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8-K - Artio Global Investors Inc. | v209227_8k.htm |
News
Release
Artio
Global Investors Inc.
Artio
Global Investors Reports Fourth Quarter and Full Year 2010 Results;
Announces
Quarterly Dividend of $0.06 Per Share
Three
Million Share Repurchase Program Authorized Through 2013
NEW YORK, NY, January 28, 2011 –
Artio Global Investors Inc. (NYSE: ART) (“Artio Global Investors”, together with
its subsidiaries, “Artio Global” or the “Company”) today reported its results
for the quarter and year ended December 31, 2010.
Financial
Highlights
·
|
Adjusted1 net income
attributable to Artio Global Investors (“adjusted net income”) of $27.8
million, or $0.46 per diluted share, for the fourth quarter of 2010 (GAAP
net income attributable to Artio Global Investors of $25.7 million, or
$0.44 per diluted
share)
|
·
|
Assets
under management of $53.4 billion as of December 31,
2010
|
·
|
Investment
management fees of $84.7 million for the fourth quarter of 2010 and $334.0
million for the full year 2010
|
·
|
Effective
fee rate2 of
63.3 basis points for the fourth quarter of
2010
|
·
|
Adjusted
operating margin of 56.0% for the fourth quarter of 2010 and 55.0% for the
full year 2010
|
·
|
Quarterly dividend of $0.06 per
share on Class A and Class C common
stock
|
·
|
Authorization
of a share repurchase program for up to 3,000,000 shares of common
stock
|
1
|
See
Exhibits 3 - 5 of this news release for a reconciliation of the Company’s
U.S. GAAP results to its Non-GAAP adjusted results
(“adjusted”).
|
2
|
Effective
fee rate is defined as annualized investment management fees (based on the
number of days in the period) divided by the average assets under
management for the
period.
|
The
Company’s adjusted results for the three and twelve months ended December 31,
2010 and 2009, and the three months ended September 30, 2010, assume the
Principals’3
non-controlling interests have been fully exchanged for shares of Class A common
stock and exclude the effects of the amortization of restricted stock units
(“RSUs”) granted at the time of the Company’s initial public offering
(“IPO”). Adjusted results for the twelve months ended December 31,
2009, also exclude costs associated with the reorganization of the Company’s
ownership structure in connection with the IPO and costs relating to the
Principals’ former compensation structure. Adjusted results are
presented to provide more meaningful comparisons between periods.
For the
fourth quarter of 2010, Artio Global Investors reported adjusted net income of
$27.8 million, or $0.46 per diluted share, an increase of 17% and 15%,
respectively, from adjusted net income of $23.8 million, or $0.40 per diluted
share, for the third quarter of 2010, and a decrease of 23% in each case from
adjusted net income of $36.1 million, or $0.60 per diluted share, for the fourth
quarter of 2009.
On a GAAP
basis, net income attributable to Artio Global Investors for the fourth quarter
of 2010 was $25.7 million, or $0.44 per diluted share, an increase of 29% in
each case from net income attributable to Artio Global Investors of $20.0
million, or $0.34 per diluted share, for the third quarter of
2010. Compared to the fourth quarter of 2009, net income attributable
to Artio Global Investors was essentially unchanged at $25.7 million, while
earnings per diluted share decreased 21% from $0.56.
For the
full year 2010, Artio Global Investors reported adjusted net income of $103.5
million, or $1.72 per diluted share, a decrease of 1% and 2%, respectively, from
adjusted net income of $104.9 million, or $1.75 per diluted share, for the full
year 2009.
On a GAAP
basis, net income attributable to Artio Global Investors for the full year 2010
was $83.6
million, or $1.58 per diluted share, an increase from a net loss attributable to
Artio Global Investors of $378.3 million, or $8.88 per diluted share, for the
full year 2009.
The
following tables compare the Company’s GAAP results and adjusted
results. See Exhibits 3 – 5 of this news release for a reconciliation
of GAAP results to adjusted results.
3
|
Richard Pell, Chairman, Chief
Executive Officer and Chief Investment Officer, and Rudolph-Riad Younes,
Head of International Equities, are collectively referred to as the
“Principals”.
|
- 2 -
Three Months Ended
(in millions, except per share amounts)
|
||||||||||||||||||||
Dec. 31,
2010
|
Dec. 31,
2009
|
%
Change
|
Sep. 30,
2010
|
%
Change
|
||||||||||||||||
Revenue4,
GAAP
|
$ | 85.2 | $ | 89.6 | (5 | )% | $ | 80.9 | 5 | % | ||||||||||
Operating
income (loss), GAAP
|
$ | 45.0 | $ | 53.2 | (15 | )% | $ | 39.9 | 13 | % | ||||||||||
Operating
income, adjusted
|
$ | 47.7 | $ | 57.4 | (17 | )% | $ | 42.5 | 12 | % | ||||||||||
Net
income (loss) attributable to Artio Global Investors, GAAP
|
$ | 25.7 | $ | 25.7 | 0 | % | $ | 20.0 | 29 | % | ||||||||||
Adjusted
net income
|
$ | 27.8 | $ | 36.1 | (23 | )% | $ | 23.8 | 17 | % | ||||||||||
Diluted
EPS, GAAP
|
$ | 0.44 | $ | 0.56 | (21 | )% | $ | 0.34 | 29 | % | ||||||||||
Diluted
EPS, adjusted
|
$ | 0.46 | $ | 0.60 | (23 | )% | $ | 0.40 | 15 | % |
Year
Ended
(in
millions, except per share amounts)
|
||||||||||||
Dec.
31,
2010
|
Dec.
31,
2009
|
%
Change
|
||||||||||
Revenue4,
GAAP
|
$ | 335.1 | $ | 307.4 | 9 | % | ||||||
Operating
income (loss), GAAP
|
$ | 173.2 | $ | (228.5 | ) | 176 | % | |||||
Operating
income, adjusted
|
$ | 184.3 | $ | 173.4 | 6 | % | ||||||
Net
income (loss) attributable to Artio Global Investors, GAAP
|
$ | 83.6 | $ | (378.3 | ) | 122 | % | |||||
Adjusted
net income
|
$ | 103.5 | $ | 104.9 | (1 | )% | ||||||
Diluted
EPS, GAAP
|
$ | 1.58 | $ | (8.88 | ) | 118 | % | |||||
Diluted
EPS, adjusted
|
$ | 1.72 | $ | 1.75 | (2 | )% |
4
|
Represents total revenues and
other operating
income.
|
- 3 -
Business
Highlights5
·
|
All
five eligible mutual funds6 were in the top
quartile of Lipper performance rankings for the five-year period ended
December 31, 2010
|
·
|
Seven
of the Company’s nine mutual funds7, representing over
99% of mutual fund assets, were rated four or five stars by Morningstar,
as of December 31, 2010
|
·
|
Net
client cash outflows were $3.1 billion for the fourth quarter of 2010 and
$6.3 billion for full year 2010
|
·
|
The
Compensation Committee of the Board of Directors approved long-term
performance-based awards that provide for grants of RSUs to certain
employees that will vest only if specific criteria are
satisfied. The awards are intended to provide additional
incentives to further align the interests of employees, shareholders
and clients8
|
Management
Commentary
“For the
fourth quarter, sequentially higher investment management fees driven by market
appreciation enabled us to maintain an attractive operating margin and strong
net income per diluted share,” said Richard Pell, Chairman, Chief Executive
Officer and Chief Investment Officer. “Although our flagship International
Equity strategies saw disappointing fourth quarter net outflows, their long-term
performance remains competitive and they continued to generate meaningful gross
inflows.”
“As we
move towards our long term goal of developing a diversified, multi-generational
asset management company with multiple growth engines, we remain focused on
capital management. During the fourth quarter we began making scheduled
principal repayments on our term debt facility. We also utilized the
strong free cash flow generated by our business to continue to buy back Artio
stock, completing our initial one million share repurchase program earlier than
originally anticipated. In addition, our Board of Directors authorized a further
three million share repurchase program.”
5
|
See section entitled “Fund
Performance and Other Disclaimers” and Exhibit 8 of this news release for
further information about Lipper and Morningstar
rankings.
|
6
|
Class I mutual fund shares with a
five-year track record; other classes may have different performance
characteristics.
|
7
|
Class I mutual fund shares; other
classes may have different performance
characteristics.
|
8
|
For further information on the
long-term performance based awards, see the Current Report on Form 8-K
filed by the Company with the Securities and Exchange Commission on
January 28,
2011.
|
- 4 -
Fourth
Quarter of 2010 Comparison with Fourth Quarter of 2009
Assets
Under Management9 and
Net Client Cash Flows
Assets
under management were $53.4 billion as of December 31, 2010, down $2.6 billion,
or 5%, from $56.0 billion as of December 31, 2009, due to net client cash
outflows, partly offset by market appreciation.
Net
client cash outflows for the fourth quarter of 2010 were $3.1 billion, driven
primarily by net client cash outflows from our International Equity I and II
strategies and our High Grade Fixed Income strategy10.
