January AMK Report

Rhea-AI Summary

AssetMark Financial Holdings, Inc. (AMK) reported positive results in its 'AssetMark Monthly Knowledge' Report for January 2024. Platform assets reached $109.7 billion, up 14.5% YoY, with net flows of $432 million, a 24.5% YoY increase. Despite a decrease in client cash, the number of households grew by 5.6% YoY to 256,078.

Insights

Market Research Analyst

An increase of 14.5% year-over-year in platform assets for AssetMark Financial Holdings indicates a robust growth trajectory, which is a strong indicator of the company's ability to attract and manage assets. The growth in net flows by 24.5% year-over-year further underscores the firm's capability to draw new capital, which is critical for the expansion of its asset base and potential future revenue streams. However, the 13.0% decline in client cash could signal a shift in investor behavior, possibly towards more aggressive investment strategies, or it might reflect a broader industry trend of reduced cash holdings.

The increase in the number of households by 5.6% year-over-year is indicative of AssetMark's expanding customer base, which can lead to diversified revenue sources and increased market share. This metric is particularly important as it suggests a growing trust and reliance on AssetMark's platform by individual investors.

Financial Analyst

From a financial perspective, the reported figures suggest that AssetMark may experience improved profitability due to the increased platform assets and net flows. These metrics are essential for assessing the company's performance and future earnings potential. Investors should consider the implications of these figures on the company's operating margins and earnings per share (EPS). The decrease in client cash, while potentially concerning, may not significantly impact the company's revenue if it translates into higher-margin investment products.

It is also important to note that this monthly data should not be viewed in isolation but rather as part of a broader trend. While the data is preliminary and subject to revision, consistent growth in these key areas may be a positive signal for the company's quarterly and annual financial health.

Economist

The reported data can be contextualized within the broader economic environment. A substantial increase in platform assets and net flows during a period can reflect investor confidence and a favorable investment climate. However, the reduction in client cash could be indicative of changing interest rates or shifts in monetary policy, which may affect investors' cash allocation strategies. Additionally, the economic outlook, including inflation rates and GDP growth, could further influence AssetMark's business as these factors impact investor behavior and asset management.

An understanding of macroeconomic conditions is vital for interpreting the potential long-term sustainability of AssetMark's growth. If the company's asset growth is outpacing industry averages, it may suggest a competitive advantage or a successful adoption of innovative strategies in asset management.

CONCORD, Calif., Feb. 12, 2024 (GLOBE NEWSWIRE) -- AssetMark Financial Holdings, Inc. (NYSE: AMK) released its “AssetMark Monthly Knowledge” Report today.

Company results for the month of January 2024 include:

• Platform assets of $109.7 billion at the end of January, up 14.5% year-over-year.
• Net flows were $432 million in the month of January, up 24.5% year-over-year.
• AssetMark Trust Company client cash was $2.89 billion, down 13.0% year-over-year.
• Number of households increased 5.6% year-over-year to 256,078 at the end of January.

														Change
														Mo.	Yr.
	Jan-23	Feb-23	Mar-23	Apr-23	May-23	Jun-23	Jul-23	Aug-23	Sep-23	Oct-23	Nov-23	Dec-23	Jan-24
PLATFORM METRICS
Platform Assets (in $B)	95.8	94.3	96.2	96.9	96.4	100.8	103.2	102.2	99.6	97.8	104.1	108.9	109.7	0.7%	14.5%
Net Flows (in $M)	347	540	744	433	637	624	540	555	448	334	303	628	432	-31.2%	24.5%
CASH METRIC
Ending ATC Client Cash (in $B)	3.32	3.32	3.19	2.87	2.95	2.94	2.79	2.83	2.90	2.92	2.68	3.05	2.89	-5.2%	-13.0%
OTHER
Number of Households	242,572	242,826	243,775	246,570	246,654	247,934	248,780	250,307	251,424	252,079	253,068	254,110	256,078	0.8%	5.6%

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 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 nearly 1,000 employees. As of year-end 2023, the Company has 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 Financial Holdings, Inc.'s platform assets at the end of January 2024?

AssetMark Financial Holdings, Inc.'s platform assets at the end of January 2024 were $109.7 billion.

What was the year-over-year change in net flows for AssetMark Financial Holdings, Inc. in January 2024?

The year-over-year change in net flows for AssetMark Financial Holdings, Inc. in January 2024 was an increase of 24.5%.

How many households did AssetMark Financial Holdings, Inc. have at the end of January 2024?

AssetMark Financial Holdings, Inc. had 256,078 households at the end of January 2024.

What was the year-over-year change in AssetMark Trust Company client cash in January 2024?

The year-over-year change in AssetMark Trust Company client cash in January 2024 was a decrease of 13.0%.