Artisan Partners Asset (NYSE:APAM) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below.
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Summary
Artisan Partners Asset reported strong long-term investment performance, with a high percentage of AUM outperforming benchmarks over multiple timeframes.
The company experienced net outflows of $3.1 billion in Q1, primarily due to client reallocations and shifts to passive alternatives in some equity strategies.
Despite outflows, there were positive net inflows in 13 investment strategies, notably in sustainable emerging markets and credit businesses.
New strategic initiatives included onboarding Grandview Property Partners and expanding distribution talent in EMEA; an application was filed with the SEC for ETF share classes.
Financial performance showed a decrease in AUM to $173 billion by March 31, 2026, but revenues were up 9% year-over-year; the dividend was adjusted to reflect lower cash generation.
Management highlighted the robust pipeline for expanding credit and alternatives, with potential for further acquisitions and team lift-outs.
Full Transcript
OPERATOR
Welcome to the Artisan Partners Asset Management Business Update and Earnings Call. Today’s call will include remarks from Jason Gottlieb, CEO, and CJ Daly, CFO. Following these remarks, we will open the line for questions. Our latest results and investor presentation are available on the Investor Relations section of our website. Before we begin today, I would like to remind you that comments made during today’s call, including responses to questions, may include forward looking statements. These are subject to known and unknown risks and uncertainties, including but not limited to, the factors set forth in our earnings release and detailed in our Securities and Exchange Commission filings. These risks and uncertainties may cause actual results to differ materially from those disclosed in the statement. We assume no obligation to update or revise any of these statements following the presentation. In addition, some of our remarks today will include references to non-GAAP financial measures. You can find reconciliations of these measures to the most comparable GAAP measures in the Earnings Release and Supplemental Materials which can be found on our Investor Relations website. Also, please note that nothing on this call constitutes an offer or solicitation to purchase or sell an interest in any artisan investment product or a recommendation for any investment service. I will now turn the call over to Jason Gottlieb. Welcome to the Artisan Partners Asset Management Business Update and Earnings Call. Today’s call will include remarks from Jason Gottlieb, CEO, and CJ Daly, CFO. Following these remarks, we will open the line for questions. Our latest results and investor presentation are available on the Investor Relations section of our website. Before we begin today, I would like to remind you that comments made during today’s call, including responses to questions, may include forward looking statements. These are subject to known and unknown risks and uncertainties, including but not limited to the factors set forth in our earnings release and detailed in our Securities and Exchange Commission filings. These risks and uncertainties may cause actual results to differ materially from those disclosed in the statement and we assume no obligation to update or revise any of these statements following the presentation. In addition, some of our remarks today will include references to non-GAAP financial measures. You can find reconciliations of these measures to the most comparable GAAP measures in the Earnings Release and Supplemental materials which can be found on our Investor Relations website. Also, please note that nothing on this call constitutes an offer or solicitation to purchase or sell an interest in any artisan investment product or a recommendation for any investment service. I will now turn it over to Jason Gottlieb.
Jason Gottlieb (Chief Executive Officer)
Thank you for joining the call today. At Artisan Partners, our purpose is to generate and compound wealth for our clients over the long-term we do so by maintaining an ideal home for investment talent, providing a unique combination of autonomy, degrees of freedom, resources and support. Our model has proven repeatable over time as we have steadily expanded our capabilities across equities, credit and alternatives across a wide range of market environments. We have maintained our focus on high value added investing, driving positive outcomes for both our clients and our shareholders. Long term investment performance remains strong across our platform with 74% of our Assets Under Management (AUM) outperforming their benchmarks over 3 years, 76% over 5 years and 99% over 10 years gross of fees. All 12 artisan strategies with track records over 10 years have outperformed their benchmarks since inception net of fees. These 12 strategies have compounded capital at average annual rates between 6% to nearly 13% and have exceeded their benchmarks by an average of 202 basis points annually net of fees. Highlighting our track record of positive long-term investment outcomes, two of our investment teams were recently recognized by Morningstar and Lipper for Investment Excellence. Morningstar nominated The Global Value team’s Dan O’ Keefe for the 2025 Morningstar Award for Investing Excellence Outstanding Equity Portfolio Manager. Lipper named the team’s Global Value fund Institutional Class the best fund in its Global Large Cap Value Funds category for the three, five and ten year periods ended December 31, 2025. Lipper also named Select Equity fund Institutional Class the best fund in its Global Multi Cap Value Funds category for the trailing three ended December 31, 2025. Lipper also named the M-Sights Capital Group’s Global Unconstrained Fund Institutional Class as the best fund in its Global Income Funds category over the trailing three year period ending December 31, 2025. External recognition is not our goal, but the consistency with which Artisan Partners has earned accolades like these across time teams and asset classes validates the quality of our platform and repeatability of our business model and for both talent and clients. Congratulations to the Global Value Team and the M-Sights Capital Group on these recent recognitions. Shorter term trailing one year performance has been weighed down by underperformance in a couple of our largest equity strategies, all of which have strong long-term track records. Turning to slide 4, firm-wide net outflows in the first quarter were 3.1 billion. Outflows were concentrated in a few equity strategies where we saw clients de-risking reallocating after periods of asset class outperformance and some shifting to passive alternatives. Those outflows mask positive business developments across many parts of the platform. Year to date we have net inflows in 13 of our investment strategies the sustainable emerging market strategy raised 250 million in the first quarter and assets under management are nearing 3 billion. We have continued our multiyear success in growing our credit businesses with $800 million of net inflows in the first quarter. This was our 15th consecutive quarter of positive credit flows in alternatives. We raised $300 million in the first quarter, primarily in the Global Unconstrained strategy where we continue to build a realizable pipeline. We expect to see continued strong business development in credit and alternatives. While the backdrop in equities is more challenging and and difficult to predict, our teams have been operating efficiently during a recent market volatility. At the end of last week our Assets Under Management (AUM) was back up to nearly $184 billion, near the all time high that we achieved in late February. Our business and financial model …
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