APAM

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Artisan Partners Asset Management (APAM) has reported second quarter 2026 earnings along with a fresh assets under management update that provides a new reference point for assessing the stock. For the quarter ended June 30, 2026, the company reported revenue of US$307.9 million compared with US$282.8 million a year earlier. Net income was US$80.9 million compared with US$67.6 million, with basic and diluted earnings per share from continuing operations of US$1.11 compared with US$0.94. Across the first six months of 2026, revenue was US$610.9 million compared with US$559.9 million in the prior year period. Net income for the half year was US$138.9 million compared with US$128.7 million, with basic and diluted earnings per share from continuing operations of US$1.90 compared with US$1.78. Management also highlighted record assets under management of US$183 billion in Q2 2026. This level was supported by market appreciation and investment performance, while net client outflows of US$10.5 billion were concentrated in the U.S. value and growth teams. The planned wind down of the U.S. value team is expected by the company to reduce third quarter earnings by about US$0.03 per share. At the same time, Artisan Partners Asset Management is expanding in credit, alternative strategies and private markets, including preparations for Grandview Property Partners’ Fund IV and potential new investment vehicles. See our latest analysis for Artisan Partners Asset Management. At a share price of US$40.34, Artisan Partners Asset Management has a 30 day share price return of 15.29%, while the year to date share price return is down 2.58%. Over longer periods, the 3 year total shareholder return of 34.05% compares with a 5 year total shareholder return of 25.13%. This gives a mixed picture of momentum following the latest earnings update and AUM record. If this earnings story has you thinking about where else capital might work hard, it could be a good time to uncover 19 top founder-led companies Artisan Partners Asset Management now combines record AUM, a planned U.S. value wind down and a recent 15% share price jump over 30 days. Strong business foundations are clear. Are investors already paying up for them today? The most widely followed narrative currently places Artisan Partners Asset Management's fair value at $38.00 compared with the last close of $40.34, which frames the latest rally in a different light. Read the complete narrative. Want to see what sits behind that spread in price targets and a higher assumed profit margin over time? The narrative refers to modest revenue growth, rising margins and a future earnings multiple that is very different to the broader US Capital Markets peer group. Curious which assumptions need to hold for that $38.00 fair value to make sense. Result: Fair Value of $38.00 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are also risks for Artisan Partners Asset Management if new teams and strategies fail to gain traction, or if intermediated wealth channels deliver softer than expected flows. Find out about the key risks to this Artisan Partners Asset Management narrative. Analysts see Artisan Partners Asset Management as 6.2% overvalued at $40.34 against a $38.00 fair value based on their earnings model. Our preferred P/E comparison tells a different story. The stock trades on 10.4x versus a fair ratio of 12.9x and an industry average of 38.2x. That gap points to a meaningful valuation cushion, although it also raises the question of what might keep the market from closing it. For a closer look at what this pricing gap could mean in practice, including how it compares to peers when you adjust for quality and growth expectations, it is worth unpacking the full valuation breakdown in more detail, See what the numbers say about this price — find out in our valuation breakdown. The mix of record AUM, a recent share price jump and split views on fair value makes the Artisan Partners Asset Management story finely balanced. If you want to move quickly and base your view on more than headlines, take a closer look at the 3 key rewards and 1 important warning sign If Artisan Partners Asset Management has sharpened your focus, do not stop here. Broaden your watchlist with targeted stock ideas built from clear, data driven filters. Start with resilience and target steady balance sheets and fundamentals using the solid balance sheet and fundamentals stocks screener (48 results). Hunt for potential bargains by reviewing companies that screen as 49 high quality undervalued stocks. Spot opportunities the crowd might be overlooking by scanning a screener containing 21 high quality undiscovered gems. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include APAM. Have feedback on this article? Concerned about the content? Get in touch with us directly. 