Acadian Asset Management (AAMI) Earnings

Management highlights

### Organizational and Leadership Updates - Alex Voigtnock, current Deputy Chief Investment Officer, will become co-CIO alongside Brendan Bradley effective January 1 2027, strengthening oversight of data, process, risk, and trading as the firm scales, while allowing Bradley to focus on investment policy, research innovation, and strategic priorities. - The firm added Jonathan Briggs (formerly of TC43 and CPP Investments) and other members of the former TC43 team to its investment organization; their capabilities complement Acadian's systematic investment platform and accelerate existing research and innovation work. - Acadian rose to 62nd from 76th in the latest annual Pensions & Investments ranking of the largest money managers, reflecting external recognition of the firm's growing scale and business momentum. ### Investment Performance Highlights - The firm maintains a strong long-term performance track record: across three, five, and 10-year periods ending June 30 2026, 96% of strategies by revenue and 94% by assets outperformed their respective benchmarks. - Revenue-weighted five-year annualized excess return over benchmarks was 4.3% firm-wide, while asset-weighted five-year annualized excess return was 3.6%. 77% of assets outperformed benchmarks over the trailing one-year period. - The strong quarter for global equity markets, particularly standout performance in emerging markets (the strongest quarterly gain since 2009), provided a tailwind for Acadian's portfolio returns. ### Business Momentum and Flows - Acadian recorded $4.3 billion in positive net client cash flows in Q2 2026, representing a 9% annualized organic growth rate, marking the 10th consecutive quarter of positive net flows. The sales pipeline remains healthy and active after multiple large client wins in the quarter. ### Capital Management and Balance Sheet - As of June 30 2026, the firm held $65 million in cash and $110 million in seed investments, with a $200 million outstanding balance on its term loan facility and no balance on the revolving credit facility. Seasonal revolver borrowings were repaid earlier than usual in the quarter. - Gross debt to adjusted EBITDA was 0.8x (improved from year-end 2025 and well below the 1.5x through-cycle target), and net debt to adjusted EBITDA was 0.5x. - Since Q4 2019, diluted outstanding shares have decreased 58% to 35.7 million, and $1.5 billion in excess capital has been returned to shareholders via share buybacks and dividends. In Q2 2026, the firm repurchased $10.6 million in shares. The board declared an interim dividend of 10 cents per share, payable September 25 2026.

Guidance

- For full year 2026, assuming revenue mix and levels similar to Q2 2026, the variable compensation ratio is expected to land in the range of 38% to 42%. - Going forward, the firm will prioritize organic growth investment and balance sheet flexibility, followed by returning excess capital to shareholders through dividends and share repurchases. - The firm expects asset raising for its systematic fixed income segment to ramp up meaningfully in 2027, after U.S. high-yield establishes a full three-year performance track record by the end of 2026. No specific hard AUM targets have been set for this segment. - Management expects the firm's blended fee rate to remain broadly stable at the current Q2 2026 level going forward, after the large step-up from the full run-rate impact of a major 1Q26 client win was realized in Q2 2026.

Segment performance

Acadian Asset Management does not break out financial performance for separate product segments in the provided transcript. All aggregated core financial results for Q2 2026 are as follows: Total E&I revenue was $183 million, a 47% increase from Q2 2025. Q2 2026 management fees reached $177 million, a 44% year-over-year increase driven by a 66% rise in average AUM, which hit $220 billion for the quarter. As of June 30 2026, total assets under management (AUM) grew 54% year-over-year to a record $232.7 billion. E&I operating expenses increased 19% year-over-year, while E&I operating margin expanded 10 percentage points to 40.3% from 30.7% in Q2 2025. US GAAP net income attributable to controlling interests rose 170% year-over-year, and adjusted EBITDA increased 79% year-over-year. ENI was up 107% to $47.5 million, with ENI diluted EPS of $1.33, an increase of 108% year-over-year. Q2 2026 variable compensation increased 39% year-over-year, while the variable compensation ratio decreased to 37.5% from 45.4% in Q2 2025.

Risks & headwinds

- Management notes that all forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from projections, with additional details on these risks available in the firm's SEC filings, including the 2025 Form 10-K, 1Q2026 Form 10-Q, and the recent Form 8-K. - No new material operational risks or unplanned operational failures were discussed in the call.

Analyst Q&A

• Q: Analyst Kenneth Lee asks for additional details on the composition and current state of Acadian's institutional client pipeline. /

  A: Kelly Young confirms the pipeline remains healthy across all major strategies and global geographies after a record first half of 2026, and is consistently replenished after large client wins. Demand for enhanced equity strategies, previously driven primarily by non-US clients, has now become a strong global trend. Extension strategies, identified as a medium-term opportunity in the 18-month-old strategic plan, are seeing growing momentum, and there is sustained evergreen demand for core long-only strategies focused on global, non-US, and emerging markets allocations.

• Q: Kenneth Lee follows up asking what drove the lower-than-expected variable compensation ratio in Q2 2026. /

  A: Scott Hynes explains the lower ratio is a result of strong growth in management fees and management fee profits year-to-date. The variable compensation ratio is a function of three core factors: the size of current management fee profits, performance fees, and a stable deferred compensation component from prior years. The outsized growth of the recurring management fee profit pool in the strong second quarter pushed the overall ratio lower, in line with the firm's existing contractual compensation structure.

• Q: Analyst Joe Tomilo asks for an update on Acadian's private wealth strategy, specifically around the new tax-aware dynamic extension strategy, product structuring, and distribution. /

  A: Kelly Young notes that the wealth channel already intermediates 20-25% of Acadian's total AUM, and the firm launched two new tax-aware funds (global and US) in Q2 2026, which already hold $100 million in AUM, mostly from external clients. The firm has an established, experienced distribution team with deep long-term relationships in the wealth channel, and recently secured a large new win with a major UK wealth manager. Management sees significant opportunity for tax-aware capabilities, especially in the US private wealth market, as clients prioritize after-tax investment outcomes.

• Q: John Dunn asks for an update on traction for Acadian's systematic fixed income business, specifically the U.S. high-yield product approaching its three-year track record at the end of 2026, and the segment's growth outlook. /

  A: Kelly Young confirms that performance across U.S. high yield, U.S. investment grade, and global high-yield strategies has been resilient and consistent, and client interest and pipeline opportunities have deepened over the last quarter. As previously guided, the firm expected asset raising to ramp up in 2027 after the three-year track record is established, and current conversations are progressing from early-stage discovery to late-stage due diligence, with several near-term opportunities meeting management's expectations for the segment's development.