Artisan Partners Asset Management expects the wind-down of its U.S. Value team to negatively impact third-quarter earnings by approximately $0.03 per share compared to the second quarter, with the process largely completed by the end of the third quarter. The wind-down follows the loss of two large sub-advisory mandates in the U.S. Value business and contributed to total net client outflows of $10.5 billion during the second quarter, of which $6.4 billion came from U.S. Value and $2.8 billion from Growth strategies. Despite these headwinds, the firm reported record quarter-end assets under management of $183 billion, a 6% increase from the prior quarter, and raised its quarterly dividend by 4% to $0.80 per share. Credit strategies generated nearly $700 million of net inflows, marking the 16th consecutive quarter of positive organic growth, while alternative strategies gathered approximately $300 million of net inflows. Adjusted earnings per share rose to $0.94, and the firm retained over $180 million of excess capital after funding the dividend to support growth initiatives or potential shareholder returns.
Artisan Partners Asset Management IncWind-down of U.S. Value team and loss of sub-advisory mandates causing $0.03 EPS impact and $10.5B outflows