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Interested in Artisan Partners Asset Management Inc.? Here are five stocks we like better. Record AUM and stronger profitability: Assets under management reached $183 billion, up 6% sequentially, while revenue rose 9% year over year to $308 million. Adjusted EPS increased 13% year over year to $0.94, and the quarterly dividend was raised 4% to $0.80 per share. Outflows remain concentrated: Net client outflows totaled $10.5 billion, with about 90% coming from the U.S. value and growth teams. The U.S. value wind-down is expected to be largely completed by the end of the third quarter and reduce third-quarter EPS by roughly $0.03. Credit, alternatives and private markets are expanding: Credit attracted nearly $700 million of net inflows and alternatives gathered about $300 million. Artisan is also preparing Grandview Property Partners’ larger Fund IV and evaluating additional offerings across private markets, infrastructure, real assets and ETFs. Artisan Partners Asset Management (NYSE:APAM) reported record quarter-end assets under management in the second quarter of 2026, supported by market appreciation and investment performance, while client outflows remained concentrated in its U.S. value and growth investment teams. Assets under management ended the quarter at $183 billion, up 6% from the first quarter and 5% from a year earlier. Average AUM was $182 billion, flat sequentially and 9% higher year over year. Revenue rose 2% from the first quarter to $308 million and increased 9% from the prior-year period, primarily reflecting higher average AUM. → This Tiny AI Supplier Could Be More Important Than the Chipmakers Chief Executive Officer Jason Gottlieb said the company generated more than $20 billion of returns for clients during the quarter and described investment performance as strong across much of the platform. On a gross-of-fees basis, 86% of AUM outperformed benchmarks over three years, 77% over five years and 99% over 10 years, he said. Artisan said equity performance improved over shorter periods, with 81% of AUM outperforming over one year and 84% outperforming over three years, both gross of fees. Gottlieb said global equity markets rebounded sharply during the quarter before volatility returned in June. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Net client outflows totaled $10.5 billion in the second quarter, including $6.4 billion from the U.S. value team and $2.8 billion from the growth team. The two franchises accounted for approximately 90% of total quarterly outflows. The company previously announced it would wind down its U.S. value team after losing two large U.S. sub-advisory mandates. Gottlieb said the wind-down is expected to be largely completed by the end of the third quarter, with resources being redeployed to areas that management views as having greater long-term opportunity. → Innovative ETF Strategies That Are Paying Off This Summer Chief Financial Officer Charles Daley said the U.S. value wind-down is expected to reduce third-quarter earnings by approximately $0.03 per share compared with the second quarter. The U.S. value business was slightly accretive during the second quarter because the wind-down began midway through the period, while the third quarter is expected to reflect a minimal loss before results normalize, he said. Daley added that fixed expenses should decline in the third quarter as seasonal costs continue to roll off and employee-separation and other wind-down expenses fall. The company maintained its full-year fixed-expense outlook of mid-single-digit growth, excluding Grandview Property Partners and previously guided long-term incentive compensation expense. Addressing potential redemption risk in the growth franchise, Gottlieb said the company does not see a “brewing or looming cliff” of assets at risk. He said the business is diversified across strategies and within strategies, although global portions of the growth team have faced the most difficult intersection of performance challenges and AUM pressure. He highlighted improved results in mid-cap growth and noted changes within the global growth business, including the addition of Jason White as a key decision-maker in mid-cap growth and Angela Wu to assist Jim Hamel in global opportunities. The firm has also added analysts and associate portfolio managers to the team. Credit strategies produced nearly $700 million in net inflows, marking the company’s 16th consecutive quarter of positive organic growth. The annualized organic growth rate in credit was 15%, according to management. Alternative strategies gathered about $300 million in net inflows, representing a 25% annualized organic growth rate and the fifth quarter of positive organic growth in the past six quarters. Within equities, Artisan secured a $1 billion institutional mandate for its Global Discovery strategy. Gottlieb also said the sustainable emerging markets strategy continued to attract new capital, with a robust pipeline of client activity in emerging markets. Management said clients have shown demand for differentiated emerging-markets capabilities, while the tone around broader global equity risk assets has become somewhat more cautious. Gottlieb said clients have been rebalancing after strong market returns and are increasingly considering credit, income-oriented strategies and alternatives. On credit performance, Gottlieb said recent relative underperformance has not been dramatic and followed several years of strong results. He attributed some short-term pressure to the team’s limited energy exposure, as energy-related companies benefited from market developments that the investment team did not seek to anticipate. He also disclosed an approximately $150 million institutional mandate for the firm’s floating-rate credit strategy. Artisan is building out Grandview Property Partners following its acquisition earlier this year. Gottlieb said Grandview’s prior Fund III had approximately $150 million of committed capital and that the firm