Ladies and gentlemen, thank you for standing by and welcome to the Acadian Asset Management Inc. Earnings Conference call and webcast for the third quarter 2026. During the call, all participants will be in listen-only mode. After the presentation, we will conduct a question and answer session. To be added to the queue, please press the star followed by one at any time during the call. If you need to reach an operator, please press the star followed by zero. Please note that this call is being recorded today, Thursday, October 29th, 2026 at 11 a.m. Eastern Time. I would now like to turn the meeting over to Melody Huang, Senior Vice President, Director of Finance and Investor Relations. Please go ahead, Melody.

Good morning and welcome to Acadian Asset Management Inc.'s conference call to discuss our results for the third quarter in this September 30th, 2026. Before we begin the presentation, please note that we may make forward-looking statements about our business and financial performance. Each forward-looking statement is subject to risk and certainties that could cause actual results to differ materially from those projected. Additional information regarding this risk and certainties appears in our SEC filings, including the Form 8-K filed today containing the earnings release, our 2025 Form 10-K and our Form 10-Q for the first and second quarter of 2026. Any forward-looking statements that we make on this call are based on assumptions as of today, and we undertake no obligation to update them as a result of new information of future events. We may also reference certain non-GAAP financial measures. Information about any non-GAAP measures referenced, including a reconciliation of those measures to GAAP measures, can be found on our website, along with the slides that we will use as part of today's discussion. Finally, nothing herein shall be deemed as an offer or solicitation to buy any investment products. Kelly Young, our President and Chief Executive Officer will lead the call. And now I'm pleased to turn the call over to Kelly.

