Group 1 - Artisan Partners Asset Management Inc. (APAM) has seen a 6.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and has a dividend yield of 6.3%, significantly higher than the industry average of 2.7% [1] - Bar Harbor Bankshares (BHB) has experienced a 7.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days and offers a dividend yield of 4%, compared to the industry average of 2.6% [2] - First Financial Bancorp. (FFBC) has recorded a 6.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] Group 2 - Another company mentioned has a dividend yield of 3.6%, which is above the industry average of 3.2% [3]

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $175.0 billion as of July 31, 2025 [1] - Artisan Funds and Artisan Global Funds contributed $85.3 billion to the total AUM, while separate accounts and other AUM accounted for $89.7 billion [1] AUM by Strategy - The Growth Team's AUM includes: - Global Opportunities: $20,253 million - U.S. Mid-Cap Growth: $10,917 million - U.S. Small-Cap Growth: $2,858 million - The Global Equity Team's AUM includes: - Non-U.S. Growth: $14,787 million - The U.S. Value Team's AUM includes: - Value Equity: $5,058 million - U.S. Mid-Cap Value: $2,404 million - The International Value Group's AUM includes: - International Value: $50,036 million - The Global Value Team's AUM includes: - Global Value: $32,636 million - The Credit Team's AUM includes: - High Income: $12,468 million - The Developing World Team's AUM includes: - Developing World: $4,737 million - The Antero Peak Group's AUM includes: - Antero Peak: $2,288 million - The International Small-Mid Team's AUM includes: - Non-U.S. Small-Mid Growth: $5,264 million - The EMsights Capital Group's AUM includes: - Emerging Markets Local Opportunities: $1,641 million [2] Additional Information - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $121.8 million for which Artisan Partners provides investment models to managed account sponsors [3] - Artisan Partners is a global investment management firm offering a range of investment strategies since 1994, focusing on attracting experienced investment professionals [4]

Artisan Partners Asset Management ( APAM ) is a traditional investment manager with ~$167bn of assets under management (or AUM) across a range of active strategies. The differentiator here is its “talent-driven business model”, which emphasizes acquiring ‘star’ portfolioAnalyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opin ...

[Part I Financial Information](index=4&type=section&id=Part%20I%20Financial%20Information) This section details the company's unaudited consolidated financial statements, management's analysis, market risk, and internal controls [Unaudited Consolidated Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Consolidated%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Q2 and H1 2025 and 2024, with detailed notes Consolidated Statements of Financial Condition Condensed Consolidated Balance Sheet (in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $244,929 | $201,172 | | Total Assets | $1,444,685 | $1,618,756 | | Borrowings | $199,512 | $199,430 | | Total Liabilities | $840,407 | $868,837 | | Total Stockholders' Equity | $419,077 | $422,002 | Consolidated Statements of Operations Key Operating Results (in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Total Revenues | $282,749 | $270,818 | $559,896 | $535,169 | | Total Operating Income | $79,772 | $86,645 | $166,307 | $164,288 | | Net Income Attributable to APAM | $67,555 | $57,574 | $128,694 | $117,055 | | Diluted EPS | $0.94 | $0.80 | $1.78 | $1.66 | Consolidated Statements of Cash Flows Cash Flow Summary for Six Months Ended June 30 (in thousands) | Cash Flow Category | 2025 | 2024 | | :--- | :--- | :--- | | Net cash provided by operating activities | $208,816 | $222,903 | | Net cash used in investing activities | ($5,540) | ($24,651) | | Net cash used in financing activities | ($122,902) | ($139,776) | | Net increase in cash and cash equivalents | $80,374 | $58,476 | Note 5. Borrowings - As of June 30, 2025, total gross borrowings were **$200 million**, consisting of three series of senior notes. The company has no outstanding balance on its **$100 million** revolving credit facility[43](index=43&type=chunk)[44](index=44&type=chunk) - On