Samuel Smith has a diverse background that includes being lead analyst and Vice President at several highly regarded dividend stock research firms and running his own dividend investing YouTube channel. He is a Professional Engineer and Project Management Professional and holds a B.S. in Civil Engineering & Mathematics from the United States Military Academy at West Point and has a Masters in Engineering from Texas A&M with a focus on applied mathematics and machine learning.Samuel leads the High Yield Inve ...

Group 1 - Brookfield Asset Management (NYSE: BAM) is viewed as a valuable investment despite trading at a premium compared to peers, indicating strong underlying rationale for this premium [1] - The company is recognized for its focus on equity valuation, market trends, and portfolio optimization, which are essential for uncovering high-growth investment opportunities [1] - The investment approach combines rigorous risk management with a long-term perspective on value creation, emphasizing macroeconomic trends and corporate earnings [1]

Core Viewpoint - Partners Value Split Corp. reported a net asset value per unit of $157.55 as of June 30, 2025, reflecting a strong financial position and growth in income and comprehensive income compared to the previous year [1][2]. Financial Performance - Income available for distribution for the six months ended June 30, 2025, was $48 million, an increase from $42 million in the prior year, primarily due to higher dividend rates from Brookfield Corporation and Brookfield Asset Management Ltd. [2][4] - Net comprehensive income reached $533 million, significantly up from $159.77 million in the prior period, driven by higher unrealized mark-to-market gains on shares of Brookfield Corporation and Brookfield Asset Management [2][4]. - The fair value of Brookfield Corporation shares was $61.85 as of June 30, 2025, up from $57.45 at the end of 2024, while Brookfield Asset Management shares had a fair value of $55.28, compared to $54.19 at the end of 2024 [2][4]. Investment Holdings - As of June 30, 2025, the Company owned 120 million Class A Limited Voting shares of Brookfield Corporation and 30 million Class A Limited Voting shares of Brookfield Asset Management, which generate cash flow through dividend payments [4][5][6]. - The Company's investment in Brookfield Corporation represents approximately an 8% interest, while the investment in Brookfield Asset Management represents about a 2% interest [5][6]. Dividend Information - The Company reported distributions paid on senior preferred shares and debentures amounting to $16.87 million for the six months ended June 30, 2025, compared to $15.83 million in the prior year [4]. - Income available for distribution to junior preferred and capital shares was $31.39 million, up from $26.55 million in the previous year [4]. Asset Management Overview - Brookfield Corporation is recognized as a leading global investment firm focused on long-term wealth creation across three core businesses: asset management, wealth solutions, and operating businesses [5]. - Brookfield Asset Management Ltd. is noted for managing over $1 trillion in assets across various sectors, including real estate, infrastructure, and private equity [6].

Financial Performance - The Partnership reported a net loss of $6.2 million for the quarter ended June 30, 2025, a significant decrease from a net income of $21.6 million in the same quarter of the previous year, primarily due to unfavorable foreign currency movements and higher tax recoveries in the prior year [2][4] - Investment income for the quarter included $26.241 million in dividends and $6.450 million in other investment income, totaling $32.691 million, compared to $27.589 million in the prior year quarter [4] - Operating expenses decreased to $1.048 million from $1.301 million year-over-year, while financing costs remained relatively stable at $2.501 million compared to $2.545 million in the previous year [4] Investment Portfolio - The Partnership holds approximately 121 million Class A Limited Voting Shares of Brookfield Corporation (BN) and approximately 31 million Class A Limited Voting Shares of Brookfield Asset Management Ltd. (BAM), representing about 8% and 2% interests in BN and BAM, respectively, as of June 30, 2025 [5] - The market prices for BN and BAM shares as of June 30, 2025, were $61.85 and $55.28, respectively, with prices increasing to $65.60 and $62.11 by August 14, 2025 [3] Financial Position - As of June 30, 2025, total assets amounted to $10.329 billion, an increase from $9.640 billion at the end of 2024, with significant investments in Brookfield Corporation and Brookfield Asset Management [6] - The Partnership's liabilities included $1.271 billion, with preferred shares totaling $1.010 billion, reflecting an increase from $939 million at the end of 2024 [6] - The net book value at the end of the period was $9.010 billion, with a per unit value of $11.47, adjusted for a ten-for-one unit split effective August 8, 2025 [4][6]

