Investment group

BRIGHTSPHERE INVESTMENT GROUP INC. Management report and analysis of the financial situation and operating results. (Form 10-Q)

Unless we state otherwise or the context otherwise requires, references in this
Quarterly Report on Form 10-Q to "BrightSphere" or "BSIG" refer to BrightSphere
Investment Group Inc., references to the "Company" refer to BSIG, and references
to "we," "our" and "us" refer to BSIG and its consolidated subsidiaries and
equity-accounted Affiliate, excluding discontinued operations. References to the
holding company or "Center" excluding the Affiliates refer to BrightSphere Inc.,
or "BSUS," a Delaware corporation and wholly owned subsidiary of BSIG. Unless we
state otherwise or the context otherwise requires, references in this Quarterly
Report on Form 10-Q to "Affiliates" or an "Affiliate" refer to the asset
management firms in which we have or had an ownership interest. References in
this Quarterly Report on Form 10-Q to "OM plc" refer to Old Mutual plc, our
former parent. None of the information in this Quarterly Report on Form 10-Q
constitutes either an offer or a solicitation to buy or sell any of our
Affiliates' products or services, nor is any such information a recommendation
for any of our Affiliates' products or services.

The following discussion of our financial condition and results of operations
should be read in conjunction with our Condensed Consolidated Financial
Statements and related notes which appear elsewhere in this Quarterly Report on
Form 10-Q.

This discussion contains forward-looking statements that involve risks and
uncertainties. See "Forward-Looking Statements" at the end of this Item 2 for
more information. Our actual results could differ materially from those
anticipated in these forward-looking statements as a result of various factors,
including those discussed below.

This Management's Discussion and Analysis of Financial Condition and Results of
Operations, or MD&A, is designed to provide a reader of our financial statements
with a narrative from the perspective of our management on our financial
condition, results of operations, liquidity and certain other factors that may
affect our future results.

Our management report is presented in five sections:

•Overview provides a brief description of our business. It includes information
on our reporting segment and underlying Affiliate, a summary of The Economics of
Our Business and an explanation of How We Measure Performance using a non-GAAP
measure which we refer to as economic net income, or ENI. This section also
provides a Summary Results of Operations and information regarding our Assets
Under Management by strategy, client type and location, and net flows by
segment, client type and client location.

•U.S. GAAP Results of Operations for the Three Months Ended March 31, 2022 and
2021 includes an explanation of changes in our U.S. GAAP revenue, expense and
other items for the three months ended March 31, 2022 and 2021, as well as key
U.S. GAAP operating metrics.

•Non-GAAP Supplemental Performance Measure - Economic Net Income and Segment
Analysis includes an explanation of the key differences between U.S. GAAP net
income and ENI, the key measure management uses to evaluate our performance.
This section also provides a reconciliation between U.S. GAAP net income
attributable to controlling interests and ENI for the three months ended
March 31, 2022 and 2021 as well as a reconciliation of key ENI operating items
including ENI revenue and ENI operating expenses. This section also provides key
non-GAAP operating metrics. In addition, this section provides segment analysis
for our business segments.

•Capital Resources and Liquidity discusses our key balance sheet data. This
section discusses Cash Flows from the business; Adjusted EBITDA; Future Capital
Needs; Borrowings and Long-Term Debt. The discussion of Adjusted EBITDA includes
an explanation of how we calculate Adjusted EBITDA and a reconciliation of U.S.
GAAP net income attributable to controlling interests to Adjusted EBITDA.

•Critical Accounting Policies and Estimates provides a discussion of the key
accounting policies and estimates that we believe are the most critical to an
understanding of our results of operations and financial condition. These
accounting policies and estimates require complex management judgment regarding
matters that are highly uncertain at the time the policies were applied and
estimates were made.