stopped accepting additional commitments as it prepared to partner with Artisan and focus on Fund IV. Grandview expects to launch its flagship Fund IV later this summer or in early fall, with management in advanced discussions with an anchor institutional investor and engaging prior limited partners. Gottlieb said the company expects Fund IV to be multiples of the size of Fund III, though it did not provide a target figure. The company recently hired a dedicated institutional business leader to support Grandview fundraising and expand investor relationships. Gottlieb said Grandview has identified investment opportunities across its planned themes as well as potential opportunistic investments, including in more distressed real estate sectors. More broadly, Artisan is considering expansion in credit, alternatives and private markets, including hedged equity, equity secondaries, infrastructure and real assets. Management also said it is pursuing additional investment vehicles, including collective investment trusts, private funds, UCITS products and potentially exchange-traded funds. Artisan has received exemptive relief related to ETFs but has not announced what it may launch or when. Adjusted operating income increased 8% sequentially to $101.4 million, while adjusted operating margin expanded 180 basis points to 32.9%. Adjusted earnings per share were $0.94, up 13% from the second quarter of 2025. For the first half, adjusted operating income rose 10% to $195.6 million and adjusted EPS increased 9% to $1.81. The company ended the quarter with $335 million of cash and redeemed approximately $20 million of seed capital, leaving about $100 million of seed investments on its balance sheet. Daley said Artisan retained more than $180 million of excess capital after funding its quarterly dividend. The board declared a quarterly dividend of $0.80 per share, up 4% from the prior quarter and 10% from a year earlier. Management said excess capital could support organic growth initiatives, potential acquisitions or further returns to shareholders through the company’s year-end special dividend. Artisan Partners Asset Management Inc is a global investment management firm that specializes in active, fundamental research-driven strategies across a range of equity, fixed income and alternative asset classes. Founded in 1994 by Andrew Ziegler, the company has built a reputation for its team-based approach to portfolio construction, emphasizing deep sector expertise and independent analysis. Its product lineup includes U.S. and international equity strategies, global emerging markets, as well as credit and multisector fixed income offerings. Artisan Partners serves a diverse client base that spans institutional investors, intermediaries and high-net-worth individuals located in North America, Europe and Asia. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Artisan Partners Asset Management Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Looking back on asset management stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Artisan Partners (NYSE:APAM) and its peers. Asset management firms oversee investment portfolios for institutions and individuals. The industry benefits from the growing global wealth pool, retirement savings needs, and expansion into alternative investments (private equity, real estate, etc.). However, firms face significant pressure from the shift to lower-cost passive investment products, regulatory requirements for fee transparency, and increasing technology costs to stay competitive in portfolio management and client service. The 5 asset management stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 1.8%. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 8.9% since the latest earnings results. Founded in 1994 with a focus on autonomous investment teams and a "high-value-added" approach, Artisan Partners (NYSE:APAM) is an investment management firm that offers actively managed equity and fixed income strategies to institutional and individual investors. Artisan Partners reported revenues of $303 million, up 9.3% year on year. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates. The market seems disappointed with the results as the stock is down 9.4% since reporting and currently trades at $34.27. Read our full report on Artisan Partners here, it’s free. Founded in 1992 and managing over 300 active portfolio companies across more than 30 countries, TPG (NASDAQ:TPG) is a global alternative asset management firm that invests across private equity, credit, real estate, and public market strategies. TPG reported revenues of $570 million, up 20.7% year on year, outperforming analysts’ expectations by 5.2%. The business had an exceptional quarter with a beat of analysts’ EPS estimates. TPG pulled off the biggest analyst estimate beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 8.4% since reporting. It currently trades at $40.52. Is now the time to buy TPG? Access our full analysis of the earnings results here, it’s free. Founded in 1987 with just $5 million in capital and named after the iconic New York hotel where the founders first met, The Carlyle Group (NASDAQ:CG) is a global investment firm that raises, manages, and deploys capital across private equity, credit, and investment solutions. Carlyle reported revenues of $750.9 million, down 28% year on year, falling short of analysts’ expectations by 13%. It was a softer quarter as it posted a slight miss of analysts’ AUM and EPS estimates. Carlyle delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 16.2% since the results and currently trades at $42.55. Read our full analysis of Carlyle’s results here. With roots in the leveraged finance group of Apollo Management, Ares Management (NYSE:ARES) is an alternative investment firm that manages private equity, credit, real estate, and infrastructure assets for institutional and high-net-worth clients. Ares reported revenues of $1.27 billion, up 26.2% year on year. This result missed analysts’ expectations by 2.3%. Overall, it was a softer quarter as it also recorded a significant miss of analysts’ EPS estimates. Ares delivered the fastest revenue growth among its peers. The stock is down 2.5% since reporting and currently trades at $114.44. Read our full, actionable report on Ares here, it’s free. With over $1 trillion in assets under management and investments spanning real estate, private equity, credit, and hedge funds, Blackstone (NYSE:BX) is a global alternative asset manager that invests capital on behalf of pension funds, sovereign wealth funds, and other institutional investors. Blackstone reported revenues of $3.46 billion, up 24.2% year on year. This print beat analysts’ expectations by 1.4%. It was a satisfactory quarter as it also put up a narrow beat of analysts’ AUM estimates. The stock is down 7.7% since reporting and currently trades at $119.72. Read our full, actionable report on Blackstone here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

This article first appeared on GuruFocus. Release Date: April 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Artisan Partners Asset Management Inc (NYSE:APAM) reported strong long-term investment performance, with 74% of AUM outperforming benchmarks over three years, 76% over five years, and 99% over ten years gross of fees. The company received external recognition, with two investment teams being acknowledged by Morningstar and Lipper for investment excellence. APAM experienced net inflows in 13 of its investment strategies year-to-date, with significant growth in its Sustainable Emerging Markets strategy and credit businesses. The firm successfully onboarded Grandview Property Partners, expanding its platform with new talent and investment capabilities. APAM's balance sheet remains strong with $271 million in cash, providing flexibility for organic growth initiatives and potential M&A opportunities. APAM faced firm-wide net outflows of $3.1 billion in the first quarter, primarily due to clients de-risking and reallocating from equity strategies. Revenues declined by 10% from the December quarter, largely due to the absence of performance fees and fewer days in the first quarter. Adjusted operating income decreased by 30% sequentially, reflecting the impact of increased operating expenses and the absence of performance fees. The company experienced challenges in its growth business, particularly in the global opportunity strategy, which faced headwinds due to shorter and intermediate-term performance issues. The dividend for the March 2026 quarter was reduced by 24% from the prior quarter, reflecting lower cash generation due to the absence of performance fees. Warning! GuruFocus has detected 4 Warning Signs with APAM. Is APAM fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide insights into the equity attrition and the institutional pipeline, particularly between emerging markets (EM) and credit versus equity? A: The equity attrition is primarily due to rebalancing in international strategies and challenges in the global opportunity strategy. However, there are positive developments, such as the franchise fund raising $400 million and improvements in the mid-cap growth strategy. In emerging markets, we're seeing good opportunities, with the sustainable emerging markets strategy raising $250 million, indicating a positive outlook for the pipeline. - Respondent: Unidentified_3 Q: How does the current pipeline for team lift-outs and acquisitions compare to a year ago or last quarter? A: The pipeline has strengthened, particularly in expanding our credit and alternatives platforms. We see opportunities to expand traditional credit globally and are optimistic about completing something by year-end. The M&A landscape is robust, with interest in differentiated credit and private credit. We're also evaluating R&D opportunities within existing businesses. - Respondent: Unidentified_3 Q: Are there any new institutional client segments you're targeting with newer strategy areas? A: Institutionally, there are no new client segments untapped. The focus is on the intermediate wealth space, where we've expanded capabilities in the U.S., UK, and EMEA. This has started yielding positive results, with the intermediate wealth platform showing slight positive flow for the quarter. - Respondent: Unidentified_3 Q: Is there any line of sight to larger mandates exiting, and how is demand regionally on the institutional side? A: We don't see any direct line of sight to massive outflows or inflows. It's about maintaining close client relationships, especially when performance is challenging. We have strong capabilities in areas like global value and sustainable emerging markets, which are gaining institutional interest. - Respondent: Unidentified_3 Q: What are the main drivers behind the equity business rebalancing and growth challenges? A: The rebalancing is due to the strength in the EC market and the