Executive Summary

Artisan Partners Asset Management Inc. (“Artisan”) has released its 2025 Annual Report, providing a comprehensive overview of the company’s performance, strategic direction, and operational outlook. The report contains several factors that shareholders should carefully consider, as they may be material to the company’s valuation and share price. Key highlights include the firm’s assets under management (AUM), investment performance, fee structure, client inflows and outflows, and forward-looking statements regarding growth and risks.

Key Financial Highlights

• Assets Under Management (AUM):
  • Artisan reported significant AUM across its strategies, with notable figures including \$10.28 billion in U.S. Mid-Cap Growth, \$5.75 billion in Value Equity, and \$2.54 billion in Sustainable Emerging Markets. The total AUM reflects the firm’s robust presence in both domestic and international markets, with diversified strategies catering to a broad range of investors.
• Shareholder Equity and Public Float:
  • As of June 30, 2025, the aggregate market value of common equity held by non-affiliates was approximately \$3.1 billion, based on a closing price of \$44.33 per Class A share.
  • As of February 1, 2026, outstanding shares were: Class A – 70,530,755; Class C – 8,917,476; Class B – 1,137,929.
• Fee Structure:
  • Fees are primarily based on a percentage of average AUM. Some clients pay performance-based fees, which could have significant upside for the company if its strategies outperform benchmarks.
  • Reported management fee percentages range from 0.35% to 1.85%, depending on the strategy and client relationship.
• Shareholder Returns:
  • Artisan continues to emphasize dividend payments, with clear forward-looking statements about the intention to maintain dividends and the expected amounts.

Investment Performance and Strategy

• Consistent Strategy Execution:
  • Each investment team manages a set of strategies with well-articulated, consistent investment processes aimed at long-term performance. New strategies are launched only when Artisan believes there is sustainable demand and opportunity for superior performance.
  • The company is willing to close strategies to new investors to protect performance and margins, even if it impacts short-term revenues. This disciplined approach is central to Artisan’s investor value proposition.
• Value-Added Performance:
  • Artisan measures performance by composite returns versus benchmarks. For example, the U.S. Mid-Cap Value strategy has delivered 191 basis points of value-added since inception, while Sustainable Emerging Markets has outperformed its benchmark by 118 basis points.
• Risk Management:
  • Artisan emphasizes rigorous adherence to stated investment parameters and closely monitors strategy capacity to avoid dilution of returns and maintain alignment with client interests.

Client Cash Flows and Business Trends

• Client Inflows/Outflows:
  • Cash flows are tracked by investment vehicle, asset class, and distribution channel. The allocation of assets involves estimates due to incomplete data, but Artisan believes its reporting is materially accurate.
  • Changes in flows, particularly large terminations or fundings, could materially impact AUM and, by extension, revenue and share price.
• Market and Economic Sensitivity:
  • The report warns that adverse market conditions, poor strategy performance, or significant changes in client flows are risks that could materially affect results and shareholder value.

Corporate Governance and Regulatory Environment

• Regulatory Compliance:
  • Artisan confirms compliance with all SEC reporting requirements, Sarbanes-Oxley internal controls, and auditor attestation.
  • Changes in the legislative or regulatory environment are flagged as potential risks that could impact operations and profitability.
• Executive Compensation and Tax Agreements:
  • Long-term incentive compensation for employees, including equity and cash-based awards, is expected to remain at competitive levels. Shareholders should monitor these costs, as they could impact margins.
  • Future amounts payable under tax receivable agreements are estimated, and may affect reported earnings.

Forward-Looking Statements and Risks

• Growth Outlook:
  • Artisan expects to continue expanding its investment teams and strategies, invest in operational efficiency, and pursue new business initiatives. These growth plans, if successful, could drive further share price appreciation.
• Risks:
  • Key risks include loss of investment professionals, adverse market conditions, regulatory changes, fee pressure, operational errors, and reputational damage.
  • These risks are material and could affect both short-term and long-term share values. The company does not guarantee updates to forward-looking statements except as required by law.

Important Shareholder Information and Potential Price Sensitivity

• Dividend Policy:
  • Artisan’s commitment to maintaining dividends is a strong positive for income investors, but any change in policy or payout ratio could materially affect the share price.
• Performance Fees:
  • Increased performance fees, driven by superior strategy performance, may result in upside for earnings and share price.
• Market Value and Float:
  • The report’s disclosure of public float and share prices, alongside AUM and performance trends, provides clear signals about the company’s valuation and liquidity, which are critical for both institutional and retail investors.
• Risks and Volatility:
  • Shareholders should be aware of the risks identified in the report, especially any events that could cause significant client outflows, underperformance, or regulatory challenges. These could be price-sensitive and result in share price volatility.

Conclusion

Artisan Partners Asset Management Inc. continues to execute a disciplined, client-centric strategy focused on long-term performance, operational stability, and sustainable growth. The firm’s robust AUM, strong investment performance, and commitment to dividends are positives for shareholders. However, investors must remain vigilant regarding risk factors, client cash flows, and potential regulatory changes, as these could materially impact the company’s earnings and share price. Any material deviation from current performance trends or dividend policy would likely be price-sensitive.

Disclaimer

This article is based on Artisan Partners Asset Management Inc.’s 2025 Annual Report and accompanying filings. The information provided is for informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any security. Investors should conduct their own due diligence and consult with a professional advisor before making investment decisions. Past performance is not indicative of future results. Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied.