Forward-Looking Statements
Certain matters discussed in this Quarterly Report on Form 10-Q, in our other
filings with the Securities and Exchange Commission, in our press releases and
in oral statements made with the approval of an executive officer may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995.  These statements include, but are not limited
to, statements related to our expectations regarding the performance of our
business, our financial results, our liquidity and capital resources, and other
non-historical statements, and may be prefaced with words such as "outlook,"
"guidance," "believes," "expects," "potential," "preliminary," "continues,"
"may," "will," "should," "seeks," "approximately," "predicts," "projects,"
"positioned," "prospects," "intends," "plans," "estimates," "pending
investments," "anticipates" or the negative version of these words or other
comparable words. Such statements are subject to certain risks and
uncertainties, including, among others, the factors discussed under the caption
"Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended
December 31, 2019, and also under "Item 1A. Risk Factors" in our Quarterly
Report on Form 10-Q for the period ended March 31, 2020. These factors (among
others) could affect our financial condition, business activities, results of
operations, cash flows or overall financial performance and could cause our
actual results and business activities to differ materially from historical
periods and those presently anticipated and projected. Forward-looking
statements speak only as of the date they are made, and we will not undertake
and we specifically disclaim any obligation to release publicly the result of
any revisions that may be made to any forward-looking statements to reflect
events or circumstances after the date of such statements or to reflect the
occurrence of events, whether or not anticipated. In that respect, we caution
readers not to place undue reliance on any such forward-looking statements.
Management's Discussion and Analysis of Financial Condition and Results of
Operations should be read in conjunction with our Consolidated Financial
Statements and the notes thereto contained elsewhere in this Quarterly Report on
Form 10-Q.
Executive Overview
We are a global asset management company with equity investments in high-quality
boutique investment management firms, which we call our "Affiliates." Our
strategy is to generate long-term value by investing in leading independent
active investment managers, through a proven partnership approach, and
allocating resources across our unique opportunity set to the areas of highest
growth and return. Through our innovative partnership approach, each Affiliate's
management team retains significant equity ownership in their firm while
maintaining operational autonomy. In addition, we offer centralized capabilities
to our Affiliates across a variety of areas, including strategy, marketing and
distribution, and product development. As of September 30, 2020, our aggregate
assets under management were $653.5 billion, across a broad range of active,
return-oriented strategies.
During the nine months ended September 30, 2020, the pandemic caused by the
novel coronavirus ("COVID-19") had a significant impact on the global economy,
which may continue for months to come. The overall extent and duration of
COVID-19 on businesses and economic activity generally remains unclear. We and
our Affiliates remain focused on the health and well-being of the individuals
and families at AMG, our Affiliates, and the community at large. Given the
nature of our decentralized operations and our entrepreneurial culture, we and
our Affiliates remain fully operational and have experienced minimal disruption
in continuing to serve our key stakeholders, most importantly our clients.  We
continue to monitor the economic uncertainty related to COVID-19, and the extent
of the impact on our business operations and financial results will depend on a
number of factors and future developments, which are uncertain and cannot be
predicted.

Operating Performance Measures
Under accounting principles generally accepted in the U.S. ("GAAP"), we are
required to consolidate certain of our Affiliates and use the equity method of
accounting for others. Whether we consolidate an Affiliate or use the equity
method of accounting, we maintain the same innovative partnership approach and
provide support and assistance in substantially the same manner for all of our
Affiliates. Furthermore, all of our Affiliates are boutique investment managers
and are impacted by similar marketplace factors and industry trends. Therefore,
our key aggregate operating performance measures are important in providing
management with a more comprehensive view of the operating performance and
material trends across our entire business.
The following table presents our key aggregate operating performance measures:
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                                          As of and for the Three Months                              As of and for the Nine Months
                                               Ended September 30,                                         Ended September 30,
(in billions, except as noted)                2019               2020             % Change               2019               2020              % Change
Assets under management                   $    750.7          $ 653.5                   (13) %       $    750.7          $  653.5                   (13) %
Average assets under management                765.4            657.9                   (14) %            770.7             652.2                   (15) %
Aggregate fees (in millions)                 1,130.5            961.7                   (15) %          3,545.6           3,175.7                   