Thanks, Melody. Good morning, everyone. And thanks for joining us today. I'm pleased to report another strong quarter for Acadian with outstanding investment performance, continued positive client flows, record assets under management and record profitability. As we mark Acadian's 40th anniversary, our business continues to build significant momentum. Assets under management have more than doubled since the end of 2024, and we're seeing the benefits of that growth translate into our financial results. Before turning to the quarter, I'd like to offer some broader perspective on the progress we're making across the business. First, on client flows. We've now delivered 11 consecutive quarters of positive net client flows. Following organic growth of more than 20% in 2025, we've generated 28.3 billion of net inflows in the first nine months of 2026, representing 21% annualised organic growth. These are exceptional levels of growth and reflect sustained demand for our investment capabilities. Institutional funding will naturally vary from quarter to quarter, but our pipeline continues to replenish and we're encouraged by the level of client activity and the opportunities ahead of us. Enhanced equity remains an important growth engine, now representing more than 30% of our assets under management. Our extension strategies also continue to attract strong institutional interest and now represent approximately 5% of AUM. Second, our investment performance remains exceptional. Across the firm, 96% of our revenue weighted strategies are outperforming their benchmarks over three, five and 10 year periods. And our shorter term performance has strengthened considerably with a proportion of revenue represented by outperforming strategies over the trailing one year period increasing to 95% from 73% a year ago. We believe this combination of strong long-term track records and improving recent performance reinforces our competitive position and provides a solid foundation for continued client demand. Third, we're making progress and expanding our growth opportunities. In systematic credit, we expect to receive our first external institutional funding later this year from a prominent US asset owner, an important milestone. We're also seeing encouraging early traction in our Tax Aware strategy, which launched in May and has received initial client funding. And we're continuing to expand our reach in the wealth channel. During the quarter, Acadian was selected as an inaugural investment manager for UBS Global Wealth Management's new exclusive manager access fund program in Asia, creating another opportunity to bring our institutional investment capabilities to wealth clients. These initiatives are still at different stages of development, but they represent additional avenues for growth alongside our established strategies. Finally, the growth in our business is translating into strong financial performance. Reoccurring management fees increased 38% year over year, while our E&I operating margin expanded to 42.6%, reflecting the operating leverage in our business model. Taken together, I believe these results demonstrate the strength of our investment franchise, the consistency of client demand, and the opportunities we have to continue growing the business. With that context, let me turn to our third quarter results. As seen on slide two, we continue to deliver outstanding results across key metrics in the third quarter. Our US GAAP net income attributable to controlling interests was up 135%, and EPS was up 138% compared to the prior year, driven by increased management fees and partially offset by non-cash expenses representing changes in the value of Acadian LLC equity and profit interests. ENI up 78% to $48.3 million and our ENI diluted EPS of $1.36 was up 79% driven by revenue growth, the highest ever EPS in the firm's history. Our adjusted EBITDA was up 67%. We realised 2.6 billion of positive net client cash flows in Q3 2026, representing a 4% annualised organic growth rate driven by enhanced and extension strategies. and finally, AUM grew 44% from Q3 2025 to 239.6 billion as of September 30th, 2026, marking another record high for Acadian. Turning to slide three, Acadian's investment performance track record remains strong. Five major implementations comprise the majority of our assets. As of September 30, 2026, global equity, Emerging Markets Equity, Non-US Equity, Small Cap Equity and Enhanced Equity have 100% of assets outperforming benchmarks across 3, 5 and 10-year periods. Global equity markets advanced modestly in Q3 2026. Impacts from resilient economic growth and continued AI-driven investment more than offset elevated geopolitical tensions as well as higher energy prices. Developed markets outperformed emerging markets, while value and quality significantly outperformed growth and momentum factors in general. AAMI generated strong alpha in the third quarter across most major strategies, driven primarily by the strength of Acadian's factor model, with particularly strong contributions from EM, small cap, and extension strategies. Our short-term performance continued to post meaningful improvement in the quarter. 95% of assets outperformed over the trailing one-year period. We believe these exceptional performance results reinforce the consistency and resilience of our disciplined, systematic investment process, which has been built and refined over Acadian's 40-year history. Slide 4 details how our investment process has generated meaningful long-term alpha for our clients. Our revenue-weighted five-year annualised return in excessive benchmark was 4.8% as of the end of Q3 2026 on a consolidated firm-wide basis. Our asset-weighted five-year annualised return in excessive benchmark was 3.9% as of the end of Q3 2026. By revenue weight, 96% of Acadian's strategies outperformed their respective benchmarks across 3, 5 and 10-year periods as of September 30, 2026. And by asset weight, at least 94% of Acadian's strategies outperformed their respective benchmarks across 3, 5 and 10-year periods. Turning to net flows, we continue to see positive momentum across the business. We generated 2.6 billion of net inflows in Q3 2026, representing a 4% annualised organic growth rate and bringing year-to-date net inflows to 28.3 billion, or 21% annualised organic growth. This marks our 11th consecutive quarter of positive net flows. Gross inflows remained healthy and diversified across products and client types, led by our enhanced and extension strategies. Our extension strategies, which provide clients with a higher conviction approach to systematic investing, now represent approximately 13 billion of AUM, reflecting continued strong demand. While net flows moderated this quarter, this largely reflected certain clients rebalancing portfolios following strong equity market appreciation. And with that, I'll turn it over to Scott to review our financial results and capital allocation priorities.

