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.

MILWAUKEE, Jan. 20, 2026 (GLOBE NEWSWIRE) -- Artisan Partners Asset Management Inc. (NYSE: APAM) will report its fourth quarter 2025 financial results and information relating to its quarterly dividend on February 3, 2026 at approximately 4:30 p.m. (Eastern Time). Artisan Partners Asset Management’s earnings release and supplemental materials will be available on the investor relations section of artisanpartners.com at that time. Chief Executive Officer and President Jason Gottlieb and Chief Financial Offic ...

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]