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]

Financial Data and Key Metrics Changes - Ending AUM reached $176 billion, an increase of 8% compared to March [23] - Average AUM for the quarter was flat sequentially but up 5% year-over-year [23] - Year-to-date average AUM improved by 7% over the prior year's six-month period [23] - Revenues for the quarter increased by 2% compared to March and 4% compared to the same quarter last year [25] - Adjusted operating income increased slightly compared to the prior quarter and 3% year-over-year [26] - Adjusted net income per adjusted share was flat compared to last quarter and up slightly compared to the second quarter of 2024 [26] Business Line Data and Key Metrics Changes - The credit team manages over $13 billion across its franchise, with continued positive flows in fixed income [11] - The high income strategy has outperformed its benchmark by 170 basis points annually after fees [10] - The Developing World Strategy has compounded capital at an average annual rate of 11.59% since inception [14] - Artisan's five emerging market strategies have positive year-to-date net flows, raising a net $700 million across the group [15] 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 [24] - The second quarter marked the twelfth consecutive quarter of positive flows for the fixed income business [24] - Institutional clients are showing increased interest in emerging markets and fixed income strategies [44] Company Strategy and Development Direction - The company is focused on evolving its investment platform to include multi-asset and alternative investments [21] - There is a strong emphasis on talent-driven opportunities for M&A, particularly in alternatives and private equity [33][36] - The company aims to expand its distribution to align with clients valuing long-term asset allocation for high-value added investing [20] Management's Comments on Operating Environment and Future Outlook - Management noted a cautious risk-aware environment affecting gross flows, with a focus on credit as a growth area [46] - The company is optimistic about allocations in emerging markets and fixed income strategies, especially with the ten-year anniversary of the Developing World strategy [44][52] - Management expressed confidence in the firm's ability to execute well for investment talent, clients, and shareholders under new leadership [21] 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, particularly in alternatives and private equity, with interest in real estate and secondaries business [33][36] Question: How should the company think about capacity constraints and timing for reopening? - The company is managing capacity judiciously, particularly in growth strategies, and is working with intermediated wealth clients to maintain consistency [38][39] Question: Can you elaborate on the two institutional mandates mentioned? - The company is seeing interest in emerging markets and fixed income strategies, with positive movement around rebalancing in global equity [42][44] 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 for additional seed or acquisitions in the next 12 to 18 months [64][66]