Group 1 - There are popular dividend stocks that may not be suitable for long-term investment [1] - The company invests significant resources into researching profitable investment opportunities [2] - The approach has garnered over 180 five-star reviews from satisfied members [2]

PART I - FINANCIAL INFORMATION [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) Presents unaudited condensed consolidated financial statements for Brookfield Asset Management Ltd. as of June 30, 2025, including Balance Sheets, Statements of Operations, and Cash Flows, with detailed notes [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to **$16.1 billion** by June 30, 2025, with liabilities rising to **$5.1 billion**, while total equity remained stable at **$9.2 billion** Condensed Consolidated Balance Sheets (Unaudited) | AS AT | June 30, 2025 (Millions) | Dec 31, 2024 (Millions) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $480 | $404 | | Due from affiliates | $3,529 | $2,500 | | Investments | $9,487 | $9,113 | | Investments of consolidated funds | $744 | $251 | | **Total assets** | **$16,143** | **$14,157** | | **Liabilities** | | | | Accounts payable and other, net | $2,357 | $1,349 | | Corporate borrowings | $743 | $— | | Borrowings of consolidated funds | $507 | $251 | | **Total liabilities** | **$5,113** | **$2,966** | | **Total equity** | **$9,171** | **$9,088** | [Condensed Consolidated Statements of Operations](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Net income attributable to common stockholders rose to **$620 million** in Q2 2025 and **$1.2 billion** for the six-month period, driven by higher base management fees Condensed Consolidated Statements of Operations (Unaudited) | FOR THE PERIODS ENDED JUNE 30, | Three Months 2025 (Millions) | Three Months 2024 (Millions) | Six Months 2025 (Millions) | Six Months 2024 (Millions) | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $1,090 | $916 | $2,171 | $1,800 | | Total expenses | ($557) | ($333) | ($1,059) | ($781) | | Income before taxes | $659 | $660 | $1,241 | $1,104 | | Net income | $584 | $518 | $1,091 | $891 | | **Net income attributable to common stockholders** | **$620** | **$495** | **$1,201** | **$936** | | **Diluted EPS** | **$0.38** | **$0.31** | **$0.74** | **$0.58** | [Condensed Consolidated Statements of Cash Flows](index=13&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Cash from operating activities was **$643 million** for H1 2025, with investing activities using **$255 million** and financing activities using **$314 million**, resulting in a **$74 million** net cash increase Condensed Consolidated Statements of Cash Flows (Unaudited) | FOR THE SIX MONTHS ENDED JUNE 30, | 2025 (Millions) | 2024 (Millions) | | :--- | :--- | :--- | | Net cash from operating activities | $643 | $909 | | Net cash from investing activities | ($255) | ($458) | | Net cash from financing activities | ($314) | ($1,183) | | **Change in cash and cash equivalents** | **$74** | **($732)** | [Notes to the Condensed Consolidated Financial Statements](index=15&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) Detailed notes explain accounting policies, key investments, segment reporting, related party transactions, and subsequent events like the 2025 Arrangement and a declared dividend - On February 4, 2025, BAM completed a corporate arrangement with Brookfield Corporation (BN), where BN transferred its ~73% interest in the Asset Management Company to BAM. This transaction was accounted for as a reverse asset acquisition, with the Asset Management Company being the accounting acquirer and predecessor[32](index=32&type=chunk)[97](index=97&type=chunk)[99](index=99&type=chunk) - As of June 30, 2025, key investments include an approximate 74% economic interest in Oaktree (**$4.7 billion**), an economic interest in Castlelake (**$758 million**), and accrued carried interest in new funds (**$963 million**)[106](index=106&type=chunk)[113](index=113&type=chunk) - The company operates through five segments: Renewable Power and Transition, Infrastructure, Real Estate, Private Equity, and Credit. The CODM assesses performance based on Segment Revenues and Segment Earnings, which are non-GAAP measures[188](index=188&type=chunk)[193](index=193&type=chunk) - Subsequent to the quarter end, the board declared a quarterly dividend of **$0.4375 per share**. The company also agreed to acquire a **50.1% stake** in Angel Oak Companies, an asset manager focused on residential mortgage strategies[204](index=204&type=chunk)[206](index=206&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=44&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's perspective on the company's financial condition and results of operations, covering business overview, economic environment, strategies, financial results, non-GAAP measures, and liquidity [Business Overview and Environment](index=44&type=section&id=Business%20Overview%20and%20Environment) BAM is a global alternative asset manager with over **$1 trillion** in AUM, operating in a Q2 2025 environment of easing U.S. inflation and moderate GDP growth - BAM is a leading global alternative asset manager with over **$1 trillion** of Assets Under Management across renewable power and transition, infrastructure, private equity, real estate, and credit[208](index=208&type=chunk) - The company manages a range of public and private investment products for over **2,400 institutional and retail clients**, leveraging a team of over **2,500 investment professionals**[209](index=209&type=chunk)[210](index=210&type=chunk)[213](index=213&type=chunk) - Key economic indicators for Q2 2025 include U.S. real GDP growth of **2.6%**, U.S. inflation at **2.7%**, and a stable Fed benchmark interest rate of **4.25%-4.50%**. The S&P 500 