Core Viewpoint - State Street and BlackRock, two of the largest global financial institutions, reported strong Q2 earnings, raising questions about which asset manager presents a better investment opportunity at the moment [1][2][3]. Group 1: State Street's Q2 Performance - State Street reported Q2 earnings of $2.53 per share, exceeding the Zacks EPS Consensus of $2.36 by 7% and marking a 17% increase from $2.15 in the same quarter last year [4]. - The company achieved record Q2 sales of $3.44 billion, an 8% increase from $3.19 billion a year ago, surpassing estimates of $3.37 billion [4]. - Fee revenue for State Street spiked 12%, driven by servicing, management, and software fees, alongside a 27% surge in FX trading volumes [5]. Group 2: BlackRock's Q2 Performance - BlackRock's Q2 EPS was $12.05, beating expectations of $10.71 by 12% and increasing 16% from $10.36 in the same quarter last year [6]. - The company's sales reached $5.42 billion, which, while a 13% increase from $4.8 billion in Q2 2024, fell short of estimates of $5.44 billion [6]. - BlackRock generated 7% organic base fee growth and over $650 billion in net inflows, attributed to record inflows for its iShares ETFs and expansions in private markets [7]. Group 3: Assets Under Management (AUM) - Both State Street and BlackRock achieved record AUM, with State Street's AUM increasing 17% year over year to $5.1 trillion, while BlackRock's AUM rose 18% to $12.53 trillion, making it the first asset manager to surpass $12 trillion [10]. Group 4: Dividend and Valuation Comparison - State Street announced an 11% increase in its quarterly dividend to $0.84 per share, resulting in a current dividend yield of 2.98%, which is higher than BlackRock's 1.99% [11]. - State Street trades at a forward earnings multiple of 10.5X, significantly lower than BlackRock's 22.5X and the S&P 500's 24.1X [13]. Group 5: Investment Outlook - Both State Street and BlackRock stocks have seen gains of over 4% year to date and more than 20% over the last year, indicating their viability as investments [14]. - State Street holds a Zacks Rank 1 (Strong Buy), making it an appealing option due to its dividend and P/E valuation, while BlackRock has a Zacks Rank 2 (Buy) and excels in technology and data-driven strategies [15].

Core Viewpoint - BlackRock is expected to report improved second-quarter 2025 results, with revenues and earnings anticipated to show year-over-year growth [1][11]. Group 1: Performance and Estimates - BlackRock's first-quarter 2025 earnings exceeded the Zacks Consensus Estimate, driven by revenue growth and a record high AUM of $11.58 trillion, influenced by net inflows and favorable forex impacts [1][2]. - The Zacks Consensus Estimate for total AUM in Q2 is $11.68 trillion, reflecting a 9.7% year-over-year increase, while the company's own estimate is $11.66 trillion [5]. - The consensus estimate for second-quarter earnings is $10.77 per share, indicating a 4% increase from the previous year, with sales expected to rise by 12% to $5.38 billion [11]. Group 2: Revenue Components - BlackRock is projected to see growth in investment advisory, administration fees, and securities-lending revenues, with a consensus estimate of $4.36 billion, representing a 12.6% year-over-year rise [6]. - The estimate for investment advisory performance fees is $156.6 million, showing a decline of 4.5%, while distribution fees are expected to rise by 1.7% to $323.3 million [7]. - Technology services revenues are estimated at $493.7 million, indicating a 25% year-over-year increase [7]. Group 3: Expenses and Strategic Initiatives - Total expenses for BlackRock are estimated at $3.33 billion, suggesting a year-over-year rise of 10.7, driven by restructuring initiatives and expansion efforts [9]. - The company continues to enhance its AUM through diversified offerings and strong revenue mix, with the listing of bitcoin ETPs contributing positively [4][5]. Group 4: Market Position and Outlook - BlackRock maintains a strong position in the ETF market, with over 1,400 ETFs globally, and the approval of spot Bitcoin and ether ETFs likely contributing to AUM growth [3]. - The company has a positive Earnings ESP of +1.28% and a Zacks Rank of 2 (Buy), indicating a high likelihood of beating the consensus estimate for earnings [10].

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $175.5 billion as of June 30, 2025 [1] - Artisan Funds and Artisan Global Funds contributed $85.6 billion to the total AUM, while separate accounts and other AUM accounted for $89.9 billion [1] AUM by Strategy - The Global Opportunities strategy has an AUM of $20.065 billion, while Global Discovery has $1.885 billion [2] - U.S. Mid-Cap Growth strategy holds $11.118 billion, and U.S. Small-Cap Growth has $2.841 billion [2] - The International Value strategy leads with $50.062 billion, followed by Global Value at $32.569 billion [2] - The Credit Team's High Income strategy has $12.689 billion, and Developing World strategy has $4.784 billion [2] - Sustainable Emerging Markets strategy has an AUM of $2.047 billion [2] Additional Information - Artisan Partners provides investment models for managed account sponsors, which includes $115.4 million in AUM for Sustainable Emerging Markets and U.S. Mid-Cap Growth strategies [3] - Artisan Partners is a global investment management firm established in 1994, focusing on high value-added investment strategies [4]

