Q4 2022 Artisan Partners Asset Management Inc Earnings Call
Hello, and thank you for standing by my name is drew and I will be your conference operator today at this time all participants are in a listen only mode. After the prepared remarks management will conduct a question and answer session and conference participants will be given.
Instructions at that time as a reminder, this conference call is being recorded if you require operator assistance. Please press Star then zero.
At this time I will turn the call over to artisan partners asset management.
Welcome to the artisan partners asset.
And on.
On the earnings call.
Today's call will include remarks from Eric Colson CEO .
Yeah.
Following these remarks, well open the line for questions.
Our latest results and Investor presentation are available on the Investor Relations section of our website.
Before we begin I would like to remind you that comments made on today's call.
Our responses to questions may deal with forward looking statements.
These are subject to risks and uncertainties and are presented in the earnings release and detailed in our SEC filings.
Not required to update or revise any of these statements following the call.
In addition, some of our.
Our remarks today will include references to non-GAAP financial measures you can find reconciliations of those measures. The most comparable GAAP measures in the earnings.
I will now turn the call over to Eric Colson.
Thank you all for joining the call or reading the transcript.
It comes in 2022 were difficult for the year, our AUM declined from 175 billion to a 128 billion a 27% drop.
Of our $9 8 billion of net outflows more than $5 billion occurred in the fourth quarter, we experienced net outflows across majority of strategies and investment teams.
For the year, our gross outflow rate was in line with our prior 10 year average.
A broad array of reasons that clients rebalanced away with no single theme dominating.
Lower gross inflows drove the net flow.
Uncertainty war inflation, China regulation policy decision, making.
Especially allocations to risk assets.
The market rebounded in the fourth quarter, especially in non U S markets.
We believe decision makers are learning to operate with greater uncertainty and has gathered more information and knowledge about direction of inflation in China policy.
We don't believe that our 2022 or fourth quarter flows will prove to be representative of net flows going forward.
Today, we are particularly excited about fixed income as well as the dynamic for non U S and global equities.
With increases in rates and spreads we see more excitement for fixed income today than any time since we launched our first fixed income strategy nearly nine years ago.
We currently offer six high value added fixed income strategies, we believe all of the strategies can and should capture some of the near term demand for fixed income.
The artisan high income floating rate and credit opportunity strategies are managed by the artisan credit franchise, which I'll discuss on the following slides.
The artisan emerging markets debt opportunities emerging markets local opportunities in global unconstrained strategies are managed by the M sites capital group.
<unk> founders, Mike Cirami, Sarah orphan and micro Brian have worked together for 14 years.
Well known in the marketplace, having built a well regarded emerging markets debt team at their prior firm.
Last year, we built out the investment team layered in technology recruited business leadership and launched three new strategies between March and July 2022.
We expect all three strategies to experience early stage growth this year.
In particular from institutional allocators wanting to do deep diligence and capture the benefits of early adoption.
We believe our two fixed income teams have great investments and business potential.
There is long term secular demand for fixed income and credit oriented strategies.
Aging demographics demand yield and income invest.
Investors and allocators will continue to allocate to fixed income for diversification and risk return benefits.
There are large opportunities sets in which talented investment managers and differentiate from and outperformed indexes and peers.
The credit team and the M sites capsule groups have the experience capabilities breadth of resources and ambition manage multiple strategies and generate significant revenue.
Within the context of our larger business.
Slide two summarizes the artisan credit franchise as it stands today.
Yes, Brian joined Artisan partners in 2013, we have partnered with him to methodically build out his team and establish a powerful investment franchise.
Today the team possesses each of the franchise characteristics we see.
Established leadership, a repeatable investment process depth.
Depth and breadth of resources, including people networks and technology.
Proven results economic alignment.
Need culture centered on the team's Denver office and an established brand.
The credit team has developed and evolved from an individual intuit team into a franchise.
Since inception in 2014, the artisan high income strategy has generated average annual returns of five 1% after fees.
The strategy has beat the benchmark index by an average of 178 basis points per year after fees.
The artisan high income fund is ranked number five of 338 funds in the Lipper high yield category.
The team's business has developed at a healthy pace during a period of muted flows for the high yield asset class as a whole.
Cumulatively. The team has generated net flows of 7 billion, averaging approximately $750 million per year.
Of the 167 mutual funds in the Morningstar high yield category artisans High income fund has raised a third most since 2014.
