Artisan Partners Asset Management Inc. Class A

Good day, everyone, and welcome to the Artisan Partners Asset Management Business Update and Second Quarter 2026 earnings call. All participants will be in a listen-only mode. Should you need assistance, please say no to a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one. To withdraw your questions, you may press star and two. Please also note today's event is being recorded. At this time, I'd like to turn the comments call over to Artisan Partners Asset Management. Please go ahead.

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 anything 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. Our purpose at Artisan Partners remains unchanged, to generate and compound wealth for our clients over the long term. That purpose continues to guide every aspect of our business. We believe our autonomous investment team model combined with a disciplined business management and thoughtful long-term growth initiatives differentiates Artisan Partners and creates durable value for clients and shareholders alike. The second quarter demonstrated the resilience of that business model. We delivered record quarter-end assets under management, strong investment performance across much of the platform, continued growth in credit and alternatives, and another quarter of attractive financial performance despite continued headwinds in several equity strategies. As we have discussed, we are building a diversified global investment platform focused on producing attractive long-term growth across market cycles. The results this quarter reinforce that strategy. Strong investment performance continues to create opportunities for growth, particularly as clients increasingly seek differentiated active managers. Long-term investment performance remains strong across our platform, with 86% of our AUM outperforming their benchmarks over three years, 77% over five years, and 99% over 10 years gross of fees. The 12 artisan strategies with track records over 10 years have compounded capital at average annual rates between 6% and 13%. Since inception, their average annual rates of return have, in the aggregate, exceeded their benchmarks by an average of 189 basis points annually, net of fees. The investment performance of our equity strategies improved meaningfully over the one- and three-year time horizons, with 81% of our AUM outperforming their benchmarks over one year and 84% over three years gross of fees. During the quarter, global equity markets rebounded sharply before volatility returned in June. Our investment teams navigated well, generating more than $20 billion of returns for our clients. Turning to slide 4, we continually evaluate our investment franchises against both client demand and long-term economic viability. As previously announced, following the loss of two large sub-advisory mandates in the U.S. value business, We concluded the prudent decision was to wind down the U.S. Value team and redeploy resources toward areas where we see substantially greater long-term opportunity. The U.S. Value franchise has been an important part of Artisan Partners for nearly 30 years, and we are extremely proud of what the team has accomplished for clients and shareholders during that time. We expect the wind down to be largely completed by the end of the third quarter, and CJ will describe the financial impact during his remarks. Including the U.S. value outflows, net client outflows totaled $10.5 billion during the quarter. Approximately $9.2 billion, or nearly 90% of the total net outflows, came from the U.S. value and growth teams, with $6.4 billion from U.S. value and $2.8 billion from growth. We continue to diversify our platform and execute on growth opportunities. Credit strategies generated nearly $700 million of net inflows Representing our 16th consecutive quarter of positive organic growth and a 15% annualized organic growth rate. Alternative strategies have gathered approximately 300 million of net inflows, representing a 25% annualized organic growth rate and positive organic growth in five of the last six quarters. Within equities, we secured a $1 billion global discovery institutional mandate and our sustainable emerging market strategy continues to attract meaningful new client capital. Throughout the history of Artisan Partners, we have evolved the platform while remaining true to the principles that have defined the firm since its founding. High value added investing, talent-driven strategies, and alignment with long-term asset allocations. Consistent with these principles, we have successfully added new investment teams, expanded into attractive asset classes and increased the capabilities of our existing investment franchises. MSITE's Capital Group demonstrates that strategy in action. This quarter marks the four-year anniversary of MSITE's Capital Group. In four years, the team has built a distinctive business spanning three investment strategies, combining emerging markets debt expertise with sophisticated derivative capabilities to deliver differentiated investment solutions for clients. Today, the team manages more than $5 billion of assets supported by strong investment performance and growing client demand. We believe mSites remains in the early stages of its growth opportunity. Looking ahead, we see meaningful potential to continue expanding the business through additional investment vehicles and broader distribution. mSites demonstrates what our platform is designed to do. Identify exceptional investment talent, provide the resources and autonomy to succeed, and build enduring investment franchises that create long-term value for clients and shareholders. We are now applying that same long-term approach to Grandview Property Partners. Like mSites, Grandview expands our platform into an attractive area of long-term client demand while preserving the autonomy that allows great investment talent to thrive. Since completing the acquisition of Grandview earlier this year, the investment team has maintained their distinctive investment philosophy, process and leadership. We are laying the foundation for Grandview's next phase of growth. We are making good progress on the launch of their new flagship fund, including advanced discussions with an anchor institutional investor and active engagement with many of the limited partners that supported Grandview's prior funds. We recently hired a dedicated business leader to accelerate fundraising and expand institutional investor relationships. While it's early, we are encouraged by the progress to date and are excited for the opportunities ahead. As we look ahead, we see meaningful opportunities across the investment platform. We are preparing to launch additional vehicles to meet evolving client demands, expanding our credit capabilities, advancing Grandview's next phase of growth, and continuing to invest behind exceptional investment talent. Combined with our strong balance sheet and active pipeline of opportunities, we believe we're well positioned to drive long-term growth. We're excited about the opportunities ahead. I will now turn the call over to CJ to discuss our financial results.