Core Insights - Invesco's preliminary assets under management (AUM) for May 2025 reached $1.94 trillion, reflecting a 5.6% increase from the previous month, driven by strong market performance and net inflows [1][7] Summary by Category AUM Performance - The month-end AUM of Invesco was $1.94 trillion, up 5.6% from April 2025 [1][7] - The preliminary average total AUM for the quarter ending May 31 was $1.86 trillion, with an average active AUM of $1.04 trillion [2] Inflows - Invesco reported net long-term inflows of $6.1 billion for May, alongside non-management fee-earning net inflows of $6.3 billion and money market net inflows of $19.4 billion [2][7] - Strong market returns contributed to a $70 billion increase in AUM, while foreign exchange effects added $0.9 billion [2] Asset Class Breakdown - AUM under ETFs & Index Strategies rose to $522.8 billion, a 6.2% increase from the previous month [3] - Fundamental Equities AUM increased to $275.1 billion, up 5.4% from April 2025 [3] - Global Liquidity AUM saw a significant increase of 10.2%, reaching $207.1 billion [3] - AUM for QQQs rose 11.5% to $333.6 billion, while Private Markets AUM increased by 1.3% to $129.1 billion [4] Challenges and Outlook - Despite macroeconomic challenges, Invesco's strong performance in May, characterized by robust market returns and increased net inflows, supports its financial stability [5] - The company's diverse product offerings and global presence are expected to bolster its financials in the near term [5]

Core Insights - Artisan Partners Asset Management Inc. reported preliminary assets under management (AUM) of $170.9 billion as of May 31, 2025 [1] - Artisan Funds and Artisan Global Funds contributed $83.4 billion to the total AUM, while separate accounts and other AUM accounted for $87.5 billion [1] AUM by Strategy - The Global Opportunities strategy has AUM of $19.683 billion, while Global Discovery has $1.825 billion [2] - U.S. Mid-Cap Growth strategy holds $10.615 billion, and U.S. Small-Cap Growth has $2.719 billion [2] - The International Value strategy is significant with $49.518 billion, and Global Value strategy has $31.590 billion [2] - High Income strategy under the Credit Team has $12.377 billion, while Developing World strategy has $4.650 billion [2] Additional Information - Artisan Sustainable Emerging Markets and U.S. Mid-Cap Growth Strategies include $116.7 million in aggregate for which investment models are provided to managed account sponsors [3] - The China Post-Venture strategy is currently being wound down [3] - Artisan Partners is a global investment management firm offering a diverse range of investment strategies across multiple asset classes since 1994 [4]

Group 1 - Invesco Ltd. reported preliminary month-end assets under management (AUM) of $1,942.7 billion, reflecting a 5.6% increase compared to the previous month-end [1][2] - The firm experienced net long-term inflows of $6.1 billion during the month, with non-management fee earning net inflows of $6.3 billion and money market net inflows of $19.4 billion [1][2] - AUM was positively influenced by favorable market returns, which contributed an increase of $70 billion, while foreign exchange (FX) effects added $0.9 billion to AUM [1][2] Group 2 - Preliminary average total AUM for the quarter ending May 31 was $1,859.6 billion, and preliminary average active AUM for the same period was $1,041.4 billion [1][2] - AUM breakdown as of May 31, 2025, includes $522.8 billion in ETFs & Index Strategies, $298.0 billion in Fixed Income, $275.1 billion in Equities, and $129.1 billion in Private Markets [2] - The total AUM for April 30, 2025, was $1,840.0 billion, indicating a significant month-over-month growth [2]

Core Viewpoint - State Street Corp (STT) is well-positioned for growth due to higher interest rates, improved fee income efforts, strategic acquisitions, and a solid balance sheet, although rising expenses and concentrated fee-based revenues pose concerns [1] Growth Drivers - Higher interest rates are expected to aid net interest revenues, with net interest income (NII) projected to have a compound annual growth rate (CAGR) of 3.1% over the next three years, despite a decline in NIM from 1.20% to 1.10% in 2023 [2][3] - Total fee revenues showed a four-year CAGR of 1.7%, driven by increased client activity and market volatility, with AUC/A and AUM recording CAGRs of 4.7% and 8%, respectively [4] Strategic Initiatives - State Street is expanding through strategic acquisitions, including partnerships with smallcase and Ethic Inc., and acquiring global custody businesses from Mizuho Financial Group [7][8] - The company is also restructuring its global operations, consolidating its European joint ventures, and enhancing its service offerings to drive revenue and cost synergies [9] Financial Health - As of March 31, 2025, State Street had total debt of $36.7 billion and cash and deposits totaling $124.1 billion, with a 10% increase in quarterly dividends to 76 cents per share and a $5 billion share buyback authorization [11][12] - The company aims to distribute approximately 80% of its earnings to shareholders this year, indicating a sustainable capital distribution strategy [12] Challenges - Rising operating expenses have been a concern, with total non-interest expenses showing a four-year CAGR of 2.3%, and projected increases of 3%, 2.1%, and 4.7% in the coming years [13][14] - Fee income, which constituted 78.3% of total revenues in Q1 2025, faces risks from market volatility and concentration risk, which could significantly impact the company's financial position [15][16] Market Performance - Shares of STT have increased by 28.9%, outperforming the industry average of 19%, and currently hold a Zacks Rank 3 (Hold) [17]