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Contents

Insight

We are a global asset management company headquartered in Boston, Massachusetts.
We historically held interests in a group of investment management firms (the
"Affiliates") individually headquartered in the United States. We have completed
the disposition of certain Affiliates and currently operate our business through
the following segment:

•Quant & Solutions-comprised of versatile, often highly-tailored strategies that
leverage data and technology in a computational, factor-based investment process
across a range of asset classes in developed and emerging markets, including
global, non-U.S. and small-cap equities, as well as managed volatility, ESG,
multi-asset, equity alternatives, and long/short strategies. This segment is
comprised of our interest in our sole Affiliate, Acadian Asset Management LLC
("Acadian").

Through Acadian, we offer a diverse range of actively managed investment strategies and products to institutional investors around the world.

The corporate head office is included within the Other category, along with our
previously disposed Affiliates, Campbell Global, LLC ("Campbell Global") and
Investment Counselors of Maryland ("ICM"), for the three months ended March 31,
2021. The corporate head office expenses are not allocated to the Company's
business segment but the Chief Operating Decision Maker ("CODM") does consider
the cost structure of the corporate head office when evaluating the financial
performance of our segment.

Under U.S. GAAP, Acadian is consolidated into our financial statements. We may
also be required to consolidate Acadian's sponsored investment entities, or
Funds, due to the nature of our decision-making rights, our economic interests
in these Funds or the rights of third party clients in those Funds.

RECENT DEVELOPMENTS

Impact of COVID-19

The COVID-19 pandemic has had a significant impact on the global economy and the
financial and securities markets. Ongoing global health concerns and uncertainty
regarding the impact of COVID-19 could lead to further market volatility. As the
pandemic continues to evolve, we continue to monitor the economic uncertainty
and market volatility related to COVID-19, which has impacted the investment
management industry in which we operate. The extent of the impact on our
business operations and financial results will depend on a number of factors and
future developments, including the spread of variants of COVID-19, which are
uncertain and cannot be predicted. See Item 1A to our Annual Report on Form 10-K
for the year ended December 31, 2021 filed with the Securities Exchange
Commission on February 28, 2022.

Invasion of Russia Ukraine

Russia's military invasion of Ukraine in February 2022, the resulting responses
by the U.S. and other countries (including the imposition of broad-ranging
economic sanctions), and the potential for wider conflict has increased
volatility and uncertainty in global financial markets and adversely affected
regional and global economies. Although our overall exposure to Russian
securities is limited, the extent and duration of Russia's military actions and
the repercussions of such actions (including any retaliatory actions or
countermeasures that may be taken by those subject to sanctions, such as cyber
attacks) are impossible to predict, but could result in significant market
disruptions, including in certain industries or sectors, and may negatively
affect global supply chains, inflation and global growth.





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Contents

The economy of our company

Our profitability is affected by a variety of factors including the level and
composition of our average assets under management, or AUM, fee rates charged on
AUM and our expense structure. We earn management fees based on assets under
management. Approximately 80% of our management fees for the three months ended
March 31, 2022 were calculated based on average AUM (calculated on either a
daily or monthly basis) with the remainder of our management fees calculated
based on period-end AUM or other measuring methods. Changes in the levels of our
AUM are driven by our investment performance and net client cash flows. We may
also earn performance fees, or adjust management fees, when certain accounts
differ in relation to relevant benchmarks or exceed or fail to exceed required
returns. Approximately $14.0 billion, or 13%, of our AUM are in accounts in
which we participate in the performance fee. The majority of these performance
fees are calculated based on value added over the relevant benchmarks on a
rolling one-year basis.

Our largest expense item is compensation and benefits paid to our employees,
which consists of both fixed and variable components. Fixed compensation and
benefits represents base salaries and wages, payroll taxes and the costs of our
employee benefit programs. Variable compensation, calculated as described below,
may be awarded in cash, equity, or profit interests.

The agreements in place with Acadian result in the sharing of savings between BSUS and key management personnel of Acadian according to a profit sharing model. Profit sharing affects two elements within our results: (i) the calculation of variable compensation and (ii) the level of distribution of equity or beneficial interests to our employees.