Thanks, Kelly. Turning to slide seven, our key gap in E&I performance metrics are summarized here on a quarterly basis. As previously noted, we manage the business using E&I metrics, which better reflect our underlying operating performance. You can find complete gap to E&I reconciliations in the appendix. Let me now turn to our core business results. Starting on slide eight, total E&I revenue of 189 million increased 39% year over year. Thank you for joining us. Moving to slide 9, E&I operating expenses increased 18%, primarily driven by higher G&A expenses, including continued investment in technology and infrastructure, AUM-driven servicing costs, and higher compensation expenses. Variable compensation increased 21% year-over-year, primarily driven by higher profit before variable compensations. Our E&I operating margin expanded nearly 9 percentage points to 42.6%, primarily driven by higher recurring management fees, while our operating expense ratio fell 6 percentage points year-over-year to 37.1%, reflecting improved operating leverage. The variable compensation ratio decreased approximately 9 percentage points year-over-year to 32.6%. The full-year 2026 variable compensation ratio is now expected to be approximately 34 to 38 percent, with the realized ratio informed by the level and timing of performance fees and deferred compensation. Turning to slide 10 on capital resources and our strong balance sheet, as of September 30th, 2026, we had $150 million of cash and $113 million of seed investments on the balance sheet, with a $200 million balance on our term loan credit facility and no outstanding balance on our revolving credit facility. As of September 30, 2026 period end, our gross debt to adjusted EBITDA ratio was 0.7 times, and our net debt to adjusted EBITDA ratio was 0.2 times. Note that our leverage ratios have improved from year-end 2025, supported by greater last 12 months adjusted EBITDA, and our gross leverage now well below the 1.5 times through the cycle target detailed at our May investor forum. Moving to slide 11, we have a track record of creating significant value through share buybacks in recent years. Outstanding diluted shares have decreased 59% from 86 million in Q4-19 to 35.6 million shares in Q3-26. Over the same period, $1.5 billion in excess capital has been returned to stockholders through share buybacks and dividends. Amy's Board has declared an interim dividend of $0.10 per share to be paid on December 23, 2026 to shareholders of record as of the close of business on December 11, 2026. There were no share repurchases in Q3 26. Going forward, we expect to continue generating strong free cash flow, prioritizing organic growth and balance sheet flexibility, and then returning excess capital through dividends and share repurchases. I'll now turn the call back over to Kelly.

Before moving to Q&A, let me recap some key points on slide 12. Acadian is competitively positioned as the only pure play, publicly traded, systematic manager with a 40-year track record and competitive edge in systematic investing. Our investment performance track record remained strong this quarter, with more than 96% of strategies by revenue outperforming over three, five, and 10-year periods. Business Momentum continued a pace in Q3 26, with net inflows of 2.6 billion for Q3, a 4% annualised organic growth rate, and reflecting 11 consecutive quarters of positive net flows, and achieving AUM of 239.6 billion, up 44% from Q3 of 2025, the highest in the firm's history. Q3 26 financial results included Record Management Fees of $188 million, up 38% from Q3 25. ENI EPS of $1.36, up 79% from Q3 of 25. And Operating Margining Expansion to 42.6%, up 9 percentage points from 33.2% in Q3 of 25. Finally, Capital Management remained a focus in the quarter as we strengthened our balance sheet with conservative leverage ratios and continue to invest in organic growth and return excess capital to shareholders. Pleased with our third quarter results, we remain focused on disciplined execution going forward. And this concludes my prepared remarks.

At this time, those with questions should lift their phone receiver and press star followed by the number one on their telephone keypad. We cancel a question. Please press star one again. Please hold for a brief moment while we compile the Q&A roster. Your first question comes from Kenneth Lee with RBC Capital Markets. Please go ahead.

Hey, good morning, and thanks for taking my question. I'm just curious whether you could talk a little bit more about your institutional pipeline, what you're seeing within their composition, and any color around that. Thanks.

Of course. Hi, Ken. Nice to talk to you again. The pipeline remains very robust across strategies and client geographies. We've continued to replenish it after following some very sizable mandate fundings in recent quarters. I'd say demand for enhanced equity remains strong and we're seeing particularly good momentum in our extension strategies. And I think extensions is an area that I'd highlight. Assets have grown there from approximately 5 billion a year ago to over 13 billion today. So an increase of nearly 170%. Those strategies are offering clients higher conviction in implementations of our approach. I think, as you know, we offer those in 130-30 and 160-60 flavors. And that growth, I think, has really been supported by very strong investment performance. So we continue to see real significant interest coming through in the pipeline there. I think importantly, we have meaningful capacity to support further growth and the attractive fee economics make extensions particularly interesting for our business. The tax aware capabilities also building on those established extension capabilities. And again, I think that's providing another avenue for growth for us. and many more. I think importantly, we're continuing to convert opportunities into mandate wins. We have a meaningful amount of awarded business that's awaiting funding, again, across those extension enhanced dimensions and several of the core strategies that I mentioned. The timing of institutional fundings is obviously ultimately client driven, but I remain very encouraged by the breadth of those opportunities and by the mandates we're winning and the continued strength of investment performance, which is supporting that pipeline growth.

