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Rating:UPDATE 10| Fund Companies Report Q1 Results Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, May 8, 2008

UPDATE 10| Fund Companies Report Q1 Results

by: Erin Kello

Among the latest to report are GAMCO Investors and The Phoenix Companies.

GAMCO Investors reported net income of $10.48 million, or 37 cents per diluted share, compared with $19.16 million, or 67 cents per diluted share, in the year-ago quarter. Open-end mutual fund revenues rose 10.4 percent to 23.6 million. Total mutual fund AUM, including open-end equity, closed-end equity and fixed income funds, was $16.66 billion.

The Phoenix Companies recorded a net loss of $19 million, or 17 cents per diluted share in the first quarter, compared with net income of $50.6 million, or 44 cents per diluted share, in the first quarter of last year. Phoenix's asset management unit, one of its two operating segments, posted EBITDA of $4.8 million, down from $8.4 million in the year-ago period. Company officials attributed the decline to lower fees from lower assets under management. AUM at the end of March totaled $34.51 billion.

Legg Mason recorded EPS of negative $1.81 per share for its fourth fiscal quarter that ended on March 31, 2008. Analysts has thought that Legg would only be down 27 cents per share. The company reported a net loss of $255.5 million. Legg attributed the net loss to previously announced support for money market funds, totaling $291.0 million after tax and compensation related adjustments and charge of $94.8 million after tax for a reduction in the value of acquired management contracts held by a wealth management subsidiary since the time of its acquisition by Legg Mason. AUM at the end of fiscal 2008 was $950.1 billion, down 5 percent from $998.5 billion at December 31, 2007.

Principal reported EPS of 67 cents for Q1 2008, down from 95 cents per share for Q1 of 2007. Analysts' numbers were not available for this quarter. The company reported net income of $174.2 million, down from $257.1 million in Q1 of 2007. Total AUM at the company increased to $304.2 billion as of March 31, 2008, up 13 percent from a year ago.

Federated Investors reported earnings per share of 55 cents, below the 61 cents expected by analysts. Federated's net income was $55.8 million for Q1 2008 compared to $51.8 million for Q1 2007. Federated's total managed assets were $338.5 billion as of March 31, 2008, up $88.0 billion or 35 percent from $250.5 billion at March 31, 2007. Federated attributed the increase in total managed assets to a $40.9 billion increase in money market assets during Q1 2008.

Janus reported EPS of 24 cents, 4 cents off analysts' expectations. The Denver-based company reported net income of $38 million for the first three months of the year, down from $51.6 million in Q4 of 2007. At March 31, Janus' total assets under management were $187.6 billion compared with $206.7 billion at end-December. The decrease is attributed to $17 billion of net market depreciation and fund performance, long-term net outflows of $1.5 billion and money market net outflows of $600 million.

Cohen & Steers reported earnings per share of 31 cents, below analyst expectations of 36 cents per share. Net income came in at $13 million, down from $22.3 million in Q1 of 2007. Assets under management were $28.6 billion at end-March, a decrease of 14.8 percent from $33.6 billion at the end of the first quarter last year.

T. Rowe Price Group reported earnings of 55 cents per share, one cent shy of analysts' expectations. Net income at the Baltimore company rose from $143 million in Q1 of 2007 to $151.5 million in Q1 of 2008. Mutual fund assets at the end of March were $230.5 billion, down $15.5 billion or 6 percent from the end of Q4 2007. Net inflows to the mutual funds were $3.7 billion during the first quarter of 2008. T. Rowe will be reducing its marketing spending for the remainder of 2008 in response to market conditions. The firm expects spending to up about 5 percent in Q2 2008 from Q2 2007 and expects only a 7 percent increase in marketing spending for the full-year versus 2007.

Franklin Resources recorded earnings per share of $1.54 per share for the first quarter, coming in below analyst predictions of $1.76. The San Mateo, California-based firm reported net income of $366.1 million, down from $440.9 million last year. Total assets under management by the company’s subsidiaries were $591.1 billion at end- March, compared to $643.7 billion at end-December.

SEI reported EPS of 25 cents, coming in below the 34 cents EPS predicted by analysts. Net income fell from $63.4 billion in Q1 of 2007 to $49 billion in Q1 of 2008. SEI's assets under management declined by $12.1 billion during Q1 2008 to $184.6 billion due to market depreciation.

