Risk Reward Update

Research evidence excerpt

Risk Reward Update

UpdateM

Risk Reward – Acadian Asset Management Inc. (AAMI.N)

KEY EARNINGS INPUTS

Drivers Dec 2025 Dec 2026e Dec 2027e Dec 2028e

LT Net Flows (%) 25.1 20.1 5.9 5.0

Market Performance (%) 26.3 17.4 6.0 6.0

EOP AUM ($, bn) 177.5 244.1 273.3 303.4

Mgmt Fee Rate (%) 0.4 0.3 0.3 0.3

Operating Margin (%) 35.5 37.9 38.6 38.4

INVESTMENT DRIVERS RISKS TO PT/RATING MS ESTIMATES VS. CONSENSUS

Investment performance and flow trajectory RISKS TO UPSIDE FY Dec 2027e

Organic growth initiatives, including new Greater client demand for non-US equity

products, expanding distribution reach strategies and systematic strategies boosts 6.48

Capital allocation flows EPS Note: There are not sufficient brokers supplying ($)

Sustained strong investment performance consensus data for this metric

GLOBAL REVENUE EXPOSURE Better capital return

Strategic alternatives

APAC, ex Japan, Mainland 0-10% China and India RISKS TO DOWNSIDE 217

Net income

Note: There are not sufficient brokers supplying 0-10% Europe ex UK Softer client demand for non-US equity and ($, mm)

consensus data for this metric 0-10% India systematic strategies

0-10% Japan Weaker investment performance weighs on

0-10% MEA flows

0-10% Mainland China Accelerated investments into the business Mean Morgan Stanley Estimates

0-10% UK pressure profitability Source: Refinitiv, Morgan Stanley Research

70-80% North America Reduced share buybacks

Source: Morgan Stanley Research Estimate

View explanation of regional hierarchies here OWNERSHIP POSITIONING

Inst. Owners, % Active 62.2%

HF Sector Long/Short Ratio 1.4x

HF Sector Net Exposure 7.5%

Refinitiv; MSPB Content. Includes certain hedge fund

exposures held with MSPB. Information may be

inconsistent with or may not reflect broader market

trends.