What are Artisan's latest thoughts on platform expansion, including new strategies or vehicles?

Jason highlighted continued focus on credit (global expansion) and alternatives (hedged equity, equity long-short, private markets like equity secondaries, real assets). He also emphasized broadening vehicle types (CITs, private funds, UCITS, ETFs) to offer clients more access points, noting they received exemptive relief for ETFs. “We're going to continue to focus our time, effort and attention in the areas where we see that overlap between asset allocation, demand, where we believe alpha is prevalent, and where we think the talent is available.”

Clarify the $0.03/share impact from the U.S. Value wind-down and quantify severance costs affecting fixed expenses.

C.J. Daley clarified the $0.03/share impact is the sequential delta from Q2 to Q3, with Q2 being slightly accretive and Q3 expecting a minimal loss. He noted fixed expenses would decline in Q3 due to reduced seasonal and employee separation costs, but full-year fixed expense guidance remains mid-single digits. “the $0.03 is the delta between the second quarter and what we expect in the third quarter. So we had a slight accretive nature to the U.S. Value team in the second quarter given the wind-down started midway.”

Provide an update on Grandview's new fund, including its prior size, current progress, and expected launch timeline.

Jason Gottlieb explained Grandview's prior Fund III was $150 million, and Fund IV is expected to launch in early fall 2026 and be "multiples of that." He also mentioned hiring an institutional business leader to accelerate fundraising and that they are having conversations with an anchor investor and existing LPs. “Fund IV, their flagship fund, we expect will be launched sometime later this summer, but likely early in the fall of this year. And we're obviously having conversations with that one anchor as well as many of the existing LPs.”

APAM

Artisan Partners (APAM) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Financials· Jul 29, 2026

Source: earnings call transcript

Executive summary

Artisan Partners Q2 FY26 — Record AUM and Strong Credit/Alternatives Growth Despite Equity Headwinds

Artisan Partners delivered record AUM and strong financial performance in Q2 FY26, driven by robust growth in credit and alternative strategies. Despite significant net outflows from the U.S. Value and Growth equity teams, the firm's diversified platform and strong long-term investment performance continue to attract capital. Management is focused on expanding capabilities in credit and alternatives, broadening vehicle offerings, and launching Grandview Property Partners' next flagship fund.

Highlights

Achieved record quarter-end assets under management of $183 billion, an increase of 6% QoQ and 5% YoY.
86% of AUM outperformed benchmarks over 3 years and 99% over 10 years, gross of fees.
Credit strategies generated $700 million of net inflows, marking 16 consecutive quarters of positive organic growth at a 15% annualized rate.
Alternative strategies gathered $300 million of net inflows, representing a 25% annualized organic growth rate.
Adjusted operating income increased 8% sequentially to $101.4 million, with adjusted operating margin expanding 180 basis points to 32.9%.

Concerns

Net client outflows totaled $10.5 billion, primarily driven by $6.4 billion from the U.S. Value team and $2.8 billion from the Growth team.
The wind-down of the U.S. Value team is expected to negatively impact Q3 EPS by approximately $0.03 per share compared to Q2.
Continued headwinds in several equity strategies, particularly in global segments of the Growth team, contributed to outflows.

Guidance & targets

Category	Target	Timeline	Confidence
EPS impact from U.S. Value team wind-down	negative $0.03 per share medium materiality	Q3 · FY26	High
Fixed expenses	mid-single digits medium materiality	FY26	High
Grandview Property Partners Fund IV launch	sometime later this summer, but likely early in the fall of this year high materiality	Q3/Q4 FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
Credit Strategies Achieved strong net inflows and consistent organic growth, demonstrating resilience and client demand. Net Inflows: $700 millionOrganic Growth Rate (annualized): 15%Consecutive Quarters of Positive Organic Growth: 16	—	—	—	—
Alternative Strategies Continued to attract significant net inflows, contributing to overall diversification and growth. Net Inflows: $300 millionOrganic Growth Rate (annualized): 25%Quarters of Positive Organic Growth: 5 of last 6	—	—	—	—
U.S. Value Team Experienced significant outflows leading to the decision to wind down the team, largely completed by Q3 FY26. Net Outflows: $6.4 billion	—	—	—	—
Growth Team Contributed to overall net outflows, with efforts underway to bolster performance and talent, particularly in global segments. Net Outflows: $2.8 billion	—	—	—	—
EMsights Capital Group Celebrated 4-year anniversary, managing significant assets across three investment strategies with strong performance and growing client demand. Assets Under Management: >$5 billion	—	—	—	—
Grandview Property Partners Acquired earlier this year, preparing to launch flagship Fund IV, with active engagement with anchor investors and LPs. Assets Under Management: little under $1 billion (at acquisition)	—	—	—	—

Product announcements

Product	Type	Timeline
Grandview Property Partners Fund IV	launch	sometime later this summer, but likely early in the fall of this year
UCIT	launch	not-too-distant future
ETFs	roadmap	—

Deals & partnerships

Grandview Property Partners Acquisition of a real estate investment team to expand into private markets.

Completed earlier this year, the acquisition expands Artisan's platform into an attractive area of long-term client demand while preserving the investment team's autonomy.

