(Mark One) | |||||||||||
☑ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||
FOR THE QUARTERLY PERIOD ENDED |
OR | |||||||||||
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||||||
FOR THE TRANSITION PERIOD FROM TO |
Delaware | 45-0969585 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
875 E. Wisconsin Avenue, Suite 800 | ||||||||
Milwaukee, | WI | 53202 | ||||||
(Address of principal executive offices) | (Zip Code) | |||||||
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Class A common stock, par value $0.01 per share | APAM | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||
Emerging growth company | ☐ |
Page | ||||||||
Part I | Financial Information | |||||||
Item 1. | Unaudited Consolidated Financial Statements | |||||||
Unaudited Condensed Consolidated Statements of Financial Condition as of | ||||||||
Unaudited Consolidated Statements of Operations for the three and | ||||||||
Unaudited Consolidated Statements of Comprehensive Income for the three and | ||||||||
Unaudited Consolidated Statements of Changes in Stockholders’ Equity for the three and | ||||||||
Unaudited Consolidated Statements of Cash Flows for the | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Part II | Other Information | |||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 215,752 | $ | 154,987 | |||||||
Accounts receivable | 115,039 | 99,888 | |||||||||
Investment securities | 36,235 | 3,656 | |||||||||
Property and equipment, net | 37,068 | 35,874 | |||||||||
Deferred tax assets | 491,530 | 482,061 | |||||||||
Restricted cash | 629 | 629 | |||||||||
Prepaid expenses and other assets | 15,562 | 17,762 | |||||||||
Operating lease assets | 79,198 | 79,304 | |||||||||
Assets of consolidated investment products | |||||||||||
Cash and cash equivalents | 65,345 | 43,834 | |||||||||
Accounts receivable and other | 1,557 | 3,587 | |||||||||
Investment assets, at fair value | 227,029 | 230,380 | |||||||||
Total assets | $ | 1,284,944 | $ | 1,151,962 | |||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITY | |||||||||||
Accounts payable, accrued expenses, and other | $ | 29,585 | $ | 24,727 | |||||||
Accrued incentive compensation | 98,542 | 12,924 | |||||||||
Borrowings | 199,330 | 199,284 | |||||||||
Operating lease liabilities | 92,278 | 92,671 | |||||||||
Amounts payable under tax receivable agreements | 428,270 | 412,468 | |||||||||
Liabilities of consolidated investment products | |||||||||||
Accounts payable, accrued expenses, and other | 94,008 | 109,362 | |||||||||
Investment liabilities, at fair value | 12,941 | 15,731 | |||||||||
Total liabilities | 954,954 | 867,167 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Redeemable noncontrolling interests | 124,915 | 93,753 | |||||||||
Common stock | |||||||||||
Class A common stock ($0.01 par value per share, 500,000,000 shares authorized, 64,821,842 and 63,131,007 shares outstanding at March 31, 2021 and December 31, 2020, respectively) | 648 | 631 | |||||||||
Class B common stock ($0.01 par value per share, 200,000,000 shares authorized, 3,783,601 and 4,457,958 shares outstanding at March 31, 2021 and December 31, 2020, respectively) | 38 | 45 | |||||||||
Class C common stock ($0.01 par value per share, 400,000,000 shares authorized, 10,557,209 and 10,983,145 shares outstanding at March 31, 2021 and December 31, 2020, respectively) | 106 | 110 | |||||||||
Additional paid-in capital | 114,757 | 107,738 | |||||||||
Retained earnings | 68,960 | 72,944 | |||||||||
Accumulated other comprehensive income (loss) | (868) | (991) | |||||||||
Total Artisan Partners Asset Management Inc. stockholders’ equity | 183,641 | 180,477 | |||||||||
Noncontrolling interests - Artisan Partners Holdings | 21,434 | 10,565 | |||||||||
Total stockholders’ equity | $ | 205,075 | $ | 191,042 | |||||||
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity | $ | 1,284,944 | $ | 1,151,962 |
September 30, 2021 | December 31, 2020 | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 273,253 | $ | 154,987 | |||||||
Accounts receivable | 122,148 | 99,888 | |||||||||
Investment securities | 47,792 | 3,656 | |||||||||
Property and equipment, net | 36,094 | 35,874 | |||||||||
Deferred tax assets | 482,208 | 482,061 | |||||||||
Restricted cash | 629 | 629 | |||||||||
Prepaid expenses and other assets | 21,143 | 17,762 | |||||||||
Operating lease assets | 73,091 | 79,304 | |||||||||
Assets of consolidated investment products | |||||||||||
Cash and cash equivalents | 16,582 | 43,834 | |||||||||
Accounts receivable and other | 10,151 | 3,587 | |||||||||
Investment assets, at fair value | 175,918 | 230,380 | |||||||||
Total assets | $ | 1,259,009 | $ | 1,151,962 | |||||||
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND STOCKHOLDERS’ EQUITY | |||||||||||
Accounts payable, accrued expenses, and other | $ | 27,270 | $ | 24,727 | |||||||
Accrued incentive compensation | 123,435 | 12,924 | |||||||||
Borrowings | 199,421 | 199,284 | |||||||||
Operating lease liabilities | 85,375 | 92,671 | |||||||||
Amounts payable under tax receivable agreements | 404,424 | 412,468 | |||||||||
Liabilities of consolidated investment products | |||||||||||
Accounts payable, accrued expenses, and other | 37,577 | 109,362 | |||||||||
Investment liabilities, at fair value | 13,163 | 15,731 | |||||||||
Total liabilities | 890,665 | 867,167 | |||||||||
Commitments and contingencies | 0 | 0 | |||||||||
Redeemable noncontrolling interests | 97,391 | 93,753 | |||||||||
Common stock | |||||||||||
Class A common stock ($0.01 par value per share, 500,000,000 shares authorized, 65,215,891 and 63,131,007 shares outstanding at September 30, 2021 and December 31, 2020, respectively) | 652 | 631 | |||||||||
Class B common stock ($0.01 par value per share, 200,000,000 shares authorized, 3,632,687 and 4,457,958 shares outstanding at September 30, 2021 and December 31, 2020, respectively) | 36 | 45 | |||||||||
Class C common stock ($0.01 par value per share, 400,000,000 shares authorized, 10,191,061 and 10,983,145 shares outstanding at September 30, 2021 and December 31, 2020, respectively) | 102 | 110 | |||||||||
Additional paid-in capital | 128,621 | 107,738 | |||||||||
Retained earnings | 121,497 | 72,944 | |||||||||
Accumulated other comprehensive income (loss) | (1,313) | (991) | |||||||||
Total Artisan Partners Asset Management Inc. stockholders’ equity | 249,595 | 180,477 | |||||||||
Noncontrolling interests - Artisan Partners Holdings | 21,358 | 10,565 | |||||||||
Total stockholders’ equity | $ | 270,953 | $ | 191,042 | |||||||
Total liabilities, redeemable noncontrolling interests, and stockholders’ equity | $ | 1,259,009 | $ | 1,151,962 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | 283,965 | $ | 199,904 | |||||||||||||||||||
Performance fees | 6,712 | 2,932 | |||||||||||||||||||||
Total revenues | $ | 290,677 | $ | 202,836 | |||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Compensation and benefits | 139,465 | 104,717 | |||||||||||||||||||||
Distribution, servicing and marketing | 7,580 | 5,548 | |||||||||||||||||||||
Occupancy | 5,192 | 5,189 | |||||||||||||||||||||
Communication and technology | 9,856 | 9,205 | |||||||||||||||||||||
General and administrative | 6,775 | 7,217 | |||||||||||||||||||||
Total operating expenses | 168,868 | 131,876 | |||||||||||||||||||||
Total operating income | 121,809 | 70,960 | |||||||||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||||
Interest expense | (2,685) | (2,685) | |||||||||||||||||||||
Net investment gain (loss) of consolidated investment products | 6,916 | (12,924) | |||||||||||||||||||||
Other net investment gain (loss) | 196 | (2,257) | |||||||||||||||||||||
Total non-operating income (expense) | 4,427 | (17,866) | |||||||||||||||||||||
Income before income taxes | 126,236 | 53,094 | |||||||||||||||||||||
Provision for income taxes | 21,618 | 9,451 | |||||||||||||||||||||
Net income before noncontrolling interests | 104,618 | 43,643 | |||||||||||||||||||||
Less: Net income attributable to noncontrolling interests - Artisan Partners Holdings | 23,641 | 16,112 | |||||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests - consolidated investment products | 3,699 | (7,294) | |||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 77,278 | $ | 34,825 | |||||||||||||||||||
Basic earnings per share | $ | 1.19 | $ | 0.53 | |||||||||||||||||||
Diluted earnings per share | $ | 1.19 | $ | 0.53 | |||||||||||||||||||
Basic weighted average number of common shares outstanding | 58,758,284 | 53,265,479 | |||||||||||||||||||||
Diluted weighted average number of common shares outstanding | 58,773,269 | 53,265,479 | |||||||||||||||||||||
Dividends declared per Class A common share | $ | 1.28 | $ | 1.28 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||
Management fees | $ | 316,176 | $ | 232,474 | $ | 901,011 | $ | 627,305 | |||||||||||||||
Performance fees | 398 | 279 | 11,189 | 11,226 | |||||||||||||||||||
Total revenues | $ | 316,574 | $ | 232,753 | $ | 912,200 | $ | 638,531 | |||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Compensation and benefits | 142,235 | 108,657 | 419,713 | 315,578 | |||||||||||||||||||
Distribution, servicing and marketing | 8,131 | 6,252 | 23,707 | 17,155 | |||||||||||||||||||
Occupancy | 5,560 | 6,338 | 16,260 | 16,740 | |||||||||||||||||||
Communication and technology | 10,873 | 9,672 | 31,150 | 28,559 | |||||||||||||||||||
General and administrative | 6,717 | 4,589 | 18,700 | 15,667 | |||||||||||||||||||
Total operating expenses | 173,516 | 135,508 | 509,530 | 393,699 | |||||||||||||||||||
Total operating income | 143,058 | 97,245 | 402,670 | 244,832 | |||||||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||||
Interest expense | (2,711) | (2,718) | (8,116) | (8,118) | |||||||||||||||||||
Net gain (loss) on the tax receivable agreements | 358 | 238 | 358 | 238 | |||||||||||||||||||
Net investment gain (loss) of consolidated investment products | 2,824 | 7,798 | 18,068 | 7,751 | |||||||||||||||||||
Other net investment gain (loss) | (2,109) | 578 | 2,022 | (505) | |||||||||||||||||||
Total non-operating income (expense) | (1,638) | 5,896 | 12,332 | (634) | |||||||||||||||||||
Income before income taxes | 141,420 | 103,141 | 415,002 | 244,198 | |||||||||||||||||||
Provision for income taxes | 28,054 | 18,448 | 78,137 | 44,155 | |||||||||||||||||||
Net income before noncontrolling interests | 113,366 | 84,693 | 336,865 | 200,043 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests - Artisan Partners Holdings | 24,796 | 21,547 | 74,064 | 55,791 | |||||||||||||||||||
Less: Net income (loss) attributable to noncontrolling interests - consolidated investment products | 2,157 | 4,619 | 10,903 | 4,749 | |||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 86,413 | $ | 58,527 | $ | 251,898 | $ | 139,503 | |||||||||||||||
Basic earnings per share | $ | 1.30 | $ | 0.93 | $ | 3.84 | $ | 2.22 | |||||||||||||||
Diluted earnings per share | $ | 1.30 | $ | 0.93 | $ | 3.84 | $ | 2.22 | |||||||||||||||
Basic weighted average number of common shares outstanding | 59,965,549 | 56,402,503 | 59,519,634 | 55,188,563 | |||||||||||||||||||
Diluted weighted average number of common shares outstanding | 59,982,774 | 56,408,272 | 59,535,894 | 55,190,486 | |||||||||||||||||||
Dividends declared per Class A common share | $ | 1.00 | $ | 0.67 | $ | 3.16 | $ | 2.56 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Net income before noncontrolling interests | $ | 104,618 | $ | 43,643 | |||||||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Foreign currency translation gain (loss) | 173 | (1,242) | |||||||||||||||||||||
Total other comprehensive income (loss) | 173 | (1,242) | |||||||||||||||||||||
Comprehensive income | 104,791 | 42,401 | |||||||||||||||||||||
Comprehensive income attributable to noncontrolling interests - Artisan Partners Holdings | 23,691 | 15,920 | |||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests - consolidated investment products | 3,699 | (7,294) | |||||||||||||||||||||
Comprehensive income attributable to Artisan Partners Asset Management Inc. | $ | 77,401 | $ | 33,775 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Net income before noncontrolling interests | $ | 113,366 | $ | 84,693 | $ | 336,865 | $ | 200,043 | |||||||||||||||
Other comprehensive income (loss) | |||||||||||||||||||||||
Foreign currency translation gain (loss) | (595) | 794 | (358) | (492) | |||||||||||||||||||
Total other comprehensive income (loss) | (595) | 794 | (358) | (492) | |||||||||||||||||||
Comprehensive income | 112,771 | 85,487 | 336,507 | 199,551 | |||||||||||||||||||
Comprehensive income attributable to noncontrolling interests - Artisan Partners Holdings | 24,697 | 21,723 | 74,028 | 55,795 | |||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests - consolidated investment products | 2,157 | 4,619 | 10,903 | 4,749 | |||||||||||||||||||
Comprehensive income attributable to Artisan Partners Asset Management Inc. | $ | 85,917 | $ | 59,145 | $ | 251,576 | $ | 139,007 |
Three months ended September 30, 2021 | Class A Common stock | Class B Common stock | Class C Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Non-controlling interests - Artisan Partners Holdings | Total stockholders’ equity | Redeemable non-controlling interests | ||||||||||||||||||||
Balance at July 1, 2021 | $ | 648 | $ | 36 | $ | 106 | $ | 119,855 | $ | 100,429 | $ | (817) | $ | 20,207 | $ | 240,464 | $ | 90,458 | |||||||||||
Net income | — | — | — | — | 86,413 | — | 24,795 | 111,208 | 2,157 | ||||||||||||||||||||
Other comprehensive income - foreign currency translation | — | — | — | — | — | (489) | (106) | (595) | — | ||||||||||||||||||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP | — | — | — | (412) | — | (7) | 419 | — | — | ||||||||||||||||||||
Amortization of equity-based compensation | — | — | — | 8,029 | — | — | 1,716 | 9,745 | — | ||||||||||||||||||||
Deferred tax assets, net of amounts payable under tax receivable agreements | — | — | — | 1,154 | — | — | — | 1,154 | — | ||||||||||||||||||||
Issuance of Class A common stock, net of issuance costs | — | — | — | (5) | — | — | — | (5) | — | ||||||||||||||||||||
Forfeitures and employee/partner terminations | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||
Exchange of subsidiary equity | 4 | — | (4) | — | — | — | — | — | — | ||||||||||||||||||||
Capital contributions, net | — | — | — | — | — | — | — | — | 4,776 | ||||||||||||||||||||
Distributions | — | — | — | — | — | — | (25,629) | (25,629) | — | ||||||||||||||||||||
Dividends | — | — | — | — | (65,345) | — | (44) | (65,389) | — | ||||||||||||||||||||
Balance at September 30, 2021 | $ | 652 | $ | 36 | $ | 102 | $ | 128,621 | $ | 121,497 | $ | (1,313) | $ | 21,358 | $ | 270,953 | $ | 97,391 |
Three months ended March 31, 2021 | Class A Common stock | Class B Common stock | Class C Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Non-controlling interests - Artisan Partners Holdings | Total stockholders’ equity | Redeemable non-controlling interests | |||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | Three months ended September 30, 2020 | Class A Common stock | Class B Common stock | Class C Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Non-controlling interests - Artisan Partners Holdings | Total stockholders’ equity | Redeemable non-controlling interests | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at January 1, 2021 | $ | 631 | $ | 45 | $ | 110 | $ | 107,738 | $ | 72,944 | $ | (991) | $ | 10,565 | $ | 191,042 | $ | 93,753 | ||||||||||||||||||||||||||||||||||||||||
Balance at July 1, 2020 | Balance at July 1, 2020 | $ | 614 | $ | 56 | $ | 116 | $ | 88,098 | $ | 34,562 | $ | (2,539) | $ | 4,899 | $ | 125,806 | $ | 46,027 | |||||||||||||||||||||||||||||||||||||||
Net income | Net income | — | — | — | — | 77,278 | — | 23,641 | 100,919 | 3,699 | Net income | — | — | — | — | 58,527 | — | 21,547 | 80,074 | 4,619 | ||||||||||||||||||||||||||||||||||||||