Slide three places the credit franchise and broader artisan historical context, the credit teams cumulative net flows over its first nine years are in line with those of other multi generational multi strategy franchises.
Credit AUM lags, primarily due to the delta between credit and equity returns.
Based on our historical experience the credit team is right on schedule, both in terms of developing franchise characteristics and experiencing foundational business growth.
Historically, we have seen foundational growth translate into a subsequent phase of compounding growth.
<unk> teams compound existing capital at the same time, leveraging resources returns and reputations to extend duration diversified business and launch additional strategy.
Two examples are our growth and international value teams, which today manage 34, and 30 billion respectively across a total of six investment strategies with multiple generations of decision making leadership.
Like foundational growth compounding growth takes time.
Prioritize existing client experience and we thoughtfully manage capacity.
For the credit team and the near term, we expect continued growth and diversification across strategies and with institutional clients.
Over the long term, we expect the team to leverage their credit capabilities and investment networks to offer clients additional high value added investment opportunities.
Brian leads an already powerful franchise. They are still early in their journey there is tremendous additional potential.
Slide four summarizes the near term opportunity in high yield credit.
Rates and spreads have widened creating that attractive entry point for allocators and absolute return potential for investors.
Index yield to worst is currently about 8%.
Much more attractive than the 4% to 6% range that has prevailed for much of the last decade.
When yields spiked in 2016, the high income strategy generated a return of 35, 4% between February 2016, and January 2018 gross of fees.
When yields spiked in 2020 over the next 12 months high income generated a 31, 5% return and.
And credit opportunities generated a 58, 5% return.
Both gross of fees.
Not only is the entry point better from a yield perspective, greater price dispersion increases credit picking opportunities more opportunities for the credit team to generate con vacs returns in excess of expected yield.
But we see in the near term as an alignment of the credit teams foundational growth and franchise characteristics with a more favorable investment environment, a combination that has us very excited.
On my last slide slide five I want to come back to the equity environment.
Of our 19 equity strategies 11 focus on non U S global or emerging markets.
75% of our total AUM as benchmark against ether global or other non U S indices.
Approximately 55% of our equity AUM is invested in companies domiciled outside the U S.
Dating back to 1996 with the launch of Mark Yockey has non U S growth strategy Artisan partners has a long history of investing in adding value and international equity markets.
Our eight non U S global or E M strategies with track records of five years or more have beaten their indexes by an average of 289 basis points per year since inception after fees.
As I mentioned earlier in the fourth quarter non U S equity has significantly outperformed.
Driving the more than 12 billion of investment returns we generated in the quarter.
Even with the strong fourth quarter performance non U S equities remain modestly valued by historical standards and relative to the S&P 500.
We are not predicting mean reversion or calling the market merely pointing out that non U S. Equities are attractively valued and we have a long history of generating alpha in these markets.
After a difficult year of outcomes. We are excited about what we can control.
Our investment lineup, both in equities and fixed income or.
Our financial and economic model, which C J will elaborate on.
Our brand and reputation to attract proven investment talent and sophisticated clients.
We are optimistic about the current level of volatility and uncertainty.
Healthy security dispersion for active management, especially after a drawdown.
Greater clarity for risk, taking and decision making there.
Ability to meet in person for due diligence and broadened our business development potential.
I will now turn it over to C. J.
Thanks, Eric.
2022 follows on the heels of 2020, one our most successful fiscal year ever in which we achieved record revenue and earnings.
2022 results on the other hand reflect the sharp decline in global markets and the impact of business investments made to support future growth.
During the year AUM declined from 175 billion to 128 billion.
Revenues declined in line with the decrease in average AUM and were down 19%.
As we often mentioned on these calls our financial model was built to absorb volatile declines in global markets.
And despite continuing to invest in long term growth during 2022 or.
Our expenses were down 5% as a result of our model.
Growth is not linear.
AUM has grown 6% compounded annually rising from 74 billion at the start of 2013 to 128 billion 22022.
Revenue is compounded annually by 7% and adjusted operating income by 5%.
During this time, we diversified the business from five long only equity investment teams managing 12 strategies to our platform and now includes 10 investment teams and twenty-five strategies managing assets in both public and private equities.
Fixed income and alternative asset classes.
Our financial results over this period have enabled us to return cash dividends in excess of $32 per share to our shareholders since the IPO, including a recent declaration.
Assets under management ended the fourth quarter of $127 9 billion.
Up 6% from September 2022 quarter and down 27% from the prior December year end.
