Artisan Partners Asset Management reported $99.8 billion in assets under management as of Sept. 30, up 5.1% from the end of the previous quarter despite net outflows of $935 million and up 2.9% from a year earlier, the company's third-quarter earnings report shows.
Though the outflows were less than in the previous two quarters, Artisan still saw more than $4 billion exiting in the first nine months of 2016 with $2.3 billion in outflows for the June 30 quarter and $1.3 billion in the quarter ended March 31.
Market appreciation of $4.8 billion helped lift assets under management for the latest quarter.
GAAP net income was $19.1 million for the quarter, up 4.3% from the previous three months and up 3.8% from the third quarter of 2015.
Revenue was $184.1 million, up 1.8% from the previous three months but down 7.2% from the same quarter in 2015.
Artisan Chairman and CEO Eric Colson said in a statement accompanying an announcement of the results that the non-U.S. growth, U.S. midcap value, and U.S. midcap growth strategies experienced respective net outflows of $1.1 billion, $532 million and $337 million in the current quarter.
“Those net outflows are for a variety of reasons, including clients rebalancing as a result of the long-term returns those strategies have generated,” Mr. Colson said. “Poor relative performance has also caused some outflows, especially from the U.S. midcap value strategy. The current trends toward passive and low-cost products are also working against us.”
Overall, Mr. Colson said five of the company's seven investment teams reported inflows in the latest quarter.