Other comprehensive income - foreign currency translation | Other comprehensive income - foreign currency translation | — | — | — | — | — | 136 | 37 | 173 | — | Other comprehensive income - foreign currency translation | — | — | — | — | — | 620 | 174 | 794 | — | ||||||||||||||||||||||||||||||||||||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP | Cumulative impact of changes in ownership of Artisan Partners Holdings LP | — | — | — | 1,254 | — | (13) | (1,241) | 0 | — | Cumulative impact of changes in ownership of Artisan Partners Holdings LP | — | — | — | (740) | — | (2) | 742 | — | — | ||||||||||||||||||||||||||||||||||||||
Amortization of equity-based compensation | Amortization of equity-based compensation | — | — | — | 8,907 | — | — | 1,893 | 10,800 | — | Amortization of equity-based compensation | — | — | — | 7,249 | — | — | 1,998 | 9,247 | — | ||||||||||||||||||||||||||||||||||||||
Deferred tax assets, net of amounts payable under tax receivable agreements | Deferred tax assets, net of amounts payable under tax receivable agreements | — | — | — | 3,444 | — | — | — | 3,444 | — | Deferred tax assets, net of amounts payable under tax receivable agreements | — | — | — | 139 | — | — | — | 139 | — | ||||||||||||||||||||||||||||||||||||||
Issuance of Class A common stock, net of issuance costs | Issuance of Class A common stock, net of issuance costs | 10 | — | — | 46,658 | — | — | — | 46,668 | — | Issuance of Class A common stock, net of issuance costs | — | — | — | (1) | — | — | — | (1) | — | ||||||||||||||||||||||||||||||||||||||
Forfeitures and employee/partner terminations | Forfeitures and employee/partner terminations | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of restricted stock awards | 7 | — | — | (7) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Employee net share settlement | (1) | — | — | (6,319) | — | — | (1,546) | (7,866) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Exchange of subsidiary equity | Exchange of subsidiary equity | 1 | 0 | (1) | — | — | — | — | 0 | — | Exchange of subsidiary equity | — | (1) | — | — | — | — | — | (1) | — | ||||||||||||||||||||||||||||||||||||||
Purchase of equity and subsidiary equity | — | (7) | (3) | (46,918) | — | — | — | (46,928) | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Capital contributions, net | Capital contributions, net | — | — | — | — | — | — | — | — | 48,197 | Capital contributions, net | — | — | — | — | — | — | — | — | 9,540 | ||||||||||||||||||||||||||||||||||||||
Impact of deconsolidation of CIPs | — | — | — | — | — | — | — | 0 | (20,734) | |||||||||||||||||||||||||||||||||||||||||||||||||
Distributions | Distributions | — | — | — | — | — | — | (11,873) | (11,873) | — | Distributions | — | — | — | — | — | — | (20,923) | (20,923) | — | ||||||||||||||||||||||||||||||||||||||
Dividends | Dividends | — | — | — | 0 | (81,262) | — | (42) | (81,304) | — | Dividends | — | — | — | — | (41,374) | — | (25) | (41,399) | — | ||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2021 | $ | 648 | $ | 38 | $ | 106 | $ | 114,757 | $ | 68,960 | $ | (868) | $ | 21,434 | $ | 205,075 | $ | 124,915 | ||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2020 | Balance at September 30, 2020 | $ | 614 | $ | 55 | $ | 116 | $ | 94,745 | $ | 51,715 | $ | (1,921) | $ | 8,412 | $ | 153,736 | $ | 60,186 | |||||||||||||||||||||||||||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements. | The accompanying notes are an integral part of the consolidated financial statements. |
Three months ended March 31, 2020 | Class A Common stock | Class B Common stock | Class C Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Non-controlling interests - Artisan Partners Holdings | Total stockholders’ equity | Redeemable non-controlling interests | ||||||||||||||||||||
Balance at January 1, 2020 | $ | 564 | $ | 78 | $ | 136 | $ | 89,149 | $ | 44,455 | $ | (1,425) | $ | 5,544 | $ | 138,501 | $ | 43,110 | |||||||||||
Net income | — | — | — | — | 34,825 | — | 16,112 | 50,937 | (7,294) | ||||||||||||||||||||
Other comprehensive income - foreign currency translation | — | — | — | — | — | (930) | (312) | (1,242) | — | ||||||||||||||||||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP | — | — | — | 521 | — | (120) | (401) | 0 | — | ||||||||||||||||||||
Amortization of equity-based compensation | — | — | — | 7,391 | — | — | 2,304 | 9,695 | — | ||||||||||||||||||||
Deferred tax assets, net of amounts payable under tax receivable agreements | — | — | — | 7,104 | — | — | — | 7,104 | — | ||||||||||||||||||||
Issuance of Class A common stock, net of issuance costs | 18 | — | — | 62,807 | — | — | — | 62,825 | — | ||||||||||||||||||||
Issuance of restricted stock awards | 9 | — | — | (9) | — | — | — | — | — | ||||||||||||||||||||
Employee net share settlement | (1) | — | — | (3,314) | — | — | (1,215) | (4,530) | — | ||||||||||||||||||||
Exchange of subsidiary equity | 16 | 0 | (16) | — | — | — | — | 0 | — | ||||||||||||||||||||
Purchase of equity and subsidiary equity | — | (18) | 0 | (63,009) | — | — | — | (63,027) | — | ||||||||||||||||||||
Capital contributions, net | — | — | — | — | — | — | — | — | 3,848 | ||||||||||||||||||||
Impact of deconsolidation of CIPs | — | — | — | — | — | — | — | 0 | (2,441) | ||||||||||||||||||||
Distributions | — | — | — | — | — | — | (17,076) | (17,076) | — | ||||||||||||||||||||
Dividends | — | — | — | (14,416) | (57,986) | — | (37) | (72,439) | — | ||||||||||||||||||||
Balance at March 31, 2020 | $ | 606 | $ | 60 | $ | 120 | $ | 86,224 | $ | 21,294 | $ | (2,475) | $ | 4,919 | $ | 110,748 | $ | 37,223 | |||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
Nine months ended September 30, 2021 | Class A Common stock | Class B Common stock | Class C Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Non-controlling interests - Artisan Partners Holdings | Total stockholders’ equity | Redeemable non-controlling interests | ||||||||||||||||||||
Balance at January 1, 2021 | $ | 631 | $ | 45 | $ | 110 | $ | 107,738 | $ | 72,944 | $ | (991) | $ | 10,565 | $ | 191,042 | $ | 93,753 | |||||||||||
Net income | — | — | — | — | 251,898 | — | 74,064 | 325,962 | 10,903 | ||||||||||||||||||||
Other comprehensive income - foreign currency translation | — | — | — | — | — | (301) | (57) | (358) | — | ||||||||||||||||||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP | — | — | — | (1,256) | — | (21) | 1,277 | — | — | ||||||||||||||||||||
Amortization of equity-based compensation | — | — | — | 24,798 | — | — | 5,301 | 30,099 | — | ||||||||||||||||||||
Deferred tax assets, net of amounts payable under tax receivable agreements | — | — | — | 4,994 | — | — | — | 4,994 | — | ||||||||||||||||||||
Issuance of Class A common stock, net of issuance costs | 10 | — | — | 46,651 | — | — | — | 46,661 | — | ||||||||||||||||||||
Forfeitures and employee/partner terminations | (1) | — | — | 1 | — | — | — | — | — | ||||||||||||||||||||
Issuance of restricted stock awards | 7 | — | — | (7) | — | — | — | — | — | ||||||||||||||||||||
Employee net share settlement | (2) | — | — | (7,380) | — | — | (1,777) | (9,159) | — | ||||||||||||||||||||
Exchange of subsidiary equity | 7 | (2) | (5) | — | — | — | — | — | — | ||||||||||||||||||||
Purchase of equity and subsidiary equity | — | (7) | (3) | (46,918) | — | — | — | (46,928) | — | ||||||||||||||||||||
Capital contributions, net | — | — | — | — | — | — | — | — | 59,818 | ||||||||||||||||||||
Impact of deconsolidation of CIPs | — | — | — | — | — | — | — | — | (67,083) | ||||||||||||||||||||
Distributions | — | — | — | — | — | — | (67,889) | (67,889) | — | ||||||||||||||||||||
Dividends | — | — | — | — | (203,345) | — | (126) | (203,471) | — | ||||||||||||||||||||
Balance at September 30, 2021 | $ | 652 | $ | 36 | $ | 102 | $ | 128,621 | $ | 121,497 | $ | (1,313) | $ | 21,358 | $ | 270,953 | $ | 97,391 |
Nine months ended September 30, 2020 | Class A Common stock | Class B Common stock | Class C Common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive income (loss) | Non-controlling interests - Artisan Partners Holdings | Total stockholders’ equity | Redeemable non-controlling interests | ||||||||||||||||||||
Balance at January 1, 2020 | $ | 564 | $ | 78 | $ | 136 | $ | 89,149 | $ | 44,455 | $ | (1,425) | $ | 5,544 | $ | 138,501 | $ | 43,110 | |||||||||||
Net income | — | — | — | — | 139,503 | — | 55,791 | 195,294 | 4,749 | ||||||||||||||||||||
Other comprehensive income - foreign currency translation | — | — | — | — | — | (346) | (146) | (492) | — | ||||||||||||||||||||
Cumulative impact of changes in ownership of Artisan Partners Holdings LP | — | — | — | (2,308) | — | (150) | 2,458 | — | — | ||||||||||||||||||||
Amortization of equity-based compensation | — | — | — | 21,628 | — | — | 6,302 | 27,930 | — | ||||||||||||||||||||
Deferred tax assets, net of amounts payable under tax receivable agreements | — | — | — | 8,658 | — | — | — | 8,658 | — | ||||||||||||||||||||
Issuance of Class A common stock, net of issuance costs | 17 | — | — | 62,721 | — | — | — | 62,738 | — | ||||||||||||||||||||
Issuance of restricted stock awards | 9 | — | — | (9) | — | — | — | — | — | ||||||||||||||||||||
Employee net share settlement | (1) | — | — | (3,314) | — | — | (1,215) | (4,530) | — | ||||||||||||||||||||
Exchange of subsidiary equity | 25 | (5) | (20) | — | — | — | — | — | — | ||||||||||||||||||||
Purchase of equity and subsidiary equity | — | (18) | — | (63,009) | — | — | — | (63,027) | — | ||||||||||||||||||||
Capital contributions, net | — | — | — | — | — | — | — | — | 14,768 | ||||||||||||||||||||
Impact of deconsolidation of CIPs | — | — | — | — | — | — | — | — | (2,441) | ||||||||||||||||||||
Distributions | — | — | — | — | — | — | (60,245) | (60,245) | — | ||||||||||||||||||||
Dividends | — | — | — | (18,771) | (132,243) | — | (77) | (151,091) | — | ||||||||||||||||||||
Balance at September 30, 2020 | $ | 614 | $ | 55 | $ | 116 | $ | 94,745 | $ | 51,715 | $ | (1,921) | $ | 8,412 | $ | 153,736 | $ | 60,186 | |||||||||||
The accompanying notes are an integral part of the consolidated financial statements. |
For the Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income before noncontrolling interests | $ | 104,618 | $ | 43,643 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 1,554 | 1,624 | |||||||||
Deferred income taxes | 9,777 | 6,881 | |||||||||
Noncash lease expense | (272) | (789) | |||||||||
Net investment (gain) loss on nonconsolidated seed investment securities | (372) | 2,379 | |||||||||
(Gain) loss on disposal of property and equipment | 0 | (6) | |||||||||
Amortization of debt issuance costs | 118 | 118 | |||||||||
Share-based compensation | 10,800 | 9,695 | |||||||||
Net investment (gain) loss of consolidated investment products | (6,916) | 12,924 | |||||||||
Purchase of investments by consolidated investment products | (90,733) | (29,092) | |||||||||
Proceeds from sale of investments by consolidated investment products | 37,395 | 30,160 | |||||||||
Change in assets and liabilities resulting in an increase (decrease) in cash: | |||||||||||
Accounts receivable | (15,151) | (14,841) | |||||||||
Prepaid expenses and other assets | (8,948) | 10,762 | |||||||||
Accounts payable and accrued expenses | 89,328 | 52,729 | |||||||||
Net change in operating assets and liabilities of consolidated investment products | 61,578 | (5,690) | |||||||||
Net cash provided by operating activities | 192,776 | 120,497 | |||||||||
Cash flows from investing activities | |||||||||||
Acquisition of property and equipment | (408) | (631) | |||||||||
Leasehold improvements | (1,314) | (167) | |||||||||
Proceeds from sale of investment securities | 12,813 | 5,633 | |||||||||
Purchase of investment securities | (33,820) | (1,260) | |||||||||
Net cash provided by (used in) investing activities | (22,729) | 3,575 | |||||||||
Cash flows from financing activities | |||||||||||
Partnership distributions | (11,873) | (17,076) | |||||||||
Dividends paid | (81,304) | (72,439) | |||||||||
Net proceeds from issuance of common stock | 46,928 | 63,027 | |||||||||
Payment of costs directly associated with the issuance of Class A common stock | (102) | (106) | |||||||||
Purchase of equity and subsidiary equity | (46,928) | (63,027) | |||||||||
Taxes paid related to employee net share settlement | (7,866) | (4,530) | |||||||||
Capital contributions to consolidated investment products, net | 48,197 | 3,848 | |||||||||
Net cash used in financing activities | (52,948) | (90,303) | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 117,099 | 33,769 | |||||||||
Net cash impact of deconsolidation of CIPs | (34,823) | 0 | |||||||||
Cash, cash equivalents and restricted cash | |||||||||||
Beginning of period | 199,450 | 144,255 | |||||||||
End of period | $ | 281,726 | $ | 178,024 | |||||||
Cash, cash equivalents and restricted cash as of the end of the period | |||||||||||
Cash and cash equivalents | $ | 215,752 | $ | 170,749 | |||||||
Restricted cash | 629 | 629 | |||||||||
Cash and cash equivalents of consolidated investment products | 65,345 | 6,646 | |||||||||
Cash, cash equivalents and restricted cash | $ | 281,726 | $ | 178,024 | |||||||
Supplementary information | |||||||||||
Noncash activity: | |||||||||||
Establishment of deferred tax assets | $ | 19,246 | $ | 37,957 | |||||||
Establishment of amounts payable under tax receivable agreements | 15,802 | 30,853 | |||||||||
Increase in investment securities due to deconsolidation of CIPs | 11,200 | 1,469 | |||||||||
Operating lease assets obtained in exchange for operating lease liabilities | 2,434 | 0 |
For the Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income before noncontrolling interests | $ | 336,865 | $ | 200,043 | |||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 5,081 | 4,967 | |||||||||
Deferred income taxes | 28,411 | 23,698 | |||||||||
Asset impairment | — | 871 | |||||||||
Noncash lease expense | (1,272) | (1,275) | |||||||||
Net investment (gain) loss on nonconsolidated investment securities | (2,230) | 642 | |||||||||
Net (gain) loss on the tax receivable agreements | (358) | (238) | |||||||||
(Gain) loss on disposal of property and equipment | 1 | (4) | |||||||||
Amortization of debt issuance costs | 304 | 304 | |||||||||
Share-based compensation | 30,099 | 27,931 | |||||||||
Net investment (gain) loss of consolidated investment products | (18,068) | (7,751) | |||||||||
Purchase of investments by consolidated investment products | (190,614) | (130,486) | |||||||||
Proceeds from sale of investments by consolidated investment products | 127,863 | 108,887 | |||||||||
Change in assets and liabilities resulting in an increase (decrease) in cash: | |||||||||||
Accounts receivable | (22,260) | (16,555) | |||||||||
Prepaid expenses and other assets | (4,214) | (4,496) | |||||||||
Accounts payable and accrued expenses | 113,355 | 78,770 | |||||||||
Net change in operating assets and liabilities of consolidated investment products | 1,205 | 13,413 | |||||||||
Net cash provided by operating activities | 404,168 | 298,721 | |||||||||
Cash flows from investing activities | |||||||||||
Acquisition of property and equipment | (1,791) | (1,372) | |||||||||
Leasehold improvements | (3,338) | (370) | |||||||||
Proceeds from sale of investment securities | 12,813 | 20,118 | |||||||||
Purchase of investment securities | (33,820) | (2,149) | |||||||||
Net cash provided by (used in) investing activities | (26,136) | 16,227 | |||||||||
Cash flows from financing activities | |||||||||||
Partnership distributions | (67,889) | (60,245) | |||||||||
Dividends paid | (203,471) | (151,091) | |||||||||
Payment under the tax receivable agreements | (31,250) | (26,943) | |||||||||
Net proceeds from issuance of common stock | 46,928 | 63,027 | |||||||||
Payment of costs directly associated with the issuance of Class A common stock | (244) | (220) | |||||||||
Purchase of equity and subsidiary equity | (46,928) | (63,027) | |||||||||
Taxes paid related to employee net share settlement | (9,159) | (4,530) | |||||||||