(10) %




As of and for the three and nine months ended September 30, 2020, assets under
management and average assets under management exclude the assets under
management of certain Affiliates in which we have repositioned or are
repositioning our interests. These Affiliates are not significant to our
operating performance measures or our results of operations. Assets under
management is presented on a current basis without regard to the timing of the
inclusion of an Affiliate's financial results in our operating performance
measures and Consolidated Financial Statements. Average assets under management
reflects the timing of the inclusion of an Affiliate's financial results in our
operating performance measures and Consolidated Financial Statements. Average
assets under management for mutual funds and similar retail investment products
represents an average of the daily net assets under management, while for
institutional and high net worth clients, average assets under management
represents an average of the assets at the beginning or end of each month during
the applicable period.
For the three and nine months ended September 30, 2019 and 2020, aggregate fees
consists of the total asset and performance based fees earned by all of our
consolidated and equity method Affiliates, and includes the aggregate fees of
certain Affiliates in which we have repositioned or are repositioning our
interests. These Affiliates are not significant to our operating performance
measures or our results of operations. For certain of our Affiliates accounted
for under the equity method, we report aggregate fees and the Affiliate's
financial results in our Consolidated Financial Statements one quarter in
arrears. Aggregate fees is provided in addition to, but not as a substitute for,
Consolidated revenue or other GAAP performance measures.
Assets Under Management
Through our Affiliates, we provide a comprehensive and diverse range of active,
return-oriented strategies designed to assist institutional, retail and high net
worth clients worldwide in achieving their investment objectives. We continue to
see demand for active, return-oriented strategies, particularly in illiquid
alternative and multi-asset and fixed income strategies, reflecting continued
investor demand for returns that are less correlated to traditional equity
markets, while we are experiencing outflows in quantitative strategies across
alternative strategies and equities strategies. We believe the best performing
active equity managers (whether global-, regional-, or country-specific) will
continue to have significant opportunities to grow as a result of net client
cash inflows. We believe we are well-positioned to benefit from these trends.

The outbreak of COVID-19 has created significant disruption in economic
activity. The impact of the COVID-19 outbreak on our Affiliates and their
clients' demand for investment strategies is currently uncertain, and could
result in changes in investor demand for our strategies in ways that cannot be
predicted but could vary from recent trends. If financial markets were to worsen
as a result of COVID-19 or other factors, our average assets under management
and asset based fees could be adversely impacted.

















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The following charts present information regarding the composition of our assets
under management by active, return-oriented strategy and client type as of
September 30, 2020:

Assets Under Management (in billions)

[[Image Removed: amg-20200930_g2.jpg]]

___________________________

(1)Alternatives include illiquid alternative strategies, which accounted for 15% of our assets under management as of September 30, 2020.

(2)Global equities include emerging markets strategies, which accounted for 8% of our assets under management as of September 30, 2020.



The following tables present changes in our assets under management by active,
return-oriented strategy and client type for the three months ended
September 30, 2020:

By Strategy - Quarter to Date
                                                                   Global                                    Multi-Asset &
(in billions)                              Alternatives           Equities           U.S. Equities           Fixed Income            Total
June 30, 2020                            $       220.5          $   229.2          $         84.0          $        104.7          $ 638.4
  Client cash inflows and commitments              6.3                7.7                     3.1                     5.8             22.9
  Client cash outflows                            (9.9)             (13.5)                   (8.5)                   (5.0)           (36.9)
    Net client cash flows                         (3.6)              (5.8)                   (5.4)                    0.8            (14.0)

  Market changes                                   1.3               15.1                     5.5                     3.5             25.4
  Foreign exchange(1)                              1.7                2.3                     0.2                     0.5              4.7
  Realizations and distributions (net)            (0.7)              (0.1)                      -                       -             (0.8)
  Other(2)                                        (0.1)                 -                       -                    (0.1)            (0.2)
September 30, 2020                       $       219.1          $   240.7          $         84.3          $        109.4          $ 653.5
















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By Client Type - Quarter to Date
                                                                                            High Net
(in billions)                                       Institutional           Retail            Worth            Total
June 30, 2020                                     $        364.9          $ 161.8          $  111.7          $ 638.4
  Client cash inflows and commitments                        9.1              8.9               4.9             22.9
  Client cash outflows                                     (19.4)           (12.9)             (4.6)           (36.9)
    Net client cash flows                                  (10.3)            (4.0)              0.3            (14.0)