June 3, 2025, the company agreed to issue **$50 million** of Series G Senior Notes at **5.43%** to pay off the **$60 million** Series D notes maturing in August 2025, using cash on hand for the remainder[43](index=43&type=chunk) Note 9. Revenue From Contracts with Customers Management Fees by Vehicle (in thousands) | Vehicle | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Artisan Funds | $165,959 | $157,202 | $326,932 | $310,204 | | Artisan Global Funds | $13,596 | $13,008 | $27,369 | $25,468 | | Separate accounts and other | $103,194 | $100,587 | $205,595 | $199,447 | Note 10. Compensation and Benefits Compensation and Benefits Breakdown (in thousands) | Component | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | Salaries, incentive comp & benefits | $136,533 | $129,365 | $270,512 | $258,463 | | Long-term incentive compensation | $29,343 | $17,425 | $50,525 | $38,207 | | **Total Compensation & Benefits** | **$165,876** | **$146,790** | **$321,037** | **$296,670** | - During H1 2025, Artisan granted **$46.8 million** of franchise capital awards (long-term cash awards) to investment team members. The unrecognized compensation expense for these awards was **$131.1 million** as of June 30, 2025[80](index=80&type=chunk)[82](index=82&type=chunk) Note 11. Income Taxes and Related Payments - The effective tax rate was **20.6%** for the six months ended June 30, 2025, compared to **20.5%** for the same period in 2024[84](index=84&type=chunk) - The liability for amounts payable under the Tax Receivable Agreements (TRAs) decreased from **$341.5 million** at year-end 2024 to **$312.8 million** as of June 30, 2025, primarily due to payments made[89](index=89&type=chunk)[184](index=184&type=chunk) Note 16. Subsequent Events - On July 29, 2025, the company declared a quarterly dividend of **$0.73 per share** of Class A common stock, payable on August 29, 2025[109](index=109&type=chunk) - New tax legislation (OBBBA), signed into law on July 4, 2025, is expected to reduce deferred tax assets by approximately **$10 million** in Q3 2025, with changes effective for the company starting in 2027[110](index=110&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=27&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and operational results, including AUM growth, revenue, and compensation trends Overview and Recent Highlights - AUM increased by **8%** during Q2 2025 to **$175.5 billion**, primarily due to **$15.2 billion** in market appreciation, which was partially offset by **$1.9 billion** in net client cash outflows[118](index=118&type=chunk) Q2 2025 Financial Highlights | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenues | $282.8M | $270.8M | | GAAP Operating Margin | 28.2% | 32.0% | | Adjusted Operating Margin | 31.7% | 32.2% | | Diluted EPS | $0.94 | $0.80 | | Adjusted EPS | $0.83 | $0.82 | AUM and Investment Performance Change in Assets Under Management (in millions) | Period | Beginning AUM | Net Client Cash Flows | Investment Returns & Other | Ending AUM | | :--- | :--- | :--- | :--- | :--- | | **Q2 2025** | $162,390 | ($1,863) | $15,212 | $175,545 | | **Q2 2024** | $160,384 | ($1,610) | $204 | $158,887 | | **H1 2025** | $161,208 | ($4,703) | $19,350 | $175,545 | | **H1 2024** | $150,167 | ($2,132) | $11,028 | $158,887 | - For Q2 2025, **14 of 27** investment strategies experienced net outflows totaling **$3.0 billion**, partially offset by **$1.1 billion** of net inflows from the remaining strategies[126](index=126&type=chunk) AUM by Asset Class as of June 30, 2025 (in millions) | Asset Class | AUM | % of Total | | :--- | :--- | :--- | | Equity | $156,117 | 88.9% | | Fixed Income | $15,583 | 8.9% | | Alternative | $3,845 | 2.2% | | **Total** | **$175,545** | **100.0%** | Results of Operations (Q2 2025 vs Q2 2024) - Revenues increased by **$12.0 million (4%)** in Q2 2025 compared to Q2 2024, driven by a **5%** increase in average AUM. The weighted average management fee slightly decreased from **68.8 bps** to **68.1 bps**[140](index=140&type=chunk)[144](index=144&type=chunk) - Total compensation and benefits rose by **$19.0 million (13%)**, primarily due to an **$11.9 million** increase in long-term incentive compensation costs, which included a **$9.3 million** impact from market valuation changes[140](index=140&type=chunk)[147](index=147&type=chunk) - Non-operating