As Artisan Partners transitions to a new, capable CEO, its Parent rating remains Above Average.
Firm veteran and longtime CEO Eric Colson plans to step down in June 2025, when he will pass the reins to current President Jason Gottlieb. The successor makes sense. Artisan's equity platform, which accounted for about 90% of assets under management as of December 2024, is at scale, so the firm is looking to expand further into fixed income and alternative strategies, areas where Gottlieb has plenty of experience as a former manager-selection leader and portfolio manager. Meanwhile, Artisan has not been as quick as competitors to embrace new vehicles like active exchange-traded funds or interval funds, but the firm is rarely a first mover, and it is now exploring options there.
Artisan's advantages remain intact, namely its ability to recruit top investment talent to the organization through its decentralized model, which has produced a stable and generally well-performing fund lineup. Artisan has a revenue-sharing agreement with its autonomous investment teams, which is uncommon among asset managers. While that could incentivize asset-gathering, the firm's funds boast enduring investment merit, and capacity management has been strong. Indeed, more than half of the portfolio managers have shut their funds to new money at different points in time. Fees remain a weakness relative to peers, though the firm's lineup has produced compelling net-of-fee results.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Artisan Partners (Branding Name ID: BN000007ZI), is covered by Morningstar Manager Research.
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