Capital contributions to consolidated investment products, net | 59,818 | 14,768 | |||||||||
Net cash used in financing activities | (252,195) | (228,261) | |||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 125,837 | 86,687 | |||||||||
Net cash impact of deconsolidation of CIPs | (34,823) | — | |||||||||
Cash, cash equivalents and restricted cash | |||||||||||
Beginning of period | 199,450 | 144,255 | |||||||||
End of period | $ | 290,464 | $ | 230,942 | |||||||
Cash, cash equivalents and restricted cash as of the end of the period | |||||||||||
Cash and cash equivalents | $ | 273,253 | $ | 200,433 | |||||||
Restricted cash | 629 | 629 | |||||||||
Cash and cash equivalents of consolidated investment products | 16,582 | 29,880 | |||||||||
Cash, cash equivalents and restricted cash | $ | 290,464 | $ | 230,942 | |||||||
Supplementary information | |||||||||||
Noncash activity: | |||||||||||
Establishment of deferred tax assets | $ | 28,548 | $ | 46,437 | |||||||
Establishment of amounts payable under tax receivable agreements | 23,206 | 37,602 | |||||||||
Increase in investment securities due to deconsolidation of CIPs | 20,900 | 1,469 | |||||||||
Operating lease assets obtained in exchange for operating lease liabilities | 2,434 | 3,406 |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||
Investments in equity securities | $ | 34,464 | $ | 2,807 | |||||||
Investments in equity securities accounted for under the equity method | 1,771 | 849 | |||||||||
Total investment securities | $ | 36,235 | $ | 3,656 |
As of September 30, 2021 | As of December 31, 2020 | ||||||||||
Investments in equity securities | $ | 36,651 | $ | 2,807 | |||||||
Investments in equity securities accounted for under the equity method | 11,141 | 849 | |||||||||
Total investment securities | $ | 47,792 | $ | 3,656 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Unrealized gain (loss) on investment securities held at the end of the period | $ | (2,098) | $ | 276 | $ | 1,516 | $ | 522 |
Assets and Liabilities at Fair Value | |||||||||||||||||||||||||||||
Total | NAV Practical Expedient (No Fair Value Level) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
March 31, 2021 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Money market funds | $ | 25,856 | $ | 0 | $ | 25,856 | $ | 0 | $ | 0 | |||||||||||||||||||
Equity securities | 36,235 | 999 | 35,236 | 0 | 0 | ||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Money market funds | $ | 25,855 | $ | 0 | $ | 25,855 | $ | 0 | $ | 0 | |||||||||||||||||||
Equity securities | 3,656 | 57 | 3,599 | 0 | 0 |
Assets and Liabilities at Fair Value | |||||||||||||||||||||||||||||
Total | NAV Practical Expedient (No Fair Value Level) | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Money market funds | $ | 97,859 | $ | — | $ | 97,859 | $ | — | $ | — | |||||||||||||||||||
Equity securities | 47,792 | 10,372 | 37,420 | — | — | ||||||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Money market funds | $ | 25,855 | $ | — | $ | 25,855 | $ | — | $ | — | |||||||||||||||||||
Equity securities | 3,656 | 57 | 3,599 | — | — |
Maturity | Outstanding Balance | Interest Rate Per Annum | |||||||||||||||||||||
Revolving credit agreement | August 2022 | $ | 0 | NA | |||||||||||||||||||
Senior notes | |||||||||||||||||||||||
Series C | August 2022 | 90,000 | 5.82 | % | |||||||||||||||||||
Series D | August 2025 | 60,000 | 4.29 | % | |||||||||||||||||||
Series E | August 2027 | 50,000 | 4.53 | % | |||||||||||||||||||
Total borrowings | $ | 200,000 |
Maturity | Outstanding Balance | Interest Rate Per Annum | |||||||||||||||||||||
Revolving credit agreement | August 2022 | $ | — | NA | |||||||||||||||||||
Senior notes | |||||||||||||||||||||||
Series C | August 2022 | 90,000 | 5.82 | % | |||||||||||||||||||
Series D | August 2025 | 60,000 | 4.29 | % | |||||||||||||||||||
Series E | August 2027 | 50,000 | 4.53 | % | |||||||||||||||||||
Total borrowings | $ | 200,000 |
2021 | $ | 0 | |||
2022 | 90,000 | ||||
2023 | 0 | ||||
2024 | 0 | ||||
2025 | 60,000 | ||||
Thereafter | 50,000 | ||||
Total | $ | 200,000 |
2021 | $ | — | |||
2022 | 90,000 | ||||
2023 | — | ||||
2024 | — | ||||
2025 | 60,000 | ||||
Thereafter | 50,000 | ||||
Total | $ | 200,000 |
As of January 1, 2021 | |||||||||
Assets of consolidated investment products | |||||||||
Cash and cash equivalents | $ | 34,823 | |||||||
Accounts receivable and other | 1,769 | ||||||||
Investment assets, at fair value | 72,868 | ||||||||
Less: Amounts reclassified to investment securities | (11,200) | ||||||||
Total assets | $ | 98,260 | |||||||
Liabilities of consolidated investment products | |||||||||
Accounts payable, accrued expenses, and other | $ | 76,960 | |||||||
Investment liabilities, at fair value | 566 | ||||||||
Total liabilities | 77,526 | ||||||||
Redeemable noncontrolling interests | 20,734 | ||||||||
Total liabilities and equity | $ | 98,260 |
Assets and Liabilities at Fair Value | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
September 30, 2021 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Money market funds | $ | 16,467 | $ | 16,467 | $ | — | $ | — | |||||||||||||||
Equity securities - long position | 29,806 | 29,174 | 632 | — | |||||||||||||||||||
Fixed income instruments - long position | 146,044 | — | 146,044 | — | |||||||||||||||||||
Derivative assets | 68 | 68 | — | — | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Equity securities - short position | $ | 1,186 | $ | 1,186 | $ | — | $ | — | |||||||||||||||
Fixed income instruments - short position | 11,790 | — | 11,790 | — | |||||||||||||||||||
Derivative liabilities | 187 | — | 187 | — |
Assets and Liabilities at Fair Value | Assets and Liabilities at Fair Value | |||||||||||||||||||||||||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||
March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||
Assets | Assets | Assets | ||||||||||||||||||||||||||||||||||||||||||||
Money market funds | Money market funds | $ | 4,270 | $ | 4,270 | $ | 0 | $ | 0 | Money market funds | $ | 7,822 | $ | 7,822 | $ | — | $ | — | ||||||||||||||||||||||||||||
Equity securities - long position | Equity securities - long position | 84,543 | 81,937 | 2,606 | 0 | Equity securities - long position | 83,960 | 83,027 | 933 | — | ||||||||||||||||||||||||||||||||||||
Fixed income instruments - long position | Fixed income instruments - long position | 142,486 | 0 | 142,486 | 0 | Fixed income instruments - long position | 133,518 | — | 133,518 | — | ||||||||||||||||||||||||||||||||||||
Derivative assets | Derivative assets | 12,902 | 12,902 | — | — | |||||||||||||||||||||||||||||||||||||||||
Liabilities | Liabilities | Liabilities | ||||||||||||||||||||||||||||||||||||||||||||
Fixed income instruments - short position | Fixed income instruments - short position | $ | 12,786 | $ | 0 | $ | 12,786 | $ | 0 | Fixed income instruments - short position | $ | 14,978 | $ | — | $ | 14,978 | $ | — | ||||||||||||||||||||||||||||
Derivative liabilities | Derivative liabilities | 155 | 0 | 155 | 0 | Derivative liabilities | 753 | 566 | 187 | — |
Assets and Liabilities at Fair Value | |||||||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||||||
December 31, 2020 | |||||||||||||||||||||||
Assets | |||||||||||||||||||||||
Money market funds | $ | 7,822 | $ | 7,822 | $ | 0 | $ | 0 | |||||||||||||||
Equity securities - long position | 83,960 | 83,027 | 933 | 0 | |||||||||||||||||||
Fixed income instruments - long position | 133,518 | 0 | 133,518 | 0 | |||||||||||||||||||
Derivative assets | 12,902 | 12,902 | 0 | 0 | |||||||||||||||||||
Liabilities | |||||||||||||||||||||||
Fixed income instruments - short position | $ | 14,978 | $ | 0 | $ | 14,978 | $ | 0 | |||||||||||||||
Derivative liabilities | 753 | 566 | 187 | 0 |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||
Net CIP assets included in the table above | $ | 218,358 | $ | 222,471 | |||||||
Net CIP assets/(liabilities) not included in the table above | (31,376) | (69,763) | |||||||||
Total Net CIP assets | 186,982 | 152,708 | |||||||||
Less: redeemable noncontrolling interests | 124,915 | 93,753 | |||||||||
Artisan’s direct equity investment in CIPs | $ | 62,067 | $ | 58,955 |
As of September 30, 2021 | As of December 31, 2020 | ||||||||||
Net CIP assets included in the table above | $ | 179,222 | $ | 222,471 | |||||||
Net CIP assets/(liabilities) not included in the table above | (27,311) | (69,763) | |||||||||
Total Net CIP assets | 151,911 | 152,708 | |||||||||
Less: redeemable noncontrolling interests | 97,391 | 93,753 | |||||||||
Artisan’s direct equity investment in CIPs | $ | 54,520 | $ | 58,955 |
Holdings GP Units | Limited Partnership Units | Total | APAM Ownership % | |||||||||||
Balance at December 31, 2020 | 63,131,007 | 15,441,103 | 78,572,110 | 80 | % | |||||||||
2021 Follow-On Offering | 963,614 | (963,614) | 0 | 1 | % | |||||||||
Holdings Common Unit Exchanges(1) | 136,679 | (136,679) | 0 | 0 | % | |||||||||
Issuance of APAM Restricted Shares | 740,249 | 0 | 740,249 | 1 | % | |||||||||
Delivery of Shares Underlying RSUs (1) | 1,074 | 0 | 1,074 | 0 | % | |||||||||
Restricted Share Award Net Share Settlement (1) | (150,781) | 0 | (150,781) | 0 | % | |||||||||
Balance at March 31, 2021 | 64,821,842 | 14,340,810 | 79,162,652 | 82 | % | |||||||||
Holdings GP Units | Limited Partnership Units | Total | APAM Ownership % | |||||||||||
Balance at December 31, 2020 | 63,131,007 | 15,441,103 | 78,572,110 | 80 | % | |||||||||
2021 Follow-On Offering | 963,614 | (963,614) | — | 1 | % | |||||||||
Holdings Common Unit Exchanges | 653,741 | (653,741) | — | 1 | % | |||||||||
Issuance of APAM Restricted Shares | 740,249 | — | 740,249 | 1 | % | |||||||||
Delivery of Shares Underlying RSUs (1) | 1,074 | — | 1,074 | — | % | |||||||||
Restricted Share Award Net Share Settlement (1) | (176,194) | — | (176,194) | — | % | |||||||||
Forfeitures from Employee Terminations (1) | (97,600) | — | (97,600) | — | % | |||||||||
Balance at September 30, 2021 | 65,215,891 | 13,823,748 | 79,039,639 | 83 | % | |||||||||
(1) The impact of the transaction on APAM’s ownership percentage was less than 1%. |
Statement of Financial Condition | For the Three Months Ended March 31, | ||||||||||
2021 | 2020 | ||||||||||
Additional paid-in capital | $ | 1,254 | $ | 521 | |||||||
Noncontrolling interests - Artisan Partners Holdings | (1,241) | (401) | |||||||||
Accumulated other comprehensive income (loss) | (13) | (120) | |||||||||
Net impact to financial condition | $ | 0 | $ | 0 |
Statement of Financial Condition | For the Nine Months Ended September 30, | ||||||||||
2021 | 2020 | ||||||||||
Additional paid-in capital | $ | (1,256) | $ | (740) | |||||||
Noncontrolling interests - Artisan Partners Holdings | 1,277 | 742 | |||||||||
Accumulated other comprehensive income (loss) | (21) | (2) | |||||||||
Net impact to financial condition | $ | — | $ | — |
Outstanding | |||||||||||||||||||||||||||||
Authorized | As of September 30, 2021 | As of December 31, 2020 | Voting Rights (1) | Economic Rights | |||||||||||||||||||||||||
Common shares | |||||||||||||||||||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 65,215,891 | 63,131,007 | 1 vote per share | Proportionate | ||||||||||||||||||||||||
Class B, par value $0.01 per share | 200,000,000 | 3,632,687 | 4,457,958 | 1 vote per share | None | ||||||||||||||||||||||||
Class C, par value $0.01 per share | 400,000,000 | 10,191,061 | 10,983,145 | 1 vote per share | None | ||||||||||||||||||||||||
(1) The Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of September 30, 2021, Artisan’s employees held 5,142,292 restricted shares of Class A common stock and all 3,632,687 outstanding shares of Class B common stock, all of which were subject to the agreement. |
Outstanding | |||||||||||||||||||||||||||||
Authorized | As of March 31, 2021 | As of December 31, 2020 | Voting Rights (1) | Economic Rights | |||||||||||||||||||||||||
Common shares | |||||||||||||||||||||||||||||
Class A, par value $0.01 per share | 500,000,000 | 64,821,842 | 63,131,007 | 1 vote per share | Proportionate | ||||||||||||||||||||||||
Class B, par value $0.01 per share | 200,000,000 | 3,783,601 | 4,457,958 | 1 vote per share | None | ||||||||||||||||||||||||
Class C, par value $0.01 per share | 400,000,000 | 10,557,209 | 10,983,145 | 1 vote per share | None | ||||||||||||||||||||||||
(1) The Company’s employees to whom Artisan has granted equity have entered into a stockholders agreement with respect to all shares of APAM common stock they have acquired from the Company and any shares they may acquire from the Company in the future, pursuant to which they granted an irrevocable voting proxy to a Stockholders Committee. As of March 31, 2021, Artisan’s employees held 5,297,254 restricted shares of Class A common stock and all 3,783,601 outstanding shares of Class B common stock, all of which were subject to the agreement. |
Type of Dividend | Class of Stock | For the Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Quarterly | Class A Common | $ | 0.97 | $ | 0.68 | |||||||||||||||||||||||||||
Special Annual | Class A Common | $ | 0.31 | $ | 0.60 |
Type of Dividend | Class of Stock | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Quarterly | Class A Common | $ | 1.00 | $ | 0.67 | $ | 2.85 | $ | 1.96 | |||||||||||||||||||||||
Special Annual | Class A Common | $ | — | $ | — | $ | 0.31 | $ | 0.60 |
Total Stock Outstanding | Class A Common Stock(1) | Class B Common Stock | Class C Common Stock | |||||||||||||||||
Balance at December 31, 2020 | 78,572,110 | 63,131,007 | 4,457,958 | 10,983,145 | ||||||||||||||||
2021 Follow-On Offering | 0 | 963,614 | (638,614) | (325,000) | ||||||||||||||||
Holdings Common Unit Exchanges | 0 | 136,679 | (35,743) | (100,936) | ||||||||||||||||
Restricted Share Award Grants | 740,249 | 740,249 | 0 | 0 | ||||||||||||||||
Restricted Share Award Net Share Settlement | (150,781) | (150,781) | 0 | 0 | ||||||||||||||||
Delivery of Shares Underlying RSUs | 1,074 | 1,074 | 0 | 0 | ||||||||||||||||
Balance at March 31, 2021 | 79,162,652 | 64,821,842 | 3,783,601 | 10,557,209 | ||||||||||||||||
(1) There were 328,310 and 304,570 restricted stock units outstanding at March 31, 2021 and December 31, 2020, respectively. In addition, there were 135,230 performance share units outstanding at March 31, 2021. Based on the current status of the market and performance conditions, the 135,230 unvested performance share units would ultimately result in the issuance of 165,233 shares of Class A common stock if all other vesting conditions were met. Restricted stock units and performance share units are not reflected in the table because they are not considered outstanding or issued stock. |
Total Stock Outstanding | Class A Common Stock(1) | Class B Common Stock | Class C Common Stock | |||||||||||||||||
Balance at December 31, 2020 | 78,572,110 | 63,131,007 | 4,457,958 | 10,983,145 | ||||||||||||||||
2021 Follow-On Offering | — | 963,614 | (638,614) | (325,000) | ||||||||||||||||
Holdings Common Unit Exchanges | — | 653,741 | (186,657) | (467,084) | ||||||||||||||||
Restricted Share Award Grants | 740,249 | 740,249 | — | — | ||||||||||||||||
Restricted Share Award Net Share Settlement | (176,194) | (176,194) | — | — | ||||||||||||||||
Delivery of Shares Underlying RSUs | 1,074 | 1,074 | — | — | ||||||||||||||||
Employee/Partner Terminations | (97,600) | (97,600) | — | — | ||||||||||||||||
Balance at September 30, 2021 | 79,039,639 | 65,215,891 | 3,632,687 | 10,191,061 | ||||||||||||||||
(1) There were 327,713 and 304,570 restricted stock units outstanding at September 30, 2021 and December 31, 2020, respectively. In addition, there were 135,230 performance share units outstanding at September 30, 2021. Based on the current status of the market and performance conditions, the 135,230 unvested performance share units would ultimately result in the issuance of 165,233 shares of Class A common stock if all other vesting conditions were met. Restricted stock units and performance share units are not reflected in the table because they are not considered outstanding or issued stock. |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Holdings Partnership Distributions to Limited Partners | $ | 11,873 | $ | 17,076 | ||||||||||||||||||||||