Revenues
and Other Operating Income
Revenues
and other operating income for the fourth quarter of 2010 totaled $85.2 million,
down 5% from $89.6 million for the fourth quarter of 2009. The
decrease was driven primarily by lower investment management fees, which were
$84.7 million for the fourth quarter of 2010, down 5% from $89.3 million for the
fourth quarter of 2009, due primarily to lower average assets under
management.
Expenses
Employee Compensation and
Benefits
For the
fourth quarter of 2010, adjusted employee compensation and benefits expenses
were $21.7
million, up 24% from $17.5 million for the fourth quarter of
2009. The increase was due primarily to higher incentive
compensation, resulting in part from the implementation of a revised deferred
compensation plan in the fourth quarter of 2009 that significantly increased the
proportion of incentive compensation subject to deferral, and higher salary and
benefits costs resulting from an increase in headcount in 2010.
9
|
Assets
under management information exclude legacy
activities.
|
10
|
See
Exhibit 7 for more information on “Assets under Management by Investment
Strategy”.
|
- 5 -
GAAP
employee compensation and benefits expenses for the fourth quarter of 2010 were
$24.4
million, up 12% from $21.7 million for the fourth quarter of
2009. The increase was due primarily to the reasons mentioned above,
partly offset by a decrease in the amortization of RSUs granted at the time of
the IPO, due to the vesting of certain awards in the first quarter of
2010.
Shareholder Servicing and
Marketing Expenses
Shareholder
servicing and marketing expenses for the fourth quarter of 2010 were $4.9
million, down 4% from $5.2 million for the fourth quarter of 2009, driven
primarily by a decrease in marketing expenses.
General and Administrative
Expenses
General
and administrative expenses for the fourth quarter of 2010 were $10.9 million,
up 14% from $9.5 million for the fourth quarter of 2009, driven primarily by
higher professional fees and an increase in business related
activities.
Income
Taxes
For the
fourth quarter of 2010, the adjusted effective tax rate was 42.2%, 6.4
percentage points higher than the 35.8% adjusted effective tax rate for the
fourth quarter of 2009. The increase was due primarily to a tax
benefit recorded in the fourth quarter of 2009 associated with the anticipated
amendments of prior years’ tax returns to reflect a lower apportionment of
income for state and local tax purposes.
The GAAP
effective tax rate was 41.4% for the fourth quarter of 2010, 17.5 percentage
points higher than the 23.9% GAAP effective tax rate for the fourth quarter of
2009, due primarily to an increase in the proportion of pre-tax income subject
to federal and state taxes11, and the tax benefit
referred to above.
11
|
Following
the Principals’ exchanges of an aggregate of 14,400,000 New Class A Units
for Class A common stock on May 18, 2010 and June 9, 2010, Artio Global
Investors’ economic ownership in Artio Global Holdings increased from
approximately 74% to approximately
98%.
|
- 6 -
Fourth Quarter of 2010 Comparison with Third
Quarter of 2010
Assets
Under Management
Assets
under management were $53.4 billion as of December 31, 2010, a decrease of $0.5
billion, or 1%, from $53.9 billion as of September 30, 2010, due to net client
cash outflows, partly offset by market appreciation.
Revenues
and Other Operating Income
Revenues
and other operating income for the fourth quarter of 2010 totaled $85.2 million,
up 5% from $80.9 million for the third quarter of 2010, driven primarily by
higher investment management fees. Investment management fees were
$84.7 million for the fourth quarter of 2010, up 6% from $80.2 million for the
third quarter of 2010, due primarily to an increase in average assets under
management.
Expenses
Employee Compensation and
Benefits
For the
fourth quarter of 2010, adjusted employee compensation and benefits expenses
were $21.7
million, down 2% from $22.2 million for the third quarter of 2010.
GAAP
employee compensation and benefits expenses for the fourth quarter of 2010 were
$24.4
million, down 2% from $24.8 million for the third quarter of 2010.
Shareholder Servicing and
Marketing Expenses
Shareholder
servicing and marketing expenses for the fourth quarter of 2010 were $4.9
million, a decrease of 2% from $5.0 million for the third quarter of 2010,
driven by lower marketing expenses, partly offset by an increase in shareholder
servicing costs due to higher average assets under management in our proprietary
funds.
- 7 -
General and Administrative
Expenses
General
and administrative expenses of $10.9 million for the fourth quarter of 2010,
decreased 3% from $11.2 million for the third quarter of 2010, driven primarily
by lower costs related to client-related trading errors, partly offset by higher
business related activities.
Income
Taxes
For the
fourth quarter of 2010, the adjusted effective tax rate was 42.2%, 1.2
percentage points lower than the 43.4% adjusted effective tax rate for the third
quarter of 2010, due primarily to the release of a previously recorded tax
reserve.
The GAAP
effective tax rate was 41.4% for the fourth quarter of 2010, 6.0 percentage
points lower than the 47.4% GAAP effective tax rate for the third quarter of
2010, due primarily to a write-off of deferred tax assets in the third quarter
of 2010 related to the vesting of RSUs at a price below their grant date fair
value.
Full
Year 2010 Comparison to Full Year 2009
Net
Client Cash Flows
Net
client cash outflows for full year 2010 were $6.3 billion, driven primarily by
net client cash outflows from our International Equity I and II strategies, and
our High Grade Fixed Income strategy, partly offset by net client cash inflows
into our High Yield, Global Equity and US Equity strategies10.
Revenues
and Other Operating Income
Revenues
and other operating income for 2010 totaled $335.1 million, up 9% from $307.4
million for 2009, driven primarily by higher investment management
fees. Investment management fees were $334.0 million for 2010, up 9%
from $305.3 million for 2009, due primarily to higher average assets under
management.
- 8 -
Expenses
Employee Compensation and
Benefits
For 2010,
adjusted employee compensation and benefits expenses were $87.9 million, up 18%
from $74.7 million for 2009. The increase was due primarily to costs
resulting from an increase in headcount in 2010 and the full year impact of the
Principals’ employment agreements.
GAAP
employee compensation and benefits expenses for 2010 of $99.0 million decreased
79% from $476.7 million for 2009. The decrease was due primarily to
compensation expenses recorded in 2009 related to the reorganization of the
Company’s ownership structure in connection with the IPO and costs related to
the Principals’ former compensation structure, partly offset by the reasons
mentioned above as well as an increase in the amortization of RSUs granted at
the time of the IPO.
Shareholder Servicing and
Marketing Expenses
Shareholder
servicing and marketing expenses for 2010 were $20.1 million, up 19% from
$16.9
million for 2009, driven primarily by higher shareholder servicing costs
resulting from increases in average assets under management in proprietary funds
and platform fees, and increased marketing expenses.
General and Administrative
Expenses
General
and administrative expenses of $42.8 million for 2010 increased 1% from $42.3
million for 2009, driven primarily by an increase in costs resulting from our
public company status, higher business related activities and professional fees
related to the secondary offering in 2010, partly offset by professional fees
related to the IPO in 2009, and the absence of license fees paid to our former
parent.
Income
Taxes
For 2010,
the adjusted effective tax rate was 43.4%, 4.4 percentage points higher than
39.0% for 2009, due primarily to a tax benefit recorded in 2009 associated with
the anticipated amendments of prior-years’ tax returns to reflect a lower
apportionment of income for state and local tax purposes.
- 9 -
GAAP
income tax expense of $68.2 million for 2010 decreased 49% from $134.3 million
for 2009, due primarily to a non-cash expense of $110.3 million recorded in 2009
related to the de-recognition of a deferred tax asset, partly offset by higher
taxable income in 2010 and the tax benefit recorded in 2009 mentioned
above.
Liquidity
and Capital
As of
December 31, 2010, the Company had cash and cash equivalents, excluding amounts
held in consolidated investment products, of $79.2 million, investments held for
deferred compensation of $9.1 million and an undrawn $50.0 million committed
revolving credit facility. During the fourth quarter of 2010, in
accordance with the terms of the credit agreement, the Company repaid $4.5
million of its $60.0 million term debt facility.
On
January 27, 2011, the Company increased its committed revolving credit facility
from $50.0
million to $100.0 million.
Total
equity on the Statement of Financial Position was $106.3 million as of December
31, 2010, compared to $4.0 million as of December 31, 2009.
Share
Repurchase
In the
fourth quarter of 2010, the Company completed its 1,000,000 share repurchase
program by repurchasing and retiring 468,800 shares of Class A common stock at
an average price of $14.25.
On
December 8, 2010, the Board of Directors authorized the repurchase of up to
3,000,000 shares of common stock through December 31,
2013.
Shares
As of
December 31, 2010, the total amount of shares of Class A, Class B and Class C
common stock outstanding was 59,508,172.
For
purposes of calculating adjusted earnings per diluted share, all of the
Principals’ New Class A Units, held in the intermediate holding company as of
the beginning of the period, are assumed to have been fully exchanged into
shares of Class A common stock on the first day of the period.
- 10 -
Dividend
On
January 24, 2011, the Board of Directors declared a dividend of $0.06 per share
on the Class A and Class C common stock for the fourth quarter of 2010, which is
payable on February 23, 2011, to stockholders of record as of the close of
business on February 14, 2011.