Investment returns contributed $12 8 billion to the increase in AUM in the quarter.
Partially offset by $5 2 billion of net client cash outflows.
And $300 million of annual artisan funds distributions that were not reinvested.
Average AUM for the quarter was down 4% sequentially and down 28% compared to the December 2021 quarter.
For the full year negative investment returns contributed $36 6 billion of the decrease in AUM and net client cash outflows lowered AUM by $9 8 billion.
Average AUM for 2022 ended down 18% year over year.
Across all generations, and AUM was impacted by decline in global markets and net client cash outflows.
There were no material changes in the weighted average management fee, earning AUM mix by generation or vehicle.
Financial results are presented on slides 10, and 11 are complete GAAP and adjusted results are presented in our earnings release.
Quarterly revenues declined 4% compared to the previous quarter and 28% compared to the December 2021 quarter on lower average num.
For the full year revenues were down 19% from 2021 on lower average num and lower performance fees.
Performance fees were negligible in 2022 compared to $13 3 million in 2021.
Adjusted operating expenses for the quarter decreased 1% sequentially due to the decline in incentive compensation expense as a result of lower revenues.
Occupancy expense increased in the quarter as a result of a $1 $4 million one time charge taken on the abandonment of an office lease a decision we made in part to trim costs.
We will continue to look for ways to more efficiently use our office footprint, because we adjusted the evolution of hybrid work environment.
For the year adjusted operating expenses decreased 5% compared to 2021 seven.
$74 million decline in incentive compensation expense was partially offset by increases in travel and expenses for head count additions in 2021 and 2022.
Primarily base salaries and benefits.
A significant portion of the fixed cost increase from the prior year, resulting from the launch of three strategies for our newest investment team.
Adjusted operating income declined 8% for the quarter compared to the third quarter and declined 37% for the year compared to 2021.
Likewise, adjusted net income per adjusted share declined 7% for the quarter compared to the third quarter and declined 38% for the year compared to 2021.
Yeah.
Turning to slide 12, our balance sheet remains strong and continues to support our capital management needs and cash dividend policy.
Our $100 million revolving credit facility remains unused.
We continue to return capital to shareholders on a consistent and predictable basis through quarterly cash dividend payments and a year end special dividend.
Consistent with our dividend policy, our board of directors declared a quarterly dividend of 55 cents per share with respect to the 2022 December quarter.
Which represents approximately 80% of the cash generated in the quarter.
Our board also declared a special annual dividend of 35 per share.
Similar to last year, we retained a portion of cash generated in 2022 to fund future growth initiatives, primarily seed capital investments in new strategies and vehicles.
Our seed capital investments at the end of the year were $125 million up from $72 million, a year ago and represent investments in future growth, primarily in our fixed income and alternative space.
Including this declaration of cash dividends of $2 82 per share will be paid with respect to 2022 cash generation.
A payout of approximately 92%.
Calculated on a trailing 12 month period. This represents a yield of approximately 8%.
Since our IPO the average annual dividend yield has also been approximately 8%.
Looking forward to the current year.
Each year, our board of directors approves a grant of long term incentive awards in the first quarter of 2023. The board approved an award of approximately $57 million.
Listing of 39 million of cash based franchise capital awards, and approximately $18 million of restricted stock Awards generally.
Generally 50% of the award best Pro rata over five years, and the remaining 50% pass on or after 18 months after a qualified retirement.
We estimate the 2023 and long term incentive award amortization expense will be approximately 15 $5 million.
Fixed compensation costs are expected to rise approximately mid single digits, reflecting 2023 merit increases the absorption of a full year of expense for full time employees hired in 2022, and an expected 5% increase in employees. The additions will primarily be investments in distribution roles.
To support new and existing strategies.
We also expect increases in technology and travel spend resulting in a projected increase in fixed operating expenses of approximately 5% in 2023.
Occupancy long term incentive compensation and other fixed operating expenses are expected to be relatively flat compared to 2022.
The note refinancing that closed in August 2022 provides annual interest savings of $2 4 million and will reduce interest expense by $1 5 million in 2023 compared to 2022.
And as a reminder, our compensation and benefits expenses are generally higher in the first quarter of each year due to seasonal expenses, which we estimate will be approximately $5 million higher than the first quarter of 2023 compared to the fourth quarter of 2022.
As Eric how they did in his prepared remarks, we are optimistic that the investments we've made in our business over the past several years will lead to successful outcomes for our clients and shareholders. However, these outcomes will take time and will be lumpy that concludes my prepared remarks, I will turn the call back to the operator.