Holdings Partnership Distributions to APAM | 48,546 | 45,104 | ||||||||||||||||||||||||
Total Holdings Partnership Distributions | $ | 60,419 | $ | 62,180 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
Holdings Partnership Distributions to Limited Partners | $ | 25,629 | $ | 20,923 | $ | 67,889 | $ | 60,245 | ||||||||||||||||||
Holdings Partnership Distributions to APAM | 110,555 | 70,024 | 285,007 | 181,379 | ||||||||||||||||||||||
Total Holdings Partnership Distributions | $ | 136,184 | $ | 90,947 | $ | 352,896 | $ | 241,624 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Management fees | |||||||||||||||||||||||
Artisan Funds | $ | 165,807 | $ | 114,679 | |||||||||||||||||||
Artisan Global Funds | 10,864 | 8,116 | |||||||||||||||||||||
Separate accounts(1) | 107,294 | 77,109 | |||||||||||||||||||||
Performance fees | |||||||||||||||||||||||
Separate accounts(1) | 6,712 | 2,932 | |||||||||||||||||||||
Total revenues(2) | $ | 290,677 | $ | 202,836 | |||||||||||||||||||
(1) Separate account revenue consists of management fees and performance fees earned from vehicles other than Artisan Funds or Artisan Global Funds, which includes traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds. | |||||||||||||||||||||||
(2) All management fees and performance fees from consolidated investment products are eliminated upon consolidation and therefore are omitted from this table. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Management fees | |||||||||||||||||||||||
Artisan Funds | $ | 186,254 | $ | 131,942 | $ | 528,924 | $ | 356,318 | |||||||||||||||
Artisan Global Funds | 12,822 | 8,455 | 35,568 | 23,884 | |||||||||||||||||||
Separate accounts and other(1) | 117,100 | 92,077 | 336,519 | 247,103 | |||||||||||||||||||
Performance fees | |||||||||||||||||||||||
Artisan Global Funds | — | 14 | — | 14 | |||||||||||||||||||
Separate accounts and other(1) | 398 | 265 | 11,189 | 11,212 | |||||||||||||||||||
Total revenues (2) | $ | 316,574 | $ | 232,753 | $ | 912,200 | $ | 638,531 | |||||||||||||||
(1) Separate accounts and other revenue consists of management fees and performance fees earned from vehicles other than Artisan Funds or Artisan Global Funds, which includes traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds. | |||||||||||||||||||||||
(2) All management fees and performance fees from consolidated investment products are eliminated upon consolidation and therefore are omitted from this table. |
As of March 31, 2021 | As of December 31, 2020 | As of September 30, 2021 | As of December 31, 2020 | |||||||||||||||||||
Customer | Customer | Customer | ||||||||||||||||||||
Artisan Funds | Artisan Funds | $ | 9,202 | $ | 5,227 | Artisan Funds | $ | 6,041 | $ | 5,227 | ||||||||||||
Artisan Global Funds | Artisan Global Funds | 4,664 | 4,473 | Artisan Global Funds | 5,416 | 4,473 | ||||||||||||||||
Separate accounts | 93,447 | 87,971 | ||||||||||||||||||||
Separate accounts and other | Separate accounts and other | 100,524 | 87,971 | |||||||||||||||||||
Total receivables from contracts with customers | Total receivables from contracts with customers | $ | 107,313 | $ | 97,671 | Total receivables from contracts with customers | $ | 111,981 | $ | 97,671 | ||||||||||||
Non-customer receivables | Non-customer receivables | 7,726 | 2,217 | Non-customer receivables | 10,167 | 2,217 | ||||||||||||||||
Accounts receivable | Accounts receivable | $ | 115,039 | $ | 99,888 | Accounts receivable | $ | 122,148 | $ | 99,888 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Salaries, incentive compensation and benefits (1) | $ | 128,364 | $ | 95,530 | |||||||||||||||||||
Long-term incentive compensation awards | |||||||||||||||||||||||
Long-term cash incentive compensation expense | 1,214 | 0 | |||||||||||||||||||||
Restricted share-based award compensation expense | 9,887 | 9,187 | |||||||||||||||||||||
Total compensation and benefits | $ | 139,465 | $ | 104,717 | |||||||||||||||||||
(1) Excluding long-term incentive compensation awards |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Salaries, incentive compensation and benefits (1) | $ | 130,831 | $ | 99,517 | $ | 385,106 | $ | 288,186 | |||||||||||||||
Long-term cash incentive compensation expense | 1,806 | — | 4,941 | — | |||||||||||||||||||
Restricted share-based award compensation expense | 9,598 | 9,140 | 29,666 | 27,392 | |||||||||||||||||||
Long-term incentive compensation awards | 11,404 | 9,140 | 34,607 | 27,392 | |||||||||||||||||||
Total compensation and benefits | $ | 142,235 | $ | 108,657 | $ | 419,713 | $ | 315,578 | |||||||||||||||
(1) Excluding long-term incentive compensation awards |
Weighted-Average Grant Date Fair Value | Restricted Stock Awards and Restricted Stock Units | ||||||||||
Unvested at January 1, 2021 | $ | 35.09 | 5,293,642 | ||||||||
Granted | 52.93 | 741,555 | |||||||||
Forfeited | 29.85 | (98,197) | |||||||||
Vested | 31.53 | (685,178) | |||||||||
Unvested at September 30, 2021 | $ | 38.17 | 5,251,822 |
Weighted-Average Grant Date Fair Value | Restricted Stock Awards and Restricted Stock Units | ||||||||||
Unvested at January 1, 2021 | $ | 35.09 | 5,293,642 | ||||||||
Granted | 52.93 | 741,555 | |||||||||
Forfeited | 0 | 0 | |||||||||
Vested | 31.34 | (627,816) | |||||||||
Unvested at March 31, 2021 | $ | 37.97 | 5,407,381 |
Weighted-Average Grant Date Fair Value | Performance Share Units | ||||||||||
Unvested at January 1, 2021 | $ | 52.45 | 60,000 | ||||||||
Granted | 68.58 | 75,230 | |||||||||
Forfeited | 0 | 0 | |||||||||
Vested | 0 | 0 | |||||||||
Unvested at March 31, 2021 | $ | 61.42 | 135,230 |
Weighted-Average Grant Date Fair Value | Performance Share Units | ||||||||||
Unvested at January 1, 2021 | $ | 52.45 | 60,000 | ||||||||
Granted | 68.58 | 75,230 | |||||||||
Forfeited | — | — | |||||||||
Vested | — | — | |||||||||
Unvested at September 30, 2021 | $ | 61.42 | 135,230 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
Statement of Operations Section | Statement of Operations Line Item | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||
Operating expenses | Compensation and benefits | $ | 83 | $ | — | $ | 297 | $ | — | |||||||||||||||||
Non-operating income (expense) | Other net investment gain (loss) | (356) | — | 2,117 | — |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Current: | |||||||||||||||||||||||
Federal | $ | 15,097 | $ | 8,539 | $ | 38,414 | $ | 15,685 | |||||||||||||||
State and local | 4,339 | 1,992 | 10,906 | 4,511 | |||||||||||||||||||
Foreign | 152 | 97 | 406 | 261 | |||||||||||||||||||
Total | 19,588 | 10,628 | 49,726 | 20,457 | |||||||||||||||||||
Deferred: | |||||||||||||||||||||||
Federal | 7,198 | 6,703 | 24,155 | 20,313 | |||||||||||||||||||
State and local | 1,268 | 1,117 | 4,256 | 3,385 | |||||||||||||||||||
Total | 8,466 | 7,820 | 28,411 | 23,698 | |||||||||||||||||||
Income tax expense (benefit) | $ | 28,054 | $ | 18,448 | $ | 78,137 | $ | 44,155 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
Current: | |||||||||||||||||||||||
Federal | $ | 9,032 | $ | 1,593 | |||||||||||||||||||
State and local | 2,647 | 868 | |||||||||||||||||||||
Foreign | 162 | 109 | |||||||||||||||||||||
Total | 11,841 | 2,570 | |||||||||||||||||||||
Deferred: | |||||||||||||||||||||||
Federal | 8,312 | 5,898 | |||||||||||||||||||||
State and local | 1,465 | 983 | |||||||||||||||||||||
Total | 9,777 | 6,881 | |||||||||||||||||||||
Income tax expense (benefit) | $ | 21,618 | $ | 9,451 |
Deferred Tax Asset - Amortizable basis | Amounts payable under tax receivable agreements | ||||||||||
December 31, 2020 | $ | 446,954 | $ | 412,468 | |||||||
2021 Follow-On Offering | 16,362 | 13,908 | |||||||||
2021 Holdings Common Unit Exchanges | 2,228 | 1,894 | |||||||||
Amortization | (9,661) | — | |||||||||
March 31, 2021 | $ | 455,883 | $ | 428,270 |
As of March 31, 2021 | As of December 31, 2020 | ||||||||||
Deferred tax assets: | |||||||||||
Amortizable basis (1) | $ | 455,883 | $ | 446,954 | |||||||
Other (2) | 35,647 | 35,107 | |||||||||
Total deferred tax assets | 491,530 | 482,061 | |||||||||
Less: valuation allowance (3) | 0 | 0 | |||||||||
Net deferred tax assets | $ | 491,530 | $ | 482,061 | |||||||
(1) Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements. | |||||||||||
(2) Represents the net deferred tax assets associated with the merger described above and other miscellaneous deferred tax assets. These future tax benefits are not subject to the TRA agreements. | |||||||||||
(3) Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. |
Deferred Tax Asset - Amortizable Basis | Amounts Payable Under TRAs | ||||||||||
December 31, 2020 | $ | 446,954 | $ | 412,468 | |||||||
2021 Follow-On Offering | 16,362 | 13,908 | |||||||||
2021 Holdings Common Unit Exchanges | 11,360 | 9,656 | |||||||||
Amortization | (29,378) | — | |||||||||
Payments under TRAs | — | (31,250) | |||||||||
Change in estimate | (9) | (358) | |||||||||
September 30, 2021 | $ | 445,289 | $ | 404,424 |
As of September 30, 2021 | As of December 31, 2020 | ||||||||||
Deferred tax assets: | |||||||||||
Amortizable basis (1) | $ | 445,289 | $ | 446,954 | |||||||
Other (2) | 36,919 | 35,107 | |||||||||
Total deferred tax assets | 482,208 | 482,061 | |||||||||
Less: valuation allowance (3) | — | — | |||||||||
Net deferred tax assets | $ | 482,208 | $ | 482,061 | |||||||
(1) Represents the unamortized step-up of tax basis and other tax attributes from the merger and partnership unit sales and exchanges described above. These future tax benefits are subject to the TRA agreements. | |||||||||||
(2) Represents the net deferred tax assets associated with the merger described above and other miscellaneous deferred tax assets. These future tax benefits are not subject to the TRA agreements. | |||||||||||
(3) Artisan assessed whether the deferred tax assets would be realizable and determined based on its history of taxable income that the benefits would more likely than not be realized. Accordingly, no valuation allowance is required. |
For the Three Months Ended March 31, | |||||||||||||||||||||||
Basic and Diluted Earnings Per Share | 2021 | 2020 | |||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to APAM | $ | 77,278 | $ | 34,825 | |||||||||||||||||||
Less: Allocation to participating securities | 7,139 | 6,835 | |||||||||||||||||||||
Net income available to common stockholders | $ | 70,139 | $ | 27,990 | |||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average shares outstanding | 58,758,284 | 53,265,479 | |||||||||||||||||||||
Dilutive effect of nonparticipating equity awards | 14,985 | 0 | |||||||||||||||||||||
Diluted weighted average shares outstanding | 58,773,269 | 53,265,479 | |||||||||||||||||||||
Earnings per share - Basic | $ | 1.19 | $ | 0.53 | |||||||||||||||||||
Earnings per share - Diluted | $ | 1.19 | $ | 0.53 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
Basic and Diluted Earnings Per Share | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income attributable to APAM | $ | 86,413 | $ | 58,527 | $ | 251,898 | $ | 139,503 | |||||||||||||||
Less: Allocation to participating securities | 8,226 | 6,006 | 23,260 | 16,944 | |||||||||||||||||||
Net income available to common stockholders | $ | 78,187 | $ | 52,521 | $ | 228,638 | $ | 122,559 | |||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted average shares outstanding | 59,965,549 | 56,402,503 | 59,519,634 | 55,188,563 | |||||||||||||||||||
Dilutive effect of nonparticipating share-based awards | 17,225 | 5,769 | 16,260 | 1,923 | |||||||||||||||||||
Diluted weighted average shares outstanding | 59,982,774 | 56,408,272 | 59,535,894 | 55,190,486 | |||||||||||||||||||
Earnings per share - Basic | $ | 1.30 | $ | 0.93 | $ | 3.84 | $ | 2.22 | |||||||||||||||
Earnings per share - Diluted | $ | 1.30 | $ | 0.93 | $ | 3.84 | $ | 2.22 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
Anti-Dilutive Weighted Average Shares Outstanding | 2021 | 2020 | |||||||||||||||||||||
Holdings limited partnership units | 15,068,264 | 20,069,152 | |||||||||||||||||||||
Unvested restricted share-based awards | 5,333,755 | 5,177,625 | |||||||||||||||||||||
Total | 20,402,019 | 25,246,777 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
Anti-Dilutive Weighted Average Shares Outstanding | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Holdings limited partnership units | 14,146,934 | 17,177,313 | 14,486,932 | 18,308,766 | |||||||||||||||||||
Unvested restricted share-based awards | 5,417,353 | 5,389,854 | 5,438,556 | 5,323,596 | |||||||||||||||||||
Total | 19,564,287 | 22,567,167 | 19,925,488 | 23,632,362 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||||
Lease Type | Classification | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||
Parking leases | Compensation and benefits | $ | 130 | $ | 130 | $ | 388 | $ | 389 | |||||||||||||||||||||||
Office leases (1) | Occupancy | 3,664 | 4,312 | 10,862 | 11,337 | |||||||||||||||||||||||||||
Variable lease cost (2) | Occupancy | 14 | 193 | 44 | 233 | |||||||||||||||||||||||||||
Short-term lease cost (2) | Occupancy | 97 | 109 | 257 | 286 | |||||||||||||||||||||||||||
Sublease income | Occupancy | (100) | — | (167) | (286) | |||||||||||||||||||||||||||
Office equipment leases | Communication and technology | 59 | 67 | 190 | 212 | |||||||||||||||||||||||||||
Total operating lease expense | $ | 3,864 | $ | 4,811 | $ | 11,574 | $ | 12,171 | ||||||||||||||||||||||||
(1) Office lease expense includes an impairment charge of $0.9 million for the three and nine months ended September 30, 2020, related to the abandonment of a leased office space, as discussed below. No impairment charges were recorded for the three and nine months ended September 30, 2021. | ||||||||||||||||||||||||||||||||
(2) Variable and short-term lease costs are excluded from the measurement of operating lease liabilities. |
As of September 30, 2021 | ||||||||
2021 (excluding the nine months ended September 30, 2021) | $ | 4,435 | ||||||
2022 | 16,305 | |||||||
2023 | 14,738 | |||||||
2024 | 13,567 | |||||||
2025 | 13,448 | |||||||
Thereafter | 37,124 | |||||||
Total undiscounted lease payments (1) | $ | 99,617 | ||||||
Adjustment to discount to present value | (14,242) | |||||||
Total operating lease liabilities | $ | 85,375 | ||||||
(1) Total undiscounted lease payments excludes $41.2 million of operating lease payments associated with leases that have been signed but have not yet commenced as of September 30, 2021. Leases that have been signed but have not yet commenced are also excluded from operating lease assets and operating lease liabilities within the Unaudited Condensed Consolidated Statements of Financial Condition. |
For the Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
Weighted average discount rate | 4.6 | % | 4.6 | % | |||||||
Weighted average remaining lease term | 6.7 years | 7.3 years | |||||||||
Operating cash flows for operating leases | $ | 12,779 | $ | 12,396 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
Artisan Funds | 2021 | 2020 | |||||||||||||||||||||
Investment advisory fees (Gross of expense reimbursements) | $ | 165,966 | $ | 114,767 | |||||||||||||||||||
Expense reimbursements | $ | 159 | $ | 88 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
Artisan Funds | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Investment advisory fees (Gross of expense reimbursements) | $ | 186,434 | $ | 132,128 | $ | 529,441 | $ | 356,758 | |||||||||||||||
Expense reimbursements | $ | 180 | $ | 186 | $ | 517 | $ | 440 |
For the Three Months Ended March 31, | |||||||||||||||||||||||
Artisan Global Funds | 2021 | 2020 | |||||||||||||||||||||
Investment advisory fees (Gross of expense reimbursements) | $ | 10,887 | $ | 8,176 | |||||||||||||||||||