Variable compensation is the portion of earnings that is contractually allocated
to Acadian employees as a bonus pool, typically representing a fixed percentage
of earnings before variable compensation, which is measured as revenues less
fixed compensation and benefits and other operating and administrative expenses.
Profits after variable compensation are shared between us and Acadian key
employee equity holders according to our respective equity or profit interests
ownership. The sharing of profits in this manner ensures that the economic
interests of Acadian key employees and those of BSUS are aligned, both in terms
of generating strong annual earnings as well as investing those earnings back
into the business in order to generate growth over the long term. We view profit
sharing as an attractive operating model, as it allows us to share in the
benefits of operating leverage as the business grows, and ensures all equity and
profit interests holders are incentivized to achieve that growth.

Equity or profit interests owned by Acadian key employees are awarded as part of
their variable compensation arrangements. Over time, key employee-owned equity
or profit interests are recycled from one generation of employee-owners to the
next, either by the next generation purchasing equity or profit interests
directly from retiring principals, or by key employees forgoing cash bonuses in
exchange for the equivalent value in Acadian equity or profit interests. The
recycling of equity or profit interests is often facilitated by BSUS; see "-U.S.
GAAP Results of Operations-U.S. GAAP Expenses-Compensation and Benefits Expense"
for a further discussion.

How We Measure Performance

We manage our business based on a line of business, reflecting how our management evaluates the performance of our business.

In measuring and monitoring the key components of our earnings, our management
uses a non-GAAP financial measure, ENI, to evaluate the financial performance
of, and to make operational decisions for, our business. We also use ENI to make
resource allocation decisions, determine appropriate levels of investment or
dividend payout, manage balance sheet leverage, determine variable compensation
and equity distributions, and incentivize management. It is an important measure
in evaluating our financial performance because we believe it most accurately
represents our operating performance and cash generation capability.

ENI differs from net income determined in accordance with U.S. GAAP as a result
of both the reclassification of certain income statement items and the exclusion
of certain non-cash or non-recurring income statement items. In particular, ENI
excludes non-cash charges representing the changes in the value of Affiliate
equity and profit


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interests held by Affiliate key employees, the results of discontinued
operations which are no longer part of our business, restructuring costs,
capital transaction costs, seed capital and co-investment gains, losses and
related financing costs and that portion of consolidated Funds which are not
attributable to our stockholders.

ENI revenue is primarily comprised of the fee revenues paid to us by our clients
for our advisory services and earnings from our former equity-accounted
Affiliate. Revenue included within ENI differs from U.S. GAAP revenue in that it
excludes amounts from consolidated Funds which are not attributable to our
stockholders, it excludes reimbursement of certain costs we paid on behalf of
our customers and includes our share of earnings from our former
equity-accounted Affiliate.

ENI expenses are calculated to reflect all usual expenses from ongoing
continuing operations attributable to our stockholders. Expenses included within
ENI differ from U.S. GAAP expenses in that they exclude amounts from
consolidated Funds which are not attributable to our stockholders, revaluations
of Affiliate key employee owned equity and profit interests, amortization and
impairment of acquired intangibles and other acquisition-related items, costs we
paid on behalf of our customers which were subsequently reimbursed and certain
other non-cash expenses.

"Non-controlling interests" is a concept under U.S. GAAP that identifies net
components of revenues and expenses that are not attributable to our
stockholders. For example, the portion of the net income (loss) of any
consolidated Fund that is attributable to the outside investors or clients of
the consolidated Fund is included in "Non-controlling interests" in our
Condensed Consolidated Financial Statements. Conversely, "controlling interests"
is the portion of revenue or expense that is attributable to our stockholders.

For a more detailed discussion of the differences between WE GAAP Net Profit and Economic Net Profit, see “- Non-GAAP Supplementary Performance Measure – Economic Net Profit and Segment Analysis”.

