Acadian Asset Management Inc. · NYSE:AAMI
Acadian Asset Management — Q1 2025 Earnings Presentation
37 slides from Acadian Asset Management's earnings presentation, May 1, 2025
Slide 1: Q1 2025 Earnings Presentation
Q1 2025 EARNINGS PRESENTATION May 1, 2025
Slide 2: Kelly Young and Melody Huang
Kelly Young President and Chief Executive Officer Melody Huang Director of Finance and Investor Relations 2
Slide 3: Acadian: Only Pure-Play Publicly-Traded Systematic Manager
Acadian: Only Pure-Play Publicly-Traded Systematic Manager Nearly 40-year Founded in 1986, Acadian has pioneered systematic investing and we continue to lead the sector through constant innovation. We have delivered sustained outperformance across operating history various investment strategies and
Slide 4: Acadian Q1'25: Strong Outperformance
Acadian Q1'25: Strong Outperformance Key Performance Metrics Highlights Increase Q1'24 Q1'25 (Decrease) ▪ Net Income attributable to controlling interests up 38% compared to prior year Net income attributable to controlling interests $m $14.6 $20.1 38% ▪ U.S. GAAP EPS up 46% U.S. GAAP diluted EPS $0
Slide 5: Outstanding Performance Track Records
Outstanding Performance Track Records % of Major Strategy Group Assets Outperforming Benchmarks Global Equity Emerging Markets Equity Non-US Equity 100% 100% 100% 100% 100% 100% 99% 100% 100% 3-Year 5-Year 10-Year 3-Year 5-Year 10-Year 3-Year 5-Year 10-Year Small Cap Equity Enhanced Equity 100% 100%
Slide 6: Meaningful Long Term Alpha Generation
Meaningful Long Term Alpha Generation Revenue Weighted Asset Weighted +4.4% +3.5% 5-year annualized return in excess of 5-year annualized return in excess of benchmark benchmark 95% 94% 95% 92% 90% 91% 3-Year 5-Year 10-Year 3-Year 5-Year 10-Year Consolidated Firmwide Investment Performance _________
Slide 7: Extensive Global Distribution Platform
Extensive Global Distribution Platform 4 > 90 > 1,000 global distribution offices experienced distribution institutional client accounts serving clients professionals > 40 > 10 years ~ 40 countries represented average relationship length investment consultant across client base with top 50 clients r
Slide 8: Acadian: Highly Regarded Institutional Investment Manager
Acadian: Highly Regarded Institutional Investment Manager ▪ 6 clients among the top 20 global asset owners ▪ 27 clients among the top 50 U.S. retirement plans ▪ > 50% of assets from clients invested in multiple Acadian strategies ▪ 37% of assets managed for clients outside the U.S. ▪ > 80 institutio
Slide 9: Positive Trend in Net Flows
Positive Trend in Net Flows Q1’25 net flows of $3.8 billion, highest in nineteen years $3.8B $1.8B $(2.3)B FY 2023 FY 2024 Q1'25 Net Flows 9
Slide 10: Product Initiatives to Drive Growth
Product Initiatives to Drive Growth Enhanced Equity Equity Extensions Systematic Credit Equity Alternatives 10
Slide 11: Enhanced Equity: Vast Market Opportunity
Enhanced Equity: Vast Market Opportunity ▪ Enhanced Equity is one of Acadian’s key product initiatives to drive long term growth ▪ Recent flows have been robust, end of Q1’25 AUM of ~$12B doubled from prior year, expected to continue meaningful growth in the future ▪ Enhanced Equity strategies addre
Slide 12: Enhanced Equity: Proven Acadian Advantage
Enhanced Equity: Proven Acadian Advantage ▪ Enhanced Equity strategies designed to repackage Acadian’s alpha in a lower risk manner to meet market demand ▪ These strategies leverage Acadian’s proprietary investment process to invest in benchmark stocks and deliver attractive risk-adjusted returns wi
Slide 13: Enhanced Equity: Robust Results
Enhanced Equity: Robust Results ▪ Acadian’s Enhanced Equity targets stable alpha with low active risk and has produced consistent outperformance Outperform Underperform ___________________________________________________________ Acadian Enhanced Global Equity Composite vs. the MSCI All-Country World
