The following is a summary of the Artisan Partners Asset Management Inc. (APAM) Q1 2024 Earnings Call Transcript:
Financial Performance:
Artisan Partners reported assets under management (AUM) of $160 billion at the end of Q1 2024, up 7% from the previous quarter and 16% year-on-year.
The firm's revenues increased by 6% sequentially and 13% year-on-year, largely due to the growth in average AUM. The average recurring fee rate remained steady at 69 basis points.
Adjusted operating income increased by 2% from the previous quarter and 17% from the same quarter in 2023.
Artisan Partners Asset Management had elevated expenses for Q1 2024 due to seasonal expenses and the addition of the retirement clause causing an approximately $8 million increase in compensation.
Business Progress:
The high-income strategy of Artisan Credit Team celebrated its 10-year anniversary in April 2024, with cumulative net inflows of $9.2 billion into the high-income strategy over the last decade.
The firm is focusing on diversification, particularly into institutional and non-US capital for its high-income strategy business and into different asset classes including real estate and infrastructure.
There has been a shift towards a new hybrid distribution model which is expected to bring benefits due to an increased number of strategies.
Focus is also given to credit franchise growth and increasing capacity for emerging market debt.
The company is also working on introducing new alternative credit strategies, which have been drawing interest regardless of macroeconomic conditions due to their unique and differentiated nature.
More details: Artisan Partners Asset Management IR
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