Acadian Asset Management Sets AUM Record

Acadian Asset Management (NYSE: AAMI) reported Q2 2025 earnings on July 31, 2025, delivering record assets under management (AUM) of $151.1 billion, $13.8 billion in positive net client cash flow (NCCF), and a 42% increase in non-GAAP economic net income (ENI) diluted earnings per share compared to 2024. The period marked all-time highs in both AUM and gross sales, with significant margin expansion and robust product pipeline momentum signaling notable strides in strategic execution.

Net flows at record levels propel AAMI AUM above $150 billion

Total gross sales year-to-date reached $28 billion in 2025, exceeding the previous annual record of $21 billion in 2024. Both global client diversification and the emergence of enhanced equity mandates contributed to net client cash flow (NCCF) reaching 11% of beginning period AUM, the highest proportion in the company's history.

"We delivered $13.8 billion of positive net client cash flow in 2025, 11% of beginning period AUM, the highest in the firm's history. And AUM surged to $151.1 billion as of June 30, 2025, the highest in Acadian's history and a major milestone for the company."
— Kelly Young, President and Chief Executive Officer

This leap in NCCF, broad-based across products and geographies, accelerates Acadian's scale advantages.

Operating margin for AAMI expands on systematic scale

Management fees increased 16% from Q2 2024, primarily on a 20% increase in average AUM due to strong net flows and market gains. Operating expense ratio dropped 420 basis points year-over-year to 44.6% (ENI basis), with ENI operating margin expanded 360 basis points to 30.7%.

"In Q2 '25, our ENI operating margin expanded 360 basis points to 30.7%, from 27.1% in Q2 2024, driven by increased ENI management fees. Our Q2 2025 operating expense ratio fell 420 basis points to 44.6% for the period, from 48.8% in Q2 2024, reflecting the impact of improved operating leverage."
— Scott Hines, Chief Financial Officer

The successful conversion of strong inflows into higher fees and lower relative costs substantiates Acadian's business scalability, improving shareholder returns through both profit growth and margin expansion.

Diversification and new products drive institutional momentum

The percentage of non-U.S. client AUM increased from 37% to 43%, reflecting the addition of large institutional mandates across multiple geographies. Enhanced equity and extensions products are prioritized, with 94% of revenue-weighted strategies outperforming their benchmarks across three-, five-, and ten-year periods.

"we had a relatively large enhanced win, you know, this quarter. And that's begun to be felt. The future was we stare at the pipeline. You know, it can be a lumpy business. And there's certain pieces there that we're staring at, that for all intents and purposes have a higher fee rate that might be implied by the current quarter, and there are certain other wins that might be just a little bit lower. So this is something that is dynamic and that moves around a bit. What we are focused on as a management team is what we can control in this regard. And as Kelly just suggested, at the first part of your question, it's that focus on making sure we've got the right product initiatives, that we're meeting, you know, the right client demands, and that feels good right now. And that we're continuing to maintain that expense discipline"
— Scott Hines, Chief Financial Officer

Acadian's emphasis on product innovation and client diversity mitigates concentration risk and increases resilience against the cyclical nature of institutional asset flows.

Looking Ahead

Management expects the ENI operating expense ratio to range from 45%-47% for fiscal 2025 (ending December 31, 2025), and variable compensation ratio between 43%-47%, contingent on market levels holding steady for fiscal 2025. No explicit forward revenue or earnings guidance was given, but the pipeline for new mandates remains "very robust" across strategies, client segments, and geographies. Capital allocation remains focused on returning excess capital to shareholders while maintaining a durable balance sheet, with current debt expected to be fully repaid by year-end 2025.

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