June AMK Report

Rhea-AI Summary

AssetMark Financial Holdings reported its June 2024 results, showing promising growth in platform assets with a 18.5% year-over-year increase to $119.4 billion.

However, net flows saw a significant decline of 36.4% year-over-year, amounting to $397 million in June. AssetMark Trust Company client cash stood at $2.93 billion, a slight decrease of 0.3% year-over-year.

The number of households serviced by AssetMark also grew by 5.4% year-over-year, reaching a total of 261,341. Morningstar Wealth TAMP assets are not included as the deal has been signed but not closed.

These results are preliminary and subject to revision, as stated by the company. AssetMark emphasized that these figures should not be seen as a substitute for their official financial statements.

Positive

• Platform assets increased by 18.5% year-over-year to $119.4 billion.
• The number of households increased by 5.4% year-over-year to 261,341.

Negative

• Net flows decreased by 36.4% year-over-year to $397 million.
• AssetMark Trust Company client cash decreased slightly by 0.3% year-over-year to $2.93 billion.

Insights

Financial Analyst

AssetMark Financial Holdings' June report presents a mixed picture for investors. On the positive side, the platform assets reached $119.4 billion, marking an 18.5% year-over-year increase. This robust growth could suggest effective asset management strategies and a strong market position.

However, the net flows of $397 million for June show a significant 36.4% year-over-year decline. This considerable drop in net flows indicates potential market challenges or investor sentiment shifts, which might concern stakeholders about future asset inflows.

The client cash held at AssetMark Trust Company remained relatively stable at $2.93 billion, showing only a 0.3% year-over-year decrease. While this stability is generally positive, it might indicate a lack of significant new cash inflows into client accounts.

Another positive note is the 5.4% increase in the number of households to 261,341. Growing household numbers can signify expanding customer reach and potentially higher future revenue streams through service diversification and customer loyalty programs.

Overall, while the year-over-year asset growth is impressive, the decline in net flows raises questions about the company's ability to maintain momentum. Investors should weigh these mixed signals against broader market trends and the company's strategic initiatives going forward.

Market Research Analyst

From a market research standpoint, the notable growth in AssetMark's platform assets to $119.4 billion highlights the firm's strong competitive positioning and effectiveness in attracting and managing assets. However, the reported 36.4% drop in net flows deserves scrutiny. This decline could stem from several factors, including market volatility, competitive pressures, or changing investor preferences.

The cash metrics being stable with a marginal 0.3% decrease in client cash might indicate conservative cash management practices, balancing liquidity needs against investment opportunities. This is generally favorable for ensuring operational stability but may raise questions about the firm's ability to attract new cash inflows.

The 5.4% increase in household numbers suggests ongoing customer acquisition and retention strategies are working. This growth is an encouraging sign for future revenue potential, as more households likely translate into greater demand for AssetMark's financial products and services.

Investors should consider these mixed results in conjunction with the broader economic environment, competitive landscape and the firm's strategic actions. The simultaneous growth in assets and decline in net flows indicate a need for a nuanced understanding of market dynamics and the company's response strategies.

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

Company results for the month of June 2024 include:

• Platform assets of $119.4 billion at the end of June, up 18.5% year-over-year. Morningstar Wealth TAMP assets are not included in our total as the deal has been signed, but is not closed.
• Net flows were $397 million in the month of June, down 36.4% year-over-year.
• AssetMark Trust Company client cash was $2.93 billion, down 0.3% year-over-year.
• Number of households increased 5.4% year-over-year to 261,341 at the end of June.

														Change
														Mo.	Yr.
	Jun-23	Jul-23	Aug-23	Sep-23	Oct-23	Nov-23	Dec-23	Jan-24	Feb-24	Mar-24	Apr-24	May-24	Jun-24
PLATFORM METRICS
Platform Assets (in $B)	100.8	103.2	102.2	99.6	97.8	104.1	108.9	109.7	113.3	116.9	113.7	117.7	119.4	1.4%	18.5%
Net Flows (in $M)	624	540	555	448	334	303	628	432	577	833	696	611	397	-35.0%	-36.4%
CASH METRIC
Ending ATC Client Cash (in $B)	2.94	2.79	2.83	2.90	2.92	2.68	3.05	2.89	2.89	3.17	2.86	2.84	2.93	3.2%	-0.3
OTHER
Number of Households	247,934	248,780	250,307	251,424	252,079	253,068	254,110	256,078	255,908	257,162	261,430	260,756	261,341	0.2%	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 March 31, 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 June 30, 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 first quarter-end 2024, the Company had approximately $117 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 was the year-over-year change in platform assets for AMK in June 2024?

Platform assets for AMK increased by 18.5% year-over-year, reaching $119.4 billion in June 2024.

How much did AMK's net flows change year-over-year in June 2024?

AMK's net flows decreased by 36.4% year-over-year, totaling $397 million in June 2024.

What was the client cash position for AssetMark Trust Company in June 2024?

The client cash position for AssetMark Trust Company was $2.93 billion in June 2024, a 0.3% year-over-year decrease.

How many households did AMK serve by the end of June 2024?

AMK served 261,341 households by the end of June 2024, representing a 5.4% year-over-year increase.

Are Morningstar Wealth TAMP assets included in AMK's total platform assets for June 2024?

No, Morningstar Wealth TAMP assets are not included in AMK's total platform assets for June 2024, as the deal has been signed but not closed.