Welcome!

News Feed Item

Third Quarter Asset Manager Results Show Continued Improvement

Net Flows Show a Divergence Between the "Haves" and "Have-Nots"

NEW YORK, Dec. 1, 2016 /PRNewswire/-- DST kasina LLC, a provider of business intelligence to help transform distribution, marketing, and product development for asset managers, today released the results of its Asset Manager Composite for the third quarter of 2016.

For the 16 publicly-traded asset management firms that comprise the DST kasina Asset Manager Composite, the key metrics related to assets under management and profitability continued to improve sequentially in the third quarter of 2016, compared to the calendar second quarter of 2016. 

Operating margins for the Composite group rose to 33.7%, rising by 100 basis points sequentially, with a slight improvement in net margins, rising by 140 basis points sequentially.  Cumulative assets under management grew 3.4% sequentially, and 9.9% year-over-year.  The $10.6 trillion level of AUM represents an all-time high for the Composite group.  Revenues from asset-generated fees also rose sequentially, and were marginally lower on a year-over-year basis.

 

OPERATING AND NET MARGIN TRENDS FOR ASSET MANAGER COMPOSITE BY QUARTER

Erach Desai, Senior Research Analyst at DST kasina, stated: "It is reassuring to see that the Composite group's operating margins have continued to improve and are within 120 basis points of the high-water mark of 34.9% set in the second quarter of 2015.  More impressive, however, is the fact that these operating margins are being achieved despite asset-generated fee revenues being relatively flat on a year-over-year basis."

OVERALL REVENUES FOR DST KASINA ASSET MANAGER COMPOSITE FIRMS

Digging deeper:  Solid operating execution, with positive flows
Composite group results for calendar 3Q 2016 continued to improve.  Overall revenues grew 1.5% sequentially, while asset management revenue from fees rose 2.5% over the same period.  Operating margins for the 16 asset management firms that comprise the DST kasina Asset Manager Composite improved by 100 basis points to 33.7% on a weighted basis.  Sequential improvement in operating and net margins was driven entirely by top-line growth and keeping operating expenses flat.

There was sequential improvement in revenues and margins for 14 of the 16 asset management firms.  Despite the overall uptick in the composite group's operating margin, 6 of the 16 firms saw a slight to modest decline in operating margins.

Overall assets under management for the DST kasina Asset Manager Composite rose sequentially for the fifth consecutive quarter.  At the $10.556 trillion level, overall assets represented an all-time peak level, as noted earlier.  12 of the 16 asset management firms saw their overall AUM rise sequentially.

ASSET FLOWS FOR DST KASINA ASSET MANAGER COMPOSITE (OVERALL)

Net change in assets was impacted primarily by market appreciation, and less so due to net flows and the impact of foreign currency translation.  As seen in the flow breakout of the quarterly changes in the accompanying chart, this was the fourth consecutive quarter with a positive impact from both market appreciation and net inflows.  However, ten of the 15 firms that report net flows experienced a net outflow of assets on a sequential basis – which warranted a closer look under the hood.

Looking under the hood:  Separating out the 800-lb gorilla
As BlackRock represents ~48.5% of the DST kasina Asset Manager Composite group's assets, we have provided an analysis of the quarterly results underlying trends for the remainder of the group. 

The first observation to be made is that the composite group's operating margin has been boosted by 100 to over 300 basis points for the past few years due to BlackRock.  It would appear that operating margins for the vast majority of public asset management firms have realized a range of between 28.0% to 32.4% over the past 8-10 quarters.  The accompanying chart shows that there is no great divergence in operating margin trends when looking at the group with – and without – BlackRock.

OPERATING MARGIN TRENDS - WITH AND WITHOUT BLACKROCK

When looking at the trend in asset flows excluding BlackRock, the data shows that while overall assets under management have grown for four consecutive quarters, there have been five consecutive quarters of net outflows for the 14 asset management firms excluding BlackRock.  While BlackRock's scale has positively impacted the net asset flows for the overall industry, it has also masked cash flow difficulties at other asset managers.

OVERALL ASSET FLOWS - EXCLUDING BLACKROCK

"We are analyzing the results for the publicly-traded asset management firms, thereby automatically excluding many very large and/or well-known names that are privately-held firms," continued Mr. Desai. "Looking at the public asset management firms, excluding BlackRock, one can see the multi-quarter depletion in net assets is indicative of some secular trends."

