Asset Manager Financials Largely Positive In First Quarter According To kasina Report

NEW YORK, June 18, 2015 /PRNewswire/ -- kasina, a DST company providing data-driven insights and distribution solutions to financial companies around the world, today released its first quarter 2015 composite index of asset managers.

With most firms reporting a sequential decline in margins across the period, operating margins for the kasina composite fell 30 basis points from the previous quarter to 33.7%. But while 12 of the composite's 17 firms reported a sequential drop in quarterly revenue over the period, which would suggest a rather lackluster quarter, the overall picture for the industry remained relatively positive. 

Industry assets under management by the end of the quarter increased by almost 2% from fourth quarter 2014 to just under $10.6 trillion. The level marks the highest AUM totals since kasina started tracking its list of publicly-held managers in late 2007. In addition, only four asset managers reported a sequential decline in AUM during the period and six firms reported negative net flows. These metrics are near average when compared to prior quarterly results over the past few years.

OPERATING AND NET MARGINS FOR ASSET MANAGERS BY QUARTER

Much of the industry decline in operating margins was due to rising discretionary operating expenses, compensation and benefit costs specifically. Of the 12 firms posting a sequential decline in operating margins, ten firms reported meaningful increases in compensation costs. Management for many of these firms cited higher personnel and services costs due to business expansion, suggesting a continued buoyant industry. Notably, the most recent quarterly operating margin for the composite was only slightly below a record 34.8% set in Q3 2014.   

QUARTERLY COMPOSITE AUM TOTALS 

Among the four wirehouse distributors represented in the kasina composite, first quarter financial results were largely positive as well. Operating margins increased by 90 basis points from the previous quarter to 22.0%, primarily on lower operating expenses. Of the four wires, only one posted a lower margin for the first quarter. Total client assets under management for the four firms grew by around 0.9% to just under $5.9 trillion by the end of the quarter.

For more information on the kasina composite index of asset managers, contact Lawrence Petrone, Director of Product Research & Consulting, at 646 257-4454 or [email protected].

Note: kasina's asset management composite includes: BlackRock, Franklin Templeton, INVESCO, Legg Mason, T. Rowe Price, Affiliated Managers Group, Alliance Bernstein, Federated Investors, Eaton Vance, SEI, Janus Capital Group, Waddell & Reed, Artisan Partners, Cohen & Steers, GAMCO, Calamos, Pzena Investment Management

About kasina
kasina helps leading companies in the financial services industry manage data, gain insight, and ignite change in their business. A wholly-owned subsidiary of DST Systems, kasina enables companies to transform the way they grow market share through the use of data, research, and advanced analytics in the design, marketing, and distribution of their products. For more information on kasina's distribution intelligence technologies, advanced analytics and research, and strategic advisory services, visit www.kasina.com.

About DST
DST Systems, Inc. is a leading provider of sophisticated information processing and servicing solutions to companies around the world. Through its global enterprise, DST delivers strategically unified transactions and business processing, data management, and customer communications solutions to the asset management, brokerage, retirement, and healthcare markets. Headquartered in Kansas City, MO., DST is a publicly-traded company on the New York Stock Exchange. For more information, visit www.dstsystems.com.

Media Contact:

Laura M. Parsons
DST Global Public Relations
816.843.9087
[email protected]

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SOURCE kasina