Affiliated Managers Group, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Affiliated Managers Group, Inc. filed its quarterly report (10-Q) for the period ending March 31, 2024.</b>

AI Summary

AFFILIATED MANAGERS GROUP, INC. (MGRE) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Filed a 10-Q report for the period ending March 31, 2024. Company is Affiliated Managers Group, Inc. (AMG). Report filed on May 7, 2024. Fiscal year ends December 31. Includes data related to various subordinated notes due in 2059, 2060, 2061, and 2064.

Why It Matters

For investors and stakeholders tracking AFFILIATED MANAGERS GROUP, INC., this filing contains several important signals. This filing provides the latest financial performance and operational details for AMG for the first quarter of 2024. Investors and analysts can use this report to assess the company's financial health, profitability, and any changes in its capital structure, including its various debt instruments.

Risk Assessment

Risk Level: low — AFFILIATED MANAGERS GROUP, INC. shows low risk based on this filing. The filing is a standard 10-Q, providing routine financial disclosures without immediate red flags.

Analyst Insight

Monitor future filings for detailed financial performance and strategic updates from Affiliated Managers Group, Inc.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly filing period)
• 2024-05-07 — Filing Date (Date the report was filed)
• 12/31 — Fiscal Year End (Annual fiscal year end date)
• 2059 — Note Maturity Year (Maturity year for Five Point Eight Seventy Five Junior Subordinated Notes)
• 2060 — Note Maturity Year (Maturity year for Four Point Seventy Five Junior Subordinated Notes)
• 2061 — Note Maturity Year (Maturity year for Four Point Two Junior Subordinated Notes)
• 2064 — Note Maturity Year (Maturity year for Six Point Seventy Five Junior Subordinated Notes)

Key Players & Entities

• AFFILIATED MANAGERS GROUP, INC. (company) — Filer name
• AMG (company) — Abbreviation for Affiliated Managers Group, Inc.
• 2024-03-31 (date) — Period of report
• 2024-05-07 (date) — Filed as of date
• 777 SOUTH FLAGLER DRIVE (address) — Business and mail address
• WEST PALM BEACH (location) — City for business and mail address
• DE (location) — State of incorporation
• 001-13459 (other) — SEC file number

FAQ

Industry Context

Affiliated Managers Group, Inc. operates in the investment management industry, providing a range of investment products and services.

Regulatory Implications

The filing is a standard SEC Form 10-Q, which is a quarterly report required for publicly traded companies in the United States.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management discussion.
2. Analyze the company's debt structure, particularly the various subordinated notes mentioned.
3. Compare Q1 2024 performance against previous periods and industry benchmarks.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-07: Filing Date — Date the 10-Q was officially submitted to the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, following the 2023 annual report (10-K).

Key Financial Figures

• $0.01 — nge on which registered Common Stock ($0.01 par value) AMG New York Stock Excha

Filing Documents

• amg-20240331.htm (10-Q) — 2663KB
• amg_03312024xexhibit101.htm (EX-10.1) — 12KB
• amg_03312024xexhibit311.htm (EX-31.1) — 11KB
• amg_03312024xexhibit312.htm (EX-31.2) — 11KB
• amg_03312024xexhibit321.htm (EX-32.1) — 6KB
• amg_03312024xexhibit322.htm (EX-32.2) — 6KB
• amg-20240331_g1.gif (GRAPHIC) — 15KB
• amg-20240331_g2.jpg (GRAPHIC) — 46KB
• amg-20240331_g3.jpg (GRAPHIC) — 7KB
• 0001004434-24-000030.txt (&nbsp;) — 11669KB
• amg-20240331.xsd (EX-101.SCH) — 76KB
• amg-20240331_cal.xml (EX-101.CAL) — 72KB
• amg-20240331_def.xml (EX-101.DEF) — 338KB
• amg-20240331_lab.xml (EX-101.LAB) — 699KB
• amg-20240331_pre.xml (EX-101.PRE) — 524KB
• amg-20240331_htm.xml (XML) — 2246KB

Financial Statements (unaudited)

Financial Statements (unaudited) 2 CONSOLIDATED STATEMENTS OF INCOME 2 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 3 CONSOLIDATED BALANCE SHEETS 4 CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY 5 CONSOLIDATED STATEMENTS OF CASH FLOWS 6 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 4.