* * * *
Teleconference
and Webcast Details
Artio
Global Investors’ management will host a conference call for analysts and
investors to review fourth quarter and full year 2010 results, today, January
28, 2011, beginning at 8:00 a.m. (Eastern Time). The call can be
accessed by dialing +1-888-680-0860 (inside the United States) or
+1-617-213-4852 (outside the United States). The number should be
dialed at least ten minutes prior to the start of the call. The
passcode for the call will be 80728240. A simultaneous webcast (on a
listen-only basis), as well as an audio replay of the call will be available to
the public on the Investor Relations page of the Company’s website at www.ir.ArtioGlobal.com.
* * * *
About
Us
Artio
Global Investors Inc. is the indirect holding company of Artio Global Management
LLC (“Artio Global Management”), a registered investment adviser headquartered
in New York City that actively invests in global equity and fixed income
markets, primarily for institutional and intermediary clients.
Best
known for International Equities, Artio Global Management also offers a select
group of other investment strategies, including High Grade Fixed Income, High
Yield and Global Equity, as well as a series of US Equity
strategies. Access to these strategies is offered through a variety
of investment vehicles, including separate accounts, commingled funds and
SEC-registered mutual funds.
Since
1995, our investment professionals have built a successful long-term track
record by taking an unconventional approach to investing. Based on a
philosophy of style-agnostic investing across a broad range of opportunities, we
have consistently pursued a global approach that we believe provides critical
insights, thereby adding value for clients over the long term.
- 11 -
For more
information, please visit www.artioglobal.com.
* * * *
Cautionary
Note Regarding Forward-Looking Statements
In
addition to historical information, this news release may, and the related
prepared remarks do, contain forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995, including statements
regarding the intrinsic value of our common stock, investor behavior, our
adjusted compensation ratio, future tax rate, free cash flow and declaration of
dividends. These forward-looking statements are based on the
Company’s current assumptions, expectations and projections about future events.
Words like “believe”, “anticipate”, “intend”, “estimate”, “expect”, “project”,
and similar expressions are used to identify forward-looking statements,
although not all forward-looking statements contain these words. These
forward-looking statements discuss matters that necessarily involve a number of
risks and uncertainties that could cause actual results to differ materially
from those expressed or implied by the forward-looking statements.
Among the
factors that could cause actual results to differ from those expressed or
implied by a forward-looking statement are those described in the sections
entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” in the Company’s registration statement on
Form S-1 (File No. 333-166992) filed with the Securities and Exchange Commission
on May 21, 2010, as amended. Other unknown or unpredictable factors also could
have material adverse effects on the Company’s future results, performance, or
achievements.
Any
forward-looking statements in this news release and the related prepared remarks
speak only as of the date of this news release. The related prepared remarks may
contain information about the Company subsequent to December 31,
2010. The Company is not under any obligation and does not intend to
make publicly available any update or other revisions to any forward-looking
statements to reflect circumstances existing after the date of this release or
to reflect the occurrence of future events even if experience or future events
make it clear that any expected results expressed or implied by those
forward-looking statements will not be realized.
* * * *
- 12 -
Contacts
Investor
Relations:
|
Media
Relations:
|
Peter
Sands
|
Neil
Shapiro
|
Head
of Investor Relations
|
Intermarket
Communications
|
+1
212 297 3891
|
+1
732-616-5631
|
ir@artioglobal.com
|
nshapiro@Intermarket.com
|
* * * *
Fund
Performance and Other Disclaimers
Lipper
rankings are for Class I mutual fund shares with a five-year track record
only. Other classes may have different performance
characteristics. Lipper, a wholly-owned subsidiary of Reuters,
provides independent insight on global collective investments including mutual
funds, retirement funds, hedge funds, fund fees and expenses to the asset
management and media communities. Lipper ranks the performance of mutual funds
within a classification of funds that have similar investment
objectives. Rankings are historical with capital gains and dividends
reinvested and do not include the effect of loads. If an expense
waiver was in effect, it may have had a material effect on the total return or
yield for the period.
Morningstar
rankings are for Class I mutual fund shares with a minimum three-year track
record. For each mutual fund with at least a three-year history,
Morningstar calculates a Morningstar Rating™ based on a Morningstar
Risk-Adjusted Return measure that accounts for variation in a fund’s monthly
performance (including the effects of sales charges, loads, and redemption
fees), placing more emphasis on downward variations and rewarding consistent
performance. The top 10% of funds in each category receive 5 stars, the next
22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2
stars and the bottom 10% receive 1 star. (Each share class is counted as a
fraction of one fund within this scale and rated separately, which may cause
slight variations in the distribution percentages.) The Overall
Morningstar Rating for a mutual fund is derived from a weighted average of the
performance figures associated with its three-, five- and ten-year (if
applicable) Morningstar Rating metrics. This investment's independent
Morningstar Rating metric is then compared against the mutual fund universe
breakpoints to determine its hypothetical rating.
Data presented reflects past
performance, which is no guarantee of future results. © 2011 Morningstar,
Inc. All Rights Reserved.
This news
release is not, and should not be considered, sales material and is not an offer
or a solicitation for any securities.
- 13 -
Exhibit
- 1
Consolidated
Statements of Operations
|
(unaudited,
in thousands, except share and per share amounts or as
noted)
|
Three Months Ended
|
% Change From
|
Year Ended
|
% Change From
|
|||||||||||||||||||||||||||||
Dec. 31, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2009
|
|||||||||||||||||||||||||
Revenues
and other operating income:
|
||||||||||||||||||||||||||||||||
Investment
management fees
|
$ | 84,736 | $ | 89,282 | $ | 80,173 | (5 | )% | 6 | % | $ | 334,037 | $ | 305,335 | 9 | % | ||||||||||||||||
Net
gains (losses) on securities held for deferred
compensation
|
495 | 281 | 722 | 76 | % | (31 | )% | 1,077 | 1,970 | (45 | )% | |||||||||||||||||||||
Foreign
currency gains (losses)
|
2 | 21 | 35 | (90 | )% | (94 | )% | 15 | 87 | (83 | )% | |||||||||||||||||||||
Total
revenues and other operating income
|
85,233 | 89,584 | 80,930 | (5 | )% | 5 | % | 335,129 | 307,392 | 9 | % | |||||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||||||||
Employee
compensation and benefits:
|
||||||||||||||||||||||||||||||||
Salaries,
incentive compensation and benefits
|
24,393 | 21,728 | 24,772 | 12 | % | (2 | )% | 98,981 | 79,035 | 25 | % | |||||||||||||||||||||
Allocation
of Class B profits interests
|
- | - | - |
NM
|
NM
|
- | 33,663 | (100 | )% | |||||||||||||||||||||||
Change
in redemption value of Class B profits interests
|
- | - | - |
NM
|
NM
|
- | 266,110 | (100 | )% | |||||||||||||||||||||||
Tax
receivable agreement
|
- | - | - |
NM
|
NM
|
- | 97,909 | (100 | )% | |||||||||||||||||||||||
Total
employee compensation and benefits
|
24,393 | 21,728 | 24,772 | 12 | % | (2 | )% | 98,981 | 476,717 | (79 | )% | |||||||||||||||||||||
Shareholder
servicing and marketing
|
4,948 | 5,176 | 5,031 | (4 | )% | (2 | )% | 20,125 | 16,886 | 19 | % | |||||||||||||||||||||
General
and administrative
|
10,853 | 9,511 | 11,224 | 14 | % | (3 | )% | 42,807 | 42,317 | 1 | % | |||||||||||||||||||||
Total
expenses
|
40,194 | 36,415 | 41,027 | 10 | % | (2 | )% | 161,913 | 535,920 | (70 | )% | |||||||||||||||||||||
Operating
income (loss) before income tax expense
|
45,039 | 53,169 | 39,903 | (15 | )% | 13 | % | 173,216 | (228,528 | ) | 176 | % | ||||||||||||||||||||
Non-operating
income (loss)
|
445 | (1,184 | ) | (431 | ) | 138 | % |
NM
|
(1,295 | ) | (1,395 | ) | 7 | % | ||||||||||||||||||
Income
(loss) before income tax expense
|
45,484 | 51,985 | 39,472 | (13 | )% | 15 | % | 171,921 | (229,923 | ) | 175 | % | ||||||||||||||||||||
Income
taxes
|
18,817 | 12,433 | 18,717 | 51 | % | 1 | % | 68,193 | 134,287 | (49 | )% | |||||||||||||||||||||
Net
income (loss)
|
26,667 | 39,552 | 20,755 | (33 | )% | 28 | % | 103,728 | (364,210 | ) | 128 | % | ||||||||||||||||||||
Net income attributable to non-controlling
interests in AGH (7)
|
884 | 13,843 | 756 | (94 | )% | 17 | % | 20,123 | 14,104 | 43 | % | |||||||||||||||||||||
Net income attributable to non-controlling
interests in CIP (8)
|
44 | - | - |
NM
|
NM
|
44 | - |
NM
|
||||||||||||||||||||||||
Net
income (loss) attributable to Artio Global Investors
|
$ | 25,739 | $ | 25,709 | $ | 19,999 | 0 | % | 29 | % | $ | 83,561 | $ | (378,314 | ) | 122 | % | |||||||||||||||
Net
income (loss) per share attributable to Artio Global
Investors:
|
||||||||||||||||||||||||||||||||
Basic
|
$ | 0.44 | $ | 0.58 | $ | 0.34 | (24 | )% | 29 | % | $ | 1.58 | $ | (8.88 | ) | 118 | % | |||||||||||||||
Diluted
|
$ | 0.44 | $ | 0.56 | $ | 0.34 | (21 | )% | 29 | % | $ | 1.58 | $ | (8.88 | ) | 118 | % | |||||||||||||||
Weighted
average shares used in net income (loss) per share attributable to Artio
Global Investors:
|
||||||||||||||||||||||||||||||||
Basic
|
58,535,264 | 44,408,938 | 58,678,738 | 32 | % | 0 | % | 52,829,546 | 42,620,373 | 24 | % | |||||||||||||||||||||
Diluted (6)
|
59,783,668 | 60,008,938 | 59,012,436 | 0 | % | 1 | % | 53,002,615 | 42,620,373 | 24 | % | |||||||||||||||||||||
NM
- Not Meaningful
|
||||||||||||||||||||||||||||||||
Assets under management ($ in millions) (1)
|
$ | 53,407 | $ | 55,993 | $ | 53,860 | (5 | )% | (1 | )% | $ | 53,407 | $ | 55,993 | (5 | )% | ||||||||||||||||
Average assets under management ($ in
millions) (1)
(2)
|
$ | 53,125 | $ | 55,362 | $ | 51,004 | (4 | )% | 4 | % | $ | 52,930 | $ | 48,166 | 10 | % | ||||||||||||||||
Effective fee rate (basis points) (3)
|
63.3 | 64.0 | 62.4 | 63.1 | 63.4 | |||||||||||||||||||||||||||
Effective
tax rate
|
41.4 | % | 23.9 | % | 47.4 | % | 39.7 | % |
NM
|
|||||||||||||||||||||||
Employee compensation and benefits as a percentage
of total revenues and other operating income (4)
|
28.6 | % | 24.3 | % | 30.6 | % | 29.5 | % |
NM
|
|||||||||||||||||||||||
Operating margin (5)
|
52.8 | % | 59.4 | % | 49.3 | % | 51.7 | % |
NM
|
|||||||||||||||||||||||
1. Excludes
legacy activities.