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Summary Results of Operations

The following table summarizes our unaudited operating results for the three months ended March 31, 2022 and 2021:

                                                                                Three Months Ended March
($ in millions, unless otherwise noted)                                                   31,
                                                                                                2022              2021             2022 vs. 2021
U.S. GAAP Basis
Revenue                                                                                      $  112.2          $  109.7          $          2.5

Pre-tax profit from continuing operations attributable to controlling interests

                                                                                        33.4              27.6                     5.8

Net income from continuing operations attributable to controlling interests

                                                                                        23.8              18.5                     5.3
Net income attributable to controlling interests                                                 23.8              27.0                    (3.2)
U.S. GAAP operating margin(1)                                                                    38.5  %           29.6  %                 888 bps
Earnings per share, basic ($)                                                                $   0.54          $   0.34          $         0.20
Earnings per share, diluted ($)                                                              $   0.53          $   0.33          $         0.20
Basic shares outstanding (in millions)                                                           44.0              79.3                   (35.3)
Diluted shares outstanding (in millions)                                                         45.3              82.3                   (37.0)

Economic Net Income Basis(2)(3)
(Non-GAAP measure used by management)
ENI revenue(4)                                                                               $  112.2          $  109.8          $          2.4
Pre-tax economic net income(5)                                                                   32.2              30.8                     1.4
Adjusted EBITDA                                                                                  43.0              42.1                     0.9
ENI operating margin(6)                                                                          34.5  %           34.2  %                  34 bps
Economic net income(7)                                                                           23.4              22.5                     0.9
ENI diluted EPS ($)                                                                          $   0.52          $   0.27          $         0.25

Other Operational Information
Assets under management (AUM) at period end (in billions)                                    $  110.2          $  120.2          $        (10.0)
Net client cash flows (in billions)                                                              (2.2)             (3.5)                    1.3
Annualized revenue impact of net flows(8)                                                        (1.1)             (7.9)                    6.8



(1)WE GAAP operating margin is equal to operating income from continuing operations divided by total revenue.

(2)Economic net income is a non-GAAP measure we use to evaluate the performance
of our business. For a reconciliation to U.S. GAAP financial information and a
further discussion of economic net income refer to "-Non-GAAP Supplemental
Performance Measure-Economic Net Income and Segment Analysis."

(3)Excludes restructuring costs at Acadian of $0.1 million and costs associated
with the transfer of an insurance policy from our former parent of $0.3 million
for the three months ended March 31, 2022. Excludes income from discontinued
operations attributable to controlling interests, as well as restructuring costs
at the Center and Affiliates of $1.5 million, costs associated with the transfer
of an insurance policy from our former parent of $0.3 million, and the loss on
sale of subsidiary of $1.3 million for the three months ended March 31, 2021.

(4)ENI revenue is the ENI measure that corresponds to WE GAAP revenue.

(5)Economic net income before tax is the ENI measure which corresponds to WE GAAP pre-tax income from continuing operations attributable to controlling interests.

(6)ENI operating margin is a non-GAAP efficiency measure, calculated based on
ENI operating earnings divided by ENI revenue. ENI operating earnings is
calculated as ENI revenue, less ENI operating expense, less ENI variable
compensation. The ENI operating margin corresponds to our U.S. GAAP operating
margin, excluding the effect of consolidated Funds.

(7)Economic net income is the ENI measure that is most directly comparable to
WE GAAP net income from continuing operations attributable to controlling interests.

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(8)Annualized revenue impact of net flows represents annualized management fees
expected to be earned on new accounts and net assets contributed to existing
accounts (inflows), less the annualized management fees lost on terminated
accounts or net assets withdrawn from existing accounts (outflows), plus revenue
impact from reinvested income and distribution. Annualized management fee for
client flow is calculated by multiplying the annual gross fee rate for the
relevant account by the net assets gained in the account in the event of a
positive flow, excluding any current or future market appreciation or
depreciation, or the net assets lost in the account in the event of an outflow,
excluding any current or future market appreciation or depreciation. In
addition, reinvested income and distribution for each segment is multiplied by
average fee rate for the respective segment to compute the revenue impact. For a
further discussion of the uses and limitations of the annualized revenue impact
of net flows, see "Assets Under Management" herein.

Assets under management

The following table presents our assets under management as of each of the dates
indicated:

($ in billions)                March 31, 2022      December 31, 2021
Acadian Asset Management      $        110.2      $            117.2



Our strategies include:

i.Developed Markets equity, which includes Quant & Solutions WE, global and international equities; and

ii.Emerging Markets equity, which includes Quant & Solutions equity investments in emerging and frontier markets.


