February AMK Report

Rhea-AI Summary

AssetMark Financial Holdings, Inc. (AMK) reported strong results in its 'AssetMark Monthly Knowledge' Report for February 2024. Platform assets reached $113.3 billion, up 20.1% YoY. Net flows increased by 6.9% YoY to $577 million. However, client cash decreased by 13.0% YoY to $2.89 billion. The number of households grew by 5.4% YoY to 255,908.

Insights

Financial Analyst

The reported increase in platform assets by 20.1% year-over-year for AssetMark Financial Holdings signifies a robust expansion in the company's asset base, indicative of a growing trust and investment from clients. This growth trajectory can have positive implications for the company's revenue stream, as higher assets under management (AUM) often correlate with increased management fees, potentially boosting the company's profitability. However, the reported decline in client cash by 13.0% year-over-year could suggest a shift in client behavior, possibly indicating a move towards investment in higher-yielding assets or a response to changing interest rates.

It is also worth noting the modest year-over-year increase in net flows of 6.9%, which reflects the net balance of money moving in and out of the company's platform. This figure, while positive, is relatively modest and warrants attention to ensure that it aligns with industry growth rates. The slight decrease in the number of households in the short term is not necessarily a red flag but should be monitored for trends that could affect future net flows and revenue.

Investors should interpret these metrics with caution, as monthly data can be volatile and subject to revisions. The upcoming quarterly and annual reports will provide a more comprehensive view of the company's financial health and performance.

Market Research Analyst

The data provided by AssetMark highlights a significant year-over-year growth in platform assets, which could be a reflection of broader market trends or successful company-specific strategies such as effective marketing and client acquisition. The increase in the number of households served by AssetMark, albeit at a slower pace, suggests a steady market penetration and client base growth. This is a vital metric for assessing the company's market position and potential for future expansion.

However, the static client cash levels over the past month and the year-over-year decrease may indicate a shift in investment strategy or client preference, which could have implications for the company's cash management services and interest revenue. It's crucial to understand the factors driving these changes, as they may affect the company's strategic direction and product offerings.

Given the competitive nature of the financial services industry, AssetMark's performance must be benchmarked against peers to evaluate its market competitiveness. Any deviations from industry norms could signal strategic opportunities or challenges that the company may need to address.

Economist

In the context of the broader economic environment, AssetMark's reported asset growth could be influenced by macroeconomic factors such as interest rates, inflation and stock market performance. The increase in platform assets suggests that the company may be benefiting from an overall positive investment climate or effective asset accumulation strategies. Conversely, the decrease in client cash could be a response to low interest rates, prompting clients to seek higher returns through other investment vehicles.

The economic outlook and monetary policy will continue to play critical roles in shaping investor behavior. AssetMark's ability to navigate these macroeconomic conditions and adapt to shifts in client preferences will be crucial for sustaining growth. Moreover, the company's performance metrics should be analyzed against economic indicators to understand their relative performance and to anticipate future trends in asset management.

CONCORD, Calif., March 11, 2024 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE: AMK) released its “AssetMark Monthly Knowledge” Report today.

Company results for the month of February 2024 include:

• Platform assets of $113.3 billion at the end of February, up 20.1% year-over-year.
• Net flows were $577 million in the month of February, up 6.9% year-over-year.
• AssetMark Trust Company client cash was $2.89 billion, down 13.0% year-over-year.
• Number of households increased 5.4% year-over-year to 255,908 at the end of February.

																											Change
																											Mo.		Yr.
	Feb-23		Mar-23		Apr-23		May-23		Jun-23		Jul-23		Aug-23		Sep-23		Oct-23		Nov-23		Dec-23		Jan-24		Feb-24
PLATFORM METRICS
Platform Assets (in $B)	94.3		96.2		96.9		96.4		100.8		103.2		102.2		99.6		97.8		104.1		108.9		109.7		113.3		3.3	%	20.1	%
Net Flows (in $M)	540		744		433		637		624		540		555		448		334		303		628		432		577		33.6	%	6.9	%
CASH METRIC
Ending ATC Client Cash (in $B)	3.32		3.19		2.87		2.95		2.94		2.79		2.83		2.90		2.92		2.68		3.05		2.89		2.89		0.0	%	-13.0	%
OTHER
Number of Households	242,826		243,775		246,570		246,654		247,934		248,780		250,307		251,424		252,079		253,068		254,110		256,078		255,908		-0.1	%	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 and Form 10-K for the year ended December 31, 2023, which we expect to file on March 14, 2024. 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 March 31, 2024, 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 year-end 2023, the Company had approximately $109 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 were AssetMark's platform assets at the end of February 2024?

AssetMark's platform assets were $113.3 billion at the end of February 2024.

How much did the net flows increase by in February 2024 compared to the previous year?

Net flows increased by 6.9% year-over-year to $577 million in February 2024.

What was the change in client cash for AssetMark Trust Company in February 2024?

Client cash for AssetMark Trust Company was $2.89 billion in February 2024, down 13.0% year-over-year.

How many households were there at the end of February 2024?

There were 255,908 households at the end of February 2024.