Artio Global Investors Reports First Quarter 2011 Results; Announces Quarterly Dividend of $0.06 Per Share

Artio Global Investors Inc. (NYSE: ART) ("Artio Global Investors”, together with its subsidiaries, "Artio Global” or the "Company”) today reported its results for the quarter ended March 31, 2011.

Financial Highlights

• Adjusted¹ net income attributable to Artio Global Investors ("adjusted net income”) of $24.2 million, or $0.41 per diluted share, for the first quarter of 2011 (GAAP net income attributable to Artio Global Investors of $22.0 million, or $0.38 per diluted share)
• Assets under management of $51.3 billion as of March 31, 2011
• Investment management fees of $81.8 million for the first quarter of 2011
• Effective fee rate² of 63.0 basis points for the first quarter of 2011
• Adjusted operating margin of 50.8% for the first quarter of 2011
• Quarterly dividend of $0.06 per share on Class A and Class C common stock

The Company’s adjusted results for the three months ended March 31, 2011 and 2010, and December 31, 2010, assume the Principals’³ non-controlling interests have been fully exchanged for shares of Class A common stock and exclude the effects of the amortization of restricted stock units ("RSUs”) granted at the time of the Company’s initial public offering ("IPO”). Adjusted results are presented to provide more meaningful comparisons between periods.

For the first quarter of 2011, adjusted net income attributable to Artio Global Investors was

$24.2 million, or $0.41 per diluted share, a decrease of 13% and 11%, respectively, from adjusted net income attributable to Artio Global Investors of $27.8 million, or $0.46 per diluted share, for the fourth quarter of 2010, and a decrease of 12% and 11%, respectively, from adjusted net income attributable to Artio Global Investors of $27.4 million, or $0.46 per diluted share, for the first quarter of 2010.

On a GAAP basis, net income attributable to Artio Global Investors for the first quarter of 2011 was $22.0 million, or $0.38 per diluted share, a decrease of 14% in each case from net income attributable to Artio Global Investors of $25.7 million, or $0.44 per diluted share, for the fourth quarter of 2010. Compared to the first quarter of 2010, net income attributable to Artio Global Investors increased 17%, from $18.9 million, while earnings per diluted share decreased 10% from $0.42.

The following tables compare the Company’s GAAP results and adjusted results. See Exhibits 3 – 4 of this news release for a reconciliation of GAAP results to adjusted results.

Business Update⁵

• The Company’s London office opened in the first quarter of 2011, augmenting distribution opportunities outside of the United States
• Four of the Company’s five eligible mutual funds⁶ were in the top third of Lipper performance rankings for the five-year period ended March 31, 2011
• Six of the Company’s nine mutual funds⁷, representing over 99% of mutual fund assets, were rated four or five stars by Morningstar, as of March 31, 2011
• Net client cash outflows were $3.2 billion for the first quarter of 2011

Management Commentary

"Our International Equity strategies saw further net outflows during the first quarter; however we are encouraged by their improving performance trend, which began in March,” said Richard Pell, Chairman, Chief Executive Officer and Chief Investment Officer. "Ultimately flows follow performance, and we remain focused on regaining ground in these strategies, against both their benchmarks and their peers.”

"The majority of our other strategies outperformed their benchmarks for the quarter, notably all four of our US equity strategies, which are approaching their five-year anniversary – an important milestone for many institutional investors. Coupled with strong long-term performance, we believe they are well positioned to attract additional assets and help diversify our revenue sources over time. Elsewhere, we continued to execute on our international distribution plans, having opened a London office in January.”

First Quarter of 2011 Comparison with First Quarter of 2010

Assets Under Management and Net Client Cash Flows

Assets under management were $51.3 billion as of March 31, 2011, down $5.1 billion, or 9%, from $56.4 billion as of March 31, 2010, due to net client cash outflows, partly offset by market appreciation.

Net client cash outflows for the first quarter of 2011 were $3.2 billion, driven primarily by net client cash outflows from our International Equity I and II strategies.⁸

Revenues and Other Operating Income

Revenues and other operating income for the first quarter of 2011 totaled $82.2 million, down 4% from $85.6 million for the first quarter of 2010. The decrease was driven primarily by lower investment management fees, which were $81.8 million for the first quarter of 2011, down 4% from $85.3 million for the first quarter of 2010, due primarily to lower average assets under management.

Expenses

Employee Compensation and Benefits

For the first quarter of 2011, adjusted employee compensation and benefits expenses were

$25.4 million, up 15% from $22.0 million for the first quarter of 2010. The increase was due primarily to higher costs related to the amortization of deferred incentive compensation awards, accruals related to the long-term incentive plan, which was implemented in the first quarter of 2011, and higher costs due to an increase in headcount.