The following table presents our assets under management by strategy as of each
of the dates indicated:

($ in billions)                       March 31, 2022      December 31, 2021
Developed Markets                              83.0                    89.3
Emerging Markets                               27.2                    27.9

Total assets under management        $        110.2      $            117.2



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The following table shows assets under management by client type as of each of
the dates indicated:
($ in billions)                         March 31, 2022                       December 31, 2021
                                      AUM           % of total                              AUM        % of total
Public/Government                        47.6           43.2  %                             52.6           44.9  %
Commingled Trust/UCITS                   25.3           23.0  %                             26.1           22.3  %
Corporate/Union                          15.2           13.8  %                             15.8           13.5  %
Sub-advisory                    $        13.7           12.4  %                          $  14.1           12.0  %
Endowment/Foundation                      3.2            2.9  %                              3.3            2.8  %

Mutual Fund                               1.0            0.9  %                              1.0            0.9  %
Other                                     4.2            3.8  %                              4.3            3.6  %
Total assets under management   $       110.2                                            $ 117.2



The following table shows assets under management by client location as of each
of the dates indicated:
($ in billions)                          March 31, 2022                     December 31, 2021
                                       AUM           % of total            AUM             % of total
U.S.                             $        74.9           68.0  %    $           77.1           65.8  %
Europe                                    19.5           17.7  %                20.1           17.2  %
Asia                                       3.6            3.3  %                 5.5            4.7  %
Australia                                  5.8            5.2  %                 5.9            5.0  %
Other                                      6.4            5.8  %                 8.6            7.3  %
Total assets under management    $       110.2                      $          117.2


Assets under management and annualized impact of net flows on income

Customer net cash flow and customer net cash flow revenue impact for all periods include reinvested income and distributions, and exclude realizations. Reinvested income and distributions represent investment returns that are reinvested in the portfolios instead of being distributed in cash.

In the following table, we present our asset flows and market appreciation
(depreciation) by segment. We also present a key metric used to better
understand our asset flows, the annualized revenue impact of net client cash
flows. Annualized revenue impact of net flows represents annualized management
fees expected to be earned on new accounts and net assets contributed to
existing accounts (inflows), less the annualized management fees lost on
terminated accounts or net assets withdrawn from existing accounts (outflows),
plus revenue impact from reinvested income and distributions. Annualized
management fee for client flow is calculated by multiplying the annual gross fee
rate for the relevant account with the inflow or the outflow, including our
equity-accounted Affiliate. In addition, reinvested income and distributions for
each segment is multiplied by average fee rate for the respective segment to
compute the revenue impact.

The annualized revenue impact of net flows metric is designed to provide
investors with a better indication of the potential financial impact of net
client cash flows, however it has certain limitations. For instance, it does not
include assumptions for the next twelve months' market appreciation or
depreciation and investment performance associated with the assets gained or
lost. Nor does it account for factors such as future client terminations or
additional contributions or withdrawals over the next twelve months.
Additionally, the basis points reported are fee rates based on the asset levels
at the time of the transactions and do not consider the fact that client fee
rates may change over the next twelve months.


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Table of Contents The following table summarizes our asset flows and market appreciation (depreciation) by segment for each of the time periods shown:

Three months completed

                                                                              March 31,
($ in billions, unless otherwise noted)                                            2022                2021
Quant & Solutions
Beginning balance                                                              $    117.2          $    107.0
Gross inflows                                                                         3.5                 2.2
Gross outflows                                                                       (6.6)               (6.4)
Reinvested income and distributions                                                   0.9                 0.6
Net flows                                                                            (2.2)               (3.6)
Market appreciation (depreciation)                                                   (4.8)                7.0
Other                                                                                   -                 1.1
Ending balance                                                                 $    110.2          $    111.5
Average AUM(1)                                                                 $    111.3          $    109.3

Other(2)
Beginning balance                                                              $        -          $      9.0

