Financial Data and Key Metrics Changes - In Q4 2024, revenues increased by 6% compared to Q3 2024 and by 19% year-over-year [34][38] - Adjusted operating income rose by 12% sequentially and by 37% compared to the same quarter last year [40] - Assets under management (AUM) at the end of December 2024 were $161 billion, down 4% from the previous quarter but up 7% from the end of 2023 [35] - The weighted average recurring fee rate for the quarter, excluding performance fees, was 68 basis points, while including performance fees, it was 72 basis points [39][40] Business Line Data and Key Metrics Changes - In 2024, 13 out of 25 investment strategies achieved net inflows, with 10 strategies exceeding $100 million in inflows [12] - The Denver-based credit team raised $1.7 billion in net inflows, while the Boston-based EMsights Capital Group raised $1.9 billion, collectively managing nearly $15 billion across six strategies [15][16] - The fixed income business experienced positive flows for 10 consecutive quarters and 11 consecutive years [36] Market Data and Key Metrics Changes - Average AUM for Q4 2024 was up 2% sequentially and up 18% compared to Q4 2023, with full-year average AUM improving by 15% [36] - The international value fund now represents approximately 25% of the platform, indicating significant growth [52] Company Strategy and Development Direction - The company aims to build its investment platform by developing existing franchises and adding new talent, focusing on high value-added investments [32] - The firm emphasizes capacity management to ensure performance is not compromised, particularly in the international value strategy [56][57] - The company is exploring opportunities in alternative investments, particularly in real estate credit and equity [86][90] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious approach from clients regarding capital allocation due to macroeconomic uncertainties, expecting moderate strategic moves rather than wholesale changes [70][71] - The firm is well-positioned to capture volatility in global markets, which presents active management opportunities [74] Other Important Information - The company declared a quarterly dividend of $0.84 per share and a year-end special dividend of $0.50, totaling $3.48 per share for 2024, a 25% increase from 2023 [45][46] - The firm has a strong balance sheet with $155 million in seed capital and a $100 million unused revolving credit facility [44] Q&A Session Summary Question: Thoughts on organic growth rate and fee rate - Management indicated that foundational assets have contributed to a decrease in fee rates, particularly in fixed income strategies [58] Question: Dividend payout ratio and seed capital needs - The payout ratio is expected to remain in the mid-90% range, with some gains from seed capital realized in 2024 [63] Question: Response to volatility in global and international emerging markets - Management noted a hesitance in client behavior due to macroeconomic factors, expecting only modest changes in asset allocation [70][71] Question: Significant milestones for strategies in 2025 - The Developing World fund will celebrate its 10-year anniversary, and the International Explorer strategy will hit its three-year milestone [82][83] Question: Update on private markets and alternative investments - The firm is methodically building out its investment strategy group and exploring opportunities in alternatives, particularly in real estate [86][90]

Business Overview - Artisan Partners has built its business on a consistent philosophy and business model since its founding[2] - The firm emphasizes a high value-added, talent-driven, and thoughtful approach to investment[2] - Artisan Partners operates with autonomous investment franchises managed by business professionals[2] - The company focuses on active strategies and long-term growth with a global demand perspective[2] Asset Growth and Diversification - From 2004 to 2024, Artisan Partners increased its investment teams from 4 to 11 and investment strategies from 7 to 25[3] - Equity AUM grew from $40 billion in 2004 to $144 billion in 2024[3] - Fixed Income AUM increased from zero in 2004 to $14 billion in 2024[3] - Alternatives AUM reached $3 billion by 2024[3] Financial Performance - The company's AUM at the end of 2024 was $1612 billion, compared to $1502 billion at the end of 2023, representing a 7% increase[15,17] - The ending AUM growth rate for Equity was +5%, Fixed Income was +39%, and Alternative was +21%[17] - The adjusted net income per adjusted share for the year 2024 was $355, compared to $289 in 2023, an increase of 23%[22]