Slide 14: Low Leverage Ratios With High Liquidity Position
Low Leverage Ratios With High Liquidity Position Balance Sheet Profile ($ in millions) March 31, 2025 ▪ Cash and cash-equivalents totaled $119.6 million ▪ $91.5 million of seed investments ▪ Debt includes outstanding balance on revolving credit facility of $80.0 million; reflects draws to support fi
Slide 15: Track Record of Significant Value Creation Through Buybacks
Track Record of Significant Value Creation Through Buybacks Quarterly Diluted Shares Outstanding (in millions) Return of Capital ▪ $1.4 billion in excess capital returned to stockholders over the last 5 years through share buybacks and dividends ▪ During the first quarter of 2025, repurchased 0.8 mi
Slide 16: Acadian: Positioned for Multiple Expansion & Value Creation
Acadian: Positioned for Multiple Expansion & Value Creation Q1’25 LTM P/E Multiple $35.50 12x $26.69 33% 9x AAMI Peer Average ___________________________________________________________ AAMI calculation based on Q1’25 LTM ENI EPS and share price as of April 29, 2025 at $26.69 (increase 33% at peer a
Slide 17: Closing: Acadian Compelling Investment Opportunity
Closing: Acadian Compelling Investment Opportunity ▪ Only pure-play, publicly traded systematic manager ▪ Nearly 40-year track record with competitive edge in systematic investing ▪ Strong performance track record: ▪ > 90% of strategies by revenue outperforming over 3- / 5- / 10- year periods(1) ▪ O
Slide 18: U.S. GAAP Statement of Operations
U.S. GAAP Statement of Operations Increase ($ in millions, unless otherwise noted) Q1'24 Q1'25 (Decrease) Q1'25 vs. Q1'24 Management fees $ 102.2 $ 112.9 10.5 % ▪ Total revenue increased 13.4% from Performance fees 3.1 5.3 71.0 % Q1'24 driven by higher management Consolidated Funds’ revenue 0.4 1.7
Slide 19: Supplemental Information
Supplemental Information 19
Slide 20: Outstanding Performance Metrics
Outstanding Performance Metrics Key Performance Metrics ($ in millions, unless otherwise noted) Q1'24 Q1'25 Increase (Decrease) U.S. GAAP Basis Revenue $ 105.7 $ 119.9 13.4 % Pre-tax income attributable to controlling interests 20.7 28.4 37.2 % Net income attributable to controlling interests 14.6 2
Slide 21: ENI Revenue
ENI Revenue Commentary ▪ ENI revenue includes management fees and performance fees ▪ Q1'25 ENI revenue of $118.2 million increased from Q1'24 by 12%; primarily due to higher performance fees and higher management fees driven by higher average AUM ▪ Management fees increased 10% from Q1'24 reflecting
Slide 22: ENI Operating Expenses
ENI Operating Expenses Commentary ▪ ENI operating expenses reflect the Company’s operating expenses (excluding variable compensation) ▪ ENI operating expenses increased to $54.3 million in Q1'25 compared to $49.5 million in Q1'24 ▪ Q1'25 Operating Expense Ratio(1) fell to 48.1% for the period from 4
Slide 23: ENI Variable Compensation
ENI Variable Compensation Commentary ▪ Variable compensation is primarily comprised of a contractual percentage of ENI earnings before variable compensation and a contractual split of performance fees, which is awarded to employees and recognized over a contractual vesting period ▪ Variable compensa
Slide 24: Acadian LLC Key Employee Distributions
Acadian LLC Key Employee Distributions Commentary ▪ Represents key employees’ share of profit from Acadian LLC’s earnings ▪ 2025 full-year Distribution Ratio expected to be 8%-9% if the equity market remains at the same level; mix of core and performance fee profits will impact the ratio Acadian LLC
Slide 25: Balance Sheet Management
Balance Sheet Management ($ in millions) December 31, 2024 March 31, 2025 Assets Cash and cash equivalents $ 94.8 $ 119.6 Investment advisory fees receivable 164.7 132.0 Right of use assets 52.5 50.9 Investments 67.9 52.9 Other assets 164.0 157.7 Assets of consolidated Funds 159.3 164.2 Total assets
Slide 26: Assets Under Management Rollforward