income increased significantly to **$41.1 million** from **$3.4 million**, mainly due to a **$37.8 million** aggregate increase in net investment gains from consolidated and nonconsolidated investment products[140](index=140&type=chunk)[150](index=150&type=chunk) Results of Operations (H1 2025 vs H1 2024) - For H1 2025, revenues increased by **$24.7 million (5%)** compared to H1 2024, driven by a **7%** increase in average AUM. The weighted average management fee decreased from **69.0 bps** to **67.8 bps**[154](index=154&type=chunk)[155](index=155&type=chunk) - Total compensation and benefits for H1 2025 increased by **$24.3 million (8%)**, largely due to a **$12.3 million** rise in long-term incentive compensation and a **$7.2 million** increase in incentive compensation tied to higher revenues[154](index=154&type=chunk)[158](index=158&type=chunk) Supplemental Non-GAAP Financial Information GAAP vs. Non-GAAP Reconciliation Highlights | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :--- | :--- | :--- | :--- | :--- | | **Diluted EPS (GAAP)** | **$0.94** | **$0.80** | **$1.78** | **$1.66** | | **Adjusted Net Income per Share** | $0.83 | $0.82 | $1.66 | $1.58 | | **Operating Margin (GAAP)** | **28.2%** | **32.0%** | **29.7%** | **30.7%** | | **Adjusted Operating Margin** | 31.7% | 32.2% | 31.9% | 31.6% | Liquidity and Capital Resources Liquidity Position (in millions) | Component | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $244.9 | $201.2 | | Accounts receivable | $117.0 | $118.7 | | Seed investments | $139.0 | $154.9 | | Undrawn revolving credit | $100.0 | $100.0 | - The company expects to make TRA payments totaling approximately **$38.9 million** in fiscal 2025, of which **$29.2 million** was paid in Q2 2025[186](index=186&type=chunk)[192](index=192&type=chunk) - The company's dividend policy is to pay approximately **80%** of cash generated each quarter, with a potential special dividend at year-end[183](index=183&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section confirms no material changes to market risk disclosures since the last annual Form 10-K report - There have been no material changes in Quantitative and Qualitative Disclosures Regarding Market Risk from those previously reported in the Form 10-K for the year ended December 31, 2024[195](index=195&type=chunk) [Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management confirmed effective disclosure controls and no material changes to internal controls as of June 30, 2025 - Based on an evaluation as of June 30, 2025, the Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[197](index=197&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended June 30, 2025, that have materially affected, or are reasonably likely to materially affect, internal controls[198](index=198&type=chunk) [Part II Other Information](index=50&type=section&id=Part%20II%20Other%20Information) This section addresses legal proceedings and key risk factors impacting the company's operations [Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is not subject to legal proceedings expected to materially affect its financial position or operations - As of the report date, there are no legal or administrative proceedings that management believes may have a material adverse effect on the company's consolidated financial position, cash flows, or results of operations[199](index=199&type=chunk) [Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) This section refers readers to the detailed discussion of potential risks in the company's latest annual Form 10-K - The company directs investors to the "Risk Factors" section in its latest annual report on Form 10-K for a discussion of potential risks and uncertainties[200](index=200&type=chunk)

Artisan Partners Asset Management (APAM) Q2 2025 Earnings Call July 30, 2025 01:00 PM ET Company ParticipantsBrennan Hughes - Head - IREric Colson - MD & Chair of the BoardJason Gottlieb - President, MD, CEO & DirectorCharles Daley - EVP, CFO & TreasurerKenneth Lee - Vice PresidentConference Call ParticipantsAnthony Corbin - Equity Research AnalystJohn Dunn - AnalystWilliam (Bill) katz - Senior Equity AnalystOperatorGood afternoon, and welcome to the Artesyn Partners Asset Management Business Update and Sec ...

