Group 1 - Harbor Capital is an asset manager that focuses on curating a select suite of active ETFs [1] - The company believes these ETFs have the potential to produce compelling, risk-adjusted returns within a portfolio [1]

Group 1 - Harbor Capital is an asset manager that focuses on curating a select suite of active ETFs [1] - The company believes these ETFs have the potential to produce compelling, risk-adjusted returns within a portfolio [1]

Group 1 - Harbor Capital is an asset manager that focuses on curating a select suite of active ETFs [1] - The company believes these ETFs have the potential to produce compelling, risk-adjusted returns within a portfolio [1]

Core Insights - Harbor Capital is an asset manager that focuses on a carefully selected suite of active ETFs aimed at generating compelling, risk-adjusted returns within investment portfolios [1] Company Overview - The company specializes in curating active ETFs, indicating a strategic approach to investment management [1] - Harbor Capital emphasizes the potential for their ETFs to deliver attractive returns while managing risk effectively [1] Communication Note - It is noted that the account is not managed or monitored by Harbor Capital, and inquiries should be directed through official channels [1]

And welcome back to halftime with your we have your ETF edge. We're seeing two big pushes in the industry this week getting very different receptions. Let's jump right into it.Joining me now is independent ETF expert Dave Natig. Dave, thanks for joining us. Thanks for having me.All right, let's start off first. I get back to those two big players diving into the active management arena. We got billionaire investor Ron Baron launching his own fund and lowcost king Vanguard filing for a new fundamentals fund ...

Core Insights - J.P. Morgan Asset Management has launched the JPMorgan Equity and Options ETF (JOYT), expanding its Equity Premium Income Suite to meet client needs for total return [1][3] - JOYT aims to integrate dividends, options premium, and capital appreciation to deliver robust returns with lower volatility compared to the U.S. large-cap market [2][4] - The fund is competitively priced at 35 basis points, aligning with the pricing of existing products JEPI and JEPQ [4] Company Overview - J.P. Morgan Asset Management manages $3.8 trillion in assets as of June 30, 2025, serving a diverse clientele including institutions and high net worth individuals globally [5] - JPMorgan Chase & Co. reported $4.6 trillion in assets and $357 billion in stockholders' equity as of June 30, 2025, positioning itself as a leader in various financial services [6]

ETF Market Trends - Year-to-date net ETF inflows have topped $645 billion [1] - Active ETFs accounted for approximately 25% of flows in June, while passive ETFs accounted for 75%, indicating active ETFs are gaining ground [3] - Over the last 12 months, US equities have seen approximately five times the inflows of international equities, but in the last month, international equity has overtaken US equity [4] Investment Opportunities - Non-US investments have benefited from a tailwind due to the dollar, with a difference of around 10% between hedged and unhedged returns [7] - Small caps have not been favored in the US, but have performed well in non-US developed markets and emerging markets over the last five years [7][8] - American Century suggests considering international developed small cap strategies like ABDV and ABDS, with ABDV recently surpassing $10 billion in total assets under management [11] - Small cap companies with good valuations and profitability have historically been some of the best performers long term in US, non-US developed markets, and emerging markets [14] Market Outlook - Optimism surrounds potential trade deals, which is viewed as a positive factor [6] - Uncertainty in the current trade environment may create niche opportunities for small cap companies [15][16] - Diversification through exposure to smaller companies can provide opportunities often overlooked by large-cap focused strategies [13]