Controls and Procedures

Controls and Procedures 35 PART II Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 35 Item 6. Exhibits 36 Table of Contents

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF INCOME (in millions, except per share data) (unaudited) For the Three Months Ended March 31, 2023 2024 Consolidated revenue $ 517.4 $ 499.9 Consolidated expenses: Compensation and related expenses 222.3 240.4 Selling, general and administrative 97.1 91.7 Intangible amortization and impairments 12.5 7.3 Interest expense 30.5 29.9 Depreciation and other amortization 3.7 3.0 Other expenses (net) 14.4 9.0 Total consolidated expenses 380.5 381.3 Equity method income (net) 58.6 117.5 Investment and other income 38.0 18.0 Income before income taxes 233.5 254.1 Income tax expense 45.0 55.4 Net income 188.5 198.7 Net income (non-controlling interests) ( 54.0 ) ( 48.9 ) Net income (controlling interest) $ 134.5 $ 149.8 Average shares outstanding (basic) 35.9 32.8 Average shares outstanding (diluted) 39.9 40.1 Earnings per share (basic) $ 3.74 $ 4.56 Earnings per share (diluted) $ 3.47 $ 4.14 The accompanying notes are an integral part of the Consolidated Financial Statements. Table of Contents 2 AFFILIATED MANAGERS GROUP, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in millions) (unaudited) For the Three Months Ended March 31, 2023 2024 Net income $ 188.5 $ 198.7 Other comprehensive income, net of tax: Foreign currency translation gain 26.8 5.6 Change in net realized and unrealized gain (loss) on derivative financial instruments 0.2 0.3 Change in net unrealized gain (loss) on available-for-sale debt securities 0.4 0.4 Other comprehensive income, net of tax 27.4 6.3 Comprehensive income 215.9 205.0 Comprehensive income (non-controlling interests) ( 56.3 ) ( 45.4 ) Comprehensive income (controlling interest) $ 159.6 $ 159.6 The accompanying notes are an integral part of the Consolidated F

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 7 December 31, 2023 March 31, 2024 Cost $ 35.3 $ 30.6 Unrealized gains 2.6 3.6 Unrealized losses ( 0.0 ) ( 0.1 ) Fair value $ 37.9 $ 34.1 As of December 31, 2023 and March 31, 2024 , investments in equity securities include consolidated Affiliate sponsored investment products with fair values of $ 15.8 million and $ 7.7 million , respectively. For the three months ended March 31, 2023 and 2024 , the Company recognized net unrealized gains on equity securities still held as of March 31, 2023 and 2024 of $ 1.4 million . Debt Securities The following table summarizes the cost, unrealized gains, unrealized losses, and fair value of investments in U.S. Treasury securities classified as available-for-sale, all of which matures in 2024 , and consolidated Affiliate sponsored investment products classified as trading: Available-for-sale Trading December 31, 2023 March 31, 2024 December 31, 2023 March 31, 2024 Cost $ 405.4 $ 296.5 $ 17.9 $ 18.5 Unrealized gains 0.0 0.0 — — Unrealized losses ( 0.1 ) — ( 0.1 ) ( 0.2 ) Fair value $ 405.3 $ 296.5 $ 17.8 $ 18.3 For the three months ended March 31, 2023 and 2024 , the Company received $ 101.7 million and $ 425.2 million of proceeds from the maturity of available-for-sale securities, respectively. For the three months ended March 31, 2023 and 2024 , the Company recognized net unrealized gains (losses) on debt securities classified as trading still held as of March 31, 2023 and 2024 of $( 0.1 ) million and $ 0.8 million , respectively. 4. Other Investments Other investments consists primarily of investments in funds advised by the Company's Affiliates that are carried at net asset value ("NAV") as a practical expedient and other investments without readily determinable fair values. Any gain or loss related to these investments is recorded in Investment and other income in the Co