We will now begin the question and answer session.
Ask any question you May press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys.
If at any time your question has been addressed and you'd like to withdraw. Your question. Please press Star then two.
Please limit yourself to two questions in order to allow time for others to ask.
At this time, we will pause momentarily to assemble our roster.
The first question comes from Alex Blaustein with Goldman Sachs.
Please go ahead.
Hey, good morning, guys. Thanks for the question.
Eric maybe we could start with a question around.
Some of the opportunities you guys are seeing from a growth sales perspective for non U S equities, excluding emerging market equities.
Obviously the markets are off to a good start this year. So curious if you're seeing an actual increase in rfps and kind of active searches in that part of the market and against that you guys had a really strong.
2020 in 2019 in terms of access performance and those a number of the strategies, but a pretty challenging 'twenty, one and 'twenty two so as people kind of think about the longer term tracker like a three and five year basis, which is likely to get worse as some of the kind of private industry roll off how does that impact the opportunity set to win some of these mandates.
Yes, Thanks, Alex.
The fourth quarter.
Really highlighted.
Some performance difference between non U S emerging markets, China and ER.
Some of the domestic indexes and we.
We had a nice uplift and a U M. As we noted on the call.
I think the.
Backdrop on asset flow has been a.
A mixed bag.
We've looked over the past couple of years to get some direction and looking forward and it's hard to extrapolate.
The trend line.
We do do see more activity in the marketplace with regards to due diligence than we've seen in the.
The past couple of years, and we credit that to.
Moreover of client research consultant research intermediary research getting out and traveling again and conducting due diligence and if you think about that.
Second half of 'twenty 'twenty into 'twenty, one most people just allocated to their trusted partner and we would have a strong partner during that locked down phase more recently, you've had the opening of the of our due diligence and we've picked up in that right now we have a.
Strong list of meetings for due diligence.
But the trend line.
I would say is broader than just non U S equities.
Some clients are allocating to non U S. Other clients are still looking at growth value others are looking at active passive.
In fact, you know each client's risk on and risk off has been different and so it's.
It really is hard for us to extrapolate any given year, especially last year. When there was so much uncertainty in the market and I defined that differently than just risk.
Or volatility I mean, uncertainties.
Freezes clients and what where are they need to go versus volatility and risk that you can understand a bit better and manage so I.
We're pleased about our non U S.
Strategies, we're pleased about where the market's at and hope to get some direction from asset flows, but I doubt it.
I'm hesitant to make that call and respond to you that there is a oh, that's the major focus.
Got it alright, thanks for that JJ, maybe just a follow up for you on expenses.
When you take a step back and you look at the firm's margins for the full year at around I guess, 34% on a revenue base that is actually I think still a little bit above where you guys were in 2020, but the margins are down almost 500 basis points from that time and are taking your expense guidance.
Feels like margins are going to be maybe under some pressure again into 2023 self help us maybe think about that dynamic against a fairly variable expense structure. As you described it in your prepared remarks, and what's the path of kind of getting back to higher levels of operating leverage.
Yes, Thanks, Alex.
Well of course as you know you saw the strength of our model and a declining revenues of 2022 as you know revenues pulled back from from the high levels in 2021, yet our expenses were still down 5% I really was you know the benefit of our model.
Which pulled you know almost $80 million out of variable.
Expenses without us announcing layoffs or our bonus huts et cetera.
Through that time, we invested heavily in into our business I am sorry, its team, which we on boarded ceded.
For products with $60 million continued to build out our infrastructure to support private it's and our fixed income strategies. So we.
We have made.
Fair amount of investment over the last two years in people and systems to be able to look to the future and growth and now we're we're pretty much situated.
To capitalize on those growth opportunities and so as we look into 2023, and we're really looking forward to just focusing on finishing what we started on these growth opportunities.
And filling the capacity you are.
Which which likely has a much greater than we've ever seen in our in our firms history and now it's just about executing on that and are getting some help from the markets.
Got it alright. Thanks.
Yeah.
The next question comes from Bill Katz with Credit Suisse. Please go ahead.
Thank you very much as well for taking the questions maybe just to come back to the discussion of an opportunity to sort of pick up of gross sales just a follow up to Alex's question.
You give me a a strong brand as you speak with your gatekeepers, whether it be answer the more affluent retail side or the institutional side.
