Acadian Asset Management Inc.

all participants will be in a listen-only mode. After the presentation, we will conduct a question and answer session. To be added to the queue, please press the star followed by one at any time during the call. If you need to reach an operator, please press the star followed by zero. Please note that this call is being recorded today, Thursday, July 31st, 2025 at 11 a.m. Eastern Time. I would now like to turn the meeting over to Melody Wong, SVP, Director of Finance and Investor Relations. Go ahead, Melody.

Good morning and welcome to Acadian Asset Management, Inc.' 's conference call to discuss our results for the second quarter ended June 30th, 2025. Before we begin the presentation, please note that we may make forward-looking statements about our business and financial performance. Each forward-looking statement is subject to risk and certainties that could cause actual results to differ materially from those projected. Additional information regarding this risk and certainties appears in our SEC filings, including the Form 8-K filed today containing the earnings release, our 2024 Form 10-K, and our Form 10-Q for the first quarter of 2025. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update them as a result of new information of future events. We may also reference certain non-GAAP financial measures. Information about any non-GAAP measures referenced, including a reconciliation of those measures to GAAP measures, can be found on our website. along with the slides that we will use as part of today's discussion. Finally, nothing herein shall be deemed as an offer or solicitation to buy any investment product. Kelly Yang, our President and Chief Executive Officer, will lead the call. And now, I'm pleased to turn the call over to Kelly.

Thanks, Melody. Good morning, everyone, and thank you for taking the time to join us today. At the beginning of 2025, when I delivered AAMI's inaugural earnings presentation, we laid out an organic growth strategy for Acadian based on targeted product and distribution initiatives. Since then, our team has been executing that growth strategy, and I'm excited to share our Q2 2025 results with you as we've achieved certain milestones during this quarter. Acadian is the only pure play publicly traded systematic manager. Founded in 1986, Acadian has pioneered systematic investing and we continue to lead in the space through constant innovation. We have delivered sustained outperformance across various investment strategies and through numerous market cycles. We manage $151.1 billion of AUM and Acadian is a pure systematic manager applying data and cutting edge technology to the evaluation of global stocks and corporate bonds. 95% of our strategies by revenue are outperforming benchmarks over five year periods with 4.5% annualized excess return. Our competitive edge comes from the convergence of talented people, rich data and powerful tools. We have 120 person investment team with over 100 advanced analytical degrees. We're implementing product and distribution initiatives to drive sustainable growth. Slide four showcases Acadian Q2 2025 strong performance. Our US GAAP net income attributable to controlling interest was down 8% and EPS was down 3% compared to prior year due to an increase in non-cash expense related to higher employee equity plan revaluations. Our ENI diluted EPS at 64 cents was up 42% and adjusted EBITDA up 22% both driven by significant revenue growth. We delivered $13.8 billion of positive net client cash flow in Q2 of 2025, 11% of beginning period AUM, the highest in the firm's history. And AUM surged to $151.1 billion as of June 30th, 2025, the highest in Acadian's history and a major milestone for the company. Acadian's investment performance track record remains strong despite continued market volatility. We have five major implementations which comprise the majority of our assets. As of June 30th, 2025, global equity, emerging markets equity, non-US equity, small cap equity, and enhanced equity have 100% of assets outperforming benchmarks across three, five, and 10-year periods. In Q2 2025, global equity markets were strong, though still volatile. The quarter had a turbulent start with a large sell-off in equities, but as volatility subsided, equity markets around the globe saw a sharp recovery. Higher returns in European and emerging markets were partly driven by dollar weakening and investments outside of the US, which provided significant diversification benefits for our clients' portfolios. Our disciplined, systematic investment process has generated meaningful long-term alpha for our clients. Our revenue-weighted five-year annualized return in excessive benchmark was 4.5% as of the end of Q2 on a consolidated firm-wide basis. Our asset-weighted five-year annualized return in excessive benchmark was 3.6% as of the end of the quarter. By revenue weight, more than 94% of Acadian strategies outperformed their respective benchmarks across three, five, and 10-year periods as of June 30th, 2025. And by asset weight, more than 92% of Acadian strategies outperformed their respective benchmarks across three, five, and 10-year periods. Next, I would like to focus on Acadian's extensive global distribution platform, which helped us achieve strong gross sales and will be a major driver of growth in the years ahead. For many years, Acadians had a strong global presence with four offices in Boston, London, Sydney, and Singapore. We've continued to expand our client and distribution team with over 90 experienced professionals serving more than 1,000 client accounts in 40 countries. The team has established strong, deep relationships with many institutional clients, and our average relationship length with the top 50 clients was over 10 years. We work with over 40 investment consultants across market segments and geographies, leading to a diverse client base invested across multiple strategies. We had $28 billion of gross sales in the first half of 2025, already surpassing our previous record annual sales of $21 billion in 2024. In tandem with expanding our distribution capabilities, Acadian's business and product development team have been focused on increasing our strategy and vehicle offerings in high demand and growing areas where Acadian's systematic approach is particularly well suited. Our current pipeline remains robust. The success of Acadian as a highly regarded institutional investment manager is testament of our proven investment process, as well as Acadian's world-class investment and distribution teams. We have six clients among the top 20 global asset owners and 26 clients among the top 50 US retirement plans. More than 40% of our assets are from clients invested in multiple Acadian strategies. Our client base is diverse with 43% of assets managed for clients outside of the US. We offer 80 plus institutional quality funds for investors. We achieved $28 billion of gross sales in the first half of 2025 and reached 151 billion of AUM as of June 30, 2025. The next slide highlights a positive trend in Acadian's net flows, showing a significant increase from the 1.8 billion in the full year of 2024 to 17.6 billion in the year-to-date 2025. We realized positive net flows of 13.8 billion in Q2 2025, which is 11% of beginning period AUM, driven by a new enhanced equity mandate and global equity net inflows, the highest quarterly NCCF in Acadian's history. With two positive quarterly net flows in 2025, totaling 17.6 billion, along with 1.8 billion in the full year 2024, we've now generated six consecutive quarters of positive net flows. I'm now going to turn the call over to our CFO, Scott Hines, to provide you with some more detail on our financial performance this quarter and an update on capital allocation.