size of our International Value franchise. Growth challenges stem from the global opportunity strategy's performance, but there are positive developments like the franchise fund's growth and mid-cap strategy's performance turnaround. - Respondent: Unidentified_3 For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Wednesday, April 29, 2026 at 11 a.m. ET Chief Executive Officer — Jason A. Gottlieb Chief Financial Officer — Charles James Daley Jason A. Gottlieb: Welcome to the Artisan Partners Asset Management Inc. business update and earnings call. Thank you for joining the call today. At Artisan Partners Asset Management Inc., 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 AUM outperforming their benchmarks over three years, 76% over five years, and 99% over ten years gross of fees. All 12 Artisan Partners Asset Management Inc. strategies with track records over ten 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 2026 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 12/31/2025. Lipper also named Select Equity Fund Institutional Class the best fund in its Global Multicap Value Funds category for the trailing three-year period ended 12/31/2025. Lipper also named the M Sites 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 12/31/2025. External recognition is not our goal, but the consistency with which Artisan Partners Asset Management Inc. has earned accolades like these across time, teams, and asset classes validates the quality of our platform and repeatability of our business model for both talent and clients. Congratulations to the Global Value team and the M Sites 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 four, firmwide 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 Markets 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 fifteenth 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 difficult to predict. Our teams have been operating efficiently during recent market volatility. At the end of last week, our AUM was back up to nearly $184 billion, near the all-time high that we achieved in late February. Our business and financial model allows us to remain focused on delivering high value-added investment outcomes for clients, servicing our existing clients, while actively developing new client opportunities across channels globally. Slide five highlights our methodical approach to expanding our platform with new talent and investment capabilities. In the first quarter, we onboarded Grand View Property Partners, a real estate private equity investment firm specializing in U.S. middle market assets, and laid the groundwork to launch the team’s next flagship fund later this year. We also added key distribution talent in EMEA and the intermediate wealth channel and filed an exemptive relief application with the SEC to offer ETF share classes of Artisan Partners Asset Management Inc. mutual funds. These investments build on success we are seeing with additional distribution resources accessing the intermediate wealth channel in particular, and the broadening and modernizing of our investment vehicle capabilities with custom credit solutions and model delivery. The asset management landscape remains dynamic, and we are actively exploring opportunities to expand the breadth of our platform. We are looking at a full range of opportunities from individual lift outs to larger acquisitions. Our platform remains differentiated and compelling for great investment talent, and we have more ways to access, resource, and support talent than ever before. I will now turn it over to CJ to review our recent financial results. Charles James Daley: Thanks, Jason. Our complete GAAP and adjusted results are detailed in our earnings release. We exited 2025 with record assets under management, a new all-time high in quarterly revenue, and our second-highest annual revenues and earnings. As of 03/31/2026, assets under management were $173 billion, down 4% from December and up 7% year over year. Average AUM was $182 billion, up 1% sequentially and up 9% compared to the prior-year quarter. While AUM declined sharply in March due to market conditions, it has largely recovered in April, as Jason mentioned. Revenues were [inaudible] down 10% from December and up 9% compared to the prior-year quarter. The sequential decline was primarily due to the expected absence of performance fees, as December included $29 million of performance fees realized across six strategies, with the majority of our performance fee opportunities measured and realized annually in that period. In addition, approximately $6 million of the sequential decrease in revenue was due to two fewer days in the quarter. Our weighted average fee rate for the quarter was 67 basis points, down from December due to the absence of performance fees. Adjusted operating expenses increased 4% compared to December, primarily due to the addition of expenses of Grand View Property Partners, seasonal expenses, and the impact of long-term compensation expense. Our full-year 2026 expense guidance remains unchanged. Excluding approximately $20 million of incremental fixed expenses related to long-term incentive compensation and Grand View, we continue to expect fixed expenses to increase at a low single-digit rate in 2026. Compared to the prior-year quarter, adjusted operating expenses increased 11%, driven primarily by higher variable incentive compensation associated with increased revenues. As a result, adjusted operating