Because you look at sort of the rolling one three year records for scan a little worse, but very robust a five plus years, which is the bigger driver to that discussion.
And could 2023 be a year, where you get pretty good credit flows, but the equity book, just sort of lags a little bit because of that in a play on the relative performance dynamics. Thank you.
Hi, Bill.
Yes.
Gross sales is our focus this year as we noted in the call.
Our gross outflow.
It's been hovering at the same rate for about 10 years that I think our client service model is.
Appropriately matches, our product met at our client mix.
We have.
A look at the sales opportunities and look back at last year, and we clearly had a lower sales.
Sales rate, which created the the higher than expected outflow and as we look on a go forward from a from a sales cycle, we are and more so in past years and you heard it in CJS.
Repaired remarks around <unk>.
Expense management, but allowing some spend in the distribution and sales because we have the capacity and the strategies, we will be leaning into the.
The sales team and.
Looking to apply resources to take advantage of opportunities. We see we certainly see the early stages of a new team with M sites capital group and.
We see strong industry interest in the institutional market given.
The the category and emerging market debt tends to be a.
More dominated by institutional assets.
<unk> team is clearly leaning into the institutional marketplace to diversify its asset base and I think those could be very strong opportunities.
Opportunities for the sales team.
On the flip side, we got hit on the exchange of kicks of growth value U S. Non U S. Active passive we lost the exchanges in 2022.
I don't think that says a easy to predict year over year in the short term so yeah well.
It will be interested to see how those exchange that kicks occur.
But we like our <unk>.
The equity lineup.
With the focus on non U S global and emerging markets as we highlighted and the trend line and performance so a hard.
Hard to predict bill, but yeah.
We're optimistic in the mix of equity just as much as we are in fixed income.
Got you, Okay, and just as a follow up sort of your business has been sort of a little more incrementally geared to the institutional business.
Investors as they look about the landscape or are excited sort of get into sort of the retail democratization opportunity and you have some of your assets certainly in that bucket can you talk a little about your plans to how to sort of go after the retail opportunity if at all or is most of the incremental growth still gonna be penetrating on the institutional side. Thank you.
Yeah.
Yes, the retail democratization gets down to that.
The customization of separate accounts the custom indexes, how do you empower the individual.
But that as you.
You know an enormous amount of people.
People expense back office expense and quite honestly a.
Interesting.
Fee environment as it races to the bottom.
And we look at that opportunity set coupled with the duration of those clients and assets. We've seen in the retail mutual world and you look at that short duration high expense difficult to differentiate by investment results and felt that were better suited to be an investment in <unk>.
Organization, instead of a consumer asset manager.
So our focus will be to focus on the investment talent to deliver investment strategies and to partner with those organizations that can bring democratization.
And that fits how we can deliver our strategies to those partners and we've over the years have.
Built a very strong business in our intermediary channel.
Any of those clients are no how to package these strategies, well and we're learning more and more how to partner those and we've seen strong growth in the U S and outside the U S. What these partners in our mindset will be to focus our sales efforts with partners.
So that we participate in that retail democratization as an investment firm.
Yeah.
Thank you.
Yeah.
The next question comes from Daniel Fannon with Jefferies. Please go ahead.
Thanks.
Just following up on the M sites, you know opportunity you talked about the institutional interest.
Is this different than what you've seen with other kind of team as they've come on board in terms of the ramp.
Track record, maybe not as important here given their legacy and I know, it's hard to predict but is it when you think about credit in 2023 and that opportunity is more as the dollar amounts coming in you think more in these strategies or in the existing strategies our of what would've been in the ground longer.
Hi, Daniel.
It's.
The record is still very important.
Now having that.
And our track record of success is always an important.
History.
And sometimes to point to.
The difference really being if you look back at some of our other teams.
Where are.
The strategy fit very well in the intermediary or financial adviser broker dealer.
It went into the pool via call and.
The individual is probably a more well known person in our team in that space the assets American come a little bit quicker than.
Then a more complex strategy that tends to be more institutional in nature, and so first and foremost the institutional sales cycle is longer.
You have gatekeepers you have consultants and then you have to marry that up with quarterly investment committee meetings to go through that cycle. So.
Onboarding of assets take longer than what we've seen with some of the more more recent strategies behind M sites.
Currently the.
Set up and the <unk>.
Account.
<unk> setup for emerging markets with regards to custodians and countries to open up to.
To take advantage of the broader array that the emerging market debt and our global unconstrained strategies offer also takes time.
