Summary of Key Points from the Conference Call Industry Overview - The report focuses on multi-asset investment strategies and their performance in 2025, with insights into market conditions and investor sentiment heading into 2026 [3][4][21]. Performance Insights - A global multi-asset portfolio delivered a return close to 20% in USD for 2025, marking the 90th percentile of performance since 1950 [4][5]. - US multi-asset funds had an average performance of 17.2%, while European funds lagged at 5.2%, indicating a significant disparity in returns [14][15]. - The 3-year rolling annualized return for the world portfolio proxy was 14% at the end of 2025, following two strong years of recovery from previous drawdowns [4][14]. Investor Sentiment - Investor sentiment at the start of 2026 is bullish, with 90% of European respondents expecting positive global equity returns, the highest recorded [21][24]. - The Risk Appetite Indicator (RAI) has shifted above 1 for the first time since 2021, indicating increased risk-taking among investors [21][30]. Valuation Concerns - Elevated equity valuations may limit returns in the medium term, but favorable macro conditions could mitigate this constraint in the near term [33][40]. - US equity valuations are high, but the S&P 500 still delivered above-average returns in 2025, primarily driven by earnings growth [33][40]. Drawdown Risks - Current macro conditions are favorable, reducing the risk of a significant equity drawdown, although elevated valuations and bullish sentiment could lead to smaller corrections [51][53]. - The probability of a bear market (>20% S&P 500 drawdown) has recently declined, but geopolitical shocks and AI disruption concerns remain potential triggers for corrections [53][54]. Geopolitical Risks - Robust portfolio construction is essential to protect against geopolitical shocks, which can lead to increased volatility [61][62]. - Historical data suggests that equities often recover strongly after geopolitical uncertainties ease [63][64]. Bond Market Dynamics - Bonds may provide a smaller buffer during equity drawdowns compared to historical norms, with equity/bond correlations expected to be more negative in 2026 [69][71]. - The current environment of higher inflation volatility and fiscal policy concerns may lead to lower Sharpe ratios for bonds [74]. US Asset Dominance - US assets continue to dominate global benchmarks, comprising over 60% of global equity and nearly 50% of bond benchmarks [75][76]. - Investors are increasingly focusing on FX hedging and diversifying into assets negatively correlated with the Dollar [79][80]. Diversification Opportunities - Attractive diversification strategies include regional and style diversification, selective commodity exposure, and allocations to alternatives like hedge funds and private markets [92][100]. - Defensive indices have outperformed during periods of volatility, particularly in the context of AI disruption fears [95][96]. Carry Trade Opportunities - Current low risk premia indicate limited opportunities for carry trades, with increased vulnerability to growth and rate shocks [101][102]. This summary encapsulates the key insights and data points from the conference call, providing a comprehensive overview of the multi-asset investment landscape as of early 2026.

Core Viewpoint - Artisan Partners Asset Management Inc. is set to report its fourth quarter 2025 financial results and quarterly dividend information on February 3, 2026, with a conference call scheduled for February 4, 2026, to discuss these results [1][2]. Group 1 - The earnings release and supplemental materials will be available on the investor relations section of artisanpartners.com at the time of the announcement [1]. - The conference call will be hosted by CEO Jason Gottlieb and CFO C.J. Daley at 1:00 p.m. (Eastern Time) on February 4, 2026 [1]. - A live webcast of the conference call will be accessible via the investor relations section of artisanpartners.com [2]. Group 2 - Artisan Partners is a global multi-asset investment platform that offers a wide range of high value-added investment strategies across growing asset classes [3]. - The firm has been committed to attracting experienced investment professionals since its establishment in 1994 [3]. - Artisan Partners' investment teams manage a diverse array of strategies across multiple asset classes, accommodating various client mandates [3].

Core Insights - Artisan Partners Asset Management Inc. reported its financial results for the quarter ending September 30, 2025, and declared a quarterly dividend [1] Group 1: Financial Results - The company will discuss its results for the three and nine months ended September 30, 2025, in a conference call scheduled for October 29, 2025 [2] - The call will be hosted by the Chief Executive Officer and Chief Financial Officer, with supplemental materials available on the company's website [2] Group 2: Company Overview - Artisan Partners is a global multi-asset investment platform that offers a wide range of high value-added investment strategies across growing asset classes [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, catering to various client mandates [3]

Financial Data and Key Metrics Changes - The ending AUM reached $176 billion, an increase of 8% compared to March [24] - Average AUM for the quarter was flat sequentially but up 5% compared to June of the previous year [24] - Year-to-date average AUM improved by 7% over the prior year's six-month period [25] - Revenues for the quarter increased by 2% compared to March and by 4% compared to the same quarter last year [26] - Adjusted operating income increased slightly compared to the prior quarter and by 3% compared to the same quarter last year [27] - Adjusted net income per adjusted share was flat compared to last quarter and up slightly compared to the second quarter of 2024 [27] Business Line Data and Key Metrics Changes - The credit team's flagship high income strategy outperformed its benchmark by 170 basis points annually after fees [11] - The high income strategy is ranked number two of 154 products in its eVestment universe [11] - The credit team manages more than $13 billion across its franchise [12] - The Developing World Strategy has compounded capital at an average annual rate of 11.59% since inception [15] - Each of Artisan's five emerging market strategies has positive year-to-date net flows, raising a net $700 million across the group so far this year [17] 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 [25] - The second quarter represents the twelfth consecutive quarter of positive flows for the fixed income business [25] - Emerging markets are seeing a positive uptick in interest, particularly in local opportunities and sustainable emerging markets [44] Company Strategy and Development Direction - The company is focused on evolving its investment platform to include multi-asset and alternative investments [22] - There is a strategic emphasis on M&A opportunities in the alternatives asset classes, particularly in real estate and private equity [33][36] - The company aims to align its distribution with clients who value long-term asset allocation for high value-added investing [21] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious risk-aware environment affecting institutional clients, leading to a backing off on risk [46] - The company is optimistic about allocations in emerging markets and fixed income strategies [53] - Management expects revenue to benefit from an 8% increase in AUM in Q3, along with a reduction in costs associated with the China Post Venture Team [28] 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 and sees M&A as a potent opportunity, particularly in alternatives and real estate [32][33] Question: How should the company think about capacity constraints and reopening strategies? - The company is managing capacity judiciously and is freeing up capacity in some growth strategies [38][39] Question: Can you provide more details on the two institutional mandates mentioned? - The company is seeing interest in emerging markets and has positive opportunities with sustainable emerging markets [44][52] 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 over the next twelve to eighteen months [66]