Core Insights - Financial Serenity focuses on the asset management sector, providing in-depth analysis of market dynamics [1] - The initiative is managed by Tommaso Scarpellini, who has extensive experience in financial research and analytics [1] - The goal is to deliver data-driven perspectives to assist investors in making informed decisions in a changing market [1] Industry Overview - The asset management market is characterized by evolving dynamics that require rigorous data analysis [1] - Insights are combined with actionable opinions and ratings on ETFs and other trending instruments within the sector [1]

Financial Data and Key Metrics Changes - Firm wide assets under management (AUM) reached $860 billion, marking a new milestone [6] - Adjusted earnings per unit for Q3 were $0.86, a 12% increase year-over-year [40] - Net revenues for Q3 were $885 million, reflecting a 5% increase compared to the prior year [41] - Total adjusted operating expenses were roughly flat at $582 million compared to the prior year [42] - Adjusted operating margin rose to 34.2%, a 209 basis point increase from the prior year [51] Business Line Data and Key Metrics Changes - Bernstein Private Wealth AUM reached a record high of $153 billion, focusing on ultra high net worth clients [7] - Institutional asset management business AUM stood at $351 billion, catering to long duration capital pools [7] - Retail platform AUM was $356 billion, with strong growth in tax exempt fixed income and private alternatives [7][8] - Tax exempt inflows exceeded $4 billion, extending positive organic growth to 11 consecutive quarters [8] - Private markets generated nearly $3 billion of net inflows, reflecting improved conditions in commercial real estate [9] Market Data and Key Metrics Changes - U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 [18] - Small cap stocks outperformed large caps, with the Russell 2000 returning 12.4% [19] - Taxable fixed income sentiment improved, leading to slight net inflows in Q3 [22] - The firm is the number one retail municipal SMA manager, with a 26% annualized organic growth rate in tax exempt retail inflows [90] Company Strategy and Development Direction - The company is focused on expanding its insurance asset management business, with new partnerships and strategic investments [12] - A commitment to providing better outcomes for clients through diversified investment expertise and distribution capabilities [6] - The firm aims to achieve $90 billion to $100 billion in private markets AUM by 2027 [39] - Continued innovation in retirement solutions, including customized target date funds and lifetime income strategies [27][30] Management's Comments on Operating Environment and Future Outlook - Management maintains a positive outlook on fixed income, anticipating a reallocation wave as bonds regain diversification value [17] - The company is well-positioned to capture growth opportunities in Asia, particularly in taxable fixed income [67] - Management expressed confidence in the stability of credit quality despite market volatility [62] - The firm is focused on enhancing margins and operational efficiency while investing in growth initiatives [52] Other Important Information - The firm has successfully onboarded seven new insurance GA relationships across eight strategies [13] - The effective tax rate for Q3 was 6%, in line with full year guidance [44] - The company is committed to distributing 100% of adjusted earnings to unitholders [40] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re timeline? - Management expressed excitement about the insurance asset management business and clarified that the timing of funding for Ruby Re has not changed [54][56] Question: What is the outlook for private credit and credit quality? - Management noted competitive environments in private credit but reassured that there is no material deterioration in credit quality [62] Question: How is the Asia business performing post-Liberation Day? - Management reported improvement in the Asia business, particularly in taxable fixed income, and noted strong engagement from institutional clients [67] Question: Can you clarify the capital allocation strategy regarding buybacks? - Management indicated that the light buyback activity was due to timing and not related to the Equitable conversion [82] Question: What is the outlook for bond reallocation and its impact on performance? - Management highlighted ongoing appetite for taxable fixed income and expressed confidence in capturing market share through innovative products [88]

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Financial Data and Key Metrics Changes - For the first nine months of 2025, total firm-wide revenue was $2.1 billion, including record Financial Advisory revenue of $1.3 billion [4] - Third-quarter firm-wide revenue reached $725 million, up 12% year-over-year, driven by both business segments [8] - Financial Advisory revenue for the third quarter totaled $422 million, up 14% from the previous year [8] - Asset Management revenue for the third quarter was $294 million, an increase of 8% year-over-year and 10% sequentially [9] Business Line Data and Key Metrics Changes - Financial Advisory was active in M&A across healthcare, industrials, and consumer and retail sectors, with notable transactions including Mallinckrodt Pharmaceuticals' $6.7 billion deal [8] - Asset Management saw record gross inflows for the third quarter and the first nine months, achieving net positive flows of $1.6 billion year-to-date, with total AUM up 17% [6][10] - Management fees for Asset Management increased by 6% year-over-year, while incentive fees rose to $9 million from $3 million in the previous year [9][10] Market Data and Key Metrics Changes - The company reported a strong client engagement across major geographies, including the U.S., Europe, and the Middle East, indicating a diversified business model [14] - The effective tax rate for the third quarter was 21.4%, down from 32.5% in the previous year, with an expected full-year 2025 effective tax rate around 20% [12] Company Strategy and Development Direction - The company is focused on long-term growth strategies, including expanding its team of Financial Advisory Managing Directors and enhancing productivity [15][20] - The introduction of new active ETFs and a focus on quantitative and emerging market strategies are part of the Asset Management growth strategy [17][18] - The company aims to double firm-wide revenue from 2023 to 2030 and deliver an average annual shareholder return of at least 10% to 15% [20][21] Management's Comments on Operating Environment and Future Outlook - Management sees an increasingly constructive environment for advisory activity, despite potential temporary impacts from the U.S. government shutdown [13][14] - The company anticipates continued growth in both M&A