Financial Data and Key Metrics Changes - Ending AUM reached $176 billion, an increase of 8% compared to March [23] - Average AUM for the quarter was flat sequentially but up 5% year-over-year [23] - Year-to-date average AUM improved by 7% over the prior year's six-month period [23] - Revenues for the quarter increased by 2% compared to March and 4% compared to the same quarter last year [25] - Adjusted operating income increased slightly compared to the prior quarter and 3% year-over-year [26] - Adjusted net income per adjusted share was flat compared to last quarter and up slightly compared to the second quarter of 2024 [26] Business Line Data and Key Metrics Changes - The credit team manages over $13 billion across its franchise, with continued positive flows in fixed income [11] - The high income strategy has outperformed its benchmark by 170 basis points annually after fees [10] - The Developing World Strategy has compounded capital at an average annual rate of 11.59% since inception [14] - Artisan's five emerging market strategies have positive year-to-date net flows, raising a net $700 million across the group [15] Market Data and Key Metrics Changes - Net client cash outflows during June were $1.9 billion, driven by lower gross equity inflows and outflows compared to the prior quarter [24] - The second quarter marked the twelfth consecutive quarter of positive flows for the fixed income business [24] - Institutional clients are showing increased interest in emerging markets and fixed income strategies [44] Company Strategy and Development Direction - The company is focused on evolving its investment platform to include multi-asset and alternative investments [21] - There is a strong emphasis on talent-driven opportunities for M&A, particularly in alternatives and private equity [33][36] - The company aims to expand its distribution to align with clients valuing long-term asset allocation for high-value added investing [20] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious risk-aware environment affecting gross flows, with a focus on credit as a growth area [46] - The company is optimistic about allocations in emerging markets and fixed income strategies, especially with the ten-year anniversary of the Developing World strategy [44][52] - Management expressed confidence in the firm's ability to execute well for investment talent, clients, and shareholders under new leadership [21] Other Important Information - The company declared a quarterly dividend of $0.73 per share, a 7% increase over the prior quarter [30] - The balance sheet remains strong with approximately $140 million of seed capital invested in seeded products [28] Q&A Session Summary Question: What areas or asset classes is the company most open to pursue for M&A? - The company is focused on talent-driven opportunities, particularly in alternatives and private equity, with interest in real estate and secondaries business [33][36] Question: How should the company think about capacity constraints and timing for reopening? - The company is managing capacity judiciously, particularly in growth strategies, and is working with intermediated wealth clients to maintain consistency [38][39] Question: Can you elaborate on the two institutional mandates mentioned? - The company is seeing interest in emerging markets and fixed income strategies, with positive movement around rebalancing in global equity [42][44] Question: What is the outlook for seed capital needs this year? - The company is well positioned regarding seed capital and expects opportunities to redeploy capital for additional seed or acquisitions in the next 12 to 18 months [64][66]

