December AMK Report

Rhea-AI Summary

AssetMark Financial Holdings, Inc. (NYSE: AMK) released its 'AssetMark Monthly Knowledge' Report, revealing platform assets of $108.9 billion, up 19.0% year-over-year, with net flows of $628 million, up 82.0% year-over-year. However, AssetMark Trust Company client cash was $3.05 billion, down 13.8% year-over-year, and the number of households increased 5.4% year-over-year to 254,110 at the end of December.

Insights

Financial Analyst

AssetMark Financial Holdings' reported increase in platform assets to $108.9 billion, which marks a significant 19.0% year-over-year growth, is a robust indicator of the company's asset accumulation capabilities. This growth rate surpasses the industry average for wealth management firms, which often target a high single to low double-digit growth rate. The surge in net flows by 82.0% year-over-year to $628 million also suggests a strong client acquisition and/or retention strategy, as net flows represent the movement of money in and out of a company's investment platforms. However, the decline in client cash held by the AssetMark Trust Company by 13.8% could signal a shift in investor sentiment, perhaps towards more aggressive investment strategies or a response to interest rate changes.

For stakeholders, the short-term implications are positive, as the growth in assets under management (AUM) typically correlates with increased revenue from management fees. In the long-term, the ability to sustain such high net flows will be critical for continued growth and could impact the company's market share. However, the reduction in client cash needs to be monitored, as it could affect the company's liquidity management and potentially signal a broader trend in investor behavior.

Market Research Analyst

The reported increase in the number of households served by AssetMark to 254,110, a 5.4% year-over-year growth, reflects the company's expanding customer base. This metric is crucial as it indicates not only the company's market penetration but also its brand strength and customer service quality. A growing customer base can lead to economies of scale and enhanced bargaining power with service providers. However, it is essential to consider the average assets per household, as an increase in households does not always equate to proportional increases in AUM.

From a market perspective, AssetMark's performance could be seen as a barometer for the wealth management industry's health, particularly in a challenging economic environment. Investors may view the positive trends in AUM and net flows as a signal of resilience, possibly influencing the sector's stock market performance. Nonetheless, it's crucial to analyze these figures in the context of overall market conditions, including interest rates and investment returns, as they can significantly affect wealth management firms.

Economist

The data released by AssetMark, particularly the uptick in platform assets and net flows, suggests a favorable economic environment for wealth management services, despite the observed decrease in client cash. The economic context, including factors such as stock market performance, interest rates and overall investor confidence, plays a pivotal role in shaping these results. The increase in platform assets could be partly attributed to market appreciation, in addition to new capital inflows.

It is also important to consider the macroeconomic backdrop, such as inflation and economic growth rates, as these can influence investor behavior and asset valuations. The reduction in client cash might reflect a strategic move by investors to reduce cash holdings in favor of higher-yielding assets amidst a changing interest rate landscape. Analyzing such trends can provide insights into the broader economic patterns and investor strategies, which are valuable for making informed economic forecasts and policy decisions.

CONCORD, Calif., Jan. 10, 2024 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE: AMK) released its “AssetMark Monthly Knowledge” Report today.

Company results for the month of December 2023 include:

• Platform assets of $108.9 billion at the end of December, up 19.0% year-over-year.
• Net flows were $628 million in the month of December, up 82.0% year-over-year.
• AssetMark Trust Company client cash was $3.05 billion, down 13.8% year-over-year.
• Number of households increased 5.4% year-over-year to 254,110 at the end of December.

														Change
														Mo.		Yr.
	Dec-22	Jan-23	Feb-23	Mar-23	Apr-23	May-23	Jun-23	Jul-23	Aug-23	Sep-23	Oct-23	Nov-23	Dec-23
PLATFORM METRICS
Platform Assets (in $B)	91.5	95.8	94.3	96.2	96.9	96.4	100.8	103.2	102.2	99.6	97.8	104.1	108.9	4.6	%	19.0	%
Net Flows (in $M)	345	347	540	744	433	637	624	540	555	448	334	303	628	107.3	%	82.0	%
CASH METRIC
Ending ATC Client Cash (in $B)	3.54	3.32	3.32	3.19	2.87	2.95	2.94	2.79	2.83	2.90	2.92	2.68	3.05	13.8	%	-13.8	%
OTHER
Number of Households	241,053	242,572	242,826	243,775	246,570	246,654	247,934	248,780	250,307	251,424	252,079	253,068	254,110	0.4	%	5.4	%

This monthly data is being provided on a supplemental basis and should not be taken as a substitute for the Company’s financial statements filed with the Securities and Exchange Commission as part of the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023. This monthly data is preliminary and subject to revision and should not be taken as an indication of the financial performance of AssetMark for the quarter ending December 31, 2023, or any future period. AssetMark undertakes no obligation to publicly update or review previously reported monthly data. Any updates to previously reported monthly data will be reflected in the historical data that can be found on the Investor Relations page of the Company’s corporate website at ir.assetmark.com. AssetMark reserves the right to discontinue the availability of the data in this monthly report. By filing this press release, AssetMark makes no admission as to the materiality of any information contained herein.

About AssetMark Financial Holdings, Inc.
AssetMark operates a wealth management platform that powers independent financial advisors and their clients. Together with our affiliates Voyant and Adhesion Wealth, we serve advisors of all models at every stage of their journey with flexible, purpose-built solutions that champion client engagement and drive efficiency. Our ecosystem of solutions equips advisors with services and capabilities that would otherwise require significant investments of time and money, ultimately enabling them to deliver better investor outcomes and enhance their productivity, profitability and client satisfaction.

Founded in 1996 and based in Concord, California, the company has over 1,000 employees. As of September 30, 2023, the company had $99.6 billion in platform assets.

Contacts
Investors:
Taylor J. Hamilton, CFA
Head of Investor Relations
InvestorRelations@assetmark.com

Media: 
Alaina Kleinman
Head of PR & Communications
alaina.kleinman@assetmark.com

SOURCE: AssetMark Financial Holdings, Inc.

FAQ

What is the name of the company mentioned in the press release?

The company mentioned in the press release is AssetMark Financial Holdings, Inc.

What is the ticker symbol of AssetMark Financial Holdings, Inc.?

The ticker symbol of AssetMark Financial Holdings, Inc. is AMK.

What were the platform assets at the end of December 2023?

The platform assets at the end of December 2023 were $108.9 billion, up 19.0% year-over-year.

What were the net flows in December 2023 compared to the previous year?

The net flows in December 2023 were $628 million, up 82.0% year-over-year.

How much was AssetMark Trust Company client cash at the end of December 2023?

AssetMark Trust Company client cash was $3.05 billion at the end of December 2023, down 13.8% year-over-year.

How many households were there at the end of December 2023 compared to the previous year?

The number of households at the end of December 2023 increased 5.4% year-over-year to 254,110.