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What were the key takeaways from Acadian Asset's earnings call?

- **Revenue Growth Accelerates**: 12% YoY to $136M, driven by 21% management fee increase
- **Profitability Expansion**: ENI EPS +29% to $0.76, operating margin 33.2% (vs. 31.7% prior year)
- **Record Inflows**: $6.4B net cash flows (4% AUM), second-highest in firm history
- **Strategic Momentum**: 94% of strategies outperform benchmarks; systematic credit AUM growing
- **Balance Sheet Strength**: Debt/EBITDA 1.0x post-refinancing; $1.4B returned to shareholders since 2019

**【CEO Summary Section】**
- Q3 2025 revenue grew 12% YoY to $136 million, driven by 21% increase in management fees reflecting 34% AUM growth to $166.4 billion.
- ENI EPS rose 29% to $0.76, with operating margin expanding to 33.2% (vs. 31.7% Q3 2024) due to strong cost control.
- Net client cash flows reached $6.4 billion (4% of AUM), second-highest in company history, fueled by enhanced and extension equity strategies.
- 94% of strategies by revenue outperformed benchmarks over 3-10 years, with 90% by AUM.
- Global distribution pipeline remains robust, with 50-50 split of AUM between U.S. and non-U.S. clients nearing target.

**【CFO Financial Commentary】**
- GAAP net income attributable to controlling interest down 11% YoY, but ENI metrics show stronger performance: 
  - Management fees up 21% to $136 million
  - Operating expense ratio improved 40bps to 43.3%
  - $5 million share buybacks (0.1M shares) and $275M senior notes refinanced with 3-year term loan
  - Gross debt/EBITDA ratio reduced to 1.0x post-refinancing
- 2025 guidance: Operating expense ratio 44-46%, variable comp ratio 43-45%

**【Q&A Highlights】**
- **Pipeline Composition**: Enhanced equity (U.S. clients) and extension strategies (non-U.S.) driving demand; systematic credit strategies gaining traction
- **Capital Allocation**: Term loan refinancing prioritizes deleveraging while maintaining buyback flexibility ($1.4B returned since 2019)
- **Fixed Income Strategy**: Systematic high-yield and IG strategies with 1-2 year track records; team of 12+ professionals
- **Fee Rate Dynamics**: 30-35bps range due to enhanced strategy mix; potential near-term pressure if pipeline materializes
- **Geographic Mix**: 40% of AUM outside U.S., targeting 50/50 split; international equity strategies outperforming emerging markets

Acadian Asset Management Inc. (AAMI) Q3 2025 Earnings Call Transcript

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AAMI

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