2. Average
assets under management for a period is computed on the beginning-of-first-month
balance and all end-of-month balances in the period.
3. Effective
fee rate is defined as annualized investment management fees (based on the
number of days in the period) divided by the average assets under management for
the period.
4. Calculated
as employee compensation and benefits expense divided by total revenues and
other operating income.
5. Calculated
as operating income before income tax expense divided by total revenues and
other operating income.
6. The
effect of the assumed conversion of the Principals' Class A units was
antidilutive for the three months ended Sep. 30, 2010, and the years ended Dec.
31, 2010 and 2009.
7. Represents
non-controlling interests in Artio Global Holdings LLC.
8. Consolidated
Investment Products ("CIP") represents non-controlling interests in Artio Alpha
Investment Funds, LLC.
- 14 -
Exhibit
- 2
Non-GAAP
Adjusted Consolidated Statements of Operations
|
(unaudited,
in thousands, except share and per share amounts or as
noted)
|
Three Months Ended
|
% Change From
|
Year Ended
|
% Change From
|
|||||||||||||||||||||||||||||
Dec. 31, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2009
|
|||||||||||||||||||||||||
Revenues
and other operating income:
|
||||||||||||||||||||||||||||||||
Investment
management fees
|
$ | 84,736 | $ | 89,282 | $ | 80,173 | (5 | )% | 6 | % | $ | 334,037 | $ | 305,335 | 9 | % | ||||||||||||||||
Net
gains (losses) on securities held for deferred
compensation
|
495 | 281 | 722 | 76 | % | (31 | )% | 1,077 | 1,970 | (45 | )% | |||||||||||||||||||||
Foreign
currency gains (losses)
|
2 | 21 | 35 | (90 | )% | (94 | )% | 15 | 87 | (83 | )% | |||||||||||||||||||||
Total
revenues and other operating income
|
85,233 | 89,584 | 80,930 | (5 | )% | 5 | % | 335,129 | 307,392 | 9 | % | |||||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||||||||
Employee
compensation and benefits:
|
||||||||||||||||||||||||||||||||
Salaries,
incentive compensation and benefits
|
21,703 | 17,523 | 22,177 | 24 | % | (2 | )% | 87,925 | 74,743 | 18 | % | |||||||||||||||||||||
Allocation
of Class B profits interests
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Change
in redemption value of Class B profits interests
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Tax
receivable agreement
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Total
employee compensation and benefits
|
21,703 | 17,523 | 22,177 | 24 | % | (2 | )% | 87,925 | 74,743 | 18 | % | |||||||||||||||||||||
Shareholder
servicing and marketing
|
4,948 | 5,176 | 5,031 | (4 | )% | (2 | )% | 20,125 | 16,886 | 19 | % | |||||||||||||||||||||
General
and administrative
|
10,853 | 9,511 | 11,224 | 14 | % | (3 | )% | 42,807 | 42,317 | 1 | % | |||||||||||||||||||||
Total
expenses
|
37,504 | 32,210 | 38,432 | 16 | % | (2 | )% | 150,857 | 133,946 | 13 | % | |||||||||||||||||||||
Operating
income before income tax expense
|
47,729 | 57,374 | 42,498 | (17 | )% | 12 | % | 184,272 | 173,446 | 6 | % | |||||||||||||||||||||
Non-operating
income (loss)
|
445 | (1,184 | ) | (431 | ) | 138 | % |
NM
|
(1,295 | ) | (1,395 | ) | 7 | % | ||||||||||||||||||
Income
before income tax expense
|
48,174 | 56,190 | 42,067 | (14 | )% | 15 | % | 182,977 | 172,051 | 6 | % | |||||||||||||||||||||
Income
taxes
|
20,351 | 20,130 | 18,267 | 1 | % | 11 | % | 79,472 | 67,149 | 18 | % | |||||||||||||||||||||
Net
income
|
27,823 | 36,060 | 23,800 | (23 | )% | 17 | % | 103,505 | 104,902 | (1 | )% | |||||||||||||||||||||
Net income attributable to non-controlling
interests in AGH (6)
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Net income attributable to non-controlling
interests in CIP (7)
|
44 | - | - |
NM
|
NM
|
44 | - |
NM
|
||||||||||||||||||||||||
Net
income attributable to Artio Global Investors
|
$ | 27,779 | $ | 36,060 | $ | 23,800 | (23 | )% | 17 | % | $ | 103,461 | $ | 104,902 | (1 | )% | ||||||||||||||||
Net
income per diluted share attributable to Artio Global
Investors
|
$ | 0.46 | $ | 0.60 | $ | 0.40 | (23 | )% | 15 | % | $ | 1.72 | $ | 1.75 | (2 | )% | ||||||||||||||||
Weighted
average diluted shares used in net income per share attributable to
Artio Global Investors
|
59,783,668 | 60,008,938 | 60,212,436 | 0 | % | (1 | )% | 60,113,847 | 60,002,291 | 0 | % | |||||||||||||||||||||
NM
- Not Meaningful
|
||||||||||||||||||||||||||||||||
Assets under management ($ in millions) (1)
|
$ | 53,407 | $ | 55,993 | $ | 53,860 | (5 | )% | (1 | )% | $ | 53,407 | $ | 55,993 | (5 | )% | ||||||||||||||||
Average assets under management ($ in
millions) (1)
(2)
|
$ | 53,125 | $ | 55,362 | $ | 51,004 | (4 | )% | 4 | % | $ | 52,930 | $ | 48,166 | 10 | % | ||||||||||||||||
Effective fee rate (basis points) (3)
|
63.3 | 64.0 | 62.4 | 63.1 | 63.4 | |||||||||||||||||||||||||||
Effective
tax rate
|
42.2 | % | 35.8 | % | 43.4 | % | 43.4 | % | 39.0 | % | ||||||||||||||||||||||
Employee compensation and benefits as a percentage
of total revenues and other operating income (4)
|
25.5 | % | 19.6 | % | 27.4 | % | 26.2 | % | 24.3 | % | ||||||||||||||||||||||
Operating margin (5)
|
56.0 | % | 64.0 | % | 52.5 | % | 55.0 | % | 56.4 | % | ||||||||||||||||||||||
1. Excludes
legacy activities.
2. Average
assets under management for a period is computed on the beginning-of-first-month
balance and all end-of-month balances in the period.
3. Effective
fee rate is defined as annualized investment management fees (based on the
number of days in the period) divided by the average assets under management for
the period.
4. Calculated
as employee compensation and benefits expense divided by total revenues and
other operating income.
5. Calculated
as operating income before income tax expense divided by total revenues and
other operating income.
6. Represents
non-controlling interests in Artio Global Holdings LLC.
7. Consolidated
Investment Products ("CIP") represents non-controlling interests in Artio Alpha
Investment Funds, LLC.
- 15 -
Exhibit
- 3
ARTIO
GLOBAL INVESTORS INC. AND SUBSIDIARIES
|
Reconciliation
of GAAP to Non-GAAP Adjusted Consolidated Statements of
Operations
|
(unaudited,
in thousands, except share and per share
amounts)
|
See
Exhibit 5 for notes describing adjustments set forth below.
