founder William Nutt. Nutt will remain
as a board member.

Located north of Boston in Beverly, Massachusetts, AMG’s
recent acquisitions have helped expand the company’s footprint
abroad and with alternative investment firms like hedge funds.

Currently many smaller money managers are looking for
larger partners and many banks are still eager to prop up the
balance sheets by unloading asset management units, suggesting
that the pace of consolidation will continue.

AMG’s shares are among the costliest in the money
management industry but they have also delivered some of the
year’s best returns, rising about 26 percent since January. In
early trading on Tuesday, they were up 0.8 percent at $85.52.
(Reporting by Svea Herbst-Bayliss, editing by Dave Zimmerman)

UPDATE 2-AMG Q3 profit surges amid flows, acquisitions