Business Overview - Artisan Partners has built its business on a consistent philosophy and business model since its founding[2] - The firm has grown from 1 investment team and strategy in 1995 to 11 investment teams and 26 strategies in 2025[5] - The run-rate revenue for 2025 is $1,129 million[5] Investment Performance Highlights - Bryan Krug won the 2025 U S Morningstar Award for Investing Excellence: Outstanding Fixed Income Portfolio Manager[7] - The High Income Strategy has achieved top 1% performance since inception[8] - The International Value Fund has achieved top 1% performance since inception[10] Assets Under Management (AUM) - Assets Under Management (AUM) increased by 8% year-over-year, reaching $175.5 billion as of June 30, 2025[20] - Equity AUM totaled $156.1 billion, Fixed Income AUM was $15.6 billion, and Alternative AUM was $3.8 billion as of June 30, 2025[22] - Intermediated Wealth AUM grew by 80% over the five years ended June 30, 2025, reaching $105.7 billion[44] Financial Results - Revenues for the second quarter of 2025 were $282.8 million, a 4% increase compared to the second quarter of 2024[24] - Adjusted operating income for the second quarter of 2025 was $89.6 million, a 3% increase compared to the second quarter of 2024[24] - Adjusted net income per adjusted share for the second quarter of 2025 was $0.83, consistent with the first quarter of 2025 and a 1% increase compared to the second quarter of 2024[24]

[Overview and Management Commentary](index=1&type=section&id=Overview%20and%20Management%20Commentary) [Management Discussion](index=1&type=section&id=Management%20Discussion) Artisan Partners achieved record AUM of $175.5 billion in Q2 2025, announced a CEO transition, and highlighted strong long-term investment performance and awards - Reached a record high quarter-end AUM of **$175.5 billion**, managed across 11 investment teams and 26 strategies[3](index=3&type=chunk) - Jason Gottlieb succeeded Eric Colson as CEO in June, with Colson remaining as Executive Chair[4](index=4&type=chunk) - The Artisan Credit team's portfolio manager, Bryan Krug, won the 2025 U.S. Morningstar Award for Investing Excellence in the Fixed Income category[5](index=5&type=chunk) - The Artisan Developing World team celebrated its ten-year anniversary, achieving an average annual outperformance of nearly **700 basis points** versus its benchmark after fees[7](index=7&type=chunk) [Financial Highlights](index=2&type=section&id=Financial%20Highlights) Q2 2025 saw revenues of $282.8 million, GAAP diluted EPS of $0.94, and ending AUM growth to $175.5 billion Q2 2025 Financial Highlights | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Ending AUM (billions)** | $175.5 | $162.4 | $158.9 | | **Revenues (millions)** | $282.8 | $277.1 | $270.8 | | **Operating Income (GAAP, millions)** | $79.8 | $86.5 | $86.6 | | **Operating Margin (GAAP)** | 28.2% | 31.2% | 32.0% | | **Diluted EPS (GAAP)** | $0.94 | $0.82 | $0.80 | | **Adjusted Net Income (millions)** | $67.5 | $67.0 | $66.0 | | **Adjusted Net Income per Share** | $0.83 | $0.83 | $0.82 | [Financial Performance Analysis](index=3&type=section&id=Financial%20Performance%20Analysis) [Quarter-over-Quarter Comparison (Q2 2025 vs. Q1 2025)](index=3&type=section&id=Quarter-over-Quarter%20Comparison%20(Q2%202025%20vs.%20Q1%202025)) Q2 2025 AUM grew 8% to $175.5 billion from market appreciation, while revenues increased 2% to $282.8 million despite higher operating expenses - AUM increased by **$13.1 billion (8%)** QoQ, primarily due to **$15.2 billion** in market appreciation, partially offset by **$1.9 billion** of net client cash outflows[13](index=13&type=chunk) - Operating expenses increased by **$12.4 million (7%)** QoQ, driven by an **$8.2 million** increase in long-term incentive compensation expense and a **$3.1 million** increase in incentive compensation[15](index=15&type=chunk) Q2 2025 vs Q1 2025 Performance | Metric | Q2 2025 | Q1 2025 | Change | | :--- | :--- | :--- | :--- | | **Revenues (millions)** | $282.8 | $277.1 | +2% | | **Operating Expenses (millions)** | $203.0 | $190.6 | +7% | | **GAAP Operating Margin (%)** | 28.2 | 31.2 | -300 bps | | **GAAP Net Income (millions)** | $67.6 | $61.1 | +10.6% | | **GAAP Diluted EPS ($)** | $0.94 | $0.82 | +$0.12 | [Year-over-Year Comparison (Q2 2025 vs. Q2 2024)](index=3&type=section&id=Year-over-Year%20Comparison%20(Q2%202025%20vs.