As more baby boomers approach retirement, they are putting more savings into funds operated by asset managers. This change in demographics will expand the industry and will help grow demand for AMG's services.
AMG structures revenue sharing programs with its affiliates. AMG allocates a defined percentage of revenue to be alloacted towards expenses. Any costs above the specified amount, first cut into the managers portion before AMG's share of the revenue.
Equity and international investments account for 78% and 55% of Assets Under Management, respectively. AMG also is adding ownership stakes in alternative asset funds. AMG will benefit from the continued trend of investors seeking global diversification and alternative investments in their portfolios.