Elimination of fees from consolidated investment products(1) | (18) | (13) | |||||||||||||||||||||
Consolidated investment advisory fees (Gross of expense reimbursements) | $ | 10,869 | $ | 8,163 | |||||||||||||||||||
Expense reimbursements | $ | 88 | $ | 95 | |||||||||||||||||||
Elimination of expense reimbursements from consolidated investment products (1) | (83) | (48) | |||||||||||||||||||||
Consolidated expense reimbursements | $ | 5 | $ | 47 | |||||||||||||||||||
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
Artisan Global Funds | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Investment advisory fees (Gross of expense reimbursements) | $ | 12,873 | $ | 8,545 | $ | 35,672 | $ | 24,088 | |||||||||||||||
Elimination of fees from consolidated investment products(1) | (19) | (15) | (56) | (41) | |||||||||||||||||||
Consolidated investment advisory fees (Gross of expense reimbursements) | $ | 12,854 | $ | 8,530 | $ | 35,616 | $ | 24,047 | |||||||||||||||
Expense reimbursements | $ | 147 | $ | 192 | $ | 334 | $ | 402 | |||||||||||||||
Elimination of expense reimbursements from consolidated investment products (1) | (115) | (131) | (286) | (253) | |||||||||||||||||||
Consolidated expense reimbursements | $ | 32 | $ | 61 | $ | 48 | $ | 149 | |||||||||||||||
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation. |
For the Three Months Ended March 31, | |||||||||||||||||||||||
Artisan Private Funds | 2021 | 2020 | |||||||||||||||||||||
Investment advisory fees (Gross of expense reimbursements) | $ | 2,385 | $ | 1,280 | |||||||||||||||||||
Elimination of fees from consolidated investment products (1) | (111) | (51) | |||||||||||||||||||||
Consolidated investment advisory fees (Gross of expense reimbursements) | $ | 2,274 | $ | 1,229 | |||||||||||||||||||
Expense reimbursements | $ | 79 | $ | 45 | |||||||||||||||||||
Elimination of expense reimbursements from consolidated investment products (1) | (40) | (13) | |||||||||||||||||||||
Consolidated expense reimbursements | $ | 39 | $ | 32 | |||||||||||||||||||
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation. |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
Artisan Private Funds | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Investment advisory fees (Gross of expense reimbursements) | $ | 3,785 | $ | 1,836 | $ | 9,269 | $ | 4,651 | |||||||||||||||
Elimination of fees from consolidated investment products (1) | (117) | (92) | (332) | (198) | |||||||||||||||||||
Consolidated investment advisory fees (Gross of expense reimbursements) | $ | 3,668 | $ | 1,744 | $ | 8,937 | $ | 4,453 | |||||||||||||||
Expense reimbursements | $ | 67 | $ | 79 | $ | 221 | $ | 183 | |||||||||||||||
Elimination of expense reimbursements from consolidated investment products (1) | (56) | (45) | (126) | (75) | |||||||||||||||||||
Consolidated expense reimbursements | $ | 11 | $ | 34 | $ | 95 | $ | 108 | |||||||||||||||
(1) Investment advisory fees and expense reimbursements related to consolidated investment products are eliminated from revenue upon consolidation. |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
S&P 500 total returns | 6.2 | % | (19.6) | % | |||||||||||||||||||
MSCI All Country World total returns | 4.6 | % | (21.4) | % | |||||||||||||||||||
MSCI EAFE total returns | 3.5 | % | (22.8) | % | |||||||||||||||||||
Russell Midcap® total returns | 8.1 | % | (27.1) | % | |||||||||||||||||||
MSCI Emerging Markets Index | 2.3 | % | (23.6) | % | |||||||||||||||||||
ICE BofA U.S. High Yield Master II Total Return Index | 0.9 | % | (13.1) | % |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
S&P 500 total returns | 0.6 | % | 8.9 | % | 15.9 | % | 5.6 | % | |||||||||||||||
MSCI All Country World total returns | (1.1) | % | 8.1 | % | 11.1 | % | 1.4 | % | |||||||||||||||
MSCI EAFE total returns | (0.4) | % | 4.8 | % | 8.3 | % | (7.1) | % | |||||||||||||||
Russell Midcap® total returns | (0.9) | % | 7.5 | % | 15.2 | % | (2.3) | % | |||||||||||||||
MSCI Emerging Markets Index | (8.1) | % | 9.6 | % | (1.2) | % | (1.2) | % | |||||||||||||||
ICE BofA U.S. High Yield Master II Total Return Index | 0.9 | % | 4.7 | % | 4.7 | % | (0.3) | % |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(unaudited; dollars in millions) | |||||||||||||||||||||||
Assets under management at period end | $ | 162,883 | $ | 95,224 | |||||||||||||||||||
Average assets under management (1) | $ | 162,907 | $ | 113,802 | |||||||||||||||||||
Net client cash flows (2) | $ | 1,403 | $ | (418) | |||||||||||||||||||
Total revenues | $ | 290.7 | $ | 202.8 | |||||||||||||||||||
Weighted average management fee (3) | 70.8 | bps | 70.7 | bps | |||||||||||||||||||
Operating margin | 41.9 | % | 35.0 | % | |||||||||||||||||||
(1) We compute average assets under management by averaging day-end assets under management for the applicable period. | |||||||||||||||||||||||
(2) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds' distributions. | |||||||||||||||||||||||
(3) We compute our weighted average management fee by dividing annualized investment management fees (which excludes performance fees) by average assets under management for the applicable period. The weighted average management fee for prior periods have been recast to exclude performance fee revenue. | |||||||||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(unaudited; dollars in millions) | |||||||||||||||||||||||
Assets under management at period end | $ | 173,623 | $ | 134,288 | $ | 173,623 | $ | 134,288 | |||||||||||||||
Average assets under management (1) | $ | 177,557 | $ | 130,967 | $ | 170,380 | $ | 118,142 | |||||||||||||||
Net client cash flows (2) | $ | 11 | $ | 2,148 | $ | 2,463 | $ | 5,093 | |||||||||||||||
Total revenues | $ | 316.6 | $ | 232.7 | $ | 912.2 | $ | 638.5 | |||||||||||||||
Weighted average management fee (3) | 70.7 | bps | 70.7 | bps | 70.8 | bps | 71.0 | bps | |||||||||||||||
Operating margin | 45.2 | % | 41.8 | % | 44.1 | % | 38.3 | % | |||||||||||||||
Adjusted operating margin (4) | 45.2 | % | 41.8 | % | 44.2 | % | 38.3 | % | |||||||||||||||
(1) We compute average assets under management by averaging day-end assets under management for the applicable period. | |||||||||||||||||||||||
(2) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds' distributions. | |||||||||||||||||||||||
(3) We compute our weighted average management fee by dividing annualized investment management fees (which excludes performance fees) by average assets under management for the applicable period. | |||||||||||||||||||||||
(4) Adjusted measures are non-GAAP measures and are explained and reconciled to the comparable GAAP measures in “Supplemental Non-GAAP Financial Information” below. |
For the Three Months Ended March 31, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Beginning assets under management | $ | 157,776 | $ | 121,016 | $ | 36,760 | 30.4 | % | |||||||||||||||
Gross client cash inflows | 10,107 | 7,079 | 3,028 | 42.8 | % | ||||||||||||||||||
Gross client cash outflows | (8,704) | (7,497) | (1,207) | (16.1) | % | ||||||||||||||||||
Net client cash flows (1) | 1,403 | (418) | 1,821 | 435.6 | % | ||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | (37) | (31) | (6) | (19.4) | % | ||||||||||||||||||
Investment returns and other (3) | 3,741 | (25,343) | 29,084 | 114.8 | % | ||||||||||||||||||
Ending assets under management | $ | 162,883 | $ | 95,224 | $ | 67,659 | 71.1 | % | |||||||||||||||
Average assets under management | $ | 162,907 | $ | 113,802 | $ | 49,105 | 43.1 | % | |||||||||||||||
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds' distributions. | |||||||||||||||||||||||
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds, including in the Artisan High Income Fund. | |||||||||||||||||||||||
(3) Includes the impact of translating the value of assets under management denominated in non-USD currencies into US dollars. The impact was immaterial for the periods presented. | |||||||||||||||||||||||
For the Three Months Ended September 30, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Beginning assets under management | $ | 175,214 | $ | 120,574 | $ | 54,640 | 45.3 | % | |||||||||||||||
Gross client cash inflows | 6,942 | 8,860 | (1,918) | (21.6) | % | ||||||||||||||||||
Gross client cash outflows | (6,931) | (6,712) | (219) | (3.3) | % | ||||||||||||||||||
Net client cash flows (1) | 11 | 2,148 | (2,137) | (99.5) | % | ||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | (39) | (33) | (6) | (18.2) | % | ||||||||||||||||||
Investment returns and other (3) | (1,563) | 11,599 | (13,162) | (113.5) | % | ||||||||||||||||||
Ending assets under management | $ | 173,623 | $ | 134,288 | $ | 39,335 | 29.3 | % | |||||||||||||||
Average assets under management | $ | 177,557 | $ | 130,967 | $ | 46,590 | 35.6 | % | |||||||||||||||
For the Nine Months Ended September 30, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Beginning assets under management | $ | 157,776 | $ | 121,016 | $ | 36,760 | 30.4 | % | |||||||||||||||
Gross client cash inflows | 25,814 | 27,240 | (1,426) | (5.2) | % | ||||||||||||||||||
Gross client cash outflows | (23,351) | (22,147) | (1,204) | (5.4) | % | ||||||||||||||||||
Net client cash flows (1) | 2,463 | 5,093 | (2,630) | (51.6) | % | ||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | (114) | (96) | (18) | (18.8) | % | ||||||||||||||||||
Investment returns and other (3) | 13,498 | 8,275 | 5,223 | 63.1 | % | ||||||||||||||||||
Ending assets under management | $ | 173,623 | $ | 134,288 | $ | 39,335 | 29.3 | % | |||||||||||||||
Average assets under management | $ | 170,380 | $ | 118,142 | $ | 52,238 | 44.2 | % | |||||||||||||||
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds' distributions. | |||||||||||||||||||||||
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds, including in the Artisan High Income Fund. | |||||||||||||||||||||||
(3) Includes the impact of translating the value of assets under management denominated in non-USD currencies into U.S. dollars. The impact was immaterial for the periods presented. |
Average Annual Value-Added(1) Since Inception (bps) | Average Annual Value-Added(1) Since Inception (bps) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Composite Inception | Strategy AUM | Average Annual Total Returns (Gross) (%) | Composite Inception | Strategy AUM | Average Annual Total Returns (Gross) (%) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Team and Strategy | Investment Team and Strategy | Date | (in $MM) | 1 YR | 3 YR | 5 YR | 10 YR | Inception | Investment Team and Strategy | Date | (in $MM) | 1 YR | 3 YR | 5 YR | 10 YR | Inception | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Growth Team | Growth Team | Growth Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Opportunities Strategy | Global Opportunities Strategy | 2/1/2007 | $ | 25,470 | 59.48% | 19.39% | 19.82% | 15.06% | 12.77% | 631 | Global Opportunities Strategy | 2/1/2007 | $ | 26,926 | 21.55% | 21.74% | 19.70% | 18.37% | 13.15% | 648 | ||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI All Country World Index | MSCI All Country World Index | 54.60% | 12.06% | 13.21% | 9.14% | 6.46% | MSCI All Country World Index | 27.44% | 12.57% | 13.19% | 11.89% | 6.67% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Discovery Strategy | Global Discovery Strategy | 9/1/2017 | $ | 2,080 | 66.65% | 24.46% | --- | 23.79% | 1,176 | Global Discovery Strategy | 9/1/2017 | $ | 2,626 | 30.24% | 25.64% | --- | 24.66% | 1,252 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI All Country World Index | MSCI All Country World Index | 54.60% | 12.06% | --- | 12.03% | MSCI All Country World Index | 27.44% | 12.57% | --- | 12.14% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Mid-Cap Growth Strategy | 4/1/1997 | $ | 16,512 | 76.97% | 26.89% | 22.40% | 16.12% | 16.51% | 602 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Mid-Cap Growth Strategy | U.S. Mid-Cap Growth Strategy | 4/1/1997 | $ | 17,232 | 31.42% | 27.00% | 23.34% | 19.36% | 16.78% | 607 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell Midcap® Index | Russell Midcap® Index | 73.64% | 14.72% | 14.67% | 12.46% | 10.91% | Russell Midcap® Index | 38.11% | 14.20% | 14.38% | 15.51% | 10.96% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell Midcap® Growth Index | Russell Midcap® Growth Index | 68.61% | 19.39% | 18.38% | 14.10% | 10.49% | Russell Midcap® Growth Index | 30.45% | 19.12% | 19.25% | 17.53% | 10.71% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Small-Cap Growth Strategy | 4/1/1995 | $ | 6,402 | 82.14% | 28.30% | 27.19% | 18.08% | 12.70% | 369 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Small-Cap Growth Strategy | U.S. Small-Cap Growth Strategy | 4/1/1995 | $ | 6,396 | 25.96% | 22.45% | 23.56% | 20.19% | 12.60% | 385 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell 2000® Index | Russell 2000® Index | 94.85% | 14.75% | 16.34% | 11.67% | 10.05% | Russell 2000® Index | 47.68% | 10.53% | 13.44% | 14.62% | 9.84% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell 2000® Growth Index | Russell 2000® Growth Index | 90.20% | 17.15% | 18.60% | 13.01% | 9.01% | Russell 2000® Growth Index | 33.27% | 11.68% | 15.33% | 15.73% | 8.75% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Equity Team | Global Equity Team | Global Equity Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Equity Strategy | Global Equity Strategy | 4/1/2010 | $ | 2,949 | 53.32% | 17.44% | 18.65% | 14.21% | 14.36% | 478 | Global Equity Strategy | 4/1/2010 | $ | 2,910 | 21.47% | 17.25% | 18.12% | 16.84% | 14.39% | 467 | ||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI All Country World Index | MSCI All Country World Index | 54.60% | 12.06% | 13.21% | 9.14% | 9.58% | MSCI All Country World Index | 27.44% | 12.57% | 13.19% | 11.89% | 9.72% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-US Growth Strategy | 1/1/1996 | $ | 21,208 | 38.21% | 8.68% | 10.08% | 8.29% | 10.22% | 511 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Growth Strategy | Non-U.S. Growth Strategy | 1/1/1996 | $ | 21,295 | 16.68% | 10.49% | 10.81% | 10.96% | 10.27% | 507 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI EAFE Index | MSCI EAFE Index | 44.57% | 6.02% | 8.84% | 5.52% | 5.11% | MSCI EAFE Index | 25.73% | 7.62% | 8.81% | 8.09% | 5.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-US Small-Mid Growth Strategy | 1/1/2019 | $ | 8,113 | 69.72% | --- | 31.56% | 1,438 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. Small-Mid Growth Strategy | Non-U.S. Small-Mid Growth Strategy | 1/1/2019 | $ | 9,475 | 25.15% | --- | 28.18% | 1,228 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI All Country World Index Ex USA Small Mid Cap | MSCI All Country World Index Ex USA Small Mid Cap | 62.05% | --- | 17.18% | MSCI All Country World Index Ex USA Small Mid Cap | 28.94% | --- | 15.90% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China Post-Venture Strategy | China Post-Venture Strategy | 4/1/2021 | $ | 56 | --- | — | China Post-Venture Strategy | 4/1/2021 | $ | 137 | --- | (3.64)% | 453 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI China SMID Cap Index | MSCI China SMID Cap Index | --- | MSCI China SMID Cap Index | --- | (8.17)% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Value Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Value Team | U.S. Value Team | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value Equity Strategy | Value Equity Strategy | 7/1/2005 | $ | 3,672 | 72.29% | 13.40% | 14.35% | 11.52% | 9.37% | 133 | Value Equity Strategy | 7/1/2005 | $ | 3,859 | 42.15% | 12.51% | 13.28% | 13.52% | 9.51% | 144 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Russell 1000® Index | Russell 1000® Index | 60.59% | 17.29% | 16.65% | 13.96% | 10.38% | Russell 1000® Index | 30.96% | 16.41% | 17.10% | 16.75% | 10.61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell 1000® Value Index | Russell 1000® Value Index | 56.09% | 10.95% | 11.73% | 10.98% | 8.04% | Russell 1000® Value Index | 35.01% | 10.06% | 10.93% | 13.50% | 8.07% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
