AAMI · Acadian Asset Management

Acadian Asset Management delivered exceptional Q1 2026 results, highlighted by record net client cash flows of $21.4 billion, representing 12% of beginning AUM and the highest quarterly inflow in company history, primarily driven by Enhanced, Extension, and Global equity strategies including a significant Enhanced mandate from a UK wealth manager. This propelled ending AUM to a record $195.7 billion, up 61% from Q1 2025, fueled by strong inflows and prior market appreciation despite a Q1 market depreciation of $3.2 billion. Revenue growth was robust with management fees surging 41% to $159.3 million on 57% higher average AUM, complemented by slight performance fee gains. ENI jumped 85% to $37.6 million and EPS rose 94% to $1.05, with operating margin expanding 978 basis points to 38.1% due to operating leverage—ENI operating expenses rose only 13% while fees grew 41%, dropping the OpEx ratio to 38.4%. Variable compensation increased 35% but at a lower 39.4% ratio versus 47.6% prior year. GAAP net income grew 21% to $24.3 million and EPS 26% to $0.68, tempered by non-cash equity revaluation expenses. Investment performance remained stellar, with 96% of strategies by revenue outperforming benchmarks over 3-, 5-, and 10-year periods. Balance sheet strength persisted with $129 million cash, conservative 1.3x leverage, and ongoing capital returns including $4.7 million share repurchases and a $0.10 quarterly dividend. CEO Kelly Young emphasized organic growth from outperformance and distribution initiatives, with focus on expense discipline ahead of the May 19 Investor Forum. No formal guidance issued, but commentary implies sustained momentum with VC ratio outlook of 40-43% and revolver paydown by year-end.