income decreased 30% sequentially and increased 6% year over year. The decline in margin compared to the prior-year quarter was primarily a result of the addition of Grand View results. Adjusted net income per adjusted share declined 31% from December and increased 5% compared to the prior-year quarter, consistent with operating income trends. In our non-GAAP measures, nonoperating income includes only interest income and expense. While valuation changes in our seed investments impact shareholder economics, we exclude these changes from adjusted results for greater transparency into our core operating performance. Our balance sheet remains strong with $271 million in cash. During the first quarter, we redeemed approximately $50 million of seed capital, reducing seed investments on the balance sheet to $110 million. Proceeds from seed capital redemptions are included in cash available for corporate purposes, reinvestment, or potential return to shareholders through our year-end special dividend. Consistent with our dividend policy, our Board of Directors declared a quarterly dividend of 77¢ per share for the March 2026 quarter, representing a 24% decrease from the prior quarter and a 13% increase year over year. The sequential decline reflects lower cash generation due primarily to the absence of performance fees and seasonal expense patterns in the first quarter. After funding the quarterly dividend, we retained approximately $150 million of excess capital to support organic growth initiatives, evaluate potential M&A opportunities, and return to shareholders. That concludes my prepared remarks. I will now turn the call back to the operator. Operator: Ladies and gentlemen, at this time, we will begin the question and answer session. To ask a question, you may press star and then one on your touch-tone phones. If you are using a speakerphone, we ask that you please pick up your handset before pressing the keys. To withdraw your question, you may press star and two. In the interest of time, we also ask that you please limit yourselves to two questions. At this time, we will pause momentarily to assemble our roster. Our first question today comes from William Raymond Katz from TD Cowen. Please go ahead with your question. Analyst: Okay. Thank you very much for taking the questions. So first question, I guess in your prepared comments and also in the commentary yesterday with the release, you mentioned the equity attrition. Where do you think we stand in terms of that reallocation? And then within the $184 billion that you cited as of last week, can you frame what you are seeing in terms of that equity attrition? And maybe the broader question on the institutional pipeline at large is how has that been reshaped a bit between EM and credit versus what you are seeing on the equity side? Thank you. Jason A. Gottlieb: Hey, Bill. I will talk about the equity business for a second. There were two primary drivers. The first was rebalancing across our international strategies given the strength in the EM market being up 30% and a still relatively strong U.S. market. We experienced it across a number of teams and within our International Value franchise in particular, given the size and nature of their business. As you know, David and the International Value team have been soft closed for quite a long time, but he has always been able to manage capacity and the flow dynamics to a neutral to slight forward lean. We would expect that to remain in place. Everything we have seen in that business has been very much rebalance-oriented; there has not been any termination activity. The other piece is coming from our Growth business, which is another large component of our AUM. There are a lot of underlying dynamics occurring. Our Global Opportunities strategy remains a bit challenged on shorter- and intermediate-term performance, causing some headwinds with some of our institutional relationships globally. But there are important positive developments. The Franchise Fund we launched about a year or so ago raised net $400 million in the quarter from a global client, getting us close to $1 billion in AUM there. The Mid Cap Growth strategy, another large strategy on that team, has seen a meaningful performance turnaround that began in late 2024, accelerated into 2025, and we are continuing to see it in 2026, which we think will continue to help bolster that franchise. And Global Discovery, another meaningful opportunity within that franchise, is also seeing really good pipeline activity given its stable and good long-term performance. So from an equity perspective, the dynamics have been primarily institutionally focused given the rebalance and the challenges coming from Global Opportunities. In Emerging Markets, we are seeing really good opportunities. This was an asset class that was left for dead until 2025. We have seen strong performance from the asset class and, importantly, from our teams. Sustainable Emerging Markets in particular—the $250 million flow we saw for the quarter—is the beginning of what should be a good path to crystallize the great performance the team has put up over the last several quarters. We believe that will be a good opportunity for us as we look ahead as it relates to the pipeline. Analyst: Thanks for that. And as a follow-up on the pipeline for team lift outs and acquisitions—appreciate you are working on Grand View right now—how does that look today versus a year ago or even last