US Mid-Cap Value Strategy | 4/1/1999 | $ | 4,041 | 88.59% | 11.22% | 12.24% | 10.36% | 12.93% | 291 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Mid-Cap Value Strategy | U.S. Mid-Cap Value Strategy | 4/1/1999 | $ | 3,920 | 46.53% | 10.07% | 11.26% | 12.45% | 12.80% | 280 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell Midcap® Index | Russell Midcap® Index | 73.64% | 14.72% | 14.67% | 12.46% | 10.18% | Russell Midcap® Index | 38.11% | 14.20% | 14.38% | 15.51% | 10.25% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Russell Midcap® Value Index | Russell Midcap® Value Index | 73.76% | 10.69% | 11.59% | 11.05% | 10.02% | Russell Midcap® Value Index | 42.40% | 10.27% | 10.59% | 13.92% | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Value Team | International Value Team | International Value Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Value Strategy | International Value Strategy | 7/1/2002 | $ | 26,995 | 63.26% | 9.68% | 11.10% | 9.86% | 12.11% | 566 | International Value Strategy | 7/1/2002 | $ | 29,952 | 38.12% | 11.37% | 10.79% | 12.04% | 12.01% | 548 | ||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI EAFE Index | MSCI EAFE Index | 44.57% | 6.02% | 8.84% | 5.52% | 6.45% | MSCI EAFE Index | 25.73% | 7.62% | 8.81% | 8.09% | 6.53% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
International Small Cap Value | International Small Cap Value | 11/1/2020 | $ | 18 | --- | 34.84% | 630 | International Small Cap Value | 11/1/2020 | $ | 23 | --- | 49.40% | 1,270 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI All Country World Index Ex USA Small Cap | MSCI All Country World Index Ex USA Small Cap | --- | 28.54% | MSCI All Country World Index Ex USA Small Cap | --- | 36.70% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Value Team | Global Value Team | Global Value Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Global Value Strategy | Global Value Strategy | 7/1/2007 | $ | 24,446 | 67.53% | 9.95% | 12.04% | 11.70% | 9.20% | 319 | Global Value Strategy | 7/1/2007 | $ | 25,364 | 37.26% | 9.68% | 11.15% | 13.16% | 9.05% | 281 | ||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI All Country World Index | MSCI All Country World Index | 54.60% | 12.06% | 13.21% | 9.14% | 6.01% | MSCI All Country World Index | 27.44% | 12.57% | 13.19% | 11.89% | 6.24% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Select Equity Strategy | Select Equity Strategy | 3/1/2020 | $ | 22 | 66.49% | --- | 31.45% | (225) | Select Equity Strategy | 3/1/2020 | $ | 409 | 34.22% | --- | 22.72% | (620) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&P 500 Market Index | S&P 500 Market Index | 56.35% | --- | 33.70% | S&P 500 Market Index | 30.01% | --- | 28.92% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Emerging Markets Team | Sustainable Emerging Markets Team | Sustainable Emerging Markets Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sustainable Emerging Markets Strategy | Sustainable Emerging Markets Strategy | 7/1/2006 | $ | 735 | 67.94% | 8.30% | 15.03% | 4.63% | 7.22% | 85 | Sustainable Emerging Markets Strategy | 7/1/2006 | $ | 982 | 21.32% | 11.73% | 11.68% | 7.80% | 6.82% | 91 | ||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI Emerging Markets Index | MSCI Emerging Markets Index | 58.39% | 6.47% | 12.06% | 3.65% | 6.37% | MSCI Emerging Markets Index | 18.20% | 8.58% | 9.23% | 6.08% | 5.91% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Team | Credit Team | Credit Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
High Income Strategy | High Income Strategy | 4/1/2014 | $ | 6,905 | 31.54% | 8.89% | 10.25% | --- | 8.12% | 282 | High Income Strategy | 4/1/2014 | $ | 8,137 | 14.80% | 8.84% | 8.65% | --- | 8.10% | 265 | ||||||||||||||||||||||||||||||||||||||||||||||||||
ICE BofA US High Yield Master II Total Return Index | ICE BofA US High Yield Master II Total Return Index | 23.31% | 6.52% | 7.93% | --- | 5.30% | ICE BofA US High Yield Master II Total Return Index | 11.46% | 6.62% | 6.35% | --- | 5.45% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Opportunities Strategy | Credit Opportunities Strategy | 7/1/2017 | $ | 105 | 58.53% | 14.34% | --- | 14.66% | 905 | Credit Opportunities Strategy | 7/1/2017 | $ | 121 | 30.58% | 16.40% | --- | 14.97% | 1,344 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
ICE BofA US High Yield Master II Total Return Index | 23.31% | 6.52% | --- | 5.61% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ICE BofA US Dollar LIBOR 3-month Constant Maturity Index | ICE BofA US Dollar LIBOR 3-month Constant Maturity Index | 0.21% | 1.46% | --- | 1.53% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developing World Team | Developing World Team | Developing World Team | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developing World Strategy | Developing World Strategy | 7/1/2015 | $ | 9,255 | 94.54% | 29.81% | 26.43% | --- | 21.05% | 1,321 | Developing World Strategy | 7/1/2015 | $ | 9,333 | 18.06% | 35.45% | 23.06% | --- | 19.23% | 1,264 | ||||||||||||||||||||||||||||||||||||||||||||||||||
MSCI Emerging Markets Index | MSCI Emerging Markets Index | 58.39% | 6.47% | 12.06% | --- | 7.84% | MSCI Emerging Markets Index | 18.20% | 8.58% | 9.23% | --- | 6.59% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antero Peak Group | Antero Peak Group | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antero Peak Strategy | Antero Peak Strategy | 5/1/2017 | $ | 3,418 | 27.44% | 21.18% | --- | 26.44% | 998 |
Antero Peak Group | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antero Peak Strategy | 5/1/2017 | $ | 2,918 | 56.12% | 23.32% | --- | 27.68% | 1,156 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
S&P 500 Market Index | S&P 500 Market Index | 56.35% | 16.76% | --- | 16.12% | S&P 500 Market Index | 30.01% | 15.98% | --- | 16.46% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Antero Peak Hedge Strategy | Antero Peak Hedge Strategy | 11/1/2017 | $ | 981 | 40.58% | 17.69% | --- | 19.09% | 336 | Antero Peak Hedge Strategy | 11/1/2017 | $ | 1,108 | 19.85% | 17.13% | --- | 18.47% | 231 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
S&P 500 Market Index | S&P 500 Market Index | 56.35% | 16.76% | --- | 15.73% | S&P 500 Market Index | 30.01% | 15.98% | --- | 16.16% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets Under Management | Total Assets Under Management | $ | 162,883 | Total Assets Under Management | $ | 173,623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Value-added is the amount in basis points by which the average annual gross composite return of each of our strategies has outperformed or underperformed the benchmark most commonly used by our separate account clients to compare the performance of the relevant strategy. The benchmark most commonly used by clients in the US Mid-Cap Growth, US Small-Cap Growth, Value Equity and US Mid-Cap Value strategies is the style benchmark and for all other strategies is the broad market benchmark. Reporting on this metric prior to September 30, 2020, compared all composite performance to the broad benchmark. Value-added for periods less than one year is not annualized. The Artisan High Income and Credit Opportunities strategies hold loans and other security types that are not included in the ICE BofA U.S. High Yield Master II Total Return Index. At times, this causes material differences in relative performance. The Antero Peak and Antero Peak Hedge strategies' investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio’s return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) The China Post-Venture strategy composite performance began on April 1, 2021. As a result, there is not a performance track record as of March 31, 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(1) Value-added is the amount, in basis points, by which the average annual gross composite return of each of our strategies has outperformed or underperformed its respective benchmark. Value-added for periods less than one year is not annualized. The High Income strategy holds loans and other security types that are not included in its benchmark, which, at times, causes material differences in relative performance. The Credit Opportunities strategy is benchmark agnostic and has been compared to the 3-month LIBOR for reference purposes only. The Antero Peak and Antero Peak Hedge strategies' investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio’s return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future. | (1) Value-added is the amount, in basis points, by which the average annual gross composite return of each of our strategies has outperformed or underperformed its respective benchmark. Value-added for periods less than one year is not annualized. The High Income strategy holds loans and other security types that are not included in its benchmark, which, at times, causes material differences in relative performance. The Credit Opportunities strategy is benchmark agnostic and has been compared to the 3-month LIBOR for reference purposes only. The Antero Peak and Antero Peak Hedge strategies' investments in initial public offerings (IPOs) made a material contribution to performance. IPO investments may contribute significantly to a small portfolio’s return, an effect that will generally decrease as assets grow. IPO investments may be unavailable in the future. |
By Investment Team | |||||||||||||||||||||||||||||||||||
Three Months Ended | Growth | Global Equity | US Value | International Value | Global Value | Sustainable Emerging Markets | Credit | Developing World | Antero Peak Group | Total | |||||||||||||||||||||||||
March 31, 2021 | (unaudited; in millions) | ||||||||||||||||||||||||||||||||||
Beginning assets under management | $ | 52,685 | $ | 32,056 | $ | 7,149 | $ | 24,123 | $ | 22,417 | $ | 679 | $ | 6,338 | $ | 8,853 | $ | 3,476 | $ | 157,776 | |||||||||||||||
Gross client cash inflows | 2,157 | 1,524 | 90 | 2,318 | 1,230 | 71 | 920 | 1,360 | 437 | 10,107 | |||||||||||||||||||||||||
Gross client cash outflows | (3,123) | (1,197) | (445) | (1,514) | (1,283) | (16) | (361) | (678) | (87) | (8,704) | |||||||||||||||||||||||||
Net client cash flows (1) | (966) | 327 | (355) | 804 | (53) | 55 | 559 | 682 | 350 | 1,403 | |||||||||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | — | — | — | — | — | — | (37) | — | — | (37) | |||||||||||||||||||||||||
Investment returns and other | (1,255) | (57) | 919 | 2,086 | 2,104 | 1 | 150 | (280) | 73 | 3,741 | |||||||||||||||||||||||||
Ending assets under management | $ | 50,464 | $ | 32,326 | $ | 7,713 | $ | 27,013 | $ | 24,468 | $ | 735 | $ | 7,010 | $ | 9,255 | $ | 3,899 | $ | 162,883 | |||||||||||||||
Average assets under management | $ | 53,049 | $ | 32,541 | $ | 7,426 | $ | 25,842 | $ | 23,147 | $ | 744 | $ | 6,737 | $ | 9,643 | $ | 3,778 | $ | 162,907 | |||||||||||||||
March 31, 2020 | |||||||||||||||||||||||||||||||||||
Beginning assets under management | $ | 34,793 | $ | 27,860 | $ | 7,402 | $ | 22,000 | $ | 19,707 | $ | 234 | $ | 3,850 | $ | 3,374 | $ | 1,796 | $ | 121,016 | |||||||||||||||
Gross client cash inflows | 1,420 | 1,310 | 441 | 1,273 | 640 | 282 | 632 | 588 | 493 | 7,079 | |||||||||||||||||||||||||
Gross client cash outflows | (2,157) | (1,346) | (686) | (1,404) | (840) | (4) | (625) | (310) | (125) | (7,497) | |||||||||||||||||||||||||
Net client cash flows (1) | (737) | (36) | (245) | (131) | (200) | 278 | 7 | 278 | 368 | (418) | |||||||||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | — | — | — | — | — | — | (31) | — | — | (31) | |||||||||||||||||||||||||
Investment returns and other | (4,365) | (5,800) | (2,184) | (5,974) | (5,806) | (135) | (514) | (286) | (279) | (25,343) | |||||||||||||||||||||||||
Ending assets under management | $ | 29,691 | $ | 22,024 | $ | 4,973 | $ | 15,895 | $ | 13,701 | $ | 377 | $ | 3,312 | $ | 3,366 | $ | 1,885 | $ | 95,224 | |||||||||||||||
Average assets under management | $ | 33,702 | $ | 26,218 | $ | 6,337 | $ | 20,054 | $ | 17,963 | $ | 352 | $ | 3,754 | $ | 3,492 | $ | 1,930 | $ | 113,802 | |||||||||||||||
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds' distributions. | |||||||||||||||||||||||||||||||||||
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds, including in the Artisan High Income Fund. |
By Investment Team | |||||||||||||||||||||||||||||||||||
Three Months Ended | Growth | Global Equity | U.S. Value | International Value | Global Value | Sustainable Emerging Markets | Credit | Developing World | Antero Peak Group | Total | |||||||||||||||||||||||||
September 30, 2021 | (unaudited; in millions) | ||||||||||||||||||||||||||||||||||
Beginning assets under management | $ | 53,517 | $ | 34,166 | $ | 7,929 | $ | 29,720 | $ | 26,515 | $ | 998 | $ | 7,785 | $ | 10,314 | $ | 4,270 | $ | 175,214 | |||||||||||||||
Gross client cash inflows | 1,125 | 955 | 68 | 1,943 | 885 | 86 | 819 | 733 | 328 | 6,942 | |||||||||||||||||||||||||
Gross client cash outflows | (2,631) | (1,143) | (150) | (874) | (816) | (7) | (383) | (770) | (157) | (6,931) | |||||||||||||||||||||||||
Net client cash flows (1) | (1,506) | (188) | (82) | 1,069 | 69 | 79 | 436 | (37) | 171 | 11 | |||||||||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | — | — | — | — | — | — | (39) | — | — | (39) | |||||||||||||||||||||||||
Investment returns and other | 1,169 | (161) | (68) | (814) | (811) | (95) | 76 | (944) | 85 | (1,563) | |||||||||||||||||||||||||
Ending assets under management | $ | 53,180 | $ | 33,817 | $ | 7,779 | $ | 29,975 | $ | 25,773 | $ | 982 | $ | 8,258 | $ | 9,333 | $ | 4,526 | $ | 173,623 | |||||||||||||||
Average assets under management | $ | 54,948 | $ | 34,706 | $ | 7,944 | $ | 30,320 | $ | 26,200 | $ | 1,010 | $ | 8,041 | $ | 9,732 | $ | 4,656 | $ | 177,557 | |||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Beginning assets under management | $ | 41,079 | $ | 25,447 | $ | 6,012 | $ | 19,193 | $ | 16,013 | $ | 477 | $ | 4,351 | $ | 5,396 | $ | 2,606 | $ | 120,574 | |||||||||||||||
Gross client cash inflows | 1,982 | 1,913 | 44 | 1,048 | 2,022 | 15 | 749 | 916 | 171 | 8,860 | |||||||||||||||||||||||||
Gross client cash outflows | (1,935) | (1,299) | (304) | (1,272) | (1,074) | (3) | (285) | (456) | (84) | (6,712) | |||||||||||||||||||||||||
Net client cash flows (1) | 47 | 614 | (260) | (224) | 948 | 12 | 464 | 460 | 87 | 2,148 | |||||||||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | — | — | — | — | — | — | (33) | — | — | (33) | |||||||||||||||||||||||||
Investment returns and other | 5,244 | 2,140 | 425 | 988 | 1,223 | 48 | 251 | 1,030 | 250 | 11,599 | |||||||||||||||||||||||||
Ending assets under management | $ | 46,370 | $ | 28,201 | $ | 6,177 | $ | 19,957 | $ | 18,184 | $ | 537 | $ | 5,033 | $ | 6,886 | $ | 2,943 | $ | 134,288 | |||||||||||||||
Average assets under management | $ | 44,684 | $ | 27,566 | $ | 6,266 | $ | 20,263 | $ | 17,913 | $ | 526 | $ | 4,703 | $ | 6,201 | $ | 2,845 | $ | 130,967 | |||||||||||||||
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds' distributions. | |||||||||||||||||||||||||||||||||||
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds, including in the Artisan High Income Fund. |
By Investment Team | |||||||||||||||||||||||||||||||||||
Nine Months Ended | Growth | Global Equity | U.S. Value | International Value | Global Value | Sustainable Emerging Markets | Credit | Developing World | Antero Peak Group | Total | |||||||||||||||||||||||||
September 30, 2021 | (unaudited; in millions) | ||||||||||||||||||||||||||||||||||
Beginning assets under management | $ | 52,685 | $ | 32,056 | $ | 7,149 | $ | 24,123 | $ | 22,417 | $ | 679 | $ | 6,338 | $ | 8,853 | $ | 3,476 | $ | 157,776 | |||||||||||||||
Gross client cash inflows | 5,324 | 3,625 | 257 | 5,990 | 3,781 | 367 | 2,643 | 2,811 | 1,016 | 25,814 | |||||||||||||||||||||||||
