Q2 2024 Artisan Partners Asset Management Inc Earnings Call Transcript
Key Points
- Artisan Partners Asset Management Inc (APAM) reported an 11% increase in assets under management (AUM) from the June 2023 quarter, reaching $159 billion.
- The company successfully onboarded significant institutional mandates, including an $800 million inflow in their sustainable emerging market strategy and an $860 million account in the Emerging Markets Debt Opportunities strategy.
- Artisan Partners Asset Management Inc (APAM) has expanded its alternatives lineup, with five open-ended alternative strategies performing well, four of which have generated more than 300 basis points of annual outperformance net of fees since inception.
- The company has a strong balance sheet with $150 million of seed capital in investment products and an unused $100 million revolving credit facility.
- Artisan Partners Asset Management Inc (APAM) continues to return capital to shareholders through consistent quarterly cash dividend payments and a year-end special dividend, with a recent quarterly dividend of $0.71 per share.
- Net client cash outflows during the quarter were $1.6 billion, with net outflows in growth and value strategies partially offset by inflows in sustainable emerging markets and fixed income strategies.
- Second quarter outflows included two redemptions from non-US clients totaling $1.1 billion, indicating potential challenges in retaining international clients.
- The fee rate for the quarter was down 1 basis point from the June 2023 quarter, largely due to strategy mix with the addition of lower fee fixed income inflows.
- The company faces challenges in the China Post Venture strategy due to macroeconomic overhangs, impacting client engagement and allocations.
- Adjusted operating expenses increased by 11% compared to the same quarter last year, primarily from higher revenue-based incentive compensation and a 4% increase in the number of full-time associates.
Good afternoon and welcome to the Artisan Partners second quarter 2024 earnings call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Artisan Partners Asset Management. Please go ahead.
Welcome to the Artisan Partners Asset Management business update and second quarter 2024 earnings call. Today's call will include remarks from Eric Colson, CEO; Jason Gottlieb, President; and C.J. Daley, CFO. Following these remarks, we'll open the line for questions for latest results and investor presentation are available on the Investor Relations section of our website.
Before we begin today, I would like to remind you that comments made during today's call, including responses to questions may include forward-looking statements. These are subject to known and unknown risks and uncertainties, including but not limited to the factors set forth in our earnings release and detailed in our SEC
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