%20Q2%202024)) Q2 2025 AUM increased 10% to $175.5 billion year-over-year, with revenues up 4% to $282.8 million, while operating expenses rose 10% - AUM increased **10%** YoY, driven by **$24.2 billion** of investment returns, which more than offset **$6.3 billion** of net client cash outflows[19](index=19&type=chunk) - Operating expenses rose **10%** YoY, primarily due to an **$11.9 million** increase in long-term incentive compensation costs, which included a **$9.3 million** increase from market valuation changes[21](index=21&type=chunk) Q2 2025 vs Q2 2024 Performance | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues (millions)** | $282.8 | $270.8 | +4% | | **Operating Expenses (millions)** | $203.0 | $184.2 | +10% | | **GAAP Operating Margin (%)** | 28.2 | 32.0 | -380 bps | | **GAAP Net Income (millions)** | $67.6 | $57.6 | +17.4% | | **GAAP Diluted EPS ($)** | $0.94 | $0.80 | +$0.14 | [Year-to-Date Comparison (Six Months Ended June 2025 vs. 2024)](index=5&type=section&id=Year-to-Date%20Comparison%20(Six%20Months%20Ended%20June%202025%20vs.%202024)) Year-to-date 2025 revenues increased 5% to $559.9 million, with operating expenses up 6% to $393.6 million, resulting in a GAAP net income of $128.7 million Six Months 2025 vs 2024 Performance | Metric | Six Months 2025 | Six Months 2024 | Change | | :--- | :--- | :--- | :--- | | **Revenues (millions)** | $559.9 | $535.2 | +5% | | **Operating Expenses (millions)** | $393.6 | $370.9 | +6% | | **GAAP Operating Margin (%)** | 29.7 | 30.7 | -100 bps | | **GAAP Net Income (millions)** | $128.7 | $117.1 | +9.9% | | **GAAP Diluted EPS ($)** | $1.78 | $1.66 | +$0.12 | [Capital Management and Shareholder Returns](index=5&type=section&id=Capital%20Management%20and%20Shareholder%20Returns) [Balance Sheet and Capital Management](index=5&type=section&id=Balance%20Sheet%20and%20Capital%20Management) The company maintained a strong balance sheet with $244.9 million in cash, $200.0 million in borrowings, and a 0.5x debt leverage ratio as of June 30, 2025 - Cash and cash equivalents stood at **$244.9 million** at June 30, 2025, up from **$201.2 million** at year-end 2024[31](index=31&type=chunk) - Agreed to issue **$50 million** of 5.43% Series G Senior Notes due 2030 to refinance **$60 million** of maturing Series D notes[32](index=32&type=chunk) - Total borrowings were stable at **$200.0 million**, and the debt leverage ratio was **0.5x** at quarter-end[31](index=31&type=chunk)[33](index=33&type=chunk) [Dividend](index=5&type=section&id=Dividend) The Board declared a Q2 2025 variable quarterly dividend of $0.73 per share, targeting 80% of quarterly cash generation - Declared a Q2 2025 variable quarterly dividend of **$0.73 per share** of Class A common stock[34](index=34&type=chunk) - The dividend will be paid on August 29, 2025, to shareholders of record as of August 15, 2025[34](index=34&type=chunk) - The dividend policy targets paying approximately **80%** of cash generated each quarter, with a potential special dividend considered annually from the remaining **20%**[35](index=35&type=chunk)[36](index=36&type=chunk) [Assets Under Management (AUM) Analysis](index=13&type=section&id=Assets%20Under%20Management%20(AUM)%20Analysis) [AUM Overview and Flows](index=13&type=section&id=AUM%20Overview%20and%20Flows) Q2 2025 ending AUM reached $175.5 billion, an 8.1% increase from Q1, driven by $15.2 billion in investment returns despite $1.9 billion in net outflows AUM Changes for Q2 2025 (in millions) | AUM Component | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Beginning AUM** | $162,390 | $161,208 | $160,384 | | **Gross Inflows** | $6,233 | $7,014 | $5,604 | | **Gross Outflows** | ($8,096) | ($9,854) | ($7,214) | | **Net Client Flows** | ($1,863) | ($2,840) | ($1,610) | | **Investment Returns & Other** | $15,212 | $4,138 | $204 | | **Ending AUM** | $175,545 | $162,390 | $158,887 | [AUM by Investment Team](index=14&type=section&id=AUM%20by%20Investment%20Team) International Value, Growth, and Global Value were the largest investment teams by AUM in Q2 2025, with varied net flows and positive investment