quarter in terms of the nature of the pipeline, where it is seasoned, and where you are leaning in terms of incremental opportunity? Thank you. Jason A. Gottlieb: As I have mentioned in previous calls, our Investment Strategy Group and broader management team are operating extremely efficiently, not only with the existing platform and franchises, but also with the external opportunity set. There are two areas in particular where we are focused: expanding our credit business and expanding our alternatives platform. We are seeing really good opportunities to expand more traditional credit globally—so much so that there is a strong possibility we could get something done by the end of the year. We are excited about that, though you never say it is done until it is done—strange behavior always seems to happen near the end—but we feel very good about where we are and think this will be a big opportunity for our platform. On the M&A landscape, we are seeing a robust pipeline across the areas we have talked about: differentiated credit, secondaries in both private equity and real assets. Private credit, not surprisingly, is becoming incrementally more interesting. It is an area we have shied away from given the lack of a clear cycle; it is hard to tell whether what we are seeing is truly a cycle or just idiosyncratic situations, but we are very focused on having good conversations there. Relative to the past, the pipeline has incrementally strengthened, and we feel very good about the forward lean with the opportunity to globalize credit. We are also constantly evaluating and doing R&D with our existing business, and there are two incremental opportunities we are working through. If they come to fruition, they could be meaningful and interesting, but they are still in the R&D phase, so it is a little early to discuss those. Operator: Thank you very much. To enter the question queue, please press star and one. To remove yourself from the question queue, you may press star and two. Our next question comes from John Joseph Dunn from Evercore ISI. Please go ahead with your question. Analyst: I was wondering if there are any institutional client segments that historically you had not done much with that you are targeting now that you have a bunch of newer strategy areas? Jason A. Gottlieb: I do not think, institutionally, there is any new client segment that has not been tapped or that we do not have a good handle on. The majority of where we are seeing opportunity is in the intermediate wealth space. We have built out the platform in terms of people and capabilities in the U.S., and more recently, we have recruited, hired, and onboarded in the U.K., the European market, and more broadly in EMEA. That is yielding interesting results even over the short term. The intermediate wealth platform having a slight positive flow for the quarter is a good indication. Breaking the flow pattern between gross in and gross out, it was our second-best gross inflow quarter dating back to 2021 when there was a lot of equity activity. We feel good that there is a correlation between the quality and talent we have brought on and the inflow outcomes. We obviously have to work through a few equity strategies we talked about from a rebalancing and performance perspective, but what we are seeing from an intermediate wealth perspective feels very good. Institutionally, we just have to continue to block and tackle with some of our larger relationships. Analyst: Got it. And then on that, is there anything you can point to in terms of line of sight to any larger mandates that might be looking to exit, and maybe a quick wraparound on the regional factors impacting institutional demand? Jason A. Gottlieb: I do not have a strong perspective on line of sight there. We are heavily engaged with all of our institutional relationships. The teams that sit alongside our investment franchises and service our clients are well equipped to provide us with intel, and we do not see any direct line of sight to massive outflows or massive inflows. It has been a steady state of staying close to clients—certainly when performance is more challenging—and continuing to build on those relationships, recognizing we have work to do. Where we have a strong forward lean in performance, we are leaning in, and we are seeing some green shoots. It could be a bit of an exchange of kicks where we have some attrition in areas with weaker performance, but we also have great capabilities. I mentioned Global Value. I am sure you have seen performance from Mark Yockey’s group and the Global Equity team, both International and Global. Our Sustainable Emerging Markets franchise is getting a lot of looks institutionally as well. We feel good about the positioning, recognizing that inevitably you will always have a strategy or two facing some challenges, and we are maintaining our discipline around those strategies. Operator: And with that, we will be concluding today’s question and answer session as well as today’s conference call. We thank everyone for attending. Have a pleasant day. You may now disconnect your lines. 