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Introduction & Market Context
Artisan Partners Asset Management Inc (NYSE:APAM), a global investment management firm, reported its second quarter 2025 results showing assets under management (AUM) growth despite ongoing client outflows. The company’s business update presentation revealed that strong investment returns have more than offset negative client cash flows, resulting in overall AUM growth.
The asset manager continues to execute its long-standing business philosophy centered around high-value-added investment strategies, a talent-driven business model, and thoughtful growth. This approach has helped Artisan navigate market volatility while maintaining financial stability.
Quarterly Performance Highlights
Artisan Partners reported total AUM of $175.5 billion as of June 30, 2025, representing an 8% increase from $162.4 billion at the beginning of the quarter. This growth was primarily driven by investment returns of $15.2 billion, which more than compensated for net client cash outflows of $1.9 billion during the quarter.
As shown in the following chart of AUM trends over recent quarters, the company has maintained an upward trajectory despite consistent outflows:
The firm’s revenue for Q2 2025 reached $282.8 million, up from $277.1 million in Q1 2025 and $270.8 million in Q2 2024. Adjusted operating income was $89.6 million, resulting in an adjusted net income of $67.5 million or $0.83 per adjusted share.
The detailed quarterly financial results demonstrate the company’s steady performance:
Detailed Financial Analysis
For the first half of 2025, Artisan Partners generated revenues of $559.9 million, compared to $535.2 million for the same period in 2024, representing a 4.6% increase. Year-to-date adjusted net income reached $134.5 million ($1.66 per adjusted share), up from $127.6 million ($1.58 per adjusted share) in the first half of 2024.
The company’s year-to-date financial performance shows consistent improvement across key metrics:
Artisan’s balance sheet remains strong with $244.9 million in cash and cash equivalents as of June 30, 2025, up from $201.2 million at the end of 2024. The company maintains a conservative leverage ratio of 0.5x, with total borrowings steady at $200 million.
The firm declared a quarterly dividend of $0.73 per share for Q2 2025, plus a special dividend of $0.50 per share, highlighting its commitment to returning capital to shareholders. This continues the company’s track record of consistent dividend payments, with total dividends of $3.48 in 2024.
Strategic Initiatives & Business Model
Artisan Partners has maintained a consistent business philosophy since its founding, focusing on three core pillars: operating as a high-value-added investment firm, implementing a talent-driven business model, and pursuing thoughtful growth.
The company’s methodical approach to growth is evident in its expansion from a single investment team with one strategy in 1995 to 11 investment teams managing 26 investment strategies today. This growth has been accompanied by leadership transitions, with Jason Gottlieb taking over as CEO in 2025, following Eric Colson who had served as CEO since 2010.
The following slide illustrates this methodical approach to growth and leadership evolution:
Artisan’s AUM is diversified across asset classes, with $156.1 billion in equity strategies (89% of total AUM), $15.6 billion in fixed income (9%), and $3.8 billion in alternative investments (2%). The firm maintains a global client base with 26% of AUM coming from non-U.S. clients.
The detailed breakdown of AUM by asset class provides insight into the company’s diversification strategy:
Long-Term Investment Performance
Artisan Partners’ business model is supported by strong long-term investment performance across multiple strategies. The International Value Group, for example, has delivered top 1% performance since inception, with its flagship International Value Fund generating 10.78% annualized returns since inception in 2002, outperforming its benchmark by 418 basis points annually.
The performance of the International Value Group is highlighted in the following chart:
The company’s ability to deliver consistent long-term results is further demonstrated by the performance of strategies with track records exceeding 10 years. These strategies have generated significant value-added returns net of fees, reinforcing Artisan’s value proposition to clients:
Forward-Looking Statements
Artisan Partners continues to focus on its transparent and predictable financial model, emphasizing long-term growth, fee discipline, and a variable cost structure that enhances stability through market volatility. The company maintains strong cash flow generation and a conservative balance sheet, which provides flexibility for future investments.
The firm’s distribution strategy shows a shift toward intermediated wealth channels, which now represent 60% of AUM compared to 40% for institutional channels. Over the past five years, the intermediated wealth segment has grown at a 13% compound annual growth rate (CAGR), while the institutional segment has grown at just 2% CAGR.
The following chart illustrates this shift in distribution channels:
Despite the continued net client outflows, Artisan Partners remains focused on delivering strong investment performance and maintaining its disciplined approach to growth. The company’s ability to generate positive investment returns has been crucial in offsetting the impact of outflows, resulting in overall AUM growth.
With its diverse investment strategies, global client base, and strong financial position, Artisan Partners appears well-positioned to navigate market challenges while continuing to deliver value to both clients and shareholders.
Full presentation:
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