So while we have sophisticated clients that have gone through the cycle Theres still a long setup period to open up some of these.
Accounts and finish up the investment management agreements.
So the real difference is the complications around.
The account setup, coupled with the institutional marketplace.
From what we can see we are oh.
And a very strong position with numerous clients.
Clients and prospects.
Doing their due diligence and.
Moving down the tracks are with us to hopefully.
Ill provide some growth to the team.
In 2023 and beyond.
Got it that's helpful. Thank you and then C. J just to follow up on expenses.
The the flat year over year is that inclusive of the one time charge I think he said it was in the fourth quarter and then I guess.
Just other kind of cost cutting or cost containment measures that you are contemplating or not as you think about the guidance that you just gave and what might be incorporated within that for this year.
Yeah. Thanks, Dan.
So the guidance obviously.
First and foremost.
Given our variable expense structure, you know the change in revenues is going to drive overall expenses.
As as it has.
It has in the past.
But on the fixed expense side, we're really guiding to about a 5% increase over 2022, which would include that that million dollar charge.
The majority of it is going to come in.
Fixed compensation costs.
We're still absorbing the full impact of the higher than in.
In the prior year and then we have.
A few additional roles in 2023 as Eric mentioned.
Skewed towards investments and distributions.
Text, then you know it was going to go up probably mid single digits.
We've added some systems in 2022, which now the you know the.
For the full cost of those systems are primarily related to fixed income kick in and then teeny continues to two.
To return to sort of pre COVID-19 levels, and we expect that to be.
Fully back to what we would've expected prior to Covid in 2023. So overall, you've got about a 5% mid single digit expected increase in fixed costs, and then variable costs. It will be what they would be based on revenue levels.
Thank you.
The next question comes from Michael Brown with pay BW. Please.
Please go ahead.
Okay great.
You guys talked a little bit about some of the the seed investments in 2022.
And you know that was a key focal point.
For you guys in 2022 should we expect a similar level of growth in 2023 and in any other.
No the change to your capital allocation approach relative to join two inches.
Yeah, Mike C J.
Good question.
We as we look forward.
You know as I mentioned earlier, we're really focused on in 2023 on filling the capacity we have as.
As we sit here today, we have no major seed capital requirements that are that are planned. So I would say you know as we're sitting here today, it's sort of status quo on the seed.
We did mention on the dividend that we held back $20 million. That's really you know looking forward too.
Continued growth in <unk>.
Continuing to build a little bit of a of.
The chest to to feed seed future requests, but as we look at 2023, there's nothing material planned.
Okay, great and.
There's certainly a focus on really building out a lot of the infrastructure and ensuring the success of the M sites team.
At what point would you start to consider other opportunities to bring on new teams.
And and how does how is the market at the moment is there are some.
Some good interest in potential.
Opportunities to bring in new talent.
Yeah, Mike It's Eric.
Yes.
There's.
There's always opportunity in the marketplace and we see quite a few teams a year.
Okay.
What we're thinking of right now is that we're really looking for that but no brainer talent that's out there.
And that would be someone that now.
If you apply the right economic alignment and the right resources and align them to their own four walls at artisan.
Really you just it's just a matter of time before it works here. So we're always in the marketplace looking for no brainers and so if we see something out there yeah, we're going to of course take the opportunity to meet and think about these are individuals and teams but.
Yeah really to become a destination for a no brainer you need to deliver on what you have you need to deliver on the resources you need to deliver on the talent around that person.
You need to put the vehicles in place and they need to bring in the early assets to get that moving.
And we've just launched a quite a few strategies and teams over the last couple of years and this more.
Uncertain market and right.
Right now our focus is to deliver on those.
We're more focused on sales and service and marketing than we have in past years, given the breadth of strategies, we've had and the ability to get out in the marketplace and really react to due diligence calls and react to opportunities.
Because if you don't deliver than the no brainer questions is this the right spot and we want to remain in that you know I think small group of.
Investment firms that are a talent becomes available and they say where do I put my career, where do I.
Whose hands do I put it in to make sure that I can become successful.
We want to be that first call and become that first call you have to deliver on what you have.
Okay, great. Thanks for taking my questions.
This concludes our question and answer session in today's artisan partners business update and earnings call.
Thank you for attending today's presentation you may now disconnect.
Okay.
[music].
Okay.
[music].
Yeah.
[music].
Okay.
Okay.
Yes.
Yes.
Yes.