GAAP employee compensation and benefits expenses for the first quarter of 2011 were $28.0 million, up 11% from $25.2 million for the first quarter of 2010. The increase was due primarily to the reasons mentioned above, partly offset by a decrease in the amortization of RSUs granted at the time of the IPO, due to the vesting of certain awards in the first quarter of 2010.

Shareholder Servicing and Marketing Expenses

Shareholder servicing and marketing expenses for the first quarter of 2011 were $4.9 million, up 7% from $4.5 million for the first quarter of 2010, driven primarily by higher platform costs, partly offset by lower marketing expenses.

General and Administrative Expenses

General and administrative expenses for the first quarter of 2011 were $10.2 million, relatively unchanged from $10.3 million for the first quarter of 2010.

Income Taxes

For the first quarter of 2011, the adjusted effective tax rate was 42.5%, 0.5 percentage points lower than the 43.0% adjusted effective tax rate for the first quarter of 2010, due primarily to a lower apportionment of income for state and local tax purposes, partly offset by the write-off of certain deferred tax assets in the first quarter of 2011.

The GAAP effective tax rate was 42.2% for the first quarter of 2011, 9.4 percentage points higher than the 32.8% GAAP effective tax rate for the first quarter of 2010, due primarily to an increase in the proportion of pre-tax income subject to federal and state taxes.⁹

First Quarter of 2011 Comparison with Fourth Quarter of 2010

Assets Under Management

Assets under management were $51.3 billion as of March 31, 2011, a decrease of $2.1 billion, or 4%, from $53.4 billion as of December 31, 2010, due to net client cash outflows, partly offset by market appreciation.

Revenues and Other Operating Income

Revenues and other operating income for the first quarter of 2011 totaled $82.2 million, down 4% from $85.2 million for the fourth quarter of 2010, driven primarily by lower investment management fees. Investment management fees were $81.8 million for the first quarter of 2011, down 3% from $84.7 million for the fourth quarter of 2010, due primarily to fewer days in the first quarter of 2011 and a decrease in average assets under management.

Expenses

Employee Compensation and Benefits

For the first quarter of 2011, adjusted employee compensation and benefits expenses were $25.4 million, up 17% from $21.7 million for the fourth quarter of 2010, due primarily to an increase in accruals related to incentive compensation and the long-term incentive plan, and higher costs related to the amortization of deferred incentive compensation awards.

GAAP employee compensation and benefits expenses for the first quarter of 2011 were $28.0 million, up 15% from $24.4 million for the fourth quarter of 2010, due primarily to the reasons noted above.

Shareholder Servicing and Marketing Expenses

Shareholder servicing and marketing expenses for the first quarter of 2011 were $4.9 million, a decrease of 2% from the fourth quarter of 2010.

General and Administrative Expenses

General and administrative expenses of $10.2 million for the first quarter of 2011 decreased 6% from $10.9 million for the fourth quarter of 2010.

Income Taxes

For the first quarter of 2011, the adjusted effective tax rate was 42.5%, 0.3 percentage points higher than the 42.2% adjusted effective tax rate for the fourth quarter of 2010. The increase was due primarily to the release of a previously recorded tax reserve in the fourth quarter of 2010 and the write-off of certain deferred tax assets in the first quarter of 2011, partly offset by a lower apportionment of income for state and local tax purposes in the first quarter of 2011.

The GAAP effective tax rate was 42.2% for the first quarter of 2011, 0.8 percentage points higher than the 41.4% GAAP effective tax rate for the fourth quarter of 2010, due primarily to the reasons noted above.

Liquidity and Capital

As of March 31, 2011, the Company had cash and cash equivalents (excluding amounts held in consolidated investment products) of $71.0 million, investments held for deferred compensation of $12.1 million and an undrawn $100.0 million committed revolving credit facility. During the first quarter of 2011, in accordance with the terms of the credit agreement, the Company repaid $4.5 million of its term debt facility, reducing the outstanding balance to $51.0 million.

Total stockholders’ equity on the Statement of Financial Position was $126.7 million as of March 31, 2011, compared to $103.6 million as of December 31, 2010.

Share Repurchase

The Company has authorization to repurchase up to 3,000,000 shares of its common stock through December 31, 2013, and as of March 31, 2011, the Company had not repurchased any shares under this program.

Shares

As of March 31, 2011, the total number of shares of Class A, Class B and Class C common stock outstanding was 59,584,681.

For purposes of calculating adjusted earnings per diluted share, all 1.2 million of the Principals’ New Class A Units, held in the intermediate holding company as of the beginning of the period, are assumed to have been fully exchanged into shares of Class A common stock on the first day of the period.

Dividend

On April 25, 2011, the Board of Directors declared a dividend of $0.06 per share on the Class A and Class C common stock for the first quarter of 2011, which is payable on May 25, 2011, to stockholders of record as of the close of business on May 11, 2011.