increased by **10.6%** during the quarter[218](index=218&type=chunk)[219](index=219&type=chunk)[221](index=221&type=chunk) [Products and Principal Strategies](index=45&type=section&id=Products%20and%20Principal%20Strategies) BAM's investment strategies span five principal areas: Renewable Power & Transition, Infrastructure, Real Estate, Private Equity, and Credit, with total AUM exceeding **$1 trillion** Assets Under Management (AUM) by Strategy (as of June 30, 2025) | Strategy | AUM (Billions) | | :--- | :--- | | Renewable Power and Transition | $137 | | Infrastructure | $222 | | Real Estate | $278 | | Private Equity | $150 | | Credit | $332 | - The Credit strategy is the largest segment by AUM and includes partnerships with leading managers like Oaktree, Castlelake, and Primary Wave[237](index=237&type=chunk) [Review of Financial Results](index=50&type=section&id=Review%20of%20Financial%20Results) Net income attributable to common stockholders rose to **$620 million** in Q2 2025 and **$1.2 billion** for the first half, with revenues increasing **19%** and **21%** respectively, driven by base management fees - **Q2 2025 vs Q2 2024:** - **Net Income (to stockholders):** Increased to **$620 million** from **$495 million** - **Revenues:** Increased **19%** to **$1.1 billion**, driven by a **14% ($100 million)** increase in Base Management and Advisory Fees - **Base Fee Drivers:** Growth came from new capital for transition and real estate funds, insurance capital inflows, and higher market values of listed partnerships (BIP)[246](index=246&type=chunk)[247](index=247&type=chunk)[248](index=248&type=chunk) - **H1 2025 vs H1 2024:** - **Net Income (to stockholders):** Increased to **$1.2 billion** from **$936 million** - **Revenues:** Increased **21%** to **$2.2 billion**, driven by an **18% ($257 million)** increase in Base Management and Advisory Fees - **Base Fee Drivers:** Growth came from capital raised for real estate and transition funds, and insurance capital inflows from BWS[268](index=268&type=chunk)[269](index=269&type=chunk)[270](index=270&type=chunk) [Key Financial and Operating Measures](index=60&type=section&id=Key%20Financial%20and%20Operating%20Measures) Q2 2025 Fee-Related Earnings were **$676 million** and Distributable Earnings were **$613 million**, with Fee-Bearing Capital growing to **$563 billion** and **$105.8 billion** in uncalled fund commitments Key Non-GAAP Performance Measures (Q2 2025 vs Q2 2024) | Metric (Millions) | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Fee Revenues | $1,285 | $1,148 | +12% | | Fee-Related Earnings | $676 | $583 | +16% | | Distributable Earnings | $613 | $548 | +12% | Fee-Bearing Capital Roll-Forward (H1 2025) | Metric (Billions) | Amount | | :--- | :--- | | Dec 31, 2024 Balance | $538.5 | | Inflows | +$42.6 | | Outflows & Distributions | ($23.9) | | Market Valuation & Other | +$5.5 | | **June 30, 2025 Balance** | **$562.7** | - The company has **$105.8 billion** in uncalled fund commitments as of June 30, 2025, with approximately **$54 billion** not yet earning fees but expected to generate an additional **$540 million** in annual Fee Revenues once invested[438](index=438&type=chunk) - Corporate liquidity stands at **$1.5 billion**, including **$1.0 billion** in undrawn credit facilities. Total group deployable capital, including uncalled commitments, is **$171.8 billion**[436](index=436&type=chunk)[437](index=437&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=89&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risk stems from base management fees' sensitivity to publicly listed vehicle prices, with limited foreign currency and low credit risk - Primary market risk exposure relates to base management fees earned from publicly listed vehicles (BEP, BIP, BBU), which are sensitive to their market capitalization[465](index=465&type=chunk) - Foreign currency risk is minimal as the majority of private funds and Fee Revenues are denominated in USD[466](index=466&type=chunk) - Credit risk from investor capital commitment defaults is considered not material due to the diversity and creditworthiness of its over **2,400 clients**[468](index=468&type=chunk) [Controls and Procedures](index=89&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that as of June 30, 2025, the company's disclosure controls and procedures are effective at a reasonable assurance level[471](index=471&type=chunk) - There were no changes in internal control over financial reporting during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[472](index=472&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=90&type=section&id=Item%201.%20Legal%20Proceedings) No material outstanding litigation was reported as of June 30, 2025 - As of June 30, 2025, there was no material outstanding litigation against the company[184](index=184&type=chunk)[474](index=474&type=chunk) [Risk Factors](index=90&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors previously disclosed in the Annual Report on Form 10-K for 2024 - The report refers to the risk factors detailed in the Annual Report on Form 10-K for the year ended December 31, 2024, indicating no material changes[475](index=475&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=90&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) No unregistered sales of equity securities occurred during the reporting period - None[476](index=476&type=chunk) [Exhibits and Financial Statement Schedules](index=91&type=section&id=Item%206.%20Exhibits%20and%20Financial%20Statement%20Schedules) Lists exhibits filed with Form 10-Q, including CEO/CFO certifications and Inline XBRL data files - Exhibits filed include CEO and CFO certifications (Rule 13a-14(a) and Section 906 of Sarbanes-Oxley) and XBRL financial data[480](index=480&type=chunk)

