Affiliated Managers Group, Inc. reported its financial results for the three months ended September 30, 2024, revealing a notable decline in net income and profitability compared to the same period in 2023. The company recorded a net income of $185.8 million, representing a 35% decrease from $286.0 million in Q3 2023. Net income attributable to controlling interest also fell significantly, down 43% to $123.6 million from $217.0 million in the prior year.

Consolidated revenue for the quarter was $516.4 million, a slight decrease of 2% from $525.2 million in Q3 2023. This decline occurred despite an increase in aggregate fees, which rose 16% to $1,157.1 million from $997.5 million in the same quarter last year. The increase in fees was not sufficient to offset the overall revenue decline.

Consolidated expenses increased to $374.7 million, up from $357.4 million in Q3 2023, contributing to the reduced profitability. Earnings per share (basic) also reflected this downturn, falling to $4.11 from $6.22 in the previous year.

On a positive note, the company reported a significant increase in assets under management, which rose 15% to $728.4 billion as of September 30, 2024, compared to $635.8 billion a year earlier. This growth in assets under management may indicate a strong market position and investor confidence despite the challenges faced in revenue generation.

The company’s liquidity position improved, with cash and cash equivalents increasing to $1,010.7 million from $813.6 million as of December 31, 2023. However, total debt also rose to $2,619.7 million, up from $2,537.5 million at the end of 2023.

Operating cash flow for the nine months ended September 30, 2024, was reported at $719.6 million, an increase from $619.4 million for the same period in 2023, indicating a positive trend in cash generation despite the challenges in net income and revenue.