Teleconference and Webcast Details

Artio Global Investors’ management will host a conference call for analysts and investors to review first quarter 2011 results, today, April 28, 2011, beginning at 8:00 a.m. (Eastern Time). The call can be accessed by dialing +1-888-680-0860 (inside the United States) or +1-617-213-4852 (outside the United States). The number should be dialed at least ten minutes prior to the start of the call. The passcode for the call will be 17001400. A simultaneous webcast (on a listen-only basis), as well as an audio replay of the call will be available to the public on the Investor Relations page of the Company’s website at www.ir.ArtioGlobal.com.

About Us

Artio Global Investors Inc. is the indirect holding company of Artio Global Management LLC ("Artio Global Management”), a registered investment adviser headquartered in New York City that actively invests in global equity and fixed income markets, primarily for institutional and intermediary clients.

Best known for International Equities, Artio Global Management also offers a select group of other investment strategies, including High Grade Fixed Income, High Yield and Global Equity, as well as a series of US Equity strategies. Access to these strategies is offered through a variety of investment vehicles, including separate accounts, commingled funds and mutual funds.

Since 1995, our investment professionals have built a successful long-term track record by taking an unconventional approach to investing. Based on a philosophy of style-agnostic investing across a broad range of opportunities, we have consistently pursued a global approach that we believe provides critical insights, thereby adding value for clients over the long term.

For more information, please visit www.artioglobal.com.

Cautionary Note Regarding Forward-Looking Statements

In addition to historical information, this news release may, and the related prepared remarks do, contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the intrinsic value of our common stock, investor behavior, net client cash flows, our compensation costs and adjusted compensation ratio, future tax rate, use of our free cash flow, potential share repurchases and declaration of dividends. These forward-looking statements are based on the Company’s current assumptions, expectations and projections about future events. Words like "believe”, "anticipate”, "intend”, "estimate”, "expect”, "project”, and similar expressions are used to identify forward-looking statements, although not all forward-looking statements contain these words. These forward-looking statements discuss matters that necessarily involve a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied by the forward-looking statements.

Among the factors that could cause actual results to differ from those expressed or implied by a forward-looking statement are those described in the sections entitled "Risk Factors” and "Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s report on Form 10-K (File No. 001-34457) filed with the Securities and Exchange Commission on February 25, 2011. Other unknown or unpredictable factors also could have material adverse effects on the Company’s future results, performance, or achievements.

Any forward-looking statements in this news release and the related prepared remarks speak only as of the date of this news release. The related prepared remarks may contain information about the Company subsequent to March 31, 2011. The Company is not under any obligation and does not intend to make publicly available any update or other revisions to any forward-looking statements to reflect circumstances existing after the date of this release or to reflect the occurrence of future events even if experience or future events make it clear that any expected results expressed or implied by those forward-looking statements will not be realized.

Fund Performance and Other Disclaimers

Lipper rankings are for Class I mutual fund shares with a five-year track record only. Other classes may have different performance characteristics. Lipper, a wholly-owned subsidiary of Reuters, provides independent insight on global collective investments including mutual funds, retirement funds, hedge funds, fund fees and expenses to the asset management and media communities. Lipper ranks the performance of mutual funds within a classification of funds that have similar investment objectives. Rankings are historical with capital gains and dividends reinvested and do not include the effect of loads. If an expense waiver was in effect, it may have had a material effect on the total return or yield for the period.

Morningstar rankings are for Class I mutual fund shares with a minimum three-year track record. For each mutual fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a mutual fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. This investment's independent Morningstar Rating metric is then compared against the mutual fund universe breakpoints to determine its hypothetical rating.

Data presented reflects past performance, which is no guarantee of future results. © 2011 Morningstar, Inc. All Rights Reserved.

This news release is not, and should not be considered, sales material and is not an offer or a solicitation for any securities.

¹ See Exhibits 3 - 4 of this news release for a reconciliation of the Company’s U.S. GAAP results to its Non-GAAP adjusted results ("adjusted”).

² Effective fee rate is defined as annualized investment management fees (based on the number of days in the period) divided by the average assets under management for the period.

³ Richard Pell, Chairman, Chief Executive Officer and Chief Investment Officer, and Rudolph-Riad Younes, Head of International Equity, are collectively referred to as the "Principals”.

⁴ Represents total revenues and other operating income.

⁵ See section entitled "Fund Performance and Other Disclaimers” and Exhibit 7 of this news release for further information about Lipper and Morningstar rankings.

⁶ Class I mutual fund shares with a five-year track record; other classes may have different performance characteristics.

⁷ Class I mutual fund shares; other classes may have different performance characteristics.

⁸ See Exhibit 6 for more information on "Assets under Management by Investment Strategy”.

⁹ Following the Principals’ exchanges in 2010 of an aggregate of 14,400,000 New Class A Units for Class A common stock, Artio Global Investors’ economic ownership in Artio Global Holdings increased from approximately 74% to approximately 98%.