Financial Data and Key Metrics Changes - Assets under management (AUM) decreased from $175 billion to $128 billion, a 27% decline [4][17] - Net outflows totaled $9.8 billion for the year, with over $5 billion occurring in the fourth quarter [4][17] - Revenues declined by 19% year-over-year, reflecting the decrease in average AUM [17][19] - Adjusted operating income fell by 37% for the year compared to 2021 [21] - Average AUM for 2022 was down 18% year-over-year [19] Business Line Data and Key Metrics Changes - The Artisan High Income strategy generated average annual returns of 5.1% after fees, outperforming its benchmark by 178 basis points [9] - The Credit team has generated cumulative net flows of $7 billion since inception, averaging approximately $750 million per year [10] - The firm diversified from five long-only equity investment teams managing 12 strategies to 10 investment teams managing 25 strategies [17] Market Data and Key Metrics Changes - Non-U.S. equity strategies outperformed in the fourth quarter, contributing to over $12 billion in investment returns [15] - Approximately 55% of equity AUM is invested in companies domiciled outside the U.S. [14] - The index yield to worst for high-yield credit is currently about 8%, significantly higher than the 4% to 6% range of the past decade [12] Company Strategy and Development Direction - The company is focusing on fixed income and global equities, anticipating increased demand due to rising rates and spreads [6][8] - The firm aims to leverage its investment capabilities to capture growth opportunities in fixed income and credit-oriented strategies [8][12] - The company is optimistic about the current level of market volatility, which may benefit active management strategies [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for growth in fixed income and non-U.S. equities despite a challenging 2022 [6][16] - The firm is focused on executing growth opportunities and filling capacity in 2023 [32] - Management acknowledged the uncertainty in the market but highlighted the importance of client research and due diligence in driving future asset flows [28][30] Other Important Information - The company declared a quarterly dividend of $0.55 per share and a special annual dividend of $0.35 per share [22] - Seed capital investments increased to $125 million, up from $72 million a year ago, indicating a focus on future growth [22] - The firm plans to maintain a flat year-over-year expense structure while managing variable costs based on revenue levels [47] Q&A Session Summary Question: Opportunities in non-U.S. equities and emerging markets - Management noted an increase in due diligence activity and a strong list of meetings for non-U.S. strategies, but emphasized the mixed asset flow trends [27][28] Question: Expense margins and operating leverage - Management highlighted the strength of their model in managing expenses during revenue declines and discussed the focus on growth opportunities in 2023 [31][32] Question: Institutional vs. retail growth opportunities - Management indicated a focus on institutional markets for growth, while also recognizing the potential in retail democratization through partnerships [39][41] Question: EMsights opportunity and asset ramp-up - Management acknowledged the longer sales cycle for institutional assets but expressed confidence in the strong position of the EMsights team [43][45] Question: Future seed capital investments - Management stated that there are no major seed capital requirements planned for 2023, focusing instead on filling existing capacity [50][51]

Artisan Partners Business Model & Philosophy - Artisan Partners' business is built on a consistent philosophy and business model focused on high value-added active strategies, talent-driven autonomous franchises, and thoughtful long-term growth [2] - The company's financial model emphasizes sustainable long-term growth, fee discipline, high variable costs, a conservative balance sheet, and aligned interests [14] Artisan Partners Historical Financial Performance - Since 2012, Artisan Partners has experienced a compounded annual growth rate of 8% in average AUM, 7% in revenue, and 5% in adjusted operating income [16] - For the year 2022, Artisan Partners' revenue was $993.3 million, a decrease of 19% compared to $1227.2 million in 2021 [30] - The adjusted operating income for 2022 was $340.3 million, a decrease of 37% compared to $540.8 million in 2021 [30] - The adjusted operating margin for 2022 was 34.3%, a decrease of 980 bps compared to 44.1% in 2021 [30] - In Q4 2022, revenues decreased by 4% to $226 million compared to Q3 2022's $234.3 million [29] - Adjusted operating expenses in Q4 2022 decreased by 1% to $157.2 million compared to Q3 2022's $155.4 million [29] Assets Under Management (AUM) - Assets Under Management (AUM) decreased by 27% from $174.8 billion in 2021 to $127.9 billion in 2022 [24] - Average AUM decreased by 18% from $171.8 billion in 2021 to $141.5 billion in 2022 [24] - Net client cash flows for the year 2022 were $(9.8) billion [24] Credit Team Performance - Since inception, the High Income strategy has an average annual value added of 178 bps [4] - Since inception, the Credit Opportunities strategy has an average annual value added of 631 bps [4] - Since its launch on January 1, 2022, the Floating Rate strategy has a value added of -42 bps [4]

Artisan Partners Asset Management Inc. (NYSE:APAM) Q3 2022 Earnings Conference Call November 2, 2022 1:00 PM ET Company Participants Makela Taphorn - IR Eric Colson - CEO Charles Daley - CFO Conference Call Participants Alex Blostein - Goldman Sachs Kenneth Lee - RBC Capital Markets Operator Hello, and thank you for standing by. My name is Rocco, and I will be your conference operator today. At this time all participants are in a listen-only mode. [Operator Instructions]. As a reminder, this conference call ...

Artisan Partners Asset Management Inc. (NYSE:APAM) Q2 2022 Earnings Conference Call August 3, 2022 1:00 PM ET Company Participants Makela Taphorn - IR Eric Colson - CEO C.J. Daley - CFO Conference Call Participants Kenneth Lee - RBC Capital Markets Dan Fannon - Jefferies Alex Blostein - Goldman Sachs John Dunn - Evercore ISI Operator Good day, and welcome to the Artisan Partners Second Quarter 2022 Earnings Call [Operator Instructions]. Please note that this event is being recorded. I would not like to tur ...

Artisan Partners Asset Management Inc. (NYSE:APAM) Q1 2022 Earnings Conference Call April 27, 2022 1:00 PM ET Company Participants Makela Taphorn - Director, Investor Relations Eric Colson - Chief Executive Officer C.J. Daley - Chief Financial Officer Conference Call Participants Dan Fannon - Jefferies Bill Katz - Citigroup Alex Blostein - Goldman Sachs Robert Lee - KBW John Dunn - Evercore ISI Operator Hello, and thank you for standing by. My name is Rocco, and I will be your conference operator today. At ...