Financial Data and Key Metrics Changes - Fee related earnings increased by 16% to $676 million, while distributable earnings rose by 12% to $613 million [8][34] - Fee bearing capital reached $563 billion, marking a 10% year-over-year increase [8][34] - The company raised $22 billion in capital during the quarter and $97 billion over the past twelve months [8][34] Business Line Data and Key Metrics Changes - In renewable power and transition, $1.5 billion was raised, contributing to a total of over $15 billion for the world's largest energy transition strategy [37] - Infrastructure fundraising totaled $1.7 billion, with significant contributions from the Super Core infrastructure strategy [37] - Real estate strategies raised $1.8 billion, including $500 million for the fifth vintage of the flagship real estate strategy [38] Market Data and Key Metrics Changes - The company noted a robust recovery in the real estate market, with deployment in real estate up 2x and monetization activity up 4x compared to the previous year [72] - The demand for high-quality assets and businesses has significantly increased, evidenced by over $55 billion in announced asset sales generating $33 billion in equity proceeds [21][20] Company Strategy and Development Direction - The company is focused on long-term mission-critical investments in infrastructure, renewable power, and essential services, driven by themes of digitalization, decarbonization, and deglobalization [9][10] - The company is developing next-generation AI infrastructure globally, positioning itself as a partner of choice for large hyperscalers and governments [12][13] - The strategy includes expanding into the individual investor market, with a focus on private wealth and retirement channels [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, highlighting significant liquidity and a constructive backdrop for M&A activity [8][9] - The company anticipates continued strong fundraising and investment activity, with a robust pipeline of opportunities [32][34] - Management emphasized the importance of product quality and durability in capturing the growing individual investor market [52][69] Other Important Information - The company declared a quarterly dividend of 43.75 cents per share, payable to shareholders of record as of August 29 [43] - The company is prioritizing its inclusion in U.S. equity indices, having been added to the Russell 1000 Index [42] Q&A Session Summary Question: Fundraising environment and outlook - Management characterized the fundraising environment as incredibly robust, expecting this year to surpass last year's capital raised [46][48] Question: Access to the broader retirement market - Management highlighted the importance of product offerings and brand strength in capturing growth in the retirement market [51][53] Question: Insurance growth area and Just acquisition - The Just Group acquisition is expected to enhance the company's footprint in the UK retirement market, adding stable fee-bearing capital [56][57] Question: Real estate market outlook - Management noted a robust recovery in the real estate sector, with significant deployment and monetization activity [72][74] Question: Expense outlook and margin expansion - Management indicated that expense growth is expected to stabilize around 10%, with potential for FRE margin expansion in the future [78][80]

