Artisan Partners Asset Management Inc. Class A

Welcome to the Artisan Partners Asset Management Business Update and Earnings Call. Today's call will include remarks from Jason Gottlieb, CEO, and CJ Daly, CFO. Following these remarks, we will open the line for questions. Our 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 include 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 filings. These risks and uncertainties may cause actual results to differ materially from those disclosed in the statement, and we assume no obligation to update or revise any of these statements following the presentation. In addition, some of our remarks today will include references to non-GAAP financial measures. You can find reconciliations of these measures to the most comparable GAAP measures in the earnings release and supplemental materials, which can be found on our investor relations website. Also, please note that nothing on this call constitutes an offer or solicitation to purchase or sell an interest in any artisan investment product or a recommendation for any investment service. I will now turn the call over to Jason.

Welcome to the Artisan Partners Asset Management Business Update and Earnings Call. Today's call will include remarks from Jason Gottlieb, CEO, and CJ Daley, CFO. Following these remarks, we will open the line for questions. Our 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 filings. These risks and uncertainties may cause actual results to differ materially from those disclosed in the statement, and we assume no obligation to update or revise any of these statements following the presentation. In addition, some of our remarks today will include references to non-GAAP financial measures. You can find reconciliations of these measures to the most comparable GAAP measures in the earnings release and supplemental materials, which can be found on our investor relations website. Also, please note that nothing on this call constitutes an offer or solicitation to purchase or sell an interest in any Artisan investment product or a recommendation for any investment service. I will now turn it over to Jason.

Thank you for joining the call today. At Artisan Partners, our purpose is to generate and compound wealth for our clients over the long term. We do so by maintaining an ideal home for investment talent providing a unique combination of autonomy, degrees of freedom, resources, and support. Our model has proven repeatable over time as we have steadily expanded our capabilities across equities, credit, and alternatives. Across a wide range of market environments, we have maintained our focus on high-value added investing, driving positive outcomes for both our clients and our shareholders. Long-term investment performance remains strong across our platform, with 74% of our AUM outperforming their benchmarks over three years, 76% over five years, and 99% over 10 years gross of fees. All 12 artisan strategies with track records over 10 years have outperformed their benchmarks since inception net of fees. These 12 strategies have compounded capital at average annual rates between 6% to nearly 13%, and have exceeded their benchmarks by an average of 202 basis points annually, net of fees. Highlighting our track record of positive long-term investment outcomes, two of our investment teams were recently recognized by Morningstar and Lipper for investment excellence. Morningstar nominated the global value team's Dan O'Keefe for the 2026 Morningstar Award for Investing Excellence, Outstanding Equity Portfolio Manager. Lipper named the team's Global Value Fund, Institutional Class, the best fund in its Global Large Cap Value Funds category for the three, five, and ten-year periods ended December 31, 2025. Lipper also named Select Equity Fund, Institutional Class, the best fund in its Global Multi-Cap Value Funds category for the trailing three-year period ended December 31, 2025. Lippert also named the MSITES Capital Group's Global Unconstrained Fund institutional class as the best fund in its global income funds category over the trailing three-year period ending December 31, 2025. External recognition is not our goal, but the consistency with which Artisan Partners has earned accolades like these across time, teams, and asset classes validates the quality of our platform and repeatability of our business model for both talent and clients. Congratulations to the Global Value Team and the Insights Capital Group on these recent recognitions. Shorter term, trailing one-year performance has been weighed down by underperformance in a couple of our largest equity strategies, all of which have strong long-term track records. Turning to slide four, firm-wide net outflows in the first quarter were $3.1 billion. Outflows were concentrated in a few equity strategies where we saw clients de-risking, reallocating after periods of asset class outperformance and some shifting to passive alternatives. Those outflows mask positive business developments across many parts of the platform. Year-to-date, we have net inflows in 13 of our investment strategies. The sustainable emerging market strategy raised $250 million in the first quarter, and assets under management are nearing $3 billion. We have continued our multi-year success in growing our credit businesses, with 800 million of net inflows in the first quarter. This was our 15th consecutive quarter of positive credit flows. In alternatives, we raised 300 million in the first quarter, primarily in the global unconstrained strategy, where we continue to build a realizable pipeline. We expect to see continued strong business development in credit and alternatives, while the backdrop in equities is more challenging and difficult to predict. Our teams have been operating efficiently during a recent market volatility. At the end of last week, our AUM was back up to nearly $184 billion, near the all-time high that we achieved in late February. Our business and financial model allows us to remain focused on delivering high-value-added investment outcomes for clients, servicing our existing clients, while actively developing new client opportunities across channels globally. Slide 5 highlights our methodical approach to expanding our platform with new talent and investment capabilities. In the first quarter, we onboarded Grandview Property Partners, a real estate private equity investment firm specializing in U.S. middle market assets, and laid the groundwork to launch the team's next flagship fund later this year. We also added key distribution talent in EMEA and the Intermediate Wealth Channel and filed an exemptive relief application with the SEC to offer ETF share classes of artisan mutual funds. These investments build on success we are seeing with additional distribution resources, accessing the intermediate wealth channel in particular, and the broadening and modernizing of our investment vehicle capabilities with custom credit solutions and model delivery. The asset management landscape remains dynamic and we are actively exploring opportunities to expand the breadth of our platform. We are looking at a full range of opportunities from individual lift-outs to larger acquisitions. Our platform remains differentiated and compelling for great investment talent, and we have more ways to access, resource, support talent than ever before. I will now turn it over to CJ to review our recent financial results.