Great. Very helpful there. And just one follow up, if I may, just in terms of capital management. You didn't repurchase any shares in the quarter, but just wondering if there's any kind of update outlook around capital returns, more specifically repurchases. Thanks.

Yeah, Ken, it's Scott. Thanks for your time this morning. No real update, particularly since the May investor forum, which I know you joined with us. Thank you for joining us. and many more. Thank you. No real change in the priorities. Like I said, we literally look at it every day and actively manage it, and it continues to be a priority going forward. It's just balanced, again, like I said, against organic growth and maintaining a robust balance sheet, which, again, we have today. Hopefully that's of help.

Great. Very helpful there. Thanks again.

Your next question comes from John Dunn with Evercore. Please go ahead.

Thanks. It was good to see the fee rate stable quarter of a quarter, maybe beyond extension equities. Could you go through some of the puts and takes there and maybe the outlook for the next stretch?

Yeah, John, it's Scott, and I'll start. In all candor, I think it's in completely sympathy with what Kelly just said on the first question there. I think extensions was an important driver. I've continued to be impressed, and you see it in the fee rate. We talked with you about this before. that it is very dynamic that we did have a bit of a step change or reset, if you will, as we saw those very large institutional driven enhanced wins. Those have pulled through the very large chunky ones, but make no mistake, the AUM mix from enhanced, as you know, has grown substantially in the last few years up to now about 30% of AUM. So that's important. But again, I think that's pulled through and why it continues to be and many more. was that the basis points fee rate all in on our inflows this quarter was higher than the outflows. That's not something we had seen in all candor when inflows was predominantly weighted on enhanced, which as you know typically would come in on a blended basis in that 30, mid 30-ish, lower 30-ish blended basis. We've been running often lower than that given the size and their intentions. But as we said, each quarter is dynamic and it's not just one way. And I think in this quarter, as I said, you had the dynamic go the other way, driven by extensions. And I would also add in that regard that You know, extensions with that also helps inform performance fees going forward. The relative amount of our performance fee eligible AUM remains roughly unchanged, call it around 12%. But within that, it's populated more and more by extension. So that's a nice opportunity there. So Long story short, it is a dynamic situation. That blended fee rate we print every quarter is subject to market conditions and various puts and takes and inflows and outflows that we're not completely in control of. But like I said, we are hard to see the stability of the blended rate quarter on quarter. And like I said, it can go in various ways. And it did this quarter. Like I said, the inflows of the rate being higher than the outflows. again, largely driven by the very good news from extensions. And we continue to see demand there. So we'll wait and see. But like I said, it is not a one-sided story in regards to the direction of travel, the fee rate per se. It is dynamic. And again, that's why I think we saw it hold in the way that it did flattish this quarter.

Got it. And then on the lowered range for variable expenses, is there something kind of one-time nature about that for has something changed and that could be more of a sustainable range going forward? John, have I heard you right?