Financial Data and Key Metrics Changes - In the fourth quarter, revenues rose by 6% sequentially and increased by 19% compared to the same quarter last year [23][26] - Adjusted operating income was up 12% sequentially and 37% year-over-year, driven by revenue growth outpacing operating expense increases [28][29] - Assets under management (AUM) ended at $161 billion, down 4% from the previous quarter but up 7% year-over-year [24][25] Business Line Data and Key Metrics Changes - The fixed income business achieved its tenth consecutive quarter of positive flows, with net inflows of $3.6 billion in 2024 [25][26] - The Denver-based credit team raised $1.7 billion in net inflows, while the Boston-based Emsights Capital Group raised $1.9 billion, collectively managing nearly $15 billion across six strategies [10][11] - 13 out of 25 investment strategies achieved net inflows in 2024, with 10 strategies exceeding $100 million in inflows [7][8] Market Data and Key Metrics Changes - The average AUM for the fourth quarter was up 2% sequentially and 18% year-over-year, while full-year average AUM improved by 15% [25][28] - Approximately 3% of AUM is subject to performance fees, with a weighted average recurring fee rate of 68 basis points for the quarter [27][29] Company Strategy and Development Direction - The company aims to build durable investment franchises by supporting investment talent and focusing on long-term growth [4][20] - There is a commitment to expanding the investment platform, developing existing franchises, and tapping into demand for high-value-added investments [22][33] - The company is strategically managing capacity in its international value strategy to maintain performance [38] Management's Comments on Operating Environment and Future Outlook - Management anticipates moderate strategic moves in asset allocation due to current macroeconomic uncertainties, with a focus on inflation and global market volatility [49][50] - The company is well-positioned to capture opportunities in active management as volatility in markets can benefit their strategies [51][52] Other Important Information - The company declared a quarterly dividend of $0.84 per share and a year-end special dividend of $0.50, totaling a 25% increase in dividends compared to 2023 [31][32] - The balance sheet remains strong with $155 million in seed capital and an unused $100 million revolving credit facility [29][30] Q&A Session Summary Question: Discussion on organic growth rate and fee rate - Management noted that the organic growth and fee rate changes are influenced by foundational assets in fixed income strategies, which have performance-based fees that can lower the overall fee rate [39][40] Question: Seed capital needs and payout rate for 2025 - The payout ratio is expected to remain in the mid-90s range, with some gains on seed capital realized in 2024 and more anticipated in 2025 [42][43] Question: Response to volatility in global and international emerging markets - Management indicated that there is a hesitance in the market due to macroeconomic factors, expecting only moderate strategic moves in asset allocation [49][50]

Assets Under Management (AUM) - Assets Under Management (AUM) at December 31, 2024, was $161.2 billion, a 7% increase from $150.2 billion at December 31, 2023, primarily due to investment returns of $15.9 billion[11][16] - The average AUM for the year ended December 31, 2024, was $160.2 billion, a 15% increase from $139.3 billion in 2023[21] - Artisan Partners' assets under management (AUM) included non-discretionary assets reported at $105 million as of December 31, 2024, up from $78 million in 2023[34] - Total Assets Under Management (AUM) reached $161.208 billion, with significant contributions from various strategies[72] - Ending assets under management decreased to $161,208 million for the three months ended December 31, 2024, down 4.0% from $167,840 million in the previous quarter[55] - Average assets under management for the year ended December 31, 2024, were $160,232 million, compared to $139,321 million in 2023, indicating an increase of about 15.0%[67] Financial Performance - Revenues for the December 2024 quarter were $297.0 million, a 19% increase from $249.0 million in the December 2023 quarter, driven by higher average AUM and a $10.6 million increase in performance fee revenue[12][17] - Operating income for the year ended December 31, 2024, was $366.6 million, a 21% increase from $303.6 million in 2023, with an operating margin of 33.0% compared to 31.1% in 2023[21][23] - Adjusted net income for the December 2024 quarter was $85.2 million, or $1.05 per adjusted share, compared to $62.8 million, or $0.78 per adjusted share, in the December 2023 quarter[20] - GAAP net income for the year ended December 31, 2024, was $259.7 million, or $3.66 per share, up from $222.3 million, or $3.19 per share, in 2023[25] - Adjusted net income for the year ended December 31, 2024, was $287.3 million, or $3.55 per adjusted share, compared to $233.1 million, or $2.89 per adjusted share, in 2023[25] - Operating income for the three months ended December 31, 2024, was $109.1 million, representing a 43.0% increase from $76.4 million in the same quarter of 2023[45] - Net income attributable to Artisan Partners Asset Management Inc. for the three months ended December 31, 2024, was $69.7 million, up from $64.8 million in the same period last year, reflecting an increase of 4.8%[47] - Basic earnings per share for Class A common shares for the three months ended December 31, 2024, were $0.97, compared to $0.92 for the same period in 2023, marking a 5.4% increase[47] Cash Flow and Dividends - Cash and cash equivalents increased to $201.2 million at December 31, 2024, from $141.0 million at December 31, 2023[26] - The company declared a variable quarterly dividend of $0.84 per share and a special dividend of $0.50 per share for the December 2024 quarter[30] - The variable quarterly dividend represents approximately 80% of the cash generated in the December 2024 quarter[30] - The company expects to pay a quarterly dividend of approximately 80% of cash generated from operations, subject to board approval[31] Operating Expenses - Operating expenses for the year ended December 31, 2024, were $745.2 million, an 11% increase from $671.5 million in 2023, primarily due to a $64.7 million increase in compensation and benefits[22] - Total operating expenses for the three months ended December 31, 2024, were $187.9 million, up from $172.6 million in the same period last year, indicating an increase of 8.0%[45] Client Cash Flows - The company reported $3.6 billion in net inflows from its credit-oriented investment franchises in 2024, with nearly $15 billion managed across six different strategies[3][4] - Gross client cash inflows for the year ended December 31, 2024, were $25,650 million, a 19.9% increase from $21,395 million in 2023[55] - Net client cash flows for the year ended December 31, 2024, were $(3,699) million, a 9.2% improvement compared to $(4,076) million in 2023[55] - Gross client cash inflows for the quarter were $7.649 billion, while gross client cash outflows totaled $8.473 billion, resulting in net client cash flows of negative $824 million[58] Investment Performance - The Developing World strategy generated a cumulative return of 157.03% since inception, significantly outperforming the MSCI Emerging Markets Index's cumulative return of 38.83%[6] - The Artisan Sustainable Emerging Markets Strategy reported an AUM of $1,552 million, achieving a 7.50% return[72] - The U.S. Mid-Cap Growth Strategy had an AUM of $20,591 million, with a 1-year return of 16.13%[70] - The Global Opportunities Strategy achieved a 1-year return of 17.49% with an AUM of $12,410 million[70] - The Emerging Markets Debt Opportunities Strategy reported an AUM of $1,024 million, with a return of 10.85%[72] - The China Post-Venture Strategy had a 1-year return of 14.48% with an AUM of $178 million[70] - The Value Income Strategy achieved a return of 25.02% with an AUM of $16 million[70] - The International Value Strategy reported an AUM of $43,911 million, with a 1-year return of 7.77%[70] - The Developing World Strategy had a remarkable 1-year return of 30.04% with an AUM of $4,100 million[72] - The Global Unconstrained Strategy achieved a return of 12.25% with an AUM of $701 million[72] Balance Sheet - Total stockholders' equity rose to $422.0 million at December 31, 2024, compared to $351.4 million at December 31, 2023[28] - Total liabilities rose to $868.8 million as of December 31, 2024, compared to $802.1 million as of December 31, 2023, reflecting an increase of 8.3%[54] - Total assets increased to $1,618.8 million as of December 31, 2024, compared to $1,405.9 million as of December 31, 2023, representing a growth of 15.1%[54]

