The team at Saibus Research is pleased with Manning & Napier's [profile] performance during the first quarter, and has a positive outlook for the asset manager post-IPO.

In the Seeking Alpha article by the research group, it said:

"The company was able to generate an 8.93% growth in Q1 2012 revenue versus Q1 2011 revenue, which exceeded many of its competitors. Despite the fact that recurring operating expenses increased faster than revenue, the company still recorded 6.7% growth in recurring income from operations."

As a result of sales commissions increase, the company also hired more people. From 414 employees in 2011, they now have 489 employees.

Five of seven direct client representatives were hired in the first quarter, which was ahead of what the company has planned when they went public in November.

The report further highlights:

"MN's organic AUM fund flow growth consisted of $400 million of net new flow into its mutual funds and collective investment trusts, offset by approximately $100 million of net cash outflow from its separate accounts. The $100 million of net cash outflow from its separate accounts included $800 million of gross inflows, offset by $900 million of gross outflows. MN continues to have a low cancellation rate on an annualized basis of only 4.4%, or stated differently, MN continues to see a very high client retention rate of 96%." 

Edited by: HFD


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