Gross inflows                                                                           -                 0.2
Gross outflows                                                                          -                (0.1)

Net flows                                                                               -                 0.1
Market appreciation                                                                     -                 0.7
Other                                                                                   -                (1.1)
Ending balance                                                                 $        -          $      8.7
Average AUM                                                                    $        -          $      8.3
Average AUM of consolidated Affiliates                                         $        -          $      4.7

Total
Beginning balance                                                              $    117.2          $    116.0

Gross inflows                                                                         3.5                 2.4
Gross outflows                                                                       (6.6)               (6.5)
Reinvested income and distributions                                                   0.9                 0.6
Net flows                                                                            (2.2)               (3.5)
Market appreciation (depreciation)                                                   (4.8)                7.7

Ending balance continuing operations                                           $    110.2          $    120.2
Discontinued operations(2)                                                              -                43.1
Ending balance including discontinued operations                               $    110.2          $    163.3
Average AUM                                                                    $    111.3          $    117.6
Average AUM of consolidated Affiliates                                      

$111.3 $114.0

Annualized basis points: inflows                                                     50.3                49.0
Annualized basis points: outflows                                                    33.4                34.0
Annualized revenue impact of net flows ($ in millions)                         $     (1.1)         $     (7.9)






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(1)Average AUM equals average AUM of consolidated Affiliates.

(2)Our reportable segments reflect the sales of Landmark Partners ("Landmark")
and Thompson, Siegel & Walmsley LLC ("TSW") and the reclassification of their
AUM, asset flows and market appreciation (depreciation) to discontinued
operations. The Other category consists of our previously disposed affiliates,
Campbell Global and ICM, for the three months ended March 31, 2021.

We also analyze our asset flows by customer type and customer location. Our client types include:

i.The sub-advisor, which includes the assets under management for the underlying mutual funds and variable insurance products that are sponsored by insurance companies and mutual fund platforms, where the end client is usually an individual;

ii.Institutional, which includes assets managed for public/government pension
funds, including U.S. state and local government funds and non-U.S. sovereign
wealth, local government and national pension funds; also includes corporate and
union-sponsored pension plans; and

iii.Retail/other, which includes assets managed for mutual funds sponsored by
our Affiliates, defined contribution plans and accounts managed for high net
worth clients.


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The following table summarizes our asset flows by client type for each of the
periods indicated:

                                                                        Three Months Ended
($ in billions)                                                             March 31,
                                                                                  2022                 2021
Sub-advisory
Beginning balance                                                            $      14.1          $      11.5

Gross inflows                                                                        0.5                  0.5
Gross outflows                                                                      (0.4)                (0.5)
Reinvested income and distributions                                                  0.1                  0.1
Net flows                                                                            0.2                  0.1
Market appreciation (depreciation)                                                  (0.6)                 0.6

Ending balance                                                               $      13.7          $      12.2

Institutional
Beginning balance                                                            $      97.8          $      97.8

Gross inflows                                                                        2.6                  1.4
Gross outflows                                                                      (5.9)                (5.6)
Reinvested income and distributions                                                  0.8                  0.5
Net flows                                                                           (2.5)                (3.7)
Market appreciation (depreciation)                                                  (4.0)                 6.3

Ending balance                                                               $      91.3          $     100.4

Retail/Other
Beginning balance                                                            $       5.3          $       6.7

Gross inflows                                                                        0.4                  0.5
Gross outflows                                                                      (0.3)                (0.4)

Net flows                                                                            0.1                  0.1
Market appreciation (depreciation)                                                  (0.2)                 0.8

Ending balance                                                               $       5.2          $       7.6

Total
Beginning balance                                                            $     117.2          $     116.0

Gross inflows                                                                        3.5                  2.4
Gross outflows                                                                      (6.6)                (6.5)
Reinvested income and distributions                                                  0.9                  0.6
Net flows                                                                           (2.2)                (3.5)
Market appreciation (depreciation)                                                  (4.8)                 7.7

Ending balance continuing operations                                               110.2                120.2
Discontinued operations(1)                                                             -                 43.1
Ending balance including discontinued operations                             $     110.2          $     163.3



(1) Reflects the sale of Landmark and TSW. As a result of these transactions, Landmark and TSW are accounted for as discontinued operations.

