Investor Relations: Anjali Aggarwal Media Relations: Jonathan Freedman

+1 (617) 747-3300 ir@amg.com pr@amg.com

AMG Reports Financial and Operating Results for the Third Quarter

and Nine Months Ended September 30, 2020

Company reports EPS of $1.53, Economic EPS of $3.27 in third quarter of 2020

  • Net Income (controlling interest) of $71 million, Economic Net Income of $152 million
  • Adjusted EBITDA of $181 million, representing 12% growth versus prior quarter
  • Repurchased approximately $85 million in common stock
  • Issued $275 million 40-year hybrid bond, further extending balance sheet duration and enhancing liquidity

WEST PALM BEACH, FL, October 26, 2020 - Affiliated Managers Group, Inc. (NYSE: AMG) today reported its financial and operating results for the third quarter and nine months ended September 30, 2020.

Jay C. Horgen, President and Chief Executive Officer of AMG, said:

"AMG reported third quarter Adjusted EBITDA of $181 million, representing 12% quarter-over-quarter growth, as strong Affiliate investment returns more than offset challenges in certain quantitative strategies. AMG's Affiliates continue to generate alpha across a broad array of distinctive equity and alternative strategies, and are well-positioned to benefit as clients recognize increasing asset dispersion and engage high-performing, active managers to navigate rapidly changing markets. Independent partner-owned boutiques have historically outperformed in periods of heightened volatility, and clients view the most skilled active managers as key contributors to achieving their long-term objectives, particularly in a low-yield environment.

"As business activity levels continue to normalize, we have increased our focus on investing for growth and are executing on our opportunity set across both existing Affiliates and new Affiliate prospects operating in areas of strong client demand. AMG's unique investment model enables us to scale our business without the risk or cost of integration. With our three-decade track record as the partner of choice to leading independent firms, our Affiliates' long-term organic growth opportunities, and our commitment to returning excess capital to shareholders, we are confident in our ability to generate strong earnings growth and create long-term shareholder value."

FINANCIAL HIGHLIGHTS

Three

Ended

Nine Months Ended

(in millions, except as noted and per share data)

9/30/2019

9/30/2020

9/30/2019

9/30/2020

Operating Performance Measures

AUM (at period end, in billions)

$

750.7

$

653.5

$

750.7

$

653.5

Average AUM (in billions)

765.4

657.9

770.7

652.2

Net client cash flows (in billions)

(19.7)

(14.0)

(42.2)

(46.0)

Aggregate fees

1,130.5

961.7

3,545.6

3,175.7

Financial Performance Measures

Net income (loss) (controlling interest)

$

86.3

$

71.3

$

(6.8)

$

86.3

Earnings (loss) per share (diluted)

1.71

1.53

(0.13)

1.83

Supplemental Performance Measures (1)

Adjusted EBITDA (controlling interest)

$

206.5

$

181.2

$

641.3

$

543.6

Economic net income (controlling interest)

159.4

152.1

498.5

433.0

Economic earnings per share

3.16

3.27

9.75

9.17

For additional information on our Supplemental Performance Measures, including reconciliations to GAAP, see the Financial Tables and Notes.

- 1 -

Capital Management

During the third quarter of 2020, the Company repurchased approximately $85 million in common stock and announced a third- quarter cash dividend of $0.01 per common share, payable November 20, 2020 to common stockholders of record as of the close of business on November 5, 2020.

About AMG

AMG is a global asset management company with equity investments in leading boutique investment management firms. AMG's strategy is to generate long‐term value by investing in leading independent active investment managers, through a proven partnership approach, and allocating resources across the Company's unique opportunity set to the areas of highest growth and return. AMG's innovative partnership approach allows each Affiliate's management team to own significant equity in their firm while maintaining operational autonomy. In addition, AMG provides centralized assistance to its Affiliates on strategy, marketing, distribution, and product development. As of September 30, 2020, AMG's aggregate assets under management were approximately $654 billion, across a broad range of active, return-oriented strategies. For more information, please visit the Company's website at www.amg.com.

Conference Call, Replay and Presentation Information

A conference call will be held with AMG's management at 8:30 a.m. Eastern time today. Parties interested in listening to the conference call should dial 1-877-407-8291 (U.S. calls) or 1-201-689-8345(non-U.S. calls) shortly before the call begins.

The conference call will also be available for replay beginning approximately one hour after the conclusion of the call. To hear a replay of the call, please dial 1-877-660-6853 (U.S. calls) or 1-201-612-7415(non-U.S. calls) and provide conference ID 13710888. The live call and replay of the session and a presentation highlighting the Company's performance can also be accessed via AMG's website at https://ir.amg.com/.