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 8 Distributions will be received as the underlying assets are liquidated over the life of the funds, which is generally up to 15 years . (2) These are multi-disciplinary funds that invest across various asset classes and strategies, including equity and credit. Investments are generally redeemable on a daily, monthly, or quarterly basis. (3) Fair value attributable to the controlling interest was $ 324.9 million and $ 356.4 million as of December 31, 2023 and March 31, 2024 , respectively. Investments Without Readily Determinable Fair Values The Company made an investment in a private corporation where it does not exercise significant influence. Because this investment does not have a readily determinable fair value, the Company has elected to measure this investment at its cost minus impairments, if any, plus or minus changes resulting from observable price changes in orderly transactions for identical or similar investments in the private corporation. The following table summarizes the cost, cumulative unrealized gains, and carrying amount of investments without readily determinable fair values: December 31, 2023 March 31, 2024 Cost $ 8.5 $ 8.5 Cumulative unrealized gains 41.9 41.9 Carrying amount $ 50.4 $ 50.4 For the three months ended March 31, 2024 , the Company recorded no gains or losses on the underlying investment. The following table presents the changes in Other investments: For the Three Months Ended March 31, 2023 2024 Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Measured at NAV as a Practical Expedient Without Readily Determinable Fair Values Total Balance, beginning of period $ 371.2 $ 50.4 $ 421.6 $ 430.5 $ 50.4 $ 480.9 Purchases and commitments 9.8 — 9.8 46.8 — 46.8 Sales and distributions ( 11.5 ) — ( 11.5 ) ( 9.0 ) — ( 9.0 ) Net realize

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 9 Fair Value Measurements March 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Financial Assets Investments in equity securities (1) $ 34.1 $ 34.1 $ — $ — Investments in debt securities (1) 314.8 — 314.8 — Financial Liabilities (2) Contingent payment obligations $ 9.6 $ — $ — $ 9.6 Affiliate equity purchase obligations 37.7 — — 37.7 __________________________ (1) Amounts are recorded in Investments in marketable securities on the Consolidated Balance Sheets . (2) Amounts are recorded in Other liabilities on the Consolidated Balance Sheets. Level 3 Financial Liabilities The following table presents the changes in L evel 3 liabilities: For the Three Months Ended March 31, 2023 2024 Contingent Payment Obligations Affiliate Equity Purchase Obligations Contingent Payment Obligations Affiliate Equity Purchase Obligations Balance, beginning of period $ 21.0 $ 24.5 $ 14.7 $ 53.9 Purchases and issuances (1) — 44.2 — 24.9 Settlements and reductions — ( 7.5 ) — ( 40.5 ) Net realized and unrealized (gains) losses (2) 1.9 ( 0.3 ) ( 5.1 ) ( 0.6 ) Balance, end of period $ 22.9 $ 60.9 $ 9.6 $ 37.7 Net change in unrealized (gains) losses relating to instruments still held at the reporting date (1) $ 1.9 $ ( 0.3 ) $ ( 5.1 ) $ ( 0.6 ) __________________________ (1) Affiliate equity purchase obligation activity includes transfers from Redeemable non-controlling interests . (2) Gains and losses resulting from changes to expected payments are included in Other expenses (net) in the Consolidated of Income . The following table presents certain

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (unaudited) 10 __________________________ (1) Calculated by comparing the relative fair value of an obligation to its respective total. (2) Represents growth rates of asset- and performance-based fees. Contingent payment obligations represent the fair value of the expected future settlement amounts related to the Company's investments in its consolidated Affiliates. Changes to assumed volatility and discount rates change the fair value of contingent payment obligations. Increases to the volatility rates used would result in higher fair values, while increases to the discount rates used would result in lower fair values. Affiliate equity purchase obligations include agreements to purchase Affiliate equity and represent the fair value of the expected future settlement amounts. Changes to assumed growth rates and discount rates change the fair value of the Affiliate equity purchase obligations. Increases to the assumed growth rates would result in higher fair values, while increases to the discount rates used would result in lower fair values. Other Financial Assets and Liabilities Not Carried at Fair Value The following table summarizes the Company's other financial liabilities not carried at fair value: December 31, 2023 March 31, 2024 Carrying Value Fair Value Carrying Value Fair Value Fair Value Hierarchy Senior notes $ 1,099.4 $ 1,049.8 $ 699.5 $ 652.0 Level 2 Junior subordinated notes 765.9 612.0 1,216.0 1,092.2 Level 2 Junior convertible securities 341.7 340.9 341.7 350.1 Level 2 The Company has other financial assets and liabilities that are not required to be carried at fair value, but are required to be disclosed at fair value. The carrying amount of Cash and cash equivalents, Receivables, Payables and accrued liabilities, and certain Other liabilities approximates fair value because of the short-term nature of these instruments. The carrying va

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