Financial Data and Key Metrics Changes - Fee related earnings increased by 16% to $676 million, while distributable earnings rose by 12% to $613 million [8][34] - Capital raised in the quarter totaled $22 billion, with a total of $97 billion raised over the past twelve months, driving fee bearing capital to $563 billion, a 10% increase year over year [8][34] Business Line Data and Key Metrics Changes - Infrastructure business saw major transactions totaling over $30 billion in enterprise value, including significant acquisitions like Colonial Pipeline and Duke Energy Florida [21][22] - Real estate monetization activity increased significantly, with $15 billion in sales across various sectors, including senior housing and hospitality [23] Market Data and Key Metrics Changes - The fundraising environment is described as robust, with a notable increase in capital raised in Europe and a strong performance in complementary strategies [48] - The demand for high-quality assets is reflected in the significant increase in monetization activity, with over $55 billion in asset sales announced year to date [22][23] Company Strategy and Development Direction - The company is focused on long-term investment themes of digitalization, decarbonization, and deglobalization, particularly in AI infrastructure and renewable energy [10][43] - Strategic partnerships have been formed, including a $10 billion public-private investment program with the Swedish government and a renewable energy agreement with Google [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the current market environment, highlighting strong demand for mission-critical assets and the ability to deploy capital effectively [15][33] - The company anticipates continued growth in fundraising and investment activity, supported by a robust pipeline and favorable market conditions [33][34] Other Important Information - The company is expanding its private wealth and retirement platform, Brookfield Wealth, aiming to raise over $30 billion in capital this year [30] - A quarterly dividend of 43.75¢ per share was declared, payable to shareholders of record as of August 29 [42] Q&A Session Summary Question: Fundraising backdrop and expectations for 2026 - Management characterized the fundraising environment as incredibly robust, expecting this year to surpass last year's fundraising totals [46][48] Question: Access to the broader retirement market - Management emphasized that success will depend on having the right products to meet investor needs, with a focus on real assets that provide stable cash flows [50][53] Question: Growth in the U.S. retail channel and Just acquisition - The Just Group acquisition is expected to add stable fee-bearing capital, enhancing the company's footprint in the UK retirement market [56][57] Question: Real estate market outlook - Deployment in real estate has doubled year to date, with a robust recovery in the capital markets supporting high-quality platforms [73][75] Question: Expense outlook and margin expansion - Management expects expenses to grow around 10% year over year, with a focus on building capabilities in various areas [78][80]

Q2 SUPPLEMENTAL INFORMATION QUARTER ENDED JUNE 30, 2025 Brookfield Asset Management Overview BAM is a leading alternative asset manager with a +25-year track record of delivering strong, risk-adjusted returns by investing in high-quality assets, forming the backbone of the global economy | Fee-Bearing Capital | $563B | Our Businesses by Fee-Bearing Capital Renewable Power & Transition | | | | --- | --- | --- | --- | --- | | | | $64B | | | | Assets Under Management | $1T+ | Infrastructure | | | | | | | $100B ...

Core Viewpoint - Brookfield Asset Management reported quarterly earnings of $0.38 per share, missing the Zacks Consensus Estimate of $0.39 per share, but showing an increase from $0.34 per share a year ago, indicating a slight earnings surprise of -2.56% [1][2] Financial Performance - The company posted revenues of $1.29 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.36% and showing an increase from $1.15 billion year-over-year [2] - Over the last four quarters, Brookfield has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Brookfield shares have increased approximately 13.6% since the beginning of the year, outperforming the S&P 500's gain of 7.1% [3] Future Outlook - The current consensus EPS estimate for the coming quarter is $0.41 on revenues of $1.33 billion, and for the current fiscal year, it is $1.62 on revenues of $5.27 billion [7] - The estimate revisions trend for Brookfield was unfavorable ahead of the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Financial - Miscellaneous Services industry, to which Brookfield belongs, is currently in the top 26% of over 250 Zacks industries, suggesting a favorable industry outlook [8]