Artisan’s Outflows Widen Despite Record Assets

The Tip Desk · July 29, 2026 · 2 min read

Ending assets under management reached a record $183.4 billion even as quarterly net outflows widened to $10.5 billion.

Artisan Partners Asset Management (APAM), the active investment-management franchise, ended the second quarter with record assets under management as market gains outweighed a sharp deterioration in client flows. Ending AUM rose to $183.4 billion from $173.0 billion in the prior quarter and $175.5 billion a year earlier, while average AUM increased 9% YoY to $181.9 billion and slipped slightly QoQ.

Firmwide net outflows widened to $10.5 billion from $3.1 billion in the first quarter and $1.9 billion a year earlier. U.S. Value accounted for $6.4 billion of the redemptions, largely because of the loss of one sub-advisory mandate.

Demand remained firmer in newer investment categories. Credit strategies attracted about $700 million, representing a 15% annualized organic growth rate and extending their positive-flow streak to 16 quarters. Alternatives added about $300 million at a 25% annualized organic growth rate.

Revenue rose 1.6% QoQ and 9% YoY to $307.9 million, broadly matching the annual increase in average AUM. Management fees from Artisan Funds and Artisan Global Funds climbed to $198.0 million from $192.9 million in the first quarter and $179.6 million a year earlier, while separate-account and other fees were nearly flat QoQ at $109.7 million.

Adjusted operating margin expanded 180 bps QoQ and 120 bps YoY to 32.9%, as adjusted operating income rose to $101.4 million. GAAP operating margin narrowed 360 bps QoQ to 27.5%, reflecting higher expenses.

Compensation and benefits expense increased to $182.0 million from $168.7 million in the first quarter and $165.8 million a year earlier. The latest period included $16.8 million of expense tied to market-valuation changes, compared with none in the prior quarter and $9.8 million a year earlier.

Artisan raised its quarterly dividend to $0.80 a share from the $0.77 paid for the first quarter, distributing about 80% of quarterly cash generation. Adjusted earnings increased to $0.94 a share from $0.87 QoQ and $0.83 YoY.

The record ending asset base supported higher fees and a wider adjusted margin heading into the third quarter. The widening redemptions left Artisan’s growth increasingly dependent on continued market appreciation and sustained demand for credit and alternative strategies.