AAMI: Takeaways from investor day

Research evidence excerpt

AAMI: Takeaways from investor day

ualized ENInon-economicis economicitems.net income, which is GAAP net income adjusted for non-cash and

excess returns over the past 5 years. While the TAM for AAMI's strategies All values in USD unless otherwise noted.

could be $58T AUM, mgmt believes the 'serviceable addressable market' Priced as of prior trading day's market close, EST (unless otherwise noted).

is closer to $18T AUM, with a projected 10% 5-year CAGR, composed

of institutional equity, wealth mgmt equity, and active credit areas of

opportunity. Systematic credit opportunity: AAMI has a few products

that are approaching the 3-year track records; mgmt believes addressable

market is $4T AUM; the systematic credit area is still nascent across the

industry and our sense is that pot'l adoption/growth could be somewhat

slower than that AAMI's systematic equity products, which have been

around for a lot longer. Enhanced equity: What was interesting to us, is that

mgmt believes AAMI's enhanced strategies could form a core part of clients'

systematic allocation, given low volatility/low return profile and could see

long client tenures. Recall, enhanced strategies have been a key driver

for AAMI's recent, substantial organic growth. What's also interesting

to us, is that mgmt indicated clients do not necessarily have a specific

'systematic bucket' but have been allocating to systematic strategies as

a replacement to active/passive strategies within each asset class. While

enhanced strategies are lower-fee products, mgmt indicated all other

product categories have better/neutral fee rates to firm avg. What may be

less appreciated, in our view, is that Acadian has 40 years of experience

and track record, with many decades of research into systematic strategies,