Three Months Ended Dec. 31, 2010
|
Three Months Ended Dec. 31, 2009
|
Three Months Ended Sep. 30, 2010
|
||||||||||||||||||||||||||||||||||
GAAP
|
Adjustments
|
Adjusted
|
GAAP
|
Adjustments
|
Adjusted
|
GAAP
|
Adjustments
|
Adjusted
|
||||||||||||||||||||||||||||
Revenues
and other operating income:
|
||||||||||||||||||||||||||||||||||||
Investment
management fees
|
$ | 84,736 | $ | - | $ | 84,736 | $ | 89,282 | $ | - | $ | 89,282 | $ | 80,173 | $ | - | $ | 80,173 | ||||||||||||||||||
Net
gains (losses) on securities held for deferred
compensation
|
495 | - | 495 | 281 | - | 281 | 722 | - | 722 | |||||||||||||||||||||||||||
Foreign
currency gains (losses)
|
2 | - | 2 | 21 | - | 21 | 35 | - | 35 | |||||||||||||||||||||||||||
Total
revenues and other operating income
|
85,233 | - | 85,233 | 89,584 | - | 89,584 | 80,930 | - | 80,930 | |||||||||||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||||||||||||||
Employee
compensation and benefits:
|
||||||||||||||||||||||||||||||||||||
Salaries,
incentive compensation and benefits
|
24,393 | (2,690 | ) (a) | 21,703 | 21,728 | (4,205 | )(a) | 17,523 | 24,772 | (2,595 | )(a) | 22,177 | ||||||||||||||||||||||||
Allocation
of Class B profits interests
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Change
in redemption value of Class B profits interests
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Tax
receivable agreement
|
- | - | - | - | - | - | - | - | - | |||||||||||||||||||||||||||
Total
employee compensation and benefits
|
24,393 | (2,690 | ) | 21,703 | 21,728 | (4,205 | ) | 17,523 | 24,772 | (2,595 | ) | 22,177 | ||||||||||||||||||||||||
Shareholder
servicing and marketing
|
4,948 | - | 4,948 | 5,176 | - | 5,176 | 5,031 | - | 5,031 | |||||||||||||||||||||||||||
General
and administrative
|
10,853 | - | 10,853 | 9,511 | - | 9,511 | 11,224 | - | 11,224 | |||||||||||||||||||||||||||
Total
expenses
|
40,194 | (2,690 | ) | 37,504 | 36,415 | (4,205 | ) | 32,210 | 41,027 | (2,595 | ) | 38,432 | ||||||||||||||||||||||||
Operating
income (loss) before income tax expense
|
45,039 | 2,690 | 47,729 | 53,169 | 4,205 | 57,374 | 39,903 | 2,595 | 42,498 | |||||||||||||||||||||||||||
Non-operating
income (loss)
|
445 | - | 445 | (1,184 | ) | - | (1,184 | ) | (431 | ) | - | (431 | ) | |||||||||||||||||||||||
Income
(loss) before income tax expense
|
45,484 | 2,690 | 48,174 | 51,985 | 4,205 | 56,190 | 39,472 | 2,595 | 42,067 | |||||||||||||||||||||||||||
Income
taxes
|
18,817 | 1,534 | (d) | 20,351 | 12,433 | 7,697 | (d) | 20,130 | 18,717 | (450 | )(d) | 18,267 | ||||||||||||||||||||||||
Net
income (loss)
|
26,667 | 1,156 | 27,823 | 39,552 | (3,492 | ) | 36,060 | 20,755 | 3,045 | 23,800 | ||||||||||||||||||||||||||
Net
income attributable to non-controlling interests in AGH
|
884 | (884 | )(e) | - | 13,843 | (13,843 | )(e) | - | 756 | (756 | )(e) | - | ||||||||||||||||||||||||
Net
income attributable to non-controlling interests in CIP
|
44 | - | 44 | - | - | - | - | - | - | |||||||||||||||||||||||||||
Net
income (loss) attributable to Artio Global Investors
|
$ | 25,739 | $ | 2,040 | $ | 27,779 | $ | 25,709 | $ | 10,351 | $ | 36,060 | $ | 19,999 | $ | 3,801 | $ | 23,800 | ||||||||||||||||||
Net
income (loss) per diluted share attributable to Artio Global
Investors
|
$ | 0.44 | $ | 0.46 | $ | 0.56 | $ | 0.60 | $ | 0.34 | $ | 0.40 | ||||||||||||||||||||||||
Weighted
average diluted shares used in net income (loss) per share attributable to
Artio Global Investors
|
59,783,668 | - | 59,783,668 | 60,008,938 | - | 60,008,938 | 59,012,436 | 1,200,000 | (f) | 60,212,436 |
- 16 -
Exhibit
- 4
Reconciliation
of GAAP to Non-GAAP Adjusted Consolidated Statements of Operations
(unaudited,
in thousands, except share and per share amounts)
See
Exhibit 5 for notes describing adjustments set forth below.
Year
Ended Dec. 31, 2010
|
Year
Ended Dec. 31, 2009
|
|||||||||||||||||||||||
GAAP
|
Adjustments
|
Adjusted
|
GAAP
|
Adjustments
|
Adjusted
|
|||||||||||||||||||
Revenues
and other operating income:
|
||||||||||||||||||||||||
Investment
management fees
|
$ | 334,037 | $ | - | $ | 334,037 | $ | 305,335 | $ | - | $ | 305,335 | ||||||||||||
Net
gains (losses) on securities held for deferred
compensation
|
1,077 | - | 1,077 | 1,970 | - | 1,970 | ||||||||||||||||||
Foreign
currency gains (losses)
|
15 | - | 15 | 87 | - | 87 | ||||||||||||||||||
Total
revenues and other operating income
|
335,129 | - | 335,129 | 307,392 | - | 307,392 | ||||||||||||||||||
Expenses:
|
||||||||||||||||||||||||
Employee
compensation and benefits:
|
||||||||||||||||||||||||
Salaries,
incentive compensation and benefits
|
98,981 | (11,056 | )(a) | 87,925 | 79,035 | (4,292 | )(a) | 74,743 | ||||||||||||||||
Allocation
of Class B profits interests
|
- | - | - | 33,663 | (33,663 | )(b) | - | |||||||||||||||||
Change
in redemption value of Class B profits interests
|
- | - | - | 266,110 | (266,110 | )(b) | - | |||||||||||||||||
Tax
receivable agreement
|
- | - | - | 97,909 | (97,909 | )(c) | - | |||||||||||||||||
Total
employee compensation and benefits
|
98,981 | (11,056 | ) | 87,925 | 476,717 | (401,974 | ) | 74,743 | ||||||||||||||||
Shareholder
servicing and marketing
|
20,125 | - | 20,125 | 16,886 | - | 16,886 | ||||||||||||||||||
General
and administrative
|
42,807 | - | 42,807 | 42,317 | - | 42,317 | ||||||||||||||||||
Total
expenses
|
161,913 | (11,056 | ) | 150,857 | 535,920 | (401,974 | ) | 133,946 | ||||||||||||||||
Operating
income (loss) before income tax expense
|
173,216 | 11,056 | 184,272 | (228,528 | ) | 401,974 | 173,446 | |||||||||||||||||
Non-operating
income (loss)
|
(1,295 | ) | - | (1,295 | ) | (1,395 | ) | - | (1,395 | ) | ||||||||||||||
Income
(loss) before income tax expense
|
171,921 | 11,056 | 182,977 | (229,923 | ) | 401,974 | 172,051 | |||||||||||||||||
Income
taxes
|
68,193 | 11,279 | (d) | 79,472 | 134,287 | (67,138 | )(d) | 67,149 | ||||||||||||||||
Net
income (loss)
|
103,728 | (223 | ) | 103,505 | (364,210 | ) | 469,112 | 104,902 | ||||||||||||||||
Net
income attributable to non-controlling interests in AGH
|
20,123 | (20,123 | )(e) | - | 14,104 | (14,104 | )(e) | - | ||||||||||||||||
Net
income attributable to non-controlling interests in CIP
|
44 | - | 44 | - | - | - | ||||||||||||||||||
Net
income (loss) attributable to Artio Global Investors
|
$ | 83,561 | $ | 19,900 | $ | 103,461 | $ | (378,314 | ) | $ | 483,216 | $ | 104,902 | |||||||||||
Net
income (loss) per diluted share attributable to Artio Global
Investors
|
$ | 1.58 | $ | 1.72 | $ | (8.88 | ) | $ | 1.75 | |||||||||||||||
Weighted
average diluted shares used in net income (loss) per share attributable to
Artio Global Investors
|
53,002,615 | 7,111,232 | (f) | 60,113,847 | 42,620,373 | 17,381,918 | (f) | 60,002,291 |
- 17 -
ARTIO
GLOBAL INVESTORS INC. AND SUBSIDIARIES
Notes
to Reconciliation of GAAP to Non-GAAP Adjusted Consolidated Statements of
Operations
Management
believes the Non-GAAP adjustments set forth below provide more meaningful
comparisons between periods. Additional information on the
reorganization of the Company's ownership structure and the relating
non-recurring items are discussed in the Company's prospectus dated September
23, 2009.
