Calamos and AllianceBernstein released their first-quarter earnings, with both showing significant growth in profit.
Calamos Asset Management posted a profit on Tuesday, May 4, above analysts’ expectations, helped by a 40% rise in assets under management (AUM). First-quarter profits attributable to common shareholders were $4.8 million, or 24 cents a share, compared with a profit of $3.4 million, or 17 cents a share, in the year-ago period.
Analysts had expected the company to post earnings of 21 cents a share, according to Thomson Reuters. Revenue for the quarter was up 36% at $81.1 million.
AUM, a key driver of revenue and profit, were $32.3 billion, compared with $23.1 billion, in the same period last year.
“While last year’s massive fiscal and economic stimulus appears to have restored investor confidence and stabilized the global economy,” said John Calamos, Sr., Calamos’ chairman and CEO, “investors have been slow to return to the domestic equity markets. Despite these headwinds, our global defensive equity and alternative strategies continued to see increasing demand and helped sustain our asset growth throughout the first quarter.”
Calamos said that net redemptions during the quarter were primarily attributable to net outflows from its managed accounts, which were partially offset by approximately $250 million of net inflows into its institutional separate accounts. Calamos said that the net outflows for the quarter occurred because the firm increased the account minimums for its convertible-based strategies on separately-managed account (SMA) platforms.