In Brief: Management Firm Says Profits Fell in 1Q

United Asset Management Corp., Boston, reported first-quarter profits Thursday of $22.1 million, down from $24.1 million a year earlier.

The company, which operates several affiliated investment management firms, attributed the decrease to higher amortization, increased interest expense reflecting acquisitions and stock repurchases, startup costs, and increased marketing expenses.

These factors offset a 12% gain in revenue to $241.8 million in the first quarter, compared with $215.5 million a year earlier.

The company's assets under management stood at $213.9 billion at the end of the quarter, up 25% from a year earlier and 8% from the beginning of year. The $16.4 billion increase includes $19 billion of investment gains and $2.1 billion of acquired assets, partly offset by $4.7 billion of net cash outflows.

"Strengthening our firms' net client cash flow is our primary goal," Norton H. Reamer, chairman and chief executive officer, said in a prepared statement. "We recognize that during periods of strong market performance, net cash outflows are characteristic of defined-benefit plans, which represent 45% of our assets under management."

United Asset also announced a strategic alliance with Tokio Marine and Fire Insurance Co., Japan's largest nonlife insurance company, to market investment trusts in Japan. Investment trusts are the Japanese equivalent of U.S. mutual funds.