I think you're talking about the variable compensation ratio. That was the question. Yep. Yeah. So it is noisy. Look, I think, you know, stepping back, our compensation structure, I think, as you know, is largely formulaic. However, having said that, in any given quarter, you also see that ratio being formed by not only the and many more. Now, we do look ahead and try to provide a steer for our investors and where we think that ratio lands on a full year basis. And I would remind people again that there is, for all intents and purposes, some real noise given those deferral dynamics I suggested or referenced earlier in any given quarter. So I think the full year is the right way to look about it. There is some seasonality there, particularly given where performance fees land. So that is the ratio we've provided that range of 34 to 38% in part informed by an outlook on performance fees. But to be clear, we feel very well positioned today. I think you may have noticed and we referenced it in our prepared remarks that the trailing one year percentage of our strategies outperforming Ben's marks increased materially year over year from something like mid 70s a year ago outperforming to closer to 95% trailing 12 months as this. as of this most recent past quarter. So we feel like standing where we are here at the end of October, we're well positioned for a solid performance big year. All else equal, that would push, if you will, the variable compensation ratio down. But it's very dynamic in any given year. So short answer to your question is I would not necessarily at all pencil in Yes, great. Thank you.

Your next question comes from Joe Tomilo with Morgan Stanley. Please go ahead.

Hey, good morning, everyone. Joe Tomilo from Mike Cypress. I just want to talk about the private wealth opportunity and the scope to extend your IP to distribute more through the Wealth Channel, especially in light of the UBS partnership you just listed. I guess, first, when should we start seeing or start to expect kind of a flow dynamic to be impacted by that partnership? And then secondly, is there any scope for other organic or inorganic partnerships to kind of help accelerate more penetration to that channel. And then can you also talk about kind of the resources you have in place to capture that opportunity? Thank you.

Hi Jo, nice to speak to you again and thanks for the question. Global wealth is an important growth opportunity for us. It's an area that we see that we see is continuing to expand our presence. I think as you know we already have established business in the channel and so we see considerable opportunity to really build on that foundation over time. The approach is very much to leverage existing investment capabilities and the infrastructure that we already have developed for institutional clients versus and many more. We're also expanding access through our usage platform. that's been established for well over 20 years at this point, but particularly in international markets, we're seeing real interest there. And again, continuing to build out that range and then obviously tax aware, which is addressing sort of specific needs of US wealth clients. So our focus is very much continuing on establishing either working with established relationships, whether that be St. James's, UBS, establishing new relationships so that we can reach more clients through our partners. but again it isn't about building out kind of a new distribution infrastructure so it's an attractive opportunity in large part because we see a way of increasing our client base but also because we think we need kind of fairly limited additional resourcing versus where we are today. Again that may change over the next 12, 18, 24 months as some of these partnerships develop but again we feel very comfortable with the distribution team, the sales team we have today, certainly with the investment and some of those very deep kind of institutional quality partnerships that we've been able to establish.

Okay, great. Thank you for that, Collar. And as for my follow-up, I mean, you guys delivered a really strong operating margin for the quarter, you know, over 42%. I think this is a little bit above the kind of the aspirational guide you guys laid out at your investor forum. I guess how should we think about the margin profile going forward? Thank you for joining us.

Thank you for joining us. Now, if that happens, might we revisit the aspirations? We might because the business continues to scale awfully well. Again, there is some noise and puts and takes about compensation. And obviously, it is important in this regards, again, where we land on performance fees and reading that across. Thank you for joining us. Thank you. Thank you. Fund Servicing Costs, including also sales-related costs. You've seen those come up, but that's as expected and in no way surprising given really a step change in size of the AUM just in the last 12 to 18 months. And then alongside of that, we continue to invest, but it's in a disciplined way, and it's in the areas that you might expect. So where are we seeing growth in expenses? It's not only talent, which obviously continues very, very important, but as a systematic manager, as you would expect, technology, data, and obviously ongoing, like I said, on the distribution side and people in that regard. So we continue to invest there, but feel like we're well positioned to do so. And none of that adds up to a step change in our expenses. So again, feel good for the year to realize that full potential. and many more. But again, it feels good right now. Hopefully that's of help. Great.

Thank you.

This concludes our question and answer session. I'd like to turn the conference call back to Kelly Young.

Thank you, everyone, for joining us today. And I wish you all a great day.