  Market changes                                            14.0              7.7               3.7             25.4
  Foreign exchange(1)                                        2.5              2.0               0.2              4.7
  Realizations and distributions (net)                      (0.7)            (0.1)                -             (0.8)
  Other(2)                                                     -             (0.2)                -             (0.2)
September 30, 2020                                $        370.4          $ 167.2          $  115.9          $ 653.5



By Strategy - Year to Date
                                                                   Global             U.S.             Multi-Asset &
                                           Alternatives           Equities          Equities           Fixed Income            Total
December 31, 2019                        $       241.2          $   274.9          $  100.0          $        106.4          $ 722.5
  Client cash inflows and commitments             22.6               24.9              10.8                    16.7             75.0
  Client cash outflows                           (35.9)             (46.4)            (23.0)                  (15.7)          (121.0)
    Net client cash flows                        (13.3)             (21.5)            (12.2)                    1.0            (46.0)
  New investments                                  3.7                  -                 -                       -              3.7
  Market changes                                  (9.5)              (9.5)             (2.4)                    2.9            (18.5)
  Foreign exchange(1)                             (1.3)              (2.8)             (0.2)                   (0.9)            (5.2)
  Realizations and distributions (net)            (1.4)              (0.1)                -                    (0.2)            (1.7)
  Other(2)                                        (0.3)              (0.3)             (0.9)                    0.2             (1.3)
September 30, 2020                       $       219.1          $   240.7          $   84.3          $        109.4          $ 653.5



By Client Type - Year to Date
                                                                                            High Net
                                                    Institutional           Retail            Worth            Total
December 31, 2019                                 $        407.2          $ 198.1          $  117.2          $ 722.5
  Client cash inflows and commitments                       30.4             30.4              14.2             75.0
  Client cash outflows                                     (57.2)           (48.9)            (14.9)          (121.0)
    Net client cash flows                                  (26.8)           (18.5)             (0.7)           (46.0)
  New investments                                            3.7                -                 -              3.7
  Market changes                                            (9.2)            (9.2)             (0.1)           (18.5)
  Foreign exchange(1)                                       (2.6)            (2.3)             (0.3)            (5.2)
  Realizations and distributions (net)                      (1.4)            (0.2)             (0.1)            (1.7)
  Other(2)                                                  (0.5)            (0.7)             (0.1)            (1.3)
September 30, 2020                                $        370.4          $ 167.2          $  115.9          $ 653.5


___________________________

(1)Foreign exchange reflects the impact of translating into U.S. dollars the
assets under management of our Affiliates whose functional currency is not the
U.S. dollar.

(2)Other includes assets under management attributable to product transitions and reclassifications.



Aggregate Fees
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Aggregate fees consists of asset and performance based fees. Asset based fees
include advisory and other fees earned by our Affiliates for services provided
to their clients and are typically determined as a percentage of the value of a
client's assets under management. Performance based fees are based on investment
performance, typically on an absolute basis or relative to a benchmark, and are
recognized when they are earned (i.e., when they become billable to customers
and are not subject to claw-back). Performance based fees are generally billed
less frequently than asset based fees, and although performance based fees
inherently depend on investment performance and will vary from period to period,
we anticipate performance based fees will be a recurring component of our
aggregate fees.

Aggregate fees is generally determined by the level of our average assets under
management, the composition of these assets across our active, return-oriented
strategies that realize different asset based fee ratios, and performance based
fees. Our asset based fee ratio is calculated as asset based fees divided by
average assets under management.

Aggregate fees were $961.7 million for the three months ended September 30,
2020, a decrease of $168.8 million or 15% as compared to the three months ended
September 30, 2019. The decrease in our aggregate fees was due to a $165.5
million or 15% decrease from asset based fees and a $3.3 million or less than 1%
decrease from performance based fees.  The decrease in asset based fees was due
to a decrease in our average assets under management, principally in our
alternative strategies and equities strategies due to net client cash outflows
and a change in the composition of our assets under management.