Assets Under Management Rollforward ($ in billions, unless otherwise noted) Q1'24 Q1'25 Beginning balance $ 103.7 $ 117.3 Gross sales 4.3 8.8 Gross outflows (4.7) (5.8) Reinvested income and distributions 0.8 0.8 Net flows 0.4 3.8 Market appreciation 6.3 0.8 Ending balance $ 110.4 $ 121.9 Average AU
Slide 27: Reconciliations and Disclosures
Reconciliations and Disclosures 27
Slide 28: Reconciliations from U.S. GAAP to Non-GAAP Measures
Reconciliations from U.S. GAAP to Non-GAAP Measures(1) ($ in millions) Q1'24 Q1'25 ENI Adjustments U.S. GAAP net income attributable to controlling interests $ 14.6 $ 20.1 1i Exclude non-cash expenses representing changes in the value of Acadian LLC Adjustments to reflect the economic earnings of th
Slide 29: Reconciliations from U.S. GAAP to Non-GAAP Measures
Reconciliations from U.S. GAAP to Non-GAAP Measures(1) Reconciliation of per-share U.S. GAAP Net Income to Economic Net Income per share ($) Q1'24 Q1'25 U.S. GAAP net income per share $ 0.37 $ 0.54 Adjustments to reflect the economic earnings of the Company: i. Non-cash key employee-owned equity and
Slide 30: Reconciliations from U.S. GAAP to Non-GAAP Measures
Reconciliations from U.S. GAAP to Non-GAAP Measures(1) Reconciliation of U.S. GAAP Operating Expense to ENI Operating Expense ($ in millions) Q1'24 Q1'25 U.S. GAAP operating expense $ 82.8 $ 88.0 Less: items excluded from ENI Non-cash key employee-owned equity and profit interest revaluations (4.4)
Slide 31: Reconciliations from U.S. GAAP to Non-GAAP Measures
Reconciliations from U.S. GAAP to Non-GAAP Measures(1) Reconciliation of U.S. GAAP Pre-tax Income to Pre-tax ENI ($ in millions) Q1'24 Q1'25 U.S. GAAP pre-tax income $ 21.8 $ 32.1 Adjustments to reflect the economic earnings of the Company: Non-cash key employee-owned equity and profit interest reva
Slide 32: Segment Reconciliation
Segment Reconciliation ($ in millions) Q1'24 Q1'25 U.S. GAAP Consolidated Revenue $ 105.7 $ 119.9 Exclude revenue from consolidated funds (a) 0.4 1.7 Quant & Solutions Segment ENI Revenue 105.3 118.2 Quant & Solutions Segment ENI Expenses Fixed compensation and benefits (b) 21.6 22.9 Variable compen
Slide 33: Segment Reconciliation (continued)
Segment Reconciliation (continued) Notes to Segment Reconciliation (a) Adjusted to exclude consolidated Funds revenues which are included in U.S. GAAP revenue. (b) Fixed compensation and benefits includes base salaries, payroll taxes and the cost of benefit programs provided. (c) Variable compensati
Slide 34: Definitions and Additional Notes
Definitions and Additional Notes References to “Acadian Asset Management”, “Acadian”, “AAMI” or the “Company” refer to Acadian Asset Management Inc.; references to “Hold Co” refer to AAMI and its subsidiaries excluding Acadian Asset Management LLC (“Acadian LLC”). The Company currently operates its
Slide 35: Definitions and Additional Notes
Definitions and Additional Notes Adjusted EBITDA Adjusted EBITDA is defined as economic net income before interest, income taxes, depreciation and amortization. The Company notes that its calculation of Adjusted EBITDA may not be consistent with Adjusted EBITDA as calculated by other companies. The
Slide 36: Definitions and Additional Notes
Definitions and Additional Notes ENI variable compensation ratio The ENI variable compensation ratio is calculated as variable compensation divided by ENI earnings before variable compensation. It is used by management and is useful to investors to evaluate consolidated variable compensation as meas
Slide 37: Forward-Looking Statements
Forward-Looking Statements This communication includes forward-looking statements which may include, from time to time, anticipated revenues, margins, operating expense, variable compensation and distribution ratios, cash flows or earnings growth profile, expectations regarding investment process, e
Acadian Asset Management — Q1 2025 Earnings Presentation on 6ix