Affiliated Managers Group reverses its 4Q loss and buys a stake in Artemis

Asset manager Affiliated Managers Group reported a fourth-quarter profit on Monday, reversing a loss for the same period a year ago. Improved mutual fund revenue and reduced investment losses contributed to the turnaround, the company said, and shares jumped 6 percent, or $3.65 to $64.22. Affiliated Managers Group Inc. also announced Monday it had signed an agreement to acquire a majority interest in Artemis Investment Management Ltd., a $16 billion U.K.-based investment manager. Terms of the acquisition from Fortis Bank were not disclosed. Yet investments overseas, namely in Asia, helped to lift profits in 2009, company officials said. Net income for period ended Dec. 31 rose to $24.6 million, or 55 cents per share, compared with a loss of $83.7 million, or $2.12 cents per share a year ago. Revenue rose to $244.7 million from $223.4 million. Cash net income was $60 million, or $1.36 per share, up from $52.3 million, or $1.32 a year ago, which beat the expectations of analysts surveyed by Thomson Reuters. They expected $1.31 per share. Cash net income adds back amortization, affiliate depreciation and deferred taxes related to intangible assets. Affiliated Managers Group considers it a key measure of performance because it represents operating performance before certain non-cash expenses tied to acquisitions of interests in affiliated management firms. For the year the company reported net income of $59.5 million, or $1.38 per share, compared with a loss of $1.3 million, or 3 cents per share a year ago. Revenue, however, fell to $841.8 million from $1.16 billion a year ago. Cash net income was $4.37 cents per share. Analysts expected $4.31 per share. The offer for Artemis remains subject to regulatory approval, and is expected to close at the beginning of the second quarter.