Aggregate fees were $3,175.7 million for the nine months ended September 30,
2020, a decrease of $369.9 million or 10% as compared to the nine months ended
September 30, 2019. The decrease in our aggregate fees was due to a $464.1
million or 13% decrease from asset based fees, partially offset by a $94.2
million or 3% increase from performance based fees.  The decrease in asset based
fees was due to a decrease in our average assets under management, principally
in our alternative strategies and global equity strategies due to net client
cash outflows and a change in the composition of our assets under management.

Financial and Supplemental Financial Performance Measures



The following table presents our key financial and supplemental financial
performance measures:
                                            For the Three Months Ended                               For the Nine Months Ended
                                                  September 30,                                            September 30,
(in millions)                                  2019             2020             % Change               2019             2020             % Change
Net income (loss) (controlling
interest)                                  $    86.3          $ 71.3                   (17) %       $    (6.8)         $ 86.3                  N.M.(1)
Adjusted EBITDA (controlling
interest)(2)                                   206.5           181.2                   (12) %           641.3           543.6                   (15) %
Economic net income (controlling
interest)(2)                                   159.4           152.1                    (5) %           498.5           433.0                   (13) %


___________________________

(1)Percentage change is not meaningful.



(2)Adjusted EBITDA (controlling interest) and Economic net income (controlling
interest) are non-GAAP performance measures and are discussed in "Supplemental
Financial Performance Measures."
Adjusted EBITDA (controlling interest) is an important supplemental financial
performance measure for management as it provides a comprehensive view of our
share of the financial performance of our business. For the three months ended
September 30, 2020, our Adjusted EBITDA (controlling interest) decreased $25.3
million or 12%, primarily due to a $168.8 million or 15% decrease in aggregate
fees.
While aggregate fees decreased $369.9 million or 10% in the nine months ended
September 30, 2020, our Adjusted EBITDA (controlling interest) decreased $97.7
million or 15%. Adjusted EBITDA (controlling interest) decreased more than
aggregate fees on a percentage basis due to a decline in earnings at certain
Affiliates in which we share in revenue less agreed-upon expenses and the
recognition of performance based fees at Affiliates in which we hold less of an
economic interest. The decrease was also due to a $15.7 million increase in
share-based compensation primarily due to an event that accelerated certain
share-based compensation.
For the three months ended September 30, 2020, our Net income (controlling
interest) decreased $15.0 million or 17%, primarily due to a $25.3 million
decrease from the decline in Adjusted EBITDA (controlling interest), partially
offset by a $9.3 million decrease in Intangible amortization and impairments
attributable to the controlling interest.
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While Adjusted EBITDA (controlling interest) decreased $97.7 million or 15%, for
the nine months ended September 30, 2020, our Net income (controlling interest)
increased $93.1 million. The increase in Net income (controlling interest) was
primarily due to a $278.6 million decrease in equity method intangible
amortization and impairments.  This increase was partially offset by a $36.2
million increase in Intangible amortization and impairments, and a $36.8 million
increase in Income tax expense, both attributable to the controlling interest.
We believe Economic net income (controlling interest) is an important
supplemental financial performance measure because it represents our performance
before non-cash expenses relating to the acquisition of interests in Affiliates
and improves comparability of performance between periods. In the three months
ended September 30, 2020, our Economic net income (controlling interest)
decreased $7.3 million or 5%. This decrease was primarily due to a $25.3 million
decrease in Adjusted EBITDA (controlling interest), partially offset by a $19.3
million decrease in current and other deferred taxes attributable to the
controlling interest.
In the nine months ended September 30, 2020, our Economic net income
(controlling interest) decreased $65.5 million or 13%. This decrease was
primarily due to a $97.7 million decrease in Adjusted EBITDA (controlling
interest), partially offset by a $39.7 million decrease in current and other
deferred taxes attributable to the controlling interest.
Results of Operations
The following discussion includes the key operating performance measures and
financial results of our consolidated and equity method Affiliates. Our
consolidated Affiliates' financial results are included in our Consolidated
revenue, Consolidated expenses, and Investment and other income, and our share
of our equity method Affiliates' financial results is reported, net of
intangible amortization and impairments, in Equity method income (loss) (net).
Consolidated Revenue
The following table presents our consolidated Affiliate average assets under
management and Consolidated revenue:

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