Risks & headwinds

Wind-down of U.S. Value team Largely completed by the end of Q3 FY26.

$6.4 billion of net outflows in Q2 FY26; approximately $0.03 per share negative impact on Q3 FY26 EPS compared to Q2.

Mitigation:Redeploying resources toward areas with substantially greater long-term opportunity.

Continued headwinds in several equity strategies Ongoing.

$2.8 billion net outflows from the Growth team in Q2 FY26.

Mitigation:Bolstering team leadership (e.g., Angela Wu joining Jim Hamel for Global Opportunities), hiring new analysts and associate portfolio managers, and proactive self-disruption to improve performance.

Client rebalancing activity in global risk assets Q2 FY26.

Broad-based rebalancing across a number of largest relationships, contributing to net outflows.

Mitigation:Focusing on differentiated active management, expanding into credit and alternatives, and broadening vehicle offerings to meet evolving client demands for income-oriented and alternative strategies.

Credit strategies short-term underperformance Short-term.

Underperformance described as 'not dramatic' and on the heels of multiple years of outstanding performance.

Mitigation:Attributed to a lack of energy exposure; the team remains disciplined and focused on their investment process. Recently won a $150 million institutional mandate for their floating rate strategy.

What to watch in Q3 FY26

U.S. Value Team Wind-down EPS Impact

next quarter

Current Expected negative $0.03 per share impact on Q3 EPS vs Q2

Target Confirmation of expected impact or any deviation

Why it matters

This will confirm the financial implications of the strategic decision to wind down the U.S. Value team and its effect on profitability.

Looking ahead, the September quarter will be negatively impacted by approximately $0.03 per share compared to the second quarter as a result of the wind-down of the U.S. Value team.

Find out whether APAM delivers this. Inve re-checks your case every morning.

Q&A highlights

What is the current client demand for EM and global risk assets, and how is Artisan responding?

Jason Gottlieb noted strong demand for EM, particularly their Sustainable Emerging Markets team, with robust pipeline activity. He observed a more cautious tone in global equity, leading to broad-based rebalancing, and increased client interest in credit, income-oriented strategies, and alternatives.

“We have seen a really strong demand for EM. They're looking for not only access to the asset class, but certainly, they're looking for differentiated capabilities.”

asked by Kenneth Lee · answered by Jason Gottlieb

2 min read 6 chapters

Detailed narrative

U.S. Value Team Wind-down and Strategic Redeployment

Following the loss of two large sub-advisory mandates, Artisan Partners decided to wind down its U.S. Value team, a franchise that had been part of the firm for nearly 30 years. This wind-down is expected to be largely completed by the end of Q3 FY26 and contributed $6.4 billion to the $10.5 billion in net client outflows during Q2.

The strategic decision aims to redeploy resources towards areas with greater long-term opportunity, despite the short-term financial impact of approximately $0.03 per share on Q3 EPS.

Diversification into Credit and Alternatives

The firm continues to successfully diversify its investment platform, with credit strategies achieving $700 million in net inflows during Q2, marking their 16th consecutive quarter of positive organic growth at a 15% annualized rate. Alternative strategies also gathered $300 million in net inflows, representing a 25% annualized organic growth rate and positive organic growth in five of the last six quarters.

This growth highlights Artisan's focus on areas of client demand and alpha generation, offsetting some of the equity outflows.

Strong Investment Performance Across Platform

Artisan Partners maintained strong long-term investment performance, with 86% of its AUM outperforming benchmarks over 3 years and 99% over 10 years, gross of fees. The 12 strategies with over 10-year track records have compounded capital at average annual rates between 6% and 13%, exceeding benchmarks by an average of 189 basis points annually net of fees.

Equity strategies also showed meaningful improvement over the 1- and 3-year horizons, with 81% and 84% of AUM outperforming, respectively.

EMsights Capital Group's Continued Success

Celebrating its 4-year anniversary, EMsights Capital Group now manages over $5 billion in assets across three investment strategies. The team's distinctive approach, combining emerging market expertise with sophisticated derivative capabilities, has delivered differentiated solutions for clients. Management believes EMsights is still in the early stages of its growth, with potential for expansion through additional investment vehicles and broader distribution, serving as a model for Artisan's talent-driven strategy.

Progress with Grandview Property Partners

Following its acquisition earlier this year, Grandview Property Partners is making good progress on the launch of its new flagship Fund IV. Advanced discussions are underway with an anchor institutional investor, and active engagement continues with limited partners from prior funds.

A dedicated business leader has been hired to accelerate fundraising and expand institutional investor relationships, with Fund IV expected to be significantly larger than the prior $150 million Fund III, launching in early fall 2026.

Broadening Vehicle Offerings and Distribution

Artisan Partners is actively expanding its vehicle offerings to meet evolving client demands, including the development of CITs and private funds. The firm expects to launch a UCIT in the near future, with active conversations with a potential anchor. Additionally, Artisan has received exemptive relief for ETFs, signaling a strategic move to provide more flexible access to its investment strategies, aligning with its philosophy of being vehicle-agnostic to solidify long-term client relationships.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.