Gross client cash outflows | (9,180) | (3,789) | (918) | (3,138) | (2,938) | (33) | (1,021) | (2,002) | (332) | (23,351) | |||||||||||||||||||||||||
Net client cash flows (1) | (3,856) | (164) | (661) | 2,852 | 843 | 334 | 1,622 | 809 | 684 | 2,463 | |||||||||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | — | — | — | — | — | — | (114) | — | — | (114) | |||||||||||||||||||||||||
Investment returns and other | 4,351 | 1,925 | 1,291 | 3,000 | 2,513 | (31) | 412 | (329) | 366 | 13,498 | |||||||||||||||||||||||||
Ending assets under management | $ | 53,180 | $ | 33,817 | $ | 7,779 | $ | 29,975 | $ | 25,773 | $ | 982 | $ | 8,258 | $ | 9,333 | $ | 4,526 | $ | 173,623 | |||||||||||||||
Average assets under management | $ | 53,250 | $ | 33,738 | $ | 7,785 | $ | 28,377 | $ | 25,096 | $ | 874 | $ | 7,370 | $ | 9,691 | $ | 4,199 | $ | 170,380 | |||||||||||||||
September 30, 2020 | |||||||||||||||||||||||||||||||||||
Beginning assets under management | $ | 34,793 | $ | 27,860 | $ | 7,402 | $ | 22,000 | $ | 19,707 | $ | 234 | $ | 3,850 | $ | 3,374 | $ | 1,796 | $ | 121,016 | |||||||||||||||
Gross client cash inflows | 6,886 | 4,672 | 740 | 5,026 | 3,737 | 320 | 2,327 | 2,446 | 1,086 | 27,240 | |||||||||||||||||||||||||
Gross client cash outflows | (5,715) | (4,808) | (1,348) | (4,815) | (2,836) | (14) | (1,229) | (1,097) | (285) | (22,147) | |||||||||||||||||||||||||
Net client cash flows (1) | 1,171 | (136) | (608) | 211 | 901 | 306 | 1,098 | 1,349 | 801 | 5,093 | |||||||||||||||||||||||||
Artisan Funds' distributions not reinvested (2) | — | — | — | — | — | — | (96) | — | — | (96) | |||||||||||||||||||||||||
Investment returns and other | 10,406 | 477 | (617) | (2,254) | (2,424) | (3) | 181 | 2,163 | 346 | 8,275 | |||||||||||||||||||||||||
Ending assets under management | $ | 46,370 | $ | 28,201 | $ | 6,177 | $ | 19,957 | $ | 18,184 | $ | 537 | $ | 5,033 | $ | 6,886 | $ | 2,943 | $ | 134,288 | |||||||||||||||
Average assets under management | $ | 37,989 | $ | 26,034 | $ | 6,114 | $ | 19,413 | $ | 16,948 | $ | 433 | $ | 4,143 | $ | 4,708 | $ | 2,360 | $ | 118,142 | |||||||||||||||
(1) Net client cash flows excludes Artisan Funds' income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds' distributions. | |||||||||||||||||||||||||||||||||||
(2) Artisan Funds' distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds, including in the Artisan High Income Fund. |
As of March 31, 2021 | As of March 31, 2020 | As of September 30, 2021 | As of September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||
$ in millions | % of total | $ in millions | % of total | $ in Millions | % of Total | $ in Millions | % of Total | |||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||
Institutional | Institutional | $ | 104,152 | 63.9 | % | $ | 63,397 | 66.6 | % | Institutional | $ | 109,721 | 63.2 | % | $ | 88,085 | 65.6 | % | ||||||||||||||||||||||||||||
Intermediary | Intermediary | 51,609 | 31.7 | % | 27,868 | 29.3 | % | Intermediary | 55,912 | 32.2 | % | 40,565 | 30.2 | % | ||||||||||||||||||||||||||||||||
Retail | Retail | 7,122 | 4.4 | % | 3,959 | 4.1 | % | Retail | 7,990 | 4.6 | % | 5,638 | 4.2 | % | ||||||||||||||||||||||||||||||||
Ending Assets Under Management | Ending Assets Under Management | $ | 162,883 | 100.0 | % | $ | 95,224 | 100.0 | % | Ending Assets Under Management | $ | 173,623 | 100.0 | % | $ | 134,288 | 100.0 | % | ||||||||||||||||||||||||||||
(1) The allocation of assets under management by distribution channel involves the use of estimates and the exercise of judgment. | (1) The allocation of assets under management by distribution channel involves the use of estimates and the exercise of judgment. | (1) The allocation of assets under management by distribution channel involves the use of estimates and the exercise of judgment. |
Three Months Ended | Artisan Funds & Artisan Global Funds | Separate Accounts (1) | Total | ||||||||||||||
March 31, 2021 | (unaudited; in millions) | ||||||||||||||||
Beginning assets under management | $ | 74,746 | $ | 83,030 | $ | 157,776 | |||||||||||
Gross client cash inflows | 7,601 | 2,506 | 10,107 | ||||||||||||||
Gross client cash outflows | (5,021) | (3,683) | (8,704) | ||||||||||||||
Net client cash flows (2) | 2,580 | (1,177) | 1,403 | ||||||||||||||
Artisan Funds' distributions not reinvested (3) | (37) | — | (37) | ||||||||||||||
Investment returns and other | 1,537 | 2,204 | 3,741 | ||||||||||||||
Net transfers (4) | (37) | 37 | — | ||||||||||||||
Ending assets under management | $ | 78,789 | $ | 84,094 | $ | 162,883 | |||||||||||
Average assets under management | $ | 78,311 | $ | 84,596 | $ | 162,907 | |||||||||||
March 31, 2020 | |||||||||||||||||
Beginning assets under management | $ | 57,288 | $ | 63,728 | $ | 121,016 | |||||||||||
Gross client cash inflows | 4,725 | 2,354 | 7,079 | ||||||||||||||
Gross client cash outflows | (5,544) | (1,953) | (7,497) | ||||||||||||||
Net client cash flows (2) | (819) | 401 | (418) | ||||||||||||||
Artisan Funds' distributions not reinvested (3) | (31) | — | (31) | ||||||||||||||
Investment returns and other | (11,947) | (13,396) | (25,343) | ||||||||||||||
Net transfers (4) | (65) | 65 | — | ||||||||||||||
Ending assets under management | $ | 44,426 | $ | 50,798 | $ | 95,224 | |||||||||||
Average assets under management | $ | 53,775 | $ | 60,027 | $ | 113,802 | |||||||||||
(1) Separate account AUM consists of the assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds. Separate account AUM includes assets we manage in traditional separate accounts, as well as assets we manage in Artisan-branded collective investment trusts and in Artisan Private Funds. | |||||||||||||||||
(2) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds’ distributions. | |||||||||||||||||
(3) Artisan Funds’ distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds, including in the Artisan High Income Fund. | |||||||||||||||||
(4) Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle or account and into another strategy, vehicle or account. | |||||||||||||||||
Three Months Ended | Artisan Funds & Artisan Global Funds | Separate Accounts and Other (1) | Total | ||||||||||||||
September 30, 2021 | (unaudited; in millions) | ||||||||||||||||
Beginning assets under management | $ | 85,687 | $ | 89,527 | $ | 175,214 | |||||||||||
Gross client cash inflows | 5,293 | 1,649 | 6,942 | ||||||||||||||
Gross client cash outflows | (4,089) | (2,842) | (6,931) | ||||||||||||||
Net client cash flows (2) | 1,204 | (1,193) | 11 | ||||||||||||||
Artisan Funds' distributions not reinvested (3) | (39) | — | (39) | ||||||||||||||
Investment returns and other | (1,236) | (327) | (1,563) | ||||||||||||||
Net transfers (4) | (224) | 224 | — | ||||||||||||||
Ending assets under management | $ | 85,392 | $ | 88,231 | $ | 173,623 | |||||||||||
Average assets under management | $ | 86,819 | $ | 90,738 | $ | 177,557 | |||||||||||
September 30, 2020 | |||||||||||||||||
Beginning assets under management | $ | 56,550 | $ | 64,024 | $ | 120,574 | |||||||||||
Gross client cash inflows | 4,818 | 4,042 | 8,860 | ||||||||||||||
Gross client cash outflows | (3,796) | (2,916) | (6,712) | ||||||||||||||
Net client cash flows (2) | 1,022 | 1,126 | 2,148 | ||||||||||||||
Artisan Funds' distributions not reinvested (3) | (33) | — | (33) | ||||||||||||||
Investment returns and other | 5,289 | 6,310 | 11,599 | ||||||||||||||
Net transfers (4) | (251) | 251 | — | ||||||||||||||
Ending assets under management | $ | 62,577 | $ | 71,711 | $ | 134,288 | |||||||||||
Average assets under management | $ | 61,001 | $ | 69,966 | $ | 130,967 | |||||||||||
Nine Months Ended | |||||||||||||||||
September 30, 2021 | (unaudited; in millions) | ||||||||||||||||
Beginning assets under management | $ | 74,746 | $ | 83,030 | $ | 157,776 | |||||||||||
Gross client cash inflows | 18,560 | 7,254 | 25,814 | ||||||||||||||
Gross client cash outflows | (13,115) | (10,236) | (23,351) | ||||||||||||||
Net client cash flows (2) | 5,445 | (2,982) | 2,463 | ||||||||||||||
Artisan Funds' distributions not reinvested (3) | (114) | — | (114) | ||||||||||||||
Investment returns and other | 5,617 | 7,881 | 13,498 | ||||||||||||||
Net transfers (4) | (302) | 302 | — | ||||||||||||||
Ending assets under management | $ | 85,392 | $ | 88,231 | $ | 173,623 | |||||||||||
Average assets under management | $ | 82,721 | $ | 87,659 | $ | 170,380 | |||||||||||
September 30, 2020 | |||||||||||||||||
Beginning assets under management | $ | 57,288 | $ | 63,728 | $ | 121,016 | |||||||||||
Gross client cash inflows | 16,361 | 10,879 | 27,240 | ||||||||||||||
Gross client cash outflows | (14,323) | (7,824) | (22,147) | ||||||||||||||
Net client cash flows (2) | 2,038 | 3,055 | 5,093 | ||||||||||||||
Artisan Funds' distributions not reinvested (3) | (96) | — | (96) | ||||||||||||||
Investment returns and other | 3,663 | 4,612 | 8,275 | ||||||||||||||
Net transfers (4) | (316) | 316 | — | ||||||||||||||
Ending assets under management | $ | 62,577 | $ | 71,711 | $ | 134,288 | |||||||||||
Average assets under management | $ | 55,402 | $ | 62,740 | $ | 118,142 | |||||||||||
(1) Separate accounts and other consists of AUM we manage in or through vehicles other than Artisan Funds or Artisan Global Funds. This AUM includes assets we manage in traditional separate accounts, as well as assets we manage in Artisan-branded collective investment trusts and in Artisan Private Funds. As of September 30, 2021, AUM for certain strategies include the following amounts for which Artisan Partners provides investment models to managed account sponsors (reported on a one-month lag): Artisan Sustainable Emerging Markets $23 million. |
(2) Net client cash flows excludes Artisan Funds’ income and capital gain distributions that were not reinvested. Prior period net client cash flows have been recast to exclude Artisan Funds’ distributions. | |||||||||||||||||
(3) Artisan Funds’ distributions not reinvested represents the amount of income and capital gain distributions that were not reinvested in the Artisan Funds, including in the Artisan High Income Fund. | |||||||||||||||||
(4) Net transfers represent certain amounts that we have identified as having been transferred out of one investment strategy, investment vehicle or account and into another strategy, vehicle or account. |
For the Three Months Ended March 31, | For the Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Statements of operations data: | (unaudited; in millions, except share and per-share data) | ||||||||||||||||||||||
Revenues | $ | 290.7 | $ | 202.8 | $ | 87.9 | 43 | % | |||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Total compensation and benefits | 139.5 | 104.7 | 34.8 | 33 | % | ||||||||||||||||||
Other operating expenses | 29.4 | 27.1 | 2.3 | 8 | % | ||||||||||||||||||
Total operating expenses | 168.9 | 131.8 | 37.1 | 28 | % | ||||||||||||||||||
Total operating income | 121.8 | 71.0 | 50.8 | 72 | % | ||||||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||||
Interest expense | (2.7) | (2.7) | — | — | % | ||||||||||||||||||
Other non-operating income | 7.1 | (15.2) | 22.3 | 147 | % | ||||||||||||||||||
Total non-operating income (expense) | 4.4 | (17.9) | 22.3 | 125 | % | ||||||||||||||||||
Income before income taxes | 126.2 | 53.1 | 73.1 | 138 | % | ||||||||||||||||||
Provision for income taxes | 21.6 | 9.5 | 12.1 | 127 | % | ||||||||||||||||||
Net income before noncontrolling interests | 104.6 | 43.6 | 61.0 | 140 | % | ||||||||||||||||||
Less: Noncontrolling interests - Artisan Partners Holdings | 23.6 | 16.1 | 7.5 | 47 | % | ||||||||||||||||||
Less: Noncontrolling interests - consolidated investment products | 3.7 | (7.3) | 11.0 | 151 | % | ||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 77.3 | $ | 34.8 | $ | 42.5 | 122 | % | |||||||||||||||
Share Data | |||||||||||||||||||||||
Basic earnings per share | $ | 1.19 | $ | 0.53 | |||||||||||||||||||
Diluted earnings per share | $ | 1.19 | $ | 0.53 | |||||||||||||||||||
Basic weighted average number of common shares outstanding | 58,758,284 | 53,265,479 | |||||||||||||||||||||
Diluted weighted average number of common shares outstanding | 58,773,269 | 53,265,479 |
For the Three Months Ended September 30, | For the Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Statements of operations data: | (unaudited; in millions, except share and per-share data) | ||||||||||||||||||||||
Revenues | $ | 316.6 | $ | 232.7 | $ | 83.9 | 36 | % | |||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Total compensation and benefits | 142.2 | 108.7 | 33.5 | 31 | % | ||||||||||||||||||
Other operating expenses | 31.3 | 26.8 | 4.5 | 17 | % | ||||||||||||||||||
Total operating expenses | 173.5 | 135.5 | 38.0 | 28 | % | ||||||||||||||||||
Total operating income | 143.1 | 97.2 | 45.9 | 47 | % | ||||||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||||
Interest expense | (2.7) | (2.7) | — | — | % | ||||||||||||||||||
Other non-operating income | 1.0 | 8.6 | (7.6) | (88) | % | ||||||||||||||||||
Total non-operating income (expense) | (1.7) | 5.9 | (7.6) | (129) | % | ||||||||||||||||||
Income before income taxes | 141.4 | 103.1 | 38.3 | 37 | % | ||||||||||||||||||
Provision for income taxes | 28.0 | 18.5 | 9.5 | 51 | % | ||||||||||||||||||
Net income before noncontrolling interests | 113.4 | 84.6 | 28.8 | 34 | % | ||||||||||||||||||
Less: Noncontrolling interests - Artisan Partners Holdings | 24.8 | 21.5 | 3.3 | 15 | % | ||||||||||||||||||
Less: Noncontrolling interests - consolidated investment products | 2.2 | 4.6 | (2.4) | (52) | % | ||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 86.4 | $ | 58.5 | $ | 27.9 | 48 | % | |||||||||||||||
Share Data | |||||||||||||||||||||||
Basic earnings per share | $ | 1.30 | $ | 0.93 | |||||||||||||||||||
Diluted earnings per share | $ | 1.30 | $ | 0.93 | |||||||||||||||||||
Basic weighted average number of common shares outstanding | 59,965,549 | 56,402,503 | |||||||||||||||||||||
Diluted weighted average number of common shares outstanding | 59,982,774 | 56,408,272 |
Separate Accounts | Artisan Funds and Artisan Global Funds | ||||||||||||||||||||||
For the Three Months Ended March 31, | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
(unaudited; dollars in millions) | |||||||||||||||||||||||
Investment advisory fees | $ | 114.0 | $ | 80.0 | $ | 176.7 | $ | 122.8 | |||||||||||||||
Weighted average management fee(1) | 51.5 bps | 51.7 bps | 91.5 bps | 91.8 bps | |||||||||||||||||||
Percentage of ending AUM | 52 | % | 53 | % | 48 | % | 47 | % | |||||||||||||||
(1) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period. The weighted average management fee for prior periods have been recast to exclude performance fee revenue. |
Separate Accounts and Other (2) | Artisan Funds and Artisan Global Funds | ||||||||||||||||||||||
For the Three Months Ended September 30, | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
(unaudited; dollars in millions) | |||||||||||||||||||||||
Investment advisory fees | $ | 117.5 | $ | 92.4 | $ | 199.1 | $ | 140.3 | |||||||||||||||
Weighted average management fee(1) | 51.3 bps | 52.4 bps | 91.0 bps | 91.6 bps | |||||||||||||||||||
Percentage of ending AUM | 51 | % | 53 | % | 49 | % | 47 | % | |||||||||||||||
(1) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period. | |||||||||||||||||||||||
(2) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have full discretionary investment authority. |
For the Three Months Ended March 31, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Salaries, incentive compensation and benefits(1) | $ | 128.4 | $ | 95.5 | $ | 32.9 | 34 | % | |||||||||||||||
Long-term incentive compensation awards | 11.1 | 9.2 | 1.9 | 21 | % | ||||||||||||||||||
Total compensation and benefits | $ | 139.5 | $ | 104.7 | $ | 34.8 | 33 | % | |||||||||||||||
(1) Excluding long-term incentive compensation awards |
For the Three Months Ended September 30, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Salaries, incentive compensation and benefits(1) | $ | 130.8 | $ | 99.6 | $ | 31.2 | 31 | % | |||||||||||||||