Note: DST kasina's asset manager composite includes: BlackRock, Franklin Templeton, Invesco, Legg Mason, T. Rowe Price, Affiliated Managers Group, Alliance Bernstein (AB), Federated Investors, SEI, Janus Capital Group, Waddell & Reed, Artisan Partners, Cohen & Steers, GAMCO Investors, Calamos Investments, Pzena Investment Management

About DST kasina
DST kasina LLC provides business intelligence services to the asset management industry. Led by industry experts, DST kasina's consulting engagements cover distribution strategies, marketing plans, audits, and educational seminars, each designed to help financial service firms stay ahead of the forces driving the industry while boosting their effectiveness and profitability. With DST kasina WalletShare®, clients are able to integrate marketing automation, predictive analytics, third-party data, and proprietary firm information into one powerful, easy-to-use platform. For more information on how to leverage DST kasina's business solutions, visit www.kasina.com

About DST
DST Systems, Inc. (NYSE: DST) is a leading provider of specialized technology, strategic advisory, and business operations outsourcing to the financial and healthcare industries. We enable clients to transform complexity into strategic advantage by helping them continually stay ahead of and capitalize on ever-changing customer, business and regulatory requirements in the world's most demanding industries. For more information, visit the DST website at www.dstsystems.com.

Media Contact:
Laura M. Parsons                                                                                
DST Global Public Relations                                                                                 
+ 1 816 843 9087                   
[email protected]

 


Photo - http://photos.prnewswire.com/prnh/20161130/444542-INFO  
Photo - http://photos.prnewswire.com/prnh/20161130/444543-INFO  
Photo - http://photos.prnewswire.com/prnh/20161130/444544-INFO
Photo - http://photos.prnewswire.com/prnh/20161130/444545-INFO
Photo - http://photos.prnewswire.com/prnh/20161130/444546-INFO
Logo -  http://photos.prnewswire.com/prnh/20160316/345081LOGO

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/third-quarter-asset-manager-results-show-continued-improvement-300371194.html

SOURCE DST kasina LLC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
As businesses adopt functionalities in cloud computing, it’s imperative that IT operations consistently ensure cloud systems work correctly – all of the time, and to their best capabilities. In his session at @BigDataExpo, Bernd Harzog, CEO and founder of OpsDataStore, will present an industry answer to the common question, “Are you running IT operations as efficiently and as cost effectively as you need to?” He will expound on the industry issues he frequently came up against as an analyst, and...
HyperConvergence came to market with the objective of being simple, flexible and to help drive down operating expenses. It reduced the footprint by bundling the compute/storage/network into one box. This brought a new set of challenges as the HyperConverged vendors are very focused on their own proprietary building blocks. If you want to scale in a certain way, let’s say you identified a need for more storage and want to add a device that is not sold by the HyperConverged vendor, forget about it...
Your homes and cars can be automated and self-serviced. Why can't your storage? From simply asking questions to analyze and troubleshoot your infrastructure, to provisioning storage with snapshots, recovery and replication, your wildest sci-fi dream has come true. In his session at @DevOpsSummit at 20th Cloud Expo, Dan Florea, Director of Product Management at Tintri, will provide a ChatOps demo where you can talk to your storage and manage it from anywhere, through Slack and similar services ...
SYS-CON Events announced today that StorageCraft Technology Corp, a global leader in backup and disaster, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. The StorageCraft family of companies, founded in 2003, provides award-winning backup, disaster recovery, system migration and data protection solutions for servers, desktops and laptops in addition to powerful data analytics.
MongoDB Atlas leverages VPC peering for AWS, a service that allows multiple VPC networks to interact. This includes VPCs that belong to other AWS account holders. By performing cross account VPC peering, users ensure networks that host and communicate their data are secure. In his session at 20th Cloud Expo, Jay Gordon, a Developer Advocate at MongoDB, will explain how to properly architect your VPC using existing AWS tools and then peer with your MongoDB Atlas cluster. He'll discuss the secur...
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
SYS-CON Events announced today that HTBase will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. HTBase (Gartner 2016 Cool Vendor) delivers a Composable IT infrastructure solution architected for agility and increased efficiency. It turns compute, storage, and fabric into fluid pools of resources that are easily composed and re-composed to meet each application’s needs. With HTBase, companies can quickly prov...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), will provide an overview of various initiatives to certifiy the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldw...
SYS-CON Events announced today that Auditwerx will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Auditwerx specializes in SOC 1, SOC 2, and SOC 3 attestation services throughout the U.S. and Canada. As a division of Carr, Riggs & Ingram (CRI), one of the top 20 largest CPA firms nationally, you can expect the resources, skills, and experience of a much larger firm combined with the accessibility and attent...
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...