Financial Data and Key Metrics Changes - First quarter results showed a 7% decline in revenues primarily due to the absence of $17 million in performance fees from the previous quarter [25] - Adjusted operating income decreased by 19% sequentially and adjusted operating margin fell by 470 basis points from the previous quarter [25] - Assets under management (AUM) at the end of March were $162 billion, reflecting a slight increase from the previous quarter and the same period last year [26] - Average AUM for the quarter increased by 1% sequentially and 8% year-over-year [27] - Adjusted net income per adjusted share declined by 21% compared to the last quarter but increased by 9% year-over-year [29] Business Line Data and Key Metrics Changes - The firm has seen eleven consecutive quarters of positive fixed income flows, with net client cash outflows of approximately $2.8 billion in the first quarter [26][27] - The intermediated wealth channel now accounts for 60% of total AUM, with an annualized organic growth rate of 5% over the past five years [27][28] - New strategies launched include the Artisan Global Special Situation strategy and the Artisan franchise strategy, targeting high-value clients [14][17] Market Data and Key Metrics Changes - The firm reported $4.1 billion in market returns, including $1.8 billion or 110 basis points of returns in excess of benchmarks [26] - The institutional business has faced pressure, but the firm believes it will maintain solid growth, particularly in the intermediated wealth channel [57] Company Strategy and Development Direction - The company is focused on expanding its capabilities in fixed income and alternatives, particularly in the retail and insurance channels [35] - There is a strategic shift towards the private wealth market, with a significant presence and growth potential identified [22][23] - The firm aims to align its distribution structure to better access and service the intermediated wealth channel [23][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the firm's ability to generate long-term outcomes despite current market volatility [24] - The firm views market disruptions as opportunities for growth and expansion [47] - There is an ongoing dialogue regarding capacity management, with potential for some strategies to open up capacity in the near future [44] Other Important Information - The company declared a quarterly dividend of $0.68 per share, reflecting lower cash generation due to the absence of performance fees [32] - The balance sheet remains strong, with $138 million in seed capital and ample liquidity for future strategies [30] Q&A Session Summary Question: Opportunities in fixed income and alternatives - Management highlighted the potential for growth in fixed income and alternatives, particularly through existing franchises and new strategies [35][36] Question: Normalized expenses and maintaining margins - Management indicated that guidance for the full year remains unchanged, with variable expenses fluctuating with revenues [38][39] Question: Capacity constraints and market movements - Management confirmed ongoing communication about capacity management, with some strategies in soft close mode [44] Question: M&A activity and market opportunities - Management acknowledged numerous opportunities in the market and emphasized a judicious approach to adding capabilities [46][47] Question: Growth in intermediated wealth and strategy mix - Management noted that the long-term asset allocation of client mix differs from institutional, requiring a tailored approach to strategies [66][67] Question: Institutional side and market volatility - Management observed rebalancing activity in the equity space and increased interest in credit strategies amid market volatility [70][72]

Artisan Partners Asset Management (APAM) Q1 2025 Earnings Call April 30, 2025 01:00 PM ET Company Participants Brennan Hughes - Head, Investor RelationsEric Colson - CEOJason Gottlieb - PresidentCharles Daley - Executive VP, CFO & TreasurerKenneth Lee - Vice President Conference Call Participants Anthony Corbin - Equity Research AnalystJohn Dunn - AnalystWilliam Katz - Senior Equity Analyst Operator Good day, and welcome to the Artisan Partners Asset Management Business Update and First Quarter Earnings Cal ...

Artisan Partners Asset Management (APAM) Q4 2024 Earnings Call February 05, 2025 01:00 PM ET Company Participants Brendan Hughes - Investment AdvisorEric Colson - CEOJason Gottlieb - PresidentCharles Daley - Executive VP, CFO & TreasurerAlexander Blostein - Managing DirectorAlex Blostein - Managing Director Conference Call Participants William Katz - Senior Equity AnalystJohn Dunn - Analyst Operator Good day, everyone, and welcome to the Artisan Partners Fourth Quarter twenty twenty four Earnings Conference ...