(See supplemental data on page 21 for more detail on Logan Circle results)
- All 15 Logan Circle investment strategies outperformed their respective benchmarks in the third quarter of 2012, and 14 of 15 strategies outperformed respective benchmarks in the first nine months of 2012
- Total traditional fixed income AUM rose to $20.6 billion as of quarter end, an increase of 60% from the third quarter of 2011
- Net client flows were $2.0 billion in the third quarter of 2012, bringing year-to-date net client flows to $5.9 billion through September 30, 2012
Our traditional asset management business, Logan Circle, generated a pre-tax DE loss of $2 million in the third quarter of 2012, flat compared to the second quarter of 2012. Compared to the third quarter of 2011, pre-tax DE loss improved by $2 million primarily due to an increase in management fees driven by a $7.7 billion increase in assets under management.
Logan Circle’s strategies continued to deliver strong investment performance, with all of Logan Circle’s 15 strategies outperforming their respective benchmarks in the third quarter of 2012 and 14 of 15 strategies outperforming respective benchmarks in the nine months ended September 30, 2012. Notably, 14 of 15 Logan Circle strategies have also outperformed their respective benchmarks since inception and seven are ranked in the top quartile of performance for their competitor universe.
Logan Circle had $20.6 billion in AUM at the end of the quarter, an increase of 14% compared to the previous quarter and a 60% increase compared to the third quarter of 2011. The $2.5 billion quarterly increase in AUM was primarily driven by net client inflows of $2.0 billion. Logan Circle’s AUM has grown over 75% since Fortress completed the acquisition and launched the traditional asset management business in April 2010.