Acadian Asset Management Inc.

Ladies and gentlemen, thank you for standing by. Welcome to the Acadian Asset Management Incorporated earnings conference call and webcast for the third quarter, 2025. During the call, 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, October 30th, 2025 at 11 a.m. Eastern Time. I would now like to turn the meeting over to Melody Huang, Senior Vice President Director of Finance and Investor Relations. Please go ahead, Melody.

Good morning, and welcome to Acadian Asset Management, Inc.' 's conference call to discuss our results for the third quarter ended September 30 of 2025. Before we begin the presentation, please know that we made 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, a 2024 Form 10-K, and a Form 10-Q for the first and second 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 here shall be deemed to be an offer or solicitation to buy any investment products. Kelly Young, our President and Chief Executive Officer, will leave the call. And now, I'm pleased to turn the call over to Kelly.

Thanks, Melody. Good morning, everyone, and thank you for joining us today. I'm thrilled to share our Q3 2025 results with you as Acadian continues to grow and reach new heights. Every milestone we hit reflects our team's discipline and dedication in executing the organic growth plan we articulated when I assumed the CEO role at the beginning of the year. We remain focused on expanding targeted product and distribution initiatives to deliver long-term growth and shareholder value. Beginning on slide three, Akkadian is the only pure play publicly traded systematic manager. Founded in 1986, Acadian has pioneered systematic investing and we continue to lead the space through constant innovation. We have delivered sustained outperformance across various investment strategies and through numerous market cycles. We manage $166.4 billion of AUM and are a pure systematic manager, applying data and cutting edge techniques to the evaluation of global stocks and corporate bonds. Ninety five percent of our strategies by revenue have outperformed benchmarks over a five year period with a four point five percent annualized excess return. Our competitive edge comes from a combination of world class talent, data driven insights and innovative tools which enable us to generate unique research and risk adjusted returns that help our clients achieve their long term investment goals. The investment team is comprised of over 100 individuals with a depth and breadth of experience across many disciplines of finance, statistics and economics, and a shared culture of collaboration and innovation. We're implementing focused product and distribution initiatives to drive sustainable growth, which I will discuss in more detail. Slide four showcases Acadian's Q3 2025 strong performance. Our US GAAP net income attributable to controlling interests was down 11% and EPS was down 7% compared to prior year due to increased operating expenses driven by increased non-cash expenses representing changes in the value of Acadian LLC equity and profits interests. Our ENI diluted EPS of 76 cents was up 29% and our adjusted EBITDA was up 12%. driven by significant growth in reoccurring base management fees, as well as share repurchases. We realized $6.4 billion of positive net client cash flows in Q3 of 25, 4% of beginning period AUM, the second highest in the firm's history, driven by enhanced extension and core strategies such as non-US equities. AUM surged to $166.4 billion as of September 30th, 2025, marking another record high for Acadian. Turning to slide five, Acadian's investment performance track record remains strong despite a more challenging recent period. We have five major implementations which comprise the majority of our assets. As of September 30, 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, with one minor variation. Global equity markets delivered strong returns in Q3 of 25 however. Crowding in lesser quality high beta stocks created a more challenging environment for Acadian's fundamentally driven, quality-orientated approach. We've seen these periods before, but remain confident in our approach and believe we are well positioned for when markets refocus on company fundamentals. Slide six details how our disciplined, systematic investment process has weathered various market cycles and generated meaningful long-term alpha for our clients. Our revenue weight five-year annualized return in excessive benchmark was 4.5% as of the end of Q3 2025 on a consolidated firm-wide basis. Our asset weight five-year annualized return in excessive benchmark was 3.5% as of the end of the quarter. By revenue weight, 94% of Acadian strategies outperformed their respective benchmarks across three, five, and 10-year periods. as of September 30, 2025. And by asset weight, 90% of Acadian's strategies outperform their respective benchmarks across three, five, and 10-year periods. Next, on slide seven, I'd like to focus on Acadian's extensive global distribution platform, which has helped us achieve robust growth sales and will continue to be a major driver of growth in the years ahead. Acadian has had a strong global presence for many years with four offices headquartered in Boston, London, Sydney and Singapore. We have continued to expand our client and distribution team with over 100 experienced professionals serving more than 1,000 client accounts in more than 40 countries. The team has established strong, deep relationships with many institutional clients as our average client relationship length with top 50 clients is 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 $39 billion of gross sales in the first nine months of 2025, which has surpassed our previous record of 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 expanding 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 after the funding of several large mandate wins in Q3 of 2025. Moving to slide eight, Acadian's standing as a highly regarded institutional asset manager is a testament to our proven investment process as well as Acadian's world-class investment and distribution teams. We have five clients among the top 20 global asset owners and 24 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 the US. We offer over 80 institutional quality funds for investors. And we achieved $39 billion of gross sales in the first nine months of 2025 and reached $166 billion of AUM as of September 30th, 2025. Slide nine highlights the sustained momentum in Acadian's net flows. We realized positive net flows of $6.4 billion in Q3 of 2025. the second highest in the firm's history, representing 4% of beginning period AUM. This quarter's net flows were diverse across products and client types. Both enhanced and extension equities generated strong NCCF and core strategies such as non-US also saw meaningful net inflows. Year to date, we've generated net flows of $24 billion. With positive flows of 1.8 billion in 2024, we have now generated seven consecutive quarters of positive net flows. As indicated earlier, our current pipeline remains robust after the funding of a number of significant client wins year to date. I'm now going to turn it over to our CFO, Scott Hines, to provide you with more detail on our financial performance this quarter and an update on capital allocation.