Nuveen Misses Second-Quarter Views
Nuveen Investments
(JNC)
missed analysts expectations for second-quarter earnings as the cost of launching closed-end funds ate into profits.
The Chicago money manager earned $48.6 million, or 58 cents a share, for the three months ended June 30, up 5% from $46.4 million, or 56 cents a share, a year earlier.
Revenue increased 19% over the same period to $204.3 million.
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The results for the latest quarter include about $9 million in structuring fees and related costs incurred by the launch of closed-end funds, which adversely affected earnings by 7 cents a share.
Analysts polled by Thomson Financial were expecting the company to earn 60 cents a share on revenue of $202.6 million.
Advisory fee income increased 17% over the year-ealier period to $198 million on the back of a 15% rise in total assets under management to $171.6 billion. The company said the increase was driven by a combination of $9.3 billion of net new money from clients, $12.9 billion of market appreciation and $400 million from the acquisition of HydePark Investment Strategies.
In June, Nuveen said it had agreed to be acquired by a private equity group led by Madison Dearborn Partners for $5.42 billion.
CEO John Amboian said in a statement that the company is continuing to focus on mutual funds, which grew to over $20 billion in assets under management. However, both its high-yield municipal fund and international value fund had net outflows during the quarter, which the company attributed to the rebalancing of asset-allocation portfolios by two broker-dealers.
Shares were sliding $1.36, or 2.2%, to $59.85 in recent trading.
