May AMK Report

Rhea-AI Summary

AssetMark Financial Holdings released its May 2024 report, showcasing key financial statistics. Platform assets hit $117.7 billion, a 22.1% year-over-year increase.

Net flows for May were $611 million, marking a 4.1% decline from the previous year. Client cash at AssetMark Trust Company stood at $2.84 billion, down 3.7% from last year. The number of households rose by 5.7%, reaching 260,756.

This data is preliminary and should not replace AssetMark's official financial statements. The company will provide updates on its Investor Relations page.

Positive

• Platform assets increased by 22.1% year-over-year, reaching $117.7 billion.
• The number of households increased by 5.7%, totaling 260,756.

Negative

• Net flows declined by 4.1% year-over-year, totaling $611 million.
• Client cash decreased by 3.7% year-over-year, standing at $2.84 billion.

Insights

Financial Analyst

AssetMark Financial Holdings Inc.'s recent monthly report offers significant insights into its performance metrics for May 2024. The firm reports platform assets amounting to $117.7 billion, reflecting a notable 22.1% increase year-over-year. This growth is a strong indicator of the company’s ability to attract and retain assets, which is fundamental for its business model. The steady increase in platform assets can be attributed to effective client acquisition strategies and potentially favorable market conditions.

However, the net flows tell a slightly different story. Despite the increase in overall platform assets, net flows were $611 million for May, representing a 4.1% decline year-over-year. Net flows are a critical indicator of the company’s new asset inflows minus outflows. The decline suggests that while the company is growing, it may be facing challenges in attracting new clients or retaining current ones as effectively as before.

The client cash metric also saw a reduction of 3.7% year-over-year, standing at $2.84 billion. Lower client cash levels can imply that clients are either investing more of their cash or withdrawing funds, which could be interpreted in various ways. Investors might want to delve deeper into why these cash levels have decreased, as it may impact the firm's liquidity and ability to manage expenses.

The number of households served by AssetMark increased by 5.7% year-over-year to 260,756, suggesting growth in their client base. This is a positive sign of the company’s broadening market reach.

Overall, while the growth in platform assets and households is promising, the decline in net flows and client cash warrants closer monitoring. It’s essential for investors to consider these mixed signals when evaluating the company’s future growth potential.

Market Research Analyst

The data presented by AssetMark highlights some mixed dynamics in the market. The substantial increase in platform assets by 22.1% indicates that AssetMark is successfully capturing a larger share of the market, possibly capitalizing on favorable economic conditions or effective marketing strategies. This growth is encouraging and can instill confidence in current and potential investors.

However, the reduced net flows by 4.1% suggest potential challenges either in client retention or new client acquisition. It might be indicative of competitive pressures or changing client preferences. This is an area where stakeholders might benefit from understanding the underlying causes, such as changes in market sentiment or economic conditions affecting investor behavior.

The slight decrease in client cash by 3.7% might suggest that clients are reallocating their assets, possibly into more active investments as the market conditions evolve. This can reflect a shift in risk appetite among clients, which AssetMark needs to address to ensure they meet their clients’ evolving needs.

Moreover, the 5.7% increase in the number of households served signals successful client acquisition strategies and market penetration. However, balancing this growth with sustaining net flows and client cash levels will be important for long-term stability and performance.

Investors should view these mixed results as a call for detailed analysis and possibly await future reports to see if these trends continue or reverse.

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

Company results for the month of May 2024 include:

• Platform assets of $117.7 billion at the end of May, up 22.1% year-over-year.
• Net flows were $611 million in the month of May, down 4.1% year-over-year.
• AssetMark Trust Company client cash was $2.84 billion, down 3.7% year-over-year.
• Number of households increased 5.7% year-over-year to 260,756 at the end of May.

														Change
														Mo.	Yr.
	May-23	Jun-23	Jul-23	Aug-23	Sep-23	Oct-23	Nov-23	Dec-23	Jan-24	Feb-24	Mar-24	Apr-24	May-24
PLATFORM METRICS
Platform Assets (in $B)	96.4	100.8	103.2	102.2	99.6	97.8	104.1	108.9	109.7	113.3	116.9	113.7	117.7	3.5%	22.1%
Net Flows (in $M)	637	624	540	555	448	334	303	628	432	577	833	696	611	-12.2%	-4.1%
CASH METRIC
Ending ATC Client Cash (in $B)	2.95	2.94	2.79	2.83	2.90	2.92	2.68	3.05	2.89	2.89	3.17	2.86	2.84	-0.7%	-3.7%
OTHER
Number of Households	246,654	247,934	248,780	250,307	251,424	252,079	253,068	254,110	256,078	255,908	257,162	261,430	260,756	-0.3%	5.7%

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 were AssetMark's platform assets for May 2024?

AssetMark's platform assets were $117.7 billion in May 2024, up 22.1% year-over-year.

How did AssetMark's net flows perform in May 2024?

Net flows for AssetMark in May 2024 were $611 million, a 4.1% decline year-over-year.

What was the client cash at AssetMark Trust Company in May 2024?

Client cash at AssetMark Trust Company was $2.84 billion in May 2024, down 3.7% year-over-year.

How many households did AssetMark serve at the end of May 2024?

AssetMark served 260,756 households at the end of May 2024, a 5.7% increase year-over-year.