BOSTON—Asset manager Affiliated Managers Group Inc. said Tuesday that its profit increased in the third quarter, aided by higher revenue as mutual funds and institutional and high net worth investors gave it more holdings to manage.
The company reported net income of $40.1 million, or 76 cents a share, for the three months ended Sept. 30. That compares with net income of $34 million, or 65 cents a share, in the same period last year.
Adjusted results amounted to economic earnings of $1.55 a share, Affiliated Managers said. On that basis, the company beat analysts' average forecast of $1.52 a share, according to FactSet.
Economic earnings exclude some expenses, such as amortization and deferred taxes related to intangible assets. Affiliated Managers Group considers economic earnings a key measure of performance because they represent operating performance before certain expenses tied to acquisitions of interests in affiliated management firms.
Affiliated Managers' revenue climbed to $413.8 million from $354.4 million a year earlier. Analysts had anticipated revenue would be higher at $426.2 million.
The company said net client cash flows for the third quarter totaled $4.9 billion. Assets under management as of Sept. 30 were $305.9 billion, down from $348.4 billion at the end of June.
Shares fell $2.71, or 3 percent, to $87.55 during regular trading.