(a)
|
Adjustments
to exclude the amortization expense associated with the restricted stock
units ("RSUs") awarded at the time of the IPO, as the granting of the
awards was one-time in nature.
|
(b)
|
Adjustments
to exclude the allocation of Class B profits interests and the change in
redemption value of Class B profits interests, from all applicable periods
presented, as the Company no longer incurs these expenses following the
reorganization of the Company's ownership structure in connection with the
IPO.
|
(c)
|
Adjustment
to exclude the $97.9 million non-cash compensation expense associated with
the establishment of a tax receivable agreement with our Principals, as
this was a non-recurring charge.
|
(d)
|
The
adjustments to income taxes for the three months ended Sep. 30, 2010, Dec.
31, 2009 and 2010, and the year ended Dec. 31, 2010, reflect the tax
effect of the assumed full exchange of the Principals' non-controlling
interests for Class A common stock on the first day of the respective
period, since prior to such exchange, income tax expense excludes the U.S.
federal and state taxes for the income attributable to the
Principals. In addition, the adjustments reflect the tax
effects of excluding the amortization expense associated with the RSUs
awarded at the time of the IPO, which for the three months ended Sep. 30,
2010 and the year ended Dec. 31, 2010 include a $1.9 million write-off of
a deferred tax asset related to the vesting of the RSUs at a price below
their grant date fair value.
|
The
adjustment to income taxes for the year ended Dec. 31, 2009 primarily reflects
the following:
|
i.
|
Income
tax expense impact of ($110.3) million resulting from excluding the
de-recognition of the deferred tax asset as this will not have a
continuing impact on our results of operations following the
reorganization of the Company's ownership structure in connection with the
IPO.
|
|
ii.
|
Income
tax expense relating to the impact of excluding the allocation of Class B
profits interests of $33.7 million and change in redemption value of Class
B profits interests of $50.3 million. There is no income tax
expense effect on the $215.8 million compensation expense for the
acceleration and vesting of our Principals' membership interest and the
$97.9 million expense for the establishment of a tax receivable agreement
with our Principals, both of which were incurred as a result of the
reorganization of the Company's ownership structure in connection with the
IPO, and therefore no adjustment is
necessary.
|
|
iii.
|
The
adjustment to income taxes for the three months ended Dec. 31, 2009
mentioned above.
|
(e)
|
Adjustment
to eliminate the Principals' non-controlling interests which are assumed
to be exchanged for Class A common stock on the first day of the
respective period.
|
(f)
|
Diluted
shares outstanding assumes the Company's ownership structure following the
IPO was in effect at the beginning of each period presented and the
Principals have fully exchanged their New Class A Units in the
intermediate holding company for Class A common stock in the public
company.
|
- 18 -
Exhibit
- 6
ARTIO
GLOBAL INVESTORS INC. AND SUBSIDIARIES
Assets
under Management by Investment Vehicle
(unaudited,
in millions)
Three
Months Ended
|
%
Change From
|
Year
Ended
|
%
Change From
|
|||||||||||||||||||||||||||||
Dec.
31, 2010
|
Dec.
31, 2009
|
Sep.
30, 2010
|
Dec.
31, 2009
|
Sep.
30, 2010
|
Dec.
31, 2010
|
Dec.
31, 2009
|
Dec.
31, 2009
|
|||||||||||||||||||||||||
Proprietary
Funds
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
$ | 22,765 | $ | 24,063 | $ | 21,030 | (5 | )% | 8 | % | $ | 24,482 | $ | 19,466 | 26 | % | ||||||||||||||||
Gross
client cash inflows
|
1,151 | 2,015 | 1,160 | (43 | )% | (1 | )% | 5,989 | 7,659 | (22 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(2,035 | ) | (1,967 | ) | (2,045 | ) | (3 | )% | 0 | % | (8,919 | ) | (7,038 | ) | (27 | )% | ||||||||||||||||
Net
client cash flows
|
(884 | ) | 48 | (885 | ) |
NM
|
0 | % | (2,930 | ) | 621 |
NM
|
||||||||||||||||||||
Transfers
between investment vehicles
|
- | (38 | ) | - | 100 | % |
NM
|
- | (38 | ) | 100 | % | ||||||||||||||||||||
Total
client cash flows
|
(884 | ) | 10 | (885 | ) |
NM
|
0 | % | (2,930 | ) | 583 |
NM
|
||||||||||||||||||||
Market
appreciation (depreciation)
|
1,132 | 409 | 2,620 | 177 | % | (57 | )% | 1,461 | 4,433 | (67 | )% | |||||||||||||||||||||
Ending
assets under management
|
23,013 | 24,482 | 22,765 | (6 | )% | 1 | % | 23,013 | 24,482 | (6 | )% | |||||||||||||||||||||
Institutional
Commingled Funds
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
8,894 | 8,916 | 7,842 | 0 | % | 13 | % | 9,198 | 7,056 | 30 | % | |||||||||||||||||||||
Gross
client cash inflows
|
135 | 199 | 199 | (32 | )% | (32 | )% | 802 | 1,391 | (42 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(353 | ) | (228 | ) | (302 | ) | (55 | )% | (17 | )% | (1,451 | ) | (1,118 | ) | (30 | )% | ||||||||||||||||
Net
client cash flows
|
(218 | ) | (29 | ) | (103 | ) |
NM
|
(112 | )% | (649 | ) | 273 |
NM
|
|||||||||||||||||||
Transfers
between investment vehicles
|
- | 38 | 22 | (100 | )% | (100 | )% | 22 | 29 | (24 | )% | |||||||||||||||||||||
Total
client cash flows
|
(218 | ) | 9 | (81 | ) |
NM
|
(169 | )% | (627 | ) | 302 |
NM
|
||||||||||||||||||||
Market
appreciation (depreciation)
|
560 | 273 | 1,133 | 105 | % | (51 | )% | 665 | 1,840 | (64 | )% | |||||||||||||||||||||
Ending
assets under management
|
9,236 | 9,198 | 8,894 | 0 | % | 4 | % | 9,236 | 9,198 | 0 | % | |||||||||||||||||||||
Separate
Accounts
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
17,611 | 17,396 | 16,001 | 1 | % | 10 | % | 17,854 | 14,342 | 24 | % | |||||||||||||||||||||
Gross
client cash inflows
|
110 | 476 | 308 | (77 | )% | (64 | )% | 1,521 | 2,273 | (33 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(1,751 | ) | (483 | ) | (688 | ) |
NM
|
(155 | )% | (3,912 | ) | (2,028 | ) | (93 | )% | |||||||||||||||||
Net
client cash flows
|
(1,641 | ) | (7 | ) | (380 | ) |
NM
|
NM
|
(2,391 | ) | 245 |
NM
|
||||||||||||||||||||
Transfers
between investment vehicles
|
- | - | (22 | ) |
NM
|
100 | % | (22 | ) | 9 |
NM
|
|||||||||||||||||||||
Total
client cash flows
|
(1,641 | ) | (7 | ) | (402 | ) |
NM
|
NM
|
(2,413 | ) | 254 |
NM
|
||||||||||||||||||||
Market
appreciation (depreciation)
|
831 | 465 | 2,012 | 79 | % | (59 | )% | 1,360 | 3,258 | (58 | )% | |||||||||||||||||||||
Ending
assets under management
|
16,801 | 17,854 | 17,611 | (6 | )% | (5 | )% | 16,801 | 17,854 | (6 | )% | |||||||||||||||||||||
Sub-advisory
Accounts
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
4,590 | 5,423 | 4,122 | (15 | )% | 11 | % | 4,459 | 4,336 | 3 | % | |||||||||||||||||||||
Gross
client cash inflows
|
27 | 108 | 184 | (75 | )% | (85 | )% | 904 | 768 | 18 | % | |||||||||||||||||||||
Gross
client cash outflows
|
(431 | ) | (1,076 | ) | (236 | ) | 60 | % | (83 | )% | (1,221 | ) | (1,569 | ) | 22 | % | ||||||||||||||||
Net
client cash flows
|
(404 | ) | (968 | ) | (52 | ) | 58 | % |
NM
|
(317 | ) | (801 | ) | 60 | % | |||||||||||||||||
Transfers
between investment vehicles
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Total
client cash flows
|
(404 | ) | (968 | ) | (52 | ) | 58 | % |
NM
|
(317 | ) | (801 | ) | 60 | % | |||||||||||||||||
Market
appreciation (depreciation)
|
171 | 4 | 520 |
NM
|
(67 | )% | 215 | 924 | (77 | )% | ||||||||||||||||||||||
Ending
assets under management
|
4,357 | 4,459 | 4,590 | (2 | )% | (5 | )% | 4,357 | 4,459 | (2 | )% | |||||||||||||||||||||
Total Assets under
Management (1)
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
53,860 | 55,798 | 48,995 | (3 | )% | 10 | % | 55,993 | 45,200 | 24 | % | |||||||||||||||||||||
Gross
client cash inflows
|
1,423 | 2,798 | 1,851 | (49 | )% | (23 | )% | 9,216 | 12,091 | (24 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(4,570 | ) | (3,754 | ) | (3,271 | ) | (22 | )% | (40 | )% | (15,503 | ) | (11,753 | ) | (32 | )% | ||||||||||||||||
Net
client cash flows
|
(3,147 | ) | (956 | ) | (1,420 | ) |
NM
|
(122 | )% | (6,287 | ) | 338 |
NM
|
|||||||||||||||||||
Transfers
between investment vehicles
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Total
client cash flows
|
(3,147 | ) | (956 | ) | (1,420 | ) |
NM
|
(122 | )% | (6,287 | ) | 338 |
NM
|
|||||||||||||||||||
Market
appreciation (depreciation)
|
2,694 | 1,151 | 6,285 | 134 | % | (57 | )% | 3,701 | 10,455 | (65 | )% | |||||||||||||||||||||
Ending
assets under management
|
$ | 53,407 | $ | 55,993 | $ | 53,860 | (5 | )% | (1 | )% | $ | 53,407 | $ | 55,993 | (5 | )% |
1. Total
assets under management excludes legacy activities.
