Artisan Partners Asset Management Inc ((APAM)) has held its Q3 earnings call. Read on for the main highlights of the call.
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Artisan Partners Asset Management Inc. recently held its earnings call, revealing a strong financial performance marked by record assets under management (AUM), robust investment outcomes, and increased dividends. Despite these achievements, the company faces challenges such as net outflows in equity strategies, underperformance in some large equity sectors, and flat gross flows, compounded by regulatory challenges in certain markets.
Strong Investment Performance
Artisan Partners highlighted its impressive investment performance, with over 70% of AUM outperforming their benchmarks for periods exceeding three years. Notably, all 12 Artisan strategies with track records over 10 years have outperformed since inception, showcasing the firm’s consistent ability to deliver superior returns.
Record AUM
The company reached an all-time high in assets under management, totaling $181.3 billion at the end of the quarter. This milestone underscores Artisan Partners’ successful asset growth strategy and its appeal to investors.
Revenue and Earnings Growth
Artisan Partners reported a 7% increase in revenues compared to the previous quarter, alongside a remarkable 23% rise in earnings compared to the second quarter of 2025. This growth reflects the firm’s effective financial management and operational efficiency.
Increased Dividends
The Board of Directors declared a quarterly dividend of $0.88 per share, representing a 21% increase over the prior quarter. This move signals the company’s commitment to returning value to shareholders and confidence in its financial health.
Positive Inflows in Credit and Alternatives
The credit segment experienced year-to-date net inflows of $1.8 billion, marking the 13th consecutive quarter of positive credit flows. This trend highlights the strength and attractiveness of Artisan Partners’ credit offerings.
Net Outflows in Equity Strategies
Despite overall growth, the firm faced net outflows primarily due to rebalancing and client terminations in several equity strategies. This challenge indicates areas where the company may need to focus on retaining client investments.
Underperformance in Large Equity Strategies
The trailing 1-year performance was affected by underperformance in several large equity strategies, including international value and global opportunities. Addressing these underperformances will be crucial for maintaining investor confidence.
Decrease in Gross Flows
Artisan Partners reported persistently flat gross flows, necessitating efforts to enhance distribution and sales orientation to drive future growth.
Regulatory Challenges in Australia
The company faced regulatory challenges in Australia, resulting in the termination of a client due to changes favoring passive management. This situation highlights the regulatory risks present in international markets.
Forward-Looking Guidance
Looking ahead, Artisan Partners remains focused on expanding its platform through internal growth and potential mergers and acquisitions, particularly in real estate, private credit, and secondaries. The firm aims to continue delivering strong investment performance, with strategies achieving significant outperformance and high returns. Artisan Partners is committed to maintaining its growth trajectory and enhancing shareholder value through strategic initiatives.
In conclusion, Artisan Partners Asset Management Inc.’s earnings call showcased a robust financial performance, with record AUM and increased dividends. While the company faces challenges such as net outflows and regulatory hurdles, its strong investment performance and strategic growth plans position it well for future success.