Invesco reported EPS of 39 cents, compared with 38 cents per share in the year-ago quarter. Analysts predictions were not available for comparison. Invesco reported the exact same net income in Q1 2008 as it did in Q1 2007, $155.2 million. AUM at the end of March was was $470.3 billion, compared to $471.2 billion on March 31, 2007. Total net inflows were $1.2 billion for the first quarter of 2008, compared to total net outflows of $1.5 billion for the fourth quarter of 2007.

Calamos reported earnings per share of 27 cents, beating analysts' estimates of 19 cents. Last year, the company reported an EPS of 30 cents for Q1. Calalmos's net income took a dive from $7.5 million in Q1 of 2007 to $449,000 in Q1 of 2008. AUM as of March 31, 2008 fell 11 percent to $40.9 billion from $46.2 billion at the end of Q4 2007.

AMG reported diluted earnings per share of $1.46, in-line with the $1.46 a share predicted by analysts. The earnings per share were also off 3 cents from the Q1 2007 numbers. AMG reported net client cash outflows of $8.4 billion in Q1, $1.2 billion of which came from mutual funds. The aggregate AUM of AMG’s affiliated investment management firms at March 31, 2008 was approximately $244 billion, down from $274 billion at the end of Q4 2007.

The Ivy Funds reported strong funds sales across the advisor, wholesale and institutional sales channels. In the advisor channel the company reported gross sales of $1.0 billion, an increase of 34 percent compared to the same period in 2007. Sales per advisor of $351,000 increased 39 percent from Q1 of 2007. Ivy also asserted that it had never before reported positive flows in its advisor channel during difficult equity markets.

In the wholesale channel Ivy reported gross sales of $5.4 billion, up 316 percent from Q1 2007. Net flows in the advisor channel were $4.3 billion.

Ivy also subadvises funds for U.K. asset manager Pictet & Cie and other asset management firms. These relationships netted Ivy $696 million in gross institutional sales for the quarter.

DST reported EPS of 86 cents per share for Q1 of 2008, below the 92 cents per share predicted by analysts. The company reported consolidated net income of $55.2 million for Q1 2008 compared to $62.6 million for first quarter 2007. Operating revenues for the Financial Services segment of DST increased by 4.1 percent in Q1 2008 to $286.8 million. The increased was attributed to increases in mutual fund shareowner processing services from higher levels of accounts serviced.

Columbia Management recorded a decline of 44 percent in its net revenues, due to monetary support that was required by some of its cash funds. The Boston-based investment manager firm said some of these effects were offset by the addition of U.S. Trust and growth in investemnt services revenue. Overall, Columbia posted a net loss of $79 million that it attributed to cash funds support and higher revenue-related operating expenses.

Larry Fink's seemingly unsinkable company slipped a little bit in the first quarter. BlackRock reported earnings of $1.82 per share, missing analysts' expectations of $2.00 a share. In the same quarter last year, the New York firm posted earnings of $1.48 per share. The company attributed a 12 cent net operating loss to the effects of adverse markets on the firm's investments. AUM increased 18 percent from the end of Q1 2007 to $1.364 trillion. Charles Schwab company reported EPS of 26 cents, right on par with analysts predictions. Assets in Schwab's equity and bond funds fell 20 percent from Q1 2007 to $49 billion. Money-market fund assets at the company rose 42 percent from Q1 of 2007 to $203 billion.

State Street Corporation reported earnings of $1.35 per share, beating analysts' expectations by 5 cents. State Street Global Advisors reported $278 million in investment management fees, a 7 percent rise from Q1 2007. SSgA's total AUM was $1.955 trillion as of March 31, 2008. Asset servicing fees rose to $960 million in Q1 2008, up 34 percent from Q1 2007. The company attributed the rise to "business from Investors Financial as well as new business from existing and new customers in 2008."

Federated Investors posted net income of $56 million, or 55 cents per share, in the first quarter, up 10 percent from last year. Analysts polled by Thomson Financial predicted an EPS of 62 cents. Managed assets totaled $338.5 billion at the end of March.  

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