Long-term incentive compensation awards | 11.4 | 9.1 | 2.3 | 25 | % | ||||||||||||||||||
Total compensation and benefits | $ | 142.2 | $ | 108.7 | $ | 33.5 | 31 | % | |||||||||||||||
(1) Excluding long-term incentive compensation awards |
For the Three Months Ended March 31, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Interest expense | $ | (2.7) | $ | (2.7) | $ | — | — | % | |||||||||||||||
Net investment gain (loss) of consolidated investment products | 6.9 | (12.9) | 19.8 | 153 | % | ||||||||||||||||||
Other investment gain (loss) | 0.2 | (2.3) | 2.5 | 109 | % | ||||||||||||||||||
Total non-operating income (expense) | $ | 4.4 | $ | (17.9) | $ | 22.3 | 125 | % |
For the Three Months Ended September 30, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Interest expense | $ | (2.7) | $ | (2.7) | $ | — | — | % | |||||||||||||||
Net investment gain (loss) of consolidated investment products | 2.7 | 7.8 | (5.1) | (65) | % | ||||||||||||||||||
Net gain (loss) on the tax receivable agreements | 0.4 | 0.2 | 0.2 | 100 | % | ||||||||||||||||||
Other investment gain (loss) | (2.1) | 0.6 | (2.7) | (450) | % | ||||||||||||||||||
Total non-operating income (expense) | $ | (1.7) | $ | 5.9 | $ | (7.6) | (129) | % |
For the Nine Months Ended September 30, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
Statements of operations data: | (unaudited; in millions, except share and per share data) | ||||||||||||||||||||||
Revenues | $ | 912.2 | $ | 638.5 | $ | 273.7 | 43 | % | |||||||||||||||
Operating Expenses | |||||||||||||||||||||||
Total compensation and benefits | 419.7 | 315.6 | 104.1 | 33 | % | ||||||||||||||||||
Other operating expenses | 89.8 | 78.1 | 11.7 | 15 | % | ||||||||||||||||||
Total operating expenses | 509.5 | 393.7 | 115.8 | 29 | % | ||||||||||||||||||
Total operating income | 402.7 | 244.8 | 157.9 | 65 | % | ||||||||||||||||||
Non-operating income (expense) | |||||||||||||||||||||||
Interest expense | (8.1) | (8.1) | — | — | % | ||||||||||||||||||
Other non-operating income | 20.4 | 7.5 | 12.9 | 172 | % | ||||||||||||||||||
Total non-operating income (expense) | 12.3 | (0.6) | 12.9 | 2,150 | % | ||||||||||||||||||
Income before income taxes | 415.0 | 244.2 | 170.8 | 70 | % | ||||||||||||||||||
Provision for income taxes | 78.1 | 44.2 | 33.9 | 77 | % | ||||||||||||||||||
Net income before noncontrolling interests | 336.9 | 200.0 | 136.9 | 68 | % | ||||||||||||||||||
Less: Noncontrolling interests - Artisan Partners Holdings | 74.1 | 55.8 | 18.3 | 33 | % | ||||||||||||||||||
Less: Noncontrolling interests - consolidated investment products | 10.9 | 4.7 | 6.2 | 132 | % | ||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. | $ | 251.9 | $ | 139.5 | $ | 112.4 | 81 | % | |||||||||||||||
Share Data | |||||||||||||||||||||||
Basic earnings per share | $ | 3.84 | $ | 2.22 | |||||||||||||||||||
Diluted earnings per share | $ | 3.84 | $ | 2.22 | |||||||||||||||||||
Basic weighted average number of common shares outstanding | 59,519,634 | 55,188,563 | |||||||||||||||||||||
Diluted weighted average number of common shares outstanding | 59,535,894 | 55,190,486 |
Separate Accounts and Other (2) | Artisan Funds and Artisan Global Funds | ||||||||||||||||||||||
For the Nine Months Ended September 30, | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
(unaudited; dollars in millions) | |||||||||||||||||||||||
Investment advisory fees | $ | 347.7 | $ | 258.3 | $ | 564.5 | $ | 380.2 | |||||||||||||||
Weighted average management fee(1) | 51.4 bps | 52.7 bps | 91.2 bps | 91.7 bps | |||||||||||||||||||
Percentage of ending AUM | 51 | % | 53 | % | 49 | % | 47 | % | |||||||||||||||
(1) We compute our weighted average management fee by dividing annualized management fees (which excludes performance fees) by average assets under management for the applicable period. | |||||||||||||||||||||||
(2) Separate accounts and other consists of assets we manage in or through vehicles other than Artisan Funds or Artisan Global Funds, including assets we manage in traditional separate accounts, Artisan-branded collective investment trusts and Artisan Private Funds, as well as assets under advisement related to investment models, for which we provide consulting advice but do not have full discretionary investment authority. |
For the Nine Months Ended September 30, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Salaries, incentive compensation and benefits (1) | $ | 385.1 | $ | 288.2 | $ | 96.9 | 34 | % | |||||||||||||||
Long-term incentive compensation awards | 34.6 | 27.4 | 7.2 | 26 | % | ||||||||||||||||||
Total compensation and benefits | $ | 419.7 | $ | 315.6 | $ | 104.1 | 33 | % | |||||||||||||||
(1) Excluding long-term incentive compensation awards |
For the Nine Months Ended September 30, | Period-to-Period | ||||||||||||||||||||||
2021 | 2020 | $ | % | ||||||||||||||||||||
(unaudited; in millions) | |||||||||||||||||||||||
Interest expense | $ | (8.1) | $ | (8.1) | $ | — | — | % | |||||||||||||||
Net investment gain (loss) of consolidated investment products | 18.0 | 7.8 | 10.2 | 131 | % | ||||||||||||||||||
Net gain (loss) on the tax receivable agreements | 0.4 | 0.2 | 0.2 | 100 | % | ||||||||||||||||||
Other investment gain (loss) | 2.0 | (0.5) | 2.5 | 500 | % | ||||||||||||||||||
Total non-operating income (expense) | $ | 12.3 | $ | (0.6) | $ | 12.9 | 2,150 | % |
For the Three Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | ||||||||||||||||||||||
(unaudited; in millions, except per share data) | |||||||||||||||||||||||
Reconciliation of non-GAAP financial measures: | |||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. (GAAP) | $ | 77.3 | $ | 34.8 | |||||||||||||||||||
Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings | 23.6 | 16.1 | |||||||||||||||||||||
Add back: Provision for income taxes | 21.6 | 9.5 | |||||||||||||||||||||
Add back: Compensation expense related to market valuation changes in compensation plans | — | — | |||||||||||||||||||||
Add back: Net (gain) loss on the tax receivable agreements | — | — | |||||||||||||||||||||
Add back: Net investment (gain) loss of investment products attributable to APAM | (3.3) | 8.1 | |||||||||||||||||||||
Less: Adjusted provision for income taxes | 29.4 | 16.8 | |||||||||||||||||||||
Adjusted net income (Non-GAAP) | $ | 89.8 | $ | 51.7 | |||||||||||||||||||
Average shares outstanding | |||||||||||||||||||||||
Class A common shares | 58.7 | 53.3 | |||||||||||||||||||||
Assumed vesting or exchange of: | |||||||||||||||||||||||
Unvested Class A restricted share-based awards | 5.4 | 5.1 | |||||||||||||||||||||
Artisan Partners Holdings units outstanding (noncontrolling interests) | 15.1 | 20.1 | |||||||||||||||||||||
Adjusted shares | 79.2 | 78.5 | |||||||||||||||||||||
Basic and diluted earnings per share (GAAP) | $ | 1.19 | $ | 0.53 | |||||||||||||||||||
Adjusted net income per adjusted share (Non-GAAP) | $ | 1.13 | $ | 0.66 | |||||||||||||||||||
Operating income (GAAP) | $ | 121.8 | $ | 71.0 | |||||||||||||||||||
Add back: Compensation expense related to market valuation changes in compensation plans | — | — | |||||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 121.8 | $ | 71.0 | |||||||||||||||||||
Operating margin (GAAP) | 41.9 | % | 35.0 | % | |||||||||||||||||||
Adjusted operating margin (Non-GAAP) | 41.9 | % | 35.0 | % | |||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. (GAAP) | $ | 77.3 | $ | 34.8 | |||||||||||||||||||
Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings | 23.6 | 16.1 | |||||||||||||||||||||
Add back: Net (gain) loss on the tax receivable agreements | — | — | |||||||||||||||||||||
Add back: Net investment (gain) loss of investment products attributable to APAM | (3.3) | 8.1 | |||||||||||||||||||||
Add back: Compensation expense related to market valuation changes in compensation plans | — | — | |||||||||||||||||||||
Add back: Interest expense | 2.7 | 2.7 | |||||||||||||||||||||
Add back: Provision for income taxes | 21.6 | 9.5 | |||||||||||||||||||||
Add back: Depreciation and amortization | 1.6 | 1.6 | |||||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 123.5 | $ | 72.8 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
(unaudited; in millions, except per share data) | |||||||||||||||||||||||
Reconciliation of non-GAAP financial measures: | |||||||||||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. (GAAP) | $ | 86.4 | $ | 58.5 | $ | 251.9 | $ | 139.5 | |||||||||||||||
Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings | 24.8 | 21.5 | 74.1 | 55.8 | |||||||||||||||||||
Add back: Provision for income taxes | 28.0 | 18.5 | 78.1 | 44.2 | |||||||||||||||||||
Add back: Compensation expense related to market valuation changes in compensation plans | 0.1 | — | 0.3 | — | |||||||||||||||||||
Add back: Net (gain) loss on the tax receivable agreements | (0.4) | (0.2) | (0.4) | (0.2) | |||||||||||||||||||
Add back: Net investment (gain) loss of investment products attributable to APAM | 1.6 | (3.7) | (8.9) | (2.2) | |||||||||||||||||||
Less: Adjusted provision for income taxes | 34.7 | 23.2 | 97.6 | 58.1 | |||||||||||||||||||
Adjusted net income (Non-GAAP) | $ | 105.8 | $ | 71.4 | $ | 297.5 | $ | 179.0 | |||||||||||||||
Average shares outstanding | |||||||||||||||||||||||
Class A common shares | 60.0 | 56.4 | 59.5 | 55.2 | |||||||||||||||||||
Assumed vesting or exchange of: | |||||||||||||||||||||||
Unvested Class A restricted share-based awards | 5.4 | 5.4 | 5.5 | 5.3 | |||||||||||||||||||
Artisan Partners Holdings units outstanding (noncontrolling interests) | 14.2 | 17.2 | 14.5 | 18.3 | |||||||||||||||||||
Adjusted shares | 79.6 | 79.0 | 79.5 | 78.8 | |||||||||||||||||||
Basic and diluted earnings per share (GAAP) | $ | 1.30 | $ | 0.93 | $ | 3.84 | $ | 2.22 | |||||||||||||||
Adjusted net income per adjusted share (Non-GAAP) | $ | 1.33 | $ | 0.90 | $ | 3.74 | $ | 2.27 | |||||||||||||||
Operating income (GAAP) | $ | 143.1 | $ | 97.2 | $ | 402.7 | $ | 244.8 | |||||||||||||||
Add back: Compensation expense related to market valuation changes in compensation plans | 0.1 | — | 0.3 | — | |||||||||||||||||||
Adjusted operating income (Non-GAAP) | $ | 143.2 | $ | 97.2 | $ | 403.0 | $ | 244.8 | |||||||||||||||
Operating margin (GAAP) | 45.2 | % | 41.8 | % | 44.1 | % | 38.3 | % | |||||||||||||||
Adjusted operating margin (Non-GAAP) | 45.2 | % | 41.8 | % | 44.2 | % | 38.3 | % | |||||||||||||||
Net income attributable to Artisan Partners Asset Management Inc. (GAAP) | $ | 86.4 | $ | 58.5 | $ | 251.9 | $ | 139.5 | |||||||||||||||
Add back: Net income attributable to noncontrolling interests - Artisan Partners Holdings | 24.8 | 21.5 | 74.1 | 55.8 | |||||||||||||||||||
Add back: Net (gain) loss on the tax receivable agreements | (0.4) | (0.2) | (0.4) | (0.2) | |||||||||||||||||||
Add back: Net investment (gain) loss of investment products attributable to APAM | 1.6 | (3.7) | (8.9) | (2.2) | |||||||||||||||||||
Add back: Compensation expense related to market valuation changes in compensation plans | 0.1 | — | 0.3 | — | |||||||||||||||||||
Add back: Interest expense | 2.7 | 2.7 | 8.1 | 8.1 | |||||||||||||||||||
Add back: Provision for income taxes | 28.0 | 18.5 | 78.1 | 44.2 | |||||||||||||||||||
Add back: Depreciation and amortization | 1.8 | 1.8 | 5.1 | 5.0 | |||||||||||||||||||
Adjusted EBITDA (Non-GAAP) | $ | 145.0 | $ | 99.1 | $ | 408.3 | $ | 250.2 |
March 31, 2021 | December 31, 2020 | ||||||||||
(unaudited; in millions) | |||||||||||
Cash and cash equivalents | $ | 215.8 | $ | 155.0 | |||||||
Accounts receivable | $ | 115.0 | $ | 99.9 | |||||||
Seed investments(1) | $ | 63.3 | $ | 62.6 | |||||||
Undrawn commitment on revolving credit facility | $ | 100.0 | $ | 100.0 | |||||||
(1) Seed investments include Artisan's direct equity investments in consolidated and nonconsolidated Artisan-sponsored investment products. The balance excludes $35.0 of investments made related to funded long-term incentive compensation plans. |
September 30, 2021 | December 31, 2020 | ||||||||||
(unaudited; in millions) | |||||||||||
Cash and cash equivalents | $ | 273.3 | $ | 155.0 | |||||||
Accounts receivable | $ | 122.1 | $ | 99.9 | |||||||
Seed investments(1) | $ | 65.0 | $ | 62.6 | |||||||
Undrawn commitment on revolving credit facility | $ | 100.0 | $ | 100.0 | |||||||
(1) Seed investments include Artisan's direct equity investments in consolidated and nonconsolidated Artisan-sponsored investment products. The balance excludes $37.3 of investments made related to funded long-term incentive compensation plans. |
For the Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(unaudited, in millions) | ||||||||||||||||||||||||||
Holdings Partnership Distributions to Limited Partners | $ | 11.9 | $ | 17.1 | ||||||||||||||||||||||
Holdings Partnership Distributions to APAM | 48.5 | 45.1 | ||||||||||||||||||||||||
Total Holdings Partnership Distributions | $ | 60.4 | $ | 62.2 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||
(unaudited, in millions) | ||||||||||||||||||||||||||
Holdings Partnership Distributions to Limited Partners | $ | 25.6 | $ | 20.9 | $ | 67.9 | $ | 60.2 | ||||||||||||||||||
Holdings Partnership Distributions to APAM | 110.6 | 70.0 | 285.0 | 181.4 | ||||||||||||||||||||||
Total Holdings Partnership Distributions | $ | 136.2 | $ | 90.9 | $ | 352.9 | $ | 241.6 |
Type of Dividend | Class of Stock | For the Three Months Ended March 31, | ||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||
Quarterly | Class A Common | $ | 0.97 | $ | 0.68 | |||||||||||||||||||||||||||
Special Annual | Class A Common | $ | 0.31 | $ | 0.60 | |||||||||||||||||||||||||||
Type of Dividend | Class of Stock | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||||||
Quarterly | Class A Common | $ | 1.00 | $ | 0.67 | $ | 2.85 | $ | 1.96 | |||||||||||||||||||||||
Special Annual | Class A Common | $ | — | $ | — | $ | 0.31 | $ | 0.60 | |||||||||||||||||||||||
For the Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
(unaudited; in millions) | |||||||||||
Cash, cash equivalents and restricted cash as of January 1 | $ | 199.5 | $ | 144.3 | |||||||
Net cash provided by operating activities | 192.7 | 120.4 | |||||||||
Net cash provided by (used in) investing activities | (22.7) | 3.6 | |||||||||
Net cash used in financing activities | (53.0) | (90.3) | |||||||||
Net impact of deconsolidation of consolidated investment products | (34.8) | — | |||||||||
Cash, cash equivalents and restricted cash as of March 31 | $ | 281.7 | $ | 178.0 |
For the Nine Months Ended September 30, | |||||||||||
2021 | 2020 | ||||||||||
(unaudited; in millions) | |||||||||||
Cash, cash equivalents and restricted cash as of January 1 | $ | 199.5 | $ | 144.3 | |||||||
Net cash provided by operating activities | 404.2 | 298.7 | |||||||||
Net cash provided by (used in) investing activities | (26.2) | 16.2 | |||||||||
Net cash used in financing activities | (252.2) | (228.3) | |||||||||
Net impact of deconsolidation of consolidated investment products | (34.8) | — | |||||||||
Cash, cash equivalents and restricted cash as of September 30 | $ | 290.5 | $ | 230.9 |
Exhibit No. | Description | Form | File No. | Exhibit | Filing Date | Filed or Furnished Herewith | ||||||||||||||||||||||||||||||||
31.1 | X | |||||||||||||||||||||||||||||||||||||
31.2 | X | |||||||||||||||||||||||||||||||||||||
32.1 | X | |||||||||||||||||||||||||||||||||||||
32.2 | X | |||||||||||||||||||||||||||||||||||||
101 | The following Extensible Business Reporting Language (XBRL) documents are collectively included herewith as Exhibit 101: (i) the Unaudited Condensed Consolidated Statements of Financial Condition as of | X | ||||||||||||||||||||||||||||||||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) | X |
By: | /s/ Eric R. Colson | ||||
Eric R. Colson Chief Executive Officer (principal executive officer) | |||||
/s/ Charles J. Daley, Jr. | |||||
Charles J. Daley, Jr. Executive Vice President, Chief Financial Officer and Treasurer (principal financial and accounting officer) |