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Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Artisan Partners Asset Management (NYSE:APAM) has received industry recognition for two of its investment teams, highlighting recent investment performance. The firm is expanding its investment offerings, including onboarding Grand View Property Partners and enlarging its distribution network. Management is exploring additional acquisitions and new capabilities following a quarter with mixed financial results. Artisan Partners Asset Management, an active investment manager listed on the NYSE under the ticker APAM, operates in a competitive asset management industry where product breadth and investment track records often influence capital flows. Recent awards for two of its investment teams add to the picture investors get from quarterly results and provide another reference point on how the firm’s investment capabilities are perceived by the market. At the same time, expansion steps such as bringing in Grand View Property Partners and growing distribution are part of a broader effort to refine how the business serves clients. For you as an investor, the combination of industry recognition, an expanded offering set, and potential acquisitions could shape how Artisan Partners earns fees, competes for assets, and allocates its own capital over time. As the firm adds new teams and capabilities, it may gradually shift its business mix, which is something to monitor alongside future disclosures on assets under management, margins, and deal activity. Stay updated on the most important news stories for Artisan Partners Asset Management by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Artisan Partners Asset Management. 3 things going right for Artisan Partners Asset Management that this headline doesn't cover. For Artisan Partners, this update is a mix of business momentum and execution questions. Revenue for the quarter was US$303 million versus US$277.1 million a year earlier, and assets under management (AUM) stood at US$173b, above expectations. At the same time, net income eased to US$58 million from US$61.1 million, and non-GAAP earnings of US$0.87 per share were below analyst estimates, which points to some cost or mix pressure even as the fee base grows. Industry recognition from Morningstar and Lipper, plus inflows into 13 strategies including Sustainable Emerging Markets and credit, suggest the product set is gaining traction. However, net outflows in a few equity strategies and the onboarding of Grand View Property Partners, new distribution hires, and potential acquisitions all add complexity and could affect margins if expense growth runs ahead of revenues. For you as an investor, the key question is whether the broader, more diversified platform ultimately offsets the earnings volatility that can come with expansion in an already competitive arena that includes managers like T. Rowe Price, Franklin Templeton, and Invesco. The move to onboard Grand View Property Partners, grow credit and Sustainable Emerging Markets, and add distribution talent lines up with the narrative that expansion into more teams and strategies can support revenue across different market conditions. The quarter’s softer net income and earnings per share compared to a year earlier, despite higher revenue and higher AUM, echo concerns that a larger, more complex platform and heavier spend on distribution and new launches can pressure net margins. The industry awards for two investment teams and the concentration of outflows in only a few equity strategies add color on brand strength and product mix, which are not fully captured in the original focus on margins and distribution costs. Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Artisan Partners Asset Management to help decide what it's worth to you. ⚠️ Expansion through new teams, private strategies, and acquisitions could increase fixed and variable costs, which may weigh on margins if fee growth slows. ⚠️ Concentrated net outflows in certain equity strategies highlight product-specific risk and the possibility that performance or style headwinds can hurt AUM in individual franchises. 🎁 Strong long-term performance recognition from Morningstar and Lipper, along with inflows into 13 strategies, supports the case that parts of the platform are resonating with clients. 🎁 AUM of US$173b and a broad, multi asset platform provide scale that can help Artisan compete with larger managers and benefit if interest in international and emerging markets exposure increases. From here, it is worth tracking whether AUM growth translates into consistent earnings progress or whether higher distribution and operating costs continue to cap profitability. Watch how quickly Grand View Property Partners and other newer capabilities contribute to flows, and whether the equity strategies that saw outflows stabilize or continue to shrink. The balance between variable compensation, fixed costs, and any acquisition spending will be important for margins, as will client appetite for international and emerging markets products given that a large share of assets is invested outside the U.S. Management commentary on future product launches, M&A appetite, and capital return, including the dividend, can also help you judge how the company is prioritizing growth versus cash returns. To ensure you're always in the loop on how the latest news impacts the investment narrative for Artisan Partners Asset Management, head to the community page for Artisan Partners Asset Management to never miss an update on the top community narratives. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include APAM. Have feedback on this article? Concerned about the content? Get in touch with us directly. 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