returns Ending AUM by Select Investment Team (in millions) | Investment Team | Q2 2025 AUM | Q1 2025 AUM | Q2 2025 Net Flows | | :--- | :--- | :--- | :--- | | **International Value Group** | $50,871 | $47,486 | $414 | | **Growth** | $36,748 | $34,669 | ($1,944) | | **Global Value** | $32,906 | $30,256 | ($122) | | **Global Equity** | $15,161 | $13,442 | ($543) | | **Credit** | $13,096 | $12,434 | $298 | [AUM by Vehicle](index=16&type=section&id=AUM%20by%20Vehicle) Q2 2025 AUM was primarily held in Separate Accounts ($89.9 billion) and Artisan Funds ($85.6 billion), both experiencing net outflows AUM by Vehicle (in millions) | Vehicle | Q2 2025 Ending AUM | Q2 2025 Net Flows | | :--- | :--- | :--- | | **Artisan Funds & Artisan Global Funds** | $85,626 | ($181) | | **Separate Accounts and Other** | $89,919 | ($1,682) | | **Total** | $175,545 | ($1,863) | [Investment Strategy Performance](index=19&type=section&id=Investment%20Strategy%20Performance) [Strategy AUM and Performance Summary](index=19&type=section&id=Strategy%20AUM%20and%20Performance%20Summary) Key investment strategies as of June 30, 2025, showed strong long-term outperformance against benchmarks, with International Value adding 522 bps and Developing World adding 794 bps since inception Performance of Select Strategies (as of June 30, 2025) | Strategy | AUM ($MM) | 1 YR Return | 5 YR Return | Value-Added Since Inception (bps) | | :--- | :--- | :--- | :--- | :--- | | **International Value** | $50,062 | 13.32% | 16.46% | 522 | | *MSCI EAFE Index* | - | *17.73%* | *11.15%* | - | | **Global Value** | $32,569 | 21.45% | 17.94% | 293 | | *MSCI All Country World Index* | - | *16.17%* | *13.64%* | - | | **Global Opportunities** | $20,065 | 10.02% | 9.67% | 401 | | *MSCI All Country World Index* | - | *16.17%* | *13.64%* | - | | **High Income** | $12,689 | 11.83% | 8.43% | 244 | | *ICE BofA US High Yield Index* | - | *10.24%* | *6.00%* | - | | **Developing World** | $4,784 | 30.19% | 9.22% | 794 | | *MSCI Emerging Markets Index* | - | *15.29%* | *6.80%* | - | [Financial Statements and Reconciliations](index=9&type=section&id=Financial%20Statements%20and%20Reconciliations) [Consolidated Statements of Operations](index=9&type=section&id=Consolidated%20Statements%20of%20Operations) The unaudited income statement for Q2 2025 and year-to-date periods details revenues by source and operating expense categories, with prior period comparisons Q2 2025 Consolidated Statement of Operations (in millions) | Line Item | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | **Total revenues** | $282.8 | $277.1 | $270.8 | | **Total operating expenses** | $203.0 | $190.6 | $184.2 | | **Operating income** | $79.8 | $86.5 | $86.6 | | **Income before income taxes** | $120.9 | $97.3 | $90.0 | | **Net income attributable to APAM** | $67.6 | $61.1 | $57.6 | [Reconciliation of GAAP to Non-GAAP Measures](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section reconciles GAAP financial results to adjusted non-GAAP measures, including Adjusted Net Income, Operating Income, and EBITDA, by removing specific market and investment impacts Q2 2025 GAAP to Non-GAAP Reconciliation (in millions) | Metric | GAAP | Adjustments | Non-GAAP (Adjusted) | | :--- | :--- | :--- | :--- | | **Operating Income** | $79.8 | $9.8 | $89.6 | | **Operating Margin** | 28.2% | | 31.7% | | **Net Income (attributable to APAM)** | $67.6 | ($0.1) | $67.5 | | **Adjusted EBITDA** | - | - | $94.2 | [Condensed Consolidated Statements of Financial Condition](index=12&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) The balance sheet as of June 30, 2025, shows increased cash and investment securities, with total assets decreasing primarily due to consolidated investment product changes Balance Sheet Highlights (in millions) | Account | June 30, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $244.9 | $201.2 | | **Total assets** | $1,444.7 | $1,618.8 | | **Borrowings** | $199.5 | $199.4 | | **Total liabilities** | $840.4 | $868.8 | | **Total stockholders' equity** | $419.1 | $422.0 | [Other