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It is a strategic objective to increase our percentage of assets under management coming from non-WE clients. Our categorization by customer location includes:

I. WE-based clients, where the contracting client is based at United Statesand

ii. Nope-WE-based clients, where the contracting client is based outside United States.

The following table summarizes asset flows by client location for each of the
periods indicated:

                                                                        Three Months Ended
($ in billions)                                                              March 31,
                                                                                  2022                2021
U.S.
Beginning balance                                                             $     77.1          $     80.4

Gross inflows                                                                        2.4                 1.8
Gross outflows                                                                      (2.3)               (4.0)
Reinvested income and distributions                                                  0.6                 0.4
Net flows                                                                            0.7                (1.8)
Market appreciation (depreciation)                                                  (2.9)                5.8

Ending balance                                                                $     74.9          $     84.4

Non-U.S.
Beginning balance                                                             $     40.1          $     35.6

Gross inflows                                                                        1.1                 0.6
Gross outflows                                                                      (4.3)               (2.5)
Reinvested income and distributions                                                  0.3                 0.2
Net flows                                                                           (2.9)               (1.7)
Market appreciation (depreciation)                                                  (1.9)                1.9

Ending balance                                                                $     35.3          $     35.8

Total
Beginning balance                                                             $    117.2          $    116.0

Gross inflows                                                                        3.5                 2.4
Gross outflows                                                                      (6.6)               (6.5)
Reinvested income and distributions                                                  0.9                 0.6
Net flows                                                                           (2.2)               (3.5)
Market appreciation (depreciation)                                                  (4.8)                7.7

Ending balance continuing operations                                               110.2               120.2
Discontinued operations(1)                                                             -                43.1
Adjusted ending balance including discontinued operations                     $    110.2          $    163.3



(1) Reflects the sale of Landmark and TSW. As a result of these transactions, Landmark and TSW are accounted for as discontinued operations.

At March 31, 2022, our total assets under management were $110.2 billion, a
decrease of $(7.0) billion, or (6.0)%, compared to $117.2 billion at
December 31, 2021 and a decrease of $(10.0) billion, or (8.3)%, compared to
$120.2 billion at March 31, 2021. The decrease in assets under management
compared to March 31, 2021 is a result of the dispositions of previous
Affiliates, ICM and Campbell Global, that occurred in the three months ended
September 30, 2021. The change in assets under management during the three
months ended March 31, 2022 reflects net market depreciation of $(4.8) billion,
and net outflows of $(2.2) billion.


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For the three months ended March 31, 2022, our net flows were $(2.2) billion
compared to $(0.8) billion for the three months ended December 31, 2021 and
$(3.5) billion for the three months ended March 31, 2021. The change in net
flows during the three months ended March 31, 2022 compared to the three months
ended March 31, 2021 was primarily due to reduced outflows in Global managed
volatility strategies and higher gross sales in non-U.S. equity strategies.
Reinvested income and distributions of $0.9 billion, $0.7 billion, and $0.6
billion are reflected in the net flows for the three months ended March 31,
2022, December 31, 2021 and March 31, 2021, respectively. For the three months
ended March 31, 2022, the annualized revenue impact of the net flows was $(1.1)
million. This is compared to the annualized revenue impact of net flows of $0.1
million for the three months ended December 31, 2021 and $(7.9) million for the
three months ended March 31, 2021. Gross inflows of $3.5 billion during the
three-month period yielded approximately 50 bps compared to $2.4 billion
yielding approximately 49 bps in the year-ago period, and gross outflows in the
same period of $(6.6) billion yielded approximately 33 bps compared to $(6.5)
billion yielding approximately 34 bps in the year-ago period.


WE GAAP results of operations for the three months ended March 31, 2022 and 2021

Our WE GAAP results of operations were as follows for the three months ended
March 31, 2022 and 2021:

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