Financial Data and Key Metrics Changes - MSCI reported revenue growth of over 9% in Q2 2025, adjusted EBITDA growth of over 10%, and adjusted earnings per share growth of almost 15% [7] - Free cash flow exceeded $300 million, with $286 million worth of shares repurchased year-to-date at an average price of $557 per share [7] - Total run rate growth was 11%, driven by record AUM levels in ETF products linked to MSCI indices, and asset-based fee run rate growth was 17% [7][8] Business Line Data and Key Metrics Changes - Subscription run rate growth was double-digit across banks, broker-dealers, wealth managers, hedge funds, and asset owners, with notable growth of 10% in banks and broker-dealers, 12% in hedge funds, and 17% in wealth managers [15][17][20] - The index and asset-based fee franchise was highlighted as a key growth engine, with total equity index ETF AUM linked to MSCI indices surpassing $2 trillion for the first time [9] - Private assets saw a run rate growth of nearly 13%, with significant product launches enhancing capabilities in private capital solutions [10][11] Market Data and Key Metrics Changes - MSCI captured more indexed equity ETF cash flows than any other index provider during the quarter, with total index ETF and non-ETF AUM balances tracking MSCI indices reaching $6 trillion [9] - Equity ETFs linked to MSCI indexes experienced $49 billion of inflows, capturing 29% of all inflows into indexed equity ETFs [26] - Subscription run rate growth for sustainability and climate solutions was 11%, with 18% growth in Europe [29] Company Strategy and Development Direction - MSCI is focused on expanding its capabilities in private assets and enhancing its integrated franchise to create powerful network effects for clients [12][14] - The company is adapting its tools to capture new opportunities in sustainability and climate, despite current cyclical slowdowns [13] - There is a strong emphasis on innovation and developing new solutions for diverse client segments, particularly in the fast money segment [8][43] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the rotation of assets from the U.S. market to international markets, which is expected to boost the asset-based fee business [36] - The company anticipates that the current dynamics in the market will persist for the next several quarters, with a focus on maintaining and enhancing retention rates [32][44] - Management acknowledged challenges in the active asset management industry but emphasized the potential for growth in non-active segments and the wealth management sector [42][65] Other Important Information - MSCI's retention rate for private assets remained stable at slightly over 91% [31] - The company is seeing promising growth potential among insurance companies for products supporting index-linked annuities and climate tools [24] - MSCI's guidance remains unchanged across all categories, indicating confidence in its financial model [32] Q&A Session Summary Question: Potential help from asset flows into international markets - Management noted that the rotation of assets from the U.S. to international markets is a significant boost for the asset-based fee business, with $6 trillion of client assets indexed to MSCI indices [36] Question: Accelerating growth in subscription business - Management indicated that to accelerate total subscription run rate, non-active asset managers need to grow faster, and they are focusing on creating new products and enhancing client engagement [42][44] Question: Impact of consolidation on results - Management acknowledged ongoing consolidation trends but expressed confidence that it would not significantly impact forecasts or pipelines [48] Question: Retention rates in analytics and sustainability - Management explained that retention rates can be lumpy and noted elevated cancels from hedge funds and corporate advisors, but overall retention with asset managers remains solid at around 96% [55] Question: Sales environment and outlook - Management characterized the sales environment as consistent with recent quarters, with a healthy pipeline of products and client engagement [60] Question: Demand for custom indexes - Management remains confident in the growth potential for custom indexes, despite slight fluctuations in quarterly numbers [70] Question: Positioning with active ETFs - Management highlighted significant growth opportunities in active ETFs, with ongoing dialogues with active asset managers and a focus on enhancing product offerings [75]