Information](index=7&type=section&id=Other%20Information) [Conference Call Details](index=7&type=section&id=Conference%20Call%20Details) A conference call to discuss Q2 2025 results will be held on July 30, 2025, at 1:00 p.m. ET, hosted by the CEO, Executive Chair, and CFO - A conference call to discuss Q2 2025 results is scheduled for July 30, 2025, at 1:00 p.m. (Eastern Time)[37](index=37&type=chunk) [Disclosures and Forward-Looking Statements](index=7&type=section&id=Disclosures%20and%20Forward-Looking%20Statements) This section includes forward-looking statement disclaimers and provides definitions for key financial metrics and benchmark indexes used in the report - The release contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ[38](index=38&type=chunk) - Provides definitions for key metrics, including AUM, which is not based on any definition in the ADV, and Value Added, which measures outperformance against a benchmark[39](index=39&type=chunk)[42](index=42&type=chunk)

Core Viewpoint - Artisan Partners Asset Management Inc. reported its financial results for the second quarter and first half of 2025, along with the declaration of a quarterly dividend [1]. Group 1: Financial Results - The company announced its results for the three and six months ended June 30, 2025 [1]. - A conference call is scheduled for July 30, 2025, to discuss these results, featuring key executives including the CEO, Executive Chair, and CFO [2]. Group 2: Company Overview - Artisan Partners is a global investment management firm that offers a wide range of high value-added investment strategies to sophisticated clients worldwide [3]. - The firm has been focused on attracting experienced investment professionals since its establishment in 1994 [3]. - Artisan Partners operates autonomous investment teams that manage diverse investment strategies across multiple asset classes [3].

Market Overview - The U.S. markets have shown an upward trend, with the S&P 500 and Nasdaq Composite reaching all-time highs, increasing by 1.32% and 0.64% respectively last week [1] - Positive corporate earnings and expectations of easing tariffs and trade policies have bolstered investor confidence [1] - Concerns over inflation and signs of a potential economic slowdown are influencing the Federal Reserve's cautious stance on interest rates [1] Economic Indicators - The Conference Board's Leading Economic Indicator fell by 0.3% in June, indicating early signs of a slowdown, with weakened consumer expectations and fewer manufacturing orders [2] - The S&P Global's U.S. flash PMI data for July indicated an acceleration in business activity driven by the services sector, while the manufacturing PMI dropped to 49.5 [2] - Initial jobless claims decreased by 4,000 to 217,000 for the week ending July 19, suggesting a resilient labor market with limited layoffs [2] Stock Performance - AngloGold Ashanti plc's shares increased by 23.1% since its upgrade to Zacks Rank 1 on May 19, outperforming the S&P 500's 7.2% increase [3][4] - NN Group N.V. saw a return of 12.1% since its upgrade to Zacks Rank 1 on May 29, compared to the S&P 500's 8.4% increase [4] - Zacks Rank 1 stocks returned +6.51% in May 2025, outperforming the S&P 500's +4.47% [5] Portfolio Performance - A hypothetical portfolio of Zacks Rank 1 stocks has outperformed the S&P 500 index by more than 12 percentage points since 1988 [6] - The Zacks Focus List portfolio returned +8.84% in 2025 (through June 30) compared to +6.21% for the S&P 500 [14] - The Zacks Earnings Certain Admiral Portfolio (ECAP) returned +3.20% in Q1 2025, outperforming the S&P 500's -4.30% decline [18] Notable Stocks - Intellia Therapeutics, Inc. gained 60.3% over the past 12 weeks, while Caterpillar Inc. returned 41.3% in the same period [13][14] - OptimizeRx Corporation and Artisan Partners Asset Management saw increases of 18.2% and 14.6% respectively since their upgrades to Outperform [10] - Hershey Company returned 17.8% over the past 12 weeks, benefiting from investor interest in quality dividend stocks [20]