Core Viewpoint - Invesco reported a decline in assets under management (AUM) for April 2025, influenced by net outflows and weak market returns, despite some positive contributions from foreign exchange [1][2][6]. AUM Performance - Invesco's month-end AUM for April 2025 was $1.84 trillion, a decrease of 0.3% from the previous month [1]. - The preliminary average total AUM for the quarter through April 30 was $1.82 trillion, with average active AUM at $1.03 trillion [3]. Net Inflows and Outflows - The company experienced net long-term inflows of $1.3 billion in April, but faced non-management fee-earning net outflows of $2 billion and money market net outflows of $12.1 billion [2]. - Weak market returns led to a $1 billion decline in AUM, while foreign exchange positively impacted AUM by $9.2 billion [2]. Breakdown by Asset Class - AUM under ETFs & Index Strategies was $492.4 billion, showing a slight increase from the previous month [4]. - Fundamental Fixed Income AUM grew by 2.4% to $298.9 billion, while China JV & India AUM rose by 1% to $112.1 billion [4]. - Multi-Asset/Other AUM increased by 2.9% to $61.1 billion, and QQQs AUM rose by 0.6% to $299.1 billion [4]. - Conversely, Private Markets AUM declined by 3% to $127.4 billion, Fundamental Equities AUM decreased by 0.6% to $261.1 billion, and Global Liquidity AUM fell by 6.1% to $187.9 billion [5]. Market Context - The company faces macroeconomic headwinds leading to volatility in asset flows, which may impact its top line in the near term [6]. - In the past three months, Invesco's shares have decreased by 15.4%, compared to a 7.4% decline in the industry [6]. Peer Comparison - Franklin Resources reported a preliminary AUM of $1.53 trillion, showing a slight decrease, attributed to long-term net outflows of $10 billion [9][10]. - T. Rowe Price announced a preliminary AUM of $1.56 trillion, reflecting a marginal decrease with net outflows of $3.5 billion [10].

Group 1 - Virtus Investment Partners, Inc. (VRTS) reported preliminary assets under management (AUM) of $163.7 billion for April 2025, reflecting a 2.2% decrease from March 31, 2025, primarily due to net outflows in various fund categories [1] - The company's open-end fund balance decreased by 1.6% to $52.7 billion, while closed-end fund balance slightly declined to $10.2 billion [2] - Institutional accounts balance fell 2.1% to $55.5 billion, and retail separate accounts decreased by 3.4% to $45.3 billion [2] Group 2 - The integrated multi-boutique business model of the company is expected to support its performance in a growing industry, but the decline in AUM raises concerns about future profitability [3] - Elevated operating expenses are anticipated to negatively impact the company's bottom line in the near term [3] - Over the past six months, shares of Virtus Investment have decreased by 26.8%, compared to a 9.4% decline in the industry [4] Group 3 - The company currently holds a Zacks Rank of 4 (Sell) [5] - In comparison, Franklin Resources, Inc. reported a preliminary AUM of $1.53 trillion, showing a marginal decrease due to long-term net outflows [6] - T. Rowe Price Group, Inc. announced a preliminary AUM of $1.56 trillion, reflecting a slight decrease, with equity products totaling $767 billion and fixed income growing by 1% to $198 billion [8]

Core Insights - Three alternative asset managers are increasing their dividends, indicating a strong commitment to returning capital to shareholders in a volatile market environment [3][12]. Industry Overview - Over the past 20 years, alternative assets have grown from 6% to 15% of global assets under management (AUM), with expectations of continued growth at around 10% annually through 2029 [2]. Company Summaries KKR & Co. Inc. - KKR announced a 5.7% increase in its quarterly dividend, bringing the annual dividend to $0.74, resulting in a dividend yield of 0.6% [3][4]. - The company has a diversified portfolio with credit strategies (38%), real assets (26%), and private equity (33%) [5]. - KKR aims to reach $1 trillion in AUM by 2030 and has grown its AUM by 15% and annual adjusted net income (ANI) by 37% over the last 12 months [6]. Apollo Global Management - Apollo increased its dividend by over 10% to $2.04 annually, yielding approximately 1.42% [8][10]. - The company primarily focuses on credit investments, which constituted around 88% of its nearly $600 billion in fee-bearing capital [9]. - Apollo reported record fee-related earnings of $559 million in Q1 2025 and significant AUM inflows [9][11]. Blue Owl Capital - Blue Owl raised its dividend by 25%, resulting in an annual dividend of $0.90 and a yield of 4.59% [12][14]. - The company has raised its quarterly dividend eight times since going public in 2021, with credit strategies making up 51% of its $273 billion AUM [15]. - Blue Owl's strategy includes taking minority ownership in other private equity and hedge fund companies, allowing it to benefit from their profits [16].