- 19 -
Exhibit
- 7
ARTIO
GLOBAL INVESTORS INC. AND SUBSIDIARIES
|
Assets
under Management by Investment Strategy
|
(unaudited,
in
millions)
|
Three Months Ended
|
% Change From
|
Year Ended
|
% Change From
|
|||||||||||||||||||||||||||||
Dec. 31, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2009
|
|||||||||||||||||||||||||
International
Equity I
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
$ | 19,194 | $ | 22,039 | $ | 17,420 | (13 | )% | 10 | % | $ | 21,656 | $ | 20,188 | 7 | % | ||||||||||||||||
Gross
client cash inflows
|
277 | 457 | 416 | (39 | )% | (33 | )% | 1,345 | 1,759 | (24 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(1,844 | ) | (1,340 | ) | (1,204 | ) | (38 | )% | (53 | )% | (5,520 | ) | (4,406 | ) | (25 | )% | ||||||||||||||||
Net
client cash flows
|
(1,567 | ) | (883 | ) | (788 | ) | (77 | )% | (99 | )% | (4,175 | ) | (2,647 | ) | (58 | )% | ||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
- | 10 | (100 | )% | |||||||||||||||||||||||
Total
client cash flows
|
(1,567 | ) | (883 | ) | (788 | ) | (77 | )% | (99 | )% | (4,175 | ) | (2,637 | ) | (58 | )% | ||||||||||||||||
Market
appreciation (depreciation)
|
1,154 | 500 | 2,562 | 131 | % | (55 | )% | 1,300 | 4,105 | (68 | )% | |||||||||||||||||||||
Ending
assets under management
|
18,781 | 21,656 | 19,194 | (13 | )% | (2 | )% | 18,781 | 21,656 | (13 | )% | |||||||||||||||||||||
International
Equity II
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
22,999 | 25,051 | 20,552 | (8 | )% | 12 | % | 24,716 | 18,697 | 32 | % | |||||||||||||||||||||
Gross
client cash inflows
|
521 | 1,158 | 554 | (55 | )% | (6 | )% | 3,229 | 6,349 | (49 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(1,610 | ) | (2,027 | ) | (1,101 | ) | 21 | % | (46 | )% | (6,187 | ) | (5,249 | ) | (18 | )% | ||||||||||||||||
Net
client cash flows
|
(1,089 | ) | (869 | ) | (547 | ) | (25 | )% | (99 | )% | (2,958 | ) | 1,100 |
NM
|
||||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
50 | - |
NM
|
||||||||||||||||||||||||
Total
client cash flows
|
(1,089 | ) | (869 | ) | (547 | ) | (25 | )% | (99 | )% | (2,908 | ) | 1,100 |
NM
|
||||||||||||||||||
Market
appreciation (depreciation)
|
1,362 | 534 | 2,994 | 155 | % | (55 | )% | 1,464 | 4,919 | (70 | )% | |||||||||||||||||||||
Ending
assets under management
|
23,272 | 24,716 | 22,999 | (6 | )% | 1 | % | 23,272 | 24,716 | (6 | )% | |||||||||||||||||||||
High
Grade Fixed Income
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
5,466 | 5,016 | 5,652 | 9 | % | (3 | )% | 5,293 | 4,566 | 16 | % | |||||||||||||||||||||
Gross
client cash inflows
|
143 | 399 | 157 | (64 | )% | (9 | )% | 922 | 1,481 | (38 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(460 | ) | (157 | ) | (521 | ) | (193 | )% | 12 | % | (1,537 | ) | (1,230 | ) | (25 | )% | ||||||||||||||||
Net
client cash flows
|
(317 | ) | 242 | (364 | ) |
NM
|
13 | % | (615 | ) | 251 |
NM
|
||||||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
10 | (16 | ) | 163 | % | ||||||||||||||||||||||
Total
client cash flows
|
(317 | ) | 242 | (364 | ) |
NM
|
13 | % | (605 | ) | 235 |
NM
|
||||||||||||||||||||
Market
appreciation (depreciation)
|
(61 | ) | 35 | 178 |
NM
|
(134 | )% | 400 | 492 | (19 | )% | |||||||||||||||||||||
Ending
assets under management
|
5,088 | 5,293 | 5,466 | (4 | )% | (7 | )% | 5,088 | 5,293 | (4 | )% | |||||||||||||||||||||
High
Yield
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
4,920 | 2,934 | 4,241 | 68 | % | 16 | % | 3,516 | 977 |
NM
|
||||||||||||||||||||||
Gross
client cash inflows
|
462 | 749 | 628 | (38 | )% | (26 | )% | 3,066 | 2,399 | 28 | % | |||||||||||||||||||||
Gross
client cash outflows
|
(568 | ) | (210 | ) | (357 | ) | (170 | )% | (59 | )% | (2,017 | ) | (639 | ) |
NM
|
|||||||||||||||||
Net
client cash flows
|
(106 | ) | 539 | 271 | (120 | )% | (139 | )% | 1,049 | 1,760 | (40 | )% | ||||||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
(10 | ) | 6 |
NM
|
|||||||||||||||||||||||
Total
client cash flows
|
(106 | ) | 539 | 271 | (120 | )% | (139 | )% | 1,039 | 1,766 | (41 | )% | ||||||||||||||||||||
Market
appreciation (depreciation)
|
93 | 43 | 408 | 116 | % | (77 | )% | 352 | 773 | (54 | )% | |||||||||||||||||||||
Ending
assets under management
|
4,907 | 3,516 | 4,920 | 40 | % | 0 | % | 4,907 | 3,516 | 40 | % | |||||||||||||||||||||
Global
Equity
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
991 | 575 | 817 | 72 | % | 21 | % | 618 | 591 | 5 | % | |||||||||||||||||||||
Gross
client cash inflows
|
6 | 27 | 76 | (78 | )% | (92 | )% | 460 | 89 |
NM
|
||||||||||||||||||||||
Gross
client cash outflows
|
(77 | ) | (18 | ) | (17 | ) |
NM
|
NM
|
(141 | ) | (186 | ) | 24 | % | ||||||||||||||||||
Net
client cash flows
|
(71 | ) | 9 | 59 |
NM
|
NM
|
319 | (97 | ) |
NM
|
||||||||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
(50 | ) | - |
NM
|
|||||||||||||||||||||||
Total
client cash flows
|
(71 | ) | 9 | 59 |
NM
|
NM
|
269 | (97 | ) |
NM
|
||||||||||||||||||||||
Market
appreciation (depreciation)
|
105 | 34 | 115 |
NM
|
(9 | )% | 138 | 124 | 11 | % | ||||||||||||||||||||||
Ending
assets under management
|
1,025 | 618 | 991 | 66 | % | 3 | % | 1,025 | 618 | 66 | % |
- 20 -
Exhibit
- 7
Assets
under Management by Investment Strategy
|
(unaudited,
in
millions)
|
Three Months Ended
|
% Change From
|
Year Ended
|
% Change From
|
|||||||||||||||||||||||||||||
Dec. 31, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2009
|
Sep. 30, 2010
|
Dec. 31, 2010
|
Dec. 31, 2009
|
Dec. 31, 2009
|
|||||||||||||||||||||||||
US
Equity
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
190 | 73 | 222 | 160 | % | (14 | )% | 81 | 49 | 65 | % | |||||||||||||||||||||
Gross
client cash inflows
|
14 | 8 | 20 | 75 | % | (30 | )% | 194 | 14 |
NM
|
||||||||||||||||||||||
Gross
client cash outflows
|
(11 | ) | (2 | ) | (66 | ) |
NM
|
83 | % | (88 | ) | (9 | ) |
NM
|
||||||||||||||||||
Net
client cash flows
|
3 | 6 | (46 | ) | (50 | )% | 107 | % | 106 | 5 |
NM
|
|||||||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Total
client cash flows
|
3 | 6 | (46 | ) | (50 | )% | 107 | % | 106 | 5 |
NM
|
|||||||||||||||||||||
Market
appreciation (depreciation)
|
34 | 2 | 14 |
NM
|
143 | % | 40 | 27 | 48 | % | ||||||||||||||||||||||
Ending
assets under management
|
227 | 81 | 190 | 180 | % | 19 | % | 227 | 81 | 180 | % | |||||||||||||||||||||
Other (1)
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
100 | 110 | 91 | (9 | )% | 10 | % | 113 | 132 | (14 | )% | |||||||||||||||||||||
Gross
client cash inflows
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Gross
client cash outflows
|
- | - | (5 | ) |
NM
|
100 | % | (13 | ) | (34 | ) | 62 | % | |||||||||||||||||||
Net
client cash flows
|
- | - | (5 | ) |
NM
|
100 | % | (13 | ) | (34 | ) | 62 | % | |||||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Total
client cash flows
|
- | - | (5 | ) |
NM
|
100 | % | (13 | ) | (34 | ) | 62 | % | |||||||||||||||||||
Market
appreciation (depreciation)
|
7 | 3 | 14 | 133 | % | (50 | )% | 7 | 15 | (53 | )% | |||||||||||||||||||||
Ending
assets under management
|
107 | 113 | 100 | (5 | )% | 7 | % | 107 | 113 | (5 | )% | |||||||||||||||||||||
Total Assets under
Management (2)
|
||||||||||||||||||||||||||||||||
Beginning
assets under management
|
53,860 | 55,798 | 48,995 | (3 | )% | 10 | % | 55,993 | 45,200 | 24 | % | |||||||||||||||||||||
Gross
client cash inflows
|
1,423 | 2,798 | 1,851 | (49 | )% | (23 | )% | 9,216 | 12,091 | (24 | )% | |||||||||||||||||||||
Gross
client cash outflows
|
(4,570 | ) | (3,754 | ) | (3,271 | ) | (22 | )% | (40 | )% | (15,503 | ) | (11,753 | ) | (32 | )% | ||||||||||||||||
Net
client cash flows
|
(3,147 | ) | (956 | ) | (1,420 | ) |
NM
|
(122 | )% | (6,287 | ) | 338 |
NM
|
|||||||||||||||||||
Transfers
between investment strategies
|
- | - | - |
NM
|
NM
|
- | - |
NM
|
||||||||||||||||||||||||
Total
client cash flows
|
(3,147 | ) | (956 | ) | (1,420 | ) |
NM
|
(122 | )% | (6,287 | ) | 338 |
NM
|
|||||||||||||||||||
Market
appreciation (depreciation)
|
2,694 | 1,151 | 6,285 | 134 | % | (57 | )% | 3,701 | 10,455 | (65 | )% | |||||||||||||||||||||
Ending
assets under management
|
53,407 | 55,993 | 53,860 | (5 | )% | (1 | )% | 53,407 | 55,993 | (5 | )% |
1. Other
includes Other International Equity and Other strategies.