Financial Tables Follow

- 2 -

ASSETS UNDER MANAGEMENT - STATEMENT OF CHANGES (in billions)

BY STRATEGY - QUARTER TO DATE

AUM, June 30, 2020

Client cash inflows and commitments Client cash outflows

Net client cash flows Market changes Foreign exchange

Realizations and distributions (net) Other

AUM, September 30, 2020

BY STRATEGY - YEAR TO DATE

AUM, December 31, 2019

Client cash inflows and commitments Client cash outflows

Net client cash flows New investments Market changes Foreign exchange

Realizations and distributions (net) Other

AUM, September 30, 2020

BY CLIENT TYPE - QUARTER TO DATE

AUM, June 30, 2020

Client cash inflows and commitments Client cash outflows

Net client cash flows Market changes Foreign exchange

Realizations and distributions (net) Other

AUM, September 30, 2020

BY CLIENT TYPE - YEAR TO DATE

AUM, December 31, 2019

Client cash inflows and commitments Client cash outflows

Net client cash flows New investments Market changes Foreign exchange

Realizations and distributions (net) Other

AUM, September 30, 2020

Alternatives

Global Equities

U.S. Equities

Multi-Asset &

Total

Fixed Income

$

220.5

$

229.2

$

84.0

$

104.7

$

638.4

6.3

7.7

3.1

5.8

22.9

(9.9)

(13.5)

(8.5)

(5.0)

(36.9)

(3.6)

(5.8)

(5.4)

0.8

(14.0)

1.3

15.1

5.5

3.5

25.4

1.7

2.3

0.2

0.5

4.7

(0.7)

(0.1)

-

-

(0.8)

(0.1)

-

-

(0.1)

(0.2)

$

219.1

$

240.7

$

84.3

$

109.4

$

653.5

Alternatives

Global Equities

U.S. Equities

Multi-Asset &

Total

Fixed Income

$

241.2

$

274.9

$

100.0

$

106.4

$

722.5

22.6

24.9

10.8

16.7

75.0

(35.9)

(46.4)

(23.0)

(15.7)

(121.0)

(13.3)

(21.5)

(12.2)

1.0

(46.0)

3.7

-

-

-

3.7

(9.5)

(9.5)

(2.4)

2.9

(18.5)

(1.3)

(2.8)

(0.2)

(0.9)

(5.2)

(1.4)

(0.1)

-

(0.2)

(1.7)

(0.3)

(0.3)

(0.9)

0.2

(1.3)

$

219.1

$

240.7

$

84.3

$

109.4

$

653.5

High Net

Institutional

Retail

Worth

Total

$

364.9

$

161.8

$

111.7

$

638.4

9.1

8.9

4.9

22.9

(19.4)

(12.9)

(4.6)

(36.9)

(10.3)

(4.0)

0.3

(14.0)

14.0

7.7

3.7

25.4

2.5

2.0

0.2

4.7

(0.7)

(0.1)

-

(0.8)

-

(0.2)

-

(0.2)

$

370.4

$

167.2

$

115.9

$

653.5

High Net

Institutional

Retail

Worth

Total

$

407.2

$

198.1

$

117.2

$

722.5

30.4

30.4

14.2

75.0

(57.2)

(48.9)

(14.9)

(121.0)

(26.8)

(18.5)

(0.7)

(46.0)

3.7

-

-

3.7

(9.2)

(9.2)

(0.1)

(18.5)

(2.6)

(2.3)

(0.3)

(5.2)

(1.4)

(0.2)

(0.1)

(1.7)

(0.5)

(0.7)

(0.1)

(1.3)

$

370.4

$

167.2

$

115.9

$

653.5

- 3 -

CONSOLIDATED STATEMENTS OF INCOME

(in millions, except per share data)

Consolidated revenue

Consolidated expenses:

Compensation and related expenses

Selling, general and administrative

Intangible amortization and impairments

Interest expense

Depreciation and other amortization

Other expenses (net)

Total consolidated expenses

Equity method income (net)(2)

Investment and other income

Income before income taxes

Income tax expense

Net income

Net income (non-controlling interests)

Net income (controlling interest)

Average shares outstanding (basic)

Average shares outstanding (diluted)

Earnings per share (basic)

Earnings per share (diluted)

RECONCILIATIONS OF SUPPLEMENTAL PERFORMANCE MEASURES(1)

(in millions, except per share data)

Net income (controlling interest)

Intangible amortization and impairments

Intangible-related deferred taxes

Other economic items

Economic net income (controlling interest)

Average shares outstanding (adjusted diluted)

Economic earnings per share

Net income (controlling interest)

Interest expense

Income taxes

Intangible amortization and impairments

Other items

Adjusted EBITDA (controlling interest)

See Notes for additional information.

Three Ended

9/30/2019 9/30/2020

$ 549.0 $ 494.8

222.0 212.5

91.574.1

21.131.9

19.523.8

6.24.6

13.112.3

373.4 359.2

10.3 17.0

6.712.7

192.6 165.3

30.537.5

162.1 127.8

(75.8)

(56.5)

$

86.3

$

71.3

50.446.3

50.446.5

$

1.71

$

1.54

$

1.71

$

1.53

Three

Ended

9/30/2019

9/30/2020

$

86.3

$

71.3

68.4

59.1

3.5

27.0

1.2

(5.3)

$

159.4

$

152.1

50.4

46.5

$

3.16

$

3.27

$

86.3

$

71.3

19.5

23.8

28.3

32.5

68.4

59.1

4.0(5.5)

$ 206.5 $ 181.2

- 4 -

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AMG - Affiliated Managers Group Inc. published this content on 26 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 October 2020 10:59:02 UTC