Core Viewpoint - Artisan Partners Asset Management Inc. reported its financial results for the quarter and year ended December 31, 2024, and declared a quarterly and special annual dividend [1]. Financial Results - The Company will discuss its financial results in a conference call scheduled for February 5, 2025, at 1:00 p.m. (Eastern Time) [2]. - The call will be hosted by key executives including the CEO, President, and CFO, with supplemental materials available on the Company's website [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, managing client assets through autonomous investment teams [3].

Group 1 - Artisan Partners Asset Management Inc. will report its fourth quarter and full-year 2024 financial results on February 4, 2025 [1] - A conference call to discuss the results will be hosted by CEO Eric Colson, President Jason Gottlieb, and CFO C.J. Daley on February 5, 2025 [1] - The earnings release and supplemental materials will be available on the investor relations section of artisanpartners.com [1] Group 2 - A live webcast of the conference call will be accessible via the investor relations section of artisanpartners.com [2] - Participants can join the conference call using specific dial-in numbers for the United States and international callers [2] - An audio replay of the conference call will be available shortly after the event and can be accessed until February 12, 2025 [2] Group 3 - Artisan Partners is a global investment management firm offering a range of high value-added investment strategies [3] - The firm has been focused on attracting experienced investment professionals since its establishment in 1994 [3] - Artisan Partners' investment teams manage a diverse array of strategies across multiple asset classes [3]

Stocks Added to Zacks Rank 5 (Strong Sell) List - Baidu, Inc (BIDU) is an internet search services company with a Zacks Consensus Estimate for current year earnings revised downward by 8.2% over the last 60 days [1] - Artisan Partners Asset Management Inc (APAM) is an investment management company with a Zacks Consensus Estimate for current year earnings revised downward by 8.9% over the last 60 days [1] - Conagra Brands, Inc (CAG) is a packaged food company with a Zacks Consensus Estimate for current year earnings revised downward by 5% over the last 60 days [2]

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $161.2 billion as of December 31, 2024, with Artisan Funds and Artisan Global Funds contributing $77.6 billion and separate accounts and other AUM accounting for $83.6 billion [1][2] AUM Breakdown - Artisan Funds distributions not reinvested amounted to approximately $450 million, impacting the December month-end AUM [1] - The AUM by strategy includes: - Global Opportunities: $20.591 billion - U.S. Mid-Cap Growth: $12.952 billion - U.S. Small-Cap Growth: $3.094 billion - International Value: $43.911 billion - Global Value: $28.364 billion [2][3] Additional Information - AUM for Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies includes $105.0 million for which Artisan Partners provides investment models to managed account sponsors [4] - Artisan Partners is a global investment management firm established in 1994, focusing on high value-added investment strategies across multiple asset classes [5]

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Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:StoneX Group Inc. (SNEX) : This global financial services network provider has seen the Zacks Consensus Estimate for its current year earnings increasing 8.7% over the last 60 days.Packaging Corporation of America (PKG) : This containerboard and corrugated packaging company has seen the Zacks Consensus Estimate for its current year earnings increasing 4% over the last 60 days.Artisan Partners Asset Management Inc. (APAM) : This investme ...