Financial Data and Key Metrics Changes - MSCI reported revenue growth of over 9% in Q2 2025, adjusted EBITDA growth of over 10%, and adjusted earnings per share growth of almost 15% [6][24] - Free cash flow exceeded $300 million year-to-date, with $286 million worth of shares repurchased at an average price of $557 per share [6][24] - Total run rate growth was 11%, driven by record AUM levels in ETF products linked to MSCI indices, and asset-based fee run rate growth was 17% [6][24] Business Line Data and Key Metrics Changes - Subscription run rate growth was double-digit across various client segments, including 10% for banks and broker dealers, 12% for hedge funds, and 17% for wealth managers [14][19] - The index and asset-based fee franchise was identified as a key growth engine, with strong ABF run rate growth reflecting the importance of MSCI indices in global investing [7][24] - Private assets saw a run rate growth of nearly 13%, with significant product launches enhancing capabilities [10][11] Market Data and Key Metrics Changes - Total equity index ETF AUM linked to MSCI indices surpassed $2 trillion for the first time, driving total AUM balances to $6 trillion [8][24] - Equity ETFs linked to MSCI indexes experienced $49 billion of inflows during Q2, capturing 29% of all inflows into indexed equity ETFs [24] - Indexed equity ETFs linked to MSCI Developed Markets ex U.S. Indexes captured $32 billion, representing over 50% of all flows into DM ex U.S. indexed equity ETFs [24] Company Strategy and Development Direction - MSCI is focused on expanding its capabilities in private capital solutions and enhancing its product offerings to drive adoption across the investment community [10][11] - The company aims to leverage its integrated franchise to create powerful network effects for clients, particularly in sustainability and climate solutions [12][13] - MSCI is adapting its tools to capture new opportunities in the sustainability space despite current cyclical slowdowns [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the company, emphasizing the importance of asset-based fees and the transformation towards non-active asset management client segments [60][62] - The current dynamics in the market are expected to persist for the next several quarters, with a focus on maintaining and enhancing retention rates across client segments [28][51] - Management highlighted the ongoing demand for climate solutions and the need for banks and insurance companies to understand climate risks [92][94] Other Important Information - MSCI's retention rate for private assets remained stable at slightly over 91% [28] - The company completed its largest deal ever for MSCI Wealth Manager during the quarter, indicating strong demand for unified solutions [19][24] - MSCI is seeing promising growth potential among insurance companies, particularly for products supporting index-linked annuities and climate tools [21][22] Q&A Session Summary Question: Potential help from asset flows into international markets - Management noted that the rotation of assets from the U.S. to international markets is a significant boost for the asset-based fee business, with $6 trillion of client assets indexed to MSCI indices [34] Question: Accelerating growth for asset managers - Management indicated that to accelerate total subscription run rate, non-active asset managers need to grow faster, and they are focusing on creating new products and enhancing sales efforts [39][40] Question: Impact of consolidation on results - Management acknowledged ongoing consolidation in the industry but does not expect it to significantly impact results in the near term [45] Question: Retention rates and outlook - Management explained that retention rates can be lumpy, with recent lower retention in analytics and sustainability due to client events and budget pressures [50][51] Question: Sales environment and outlook - Management characterized the sales environment as consistent with recent quarters, with a healthy pipeline of products and sustained favorable market dynamics [55][56] Question: Demand for custom indexes - Management remains confident in the growth opportunity for custom indexes, despite slight fluctuations in quarterly numbers [66] Question: Active ETFs and market positioning - Management highlighted significant growth opportunities in active ETFs, with ongoing dialogues with active asset managers [72][73] Question: Cost guidance and market assumptions - Management reiterated that expense guidance remains unchanged, with AUM levels expected to influence costs towards the middle of the guidance range [78][79] Question: Growth opportunities in fixed income and wealth management - Management expressed confidence in sustaining growth rates in fixed income and wealth management, with ongoing investments in capabilities [82][83] Question: Deceleration in hedge fund subscription growth - Management noted that the hedge fund segment is inherently lumpy, and recent deceleration is not indicative of long-term trends [86][87] Question: Acceleration of non-active subscription growth - Management indicated that significant opportunities exist in the fast money segment and wealth management, with ongoing efforts to prioritize and build up these areas [90][92]

Roger Hallam, Vanguard global head of rates, sits down with CNBC’s Dominic Chu to discuss the firm’s new active ETFs launching this week, including its Vanguard Government Securities Active ETF. Hallam gets into the strategy behind the fund and why now is the time to go active. Jay Jacobs, BlackRock U.S. Head of Equity ETFs also joins the conversation. ...