2. Total
assets under management excludes legacy activities.
- 21 -
Exhibit
- 8
ARTIO
GLOBAL INVESTORS INC. AND SUBSIDIARIES
|
Mutual
Fund Performance Data
(1)
|
Morningstar Ratings /
|
||||||||||||||||||||||||||||||||||||||||||
Funds in Total Universe (# of Funds)
|
Lipper Percentile Rankings (PR) / Funds in Total Universe (# of Funds)
|
|||||||||||||||||||||||||||||||||||||||||
1-Year
|
3-Year
|
5-Year
|
10-Year
|
|||||||||||||||||||||||||||||||||||||||
# of
|
# of
|
# of
|
# of
|
# of
|
||||||||||||||||||||||||||||||||||||||
Fund
|
Rating
|
Funds
|
Category
|
PR
|
Funds
|
PR
|
Funds
|
PR
|
Funds
|
PR
|
Funds
|
Classification
|
||||||||||||||||||||||||||||||
Artio International
Equity Fund, Class A (2)
|
4 | 694 |
Foreign
Large Blend
|
44 | 381 | 73 | 318 | 25 | 252 | 8 | 150 |
International
Large-Cap Core
|
||||||||||||||||||||||||||||||
Artio International
Equity Fund, Class I (2)
|
4 | 694 |
Foreign
Large Blend
|
39 | 381 | 69 | 318 | 22 | 252 | 2 | 150 |
International
Large-Cap Core
|
||||||||||||||||||||||||||||||
Artio
International Equity II Fund, Class A
|
4 | 694 |
Foreign
Large Blend
|
56 | 381 | 45 | 318 | 16 | 252 |
NA
|
NA
|
International
Large-Cap Core
|
||||||||||||||||||||||||||||||
Artio
International Equity II Fund, Class I
|
4 | 694 |
Foreign
Large Blend
|
52 | 381 | 40 | 318 | 12 | 252 |
NA
|
NA
|
International
Large-Cap Core
|
||||||||||||||||||||||||||||||
Artio
Global Equity Fund, Class A
|
3 | 628 |
World
Stock
|
44 | 96 | 35 | 71 | 24 | 58 |
NA
|
NA
|
Global
Large-Cap Core
|
||||||||||||||||||||||||||||||
Artio
Global Equity Fund, Class I
|
4 | 628 |
World
Stock
|
39 | 96 | 31 | 71 | 19 | 58 |
NA
|
NA
|
Global
Large-Cap Core
|
||||||||||||||||||||||||||||||
Artio
Microcap Fund, Class A
|
2 | 670 |
Small
Growth
|
3 | 792 | 29 | 701 |
NA
|
NA
|
NA
|
NA
|
Small-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Microcap Fund, Class I
|
2 | 670 |
Small
Growth
|
3 | 792 | 26 | 701 |
NA
|
NA
|
NA
|
NA
|
Small-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Smallcap Fund, Class A
|
4 | 670 |
Small
Growth
|
83 | 792 | 20 | 701 |
NA
|
NA
|
NA
|
NA
|
Small-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Smallcap Fund, Class I
|
4 | 670 |
Small
Growth
|
82 | 792 | 19 | 701 |
NA
|
NA
|
NA
|
NA
|
Small-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Midcap Fund, Class A
|
3 | 677 |
Mid-Cap
Growth
|
25 | 406 | 48 | 341 |
NA
|
NA
|
NA
|
NA
|
Mid-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Midcap Fund, Class I
|
3 | 677 |
Mid-Cap
Growth
|
19 | 406 | 45 | 341 |
NA
|
NA
|
NA
|
NA
|
Mid-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Multicap Fund, Class A
|
3 | 1,504 |
Large
Growth
|
29 | 811 | 21 | 708 |
NA
|
NA
|
NA
|
NA
|
Multi-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Multicap Fund, Class I
|
4 | 1,504 |
Large
Growth
|
27 | 811 | 19 | 708 |
NA
|
NA
|
NA
|
NA
|
Multi-Cap
Core
|
||||||||||||||||||||||||||||||
Artio
Global High Income Fund, Class A
|
5 | 512 |
High
Yield Bond
|
87 | 482 | 10 | 421 | 7 | 361 |
NA
|
NA
|
High
Current Yield
|
||||||||||||||||||||||||||||||
Artio
Global High Income Fund, Class I
|
5 | 512 |
High
Yield Bond
|
82 | 482 | 8 | 421 | 5 | 361 |
NA
|
NA
|
High
Current Yield
|
||||||||||||||||||||||||||||||
Artio
Total Return Bond Fund, Class A
|
4 | 1,026 |
Intermediate
Term Bond
|
48 | 563 | 46 | 479 | 28 | 390 | 7 | 257 |
Intermediate
Investment Grade Debt
|
||||||||||||||||||||||||||||||
Artio
Total Return Bond Fund, Class I
|
4 | 1,026 |
Intermediate
Term Bond
|
41 | 563 | 39 | 479 | 20 | 390 | 3 | 257 |
Intermediate
Investment Grade
Debt
|
Note:
Data as of December 31, 2010
NA:
Not applicable
1.
|
Lipper,
a wholly-owned subsidiary of Reuters, provides independent insight on
global collective investments including mutual funds, retirement funds,
hedge funds, fund fees and expenses to the asset management and media
communities. Lipper ranks the performance of mutual funds within a
classification of funds that have similar investment
objectives. Rankings are historical with capital gains and
dividends reinvested and do not include the effect of loads. If
an expense waiver was in effect, it may have had a material effect on the
total return or yield for the
period.
|
For each
mutual fund with at least a three-year history, Morningstar calculates a
Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that
accounts for variation in a fund’s monthly performance (including the effects of
sales charges, loads, and redemption fees), placing more emphasis on downward
variations and rewarding consistent performance. The top 10% of funds in each
category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3
stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each
share class is counted as a fraction of one fund within this scale and rated
separately, which may cause slight variations in the distribution
percentages.) The Overall Morningstar Rating for a mutual fund is
derived from a weighted average of the performance figures associated with its
three-, five- and ten-year (if applicable) Morningstar Rating
metrics. This investment's independent Morningstar Rating metric is
then compared against the mutual fund universe breakpoints to determine its
hypothetical rating. Data
presented reflects past performance, which is no guarantee of future results.
© 2011 Morningstar, Inc. All Rights Reserved. This
presentation is not, and should not be considered, sales material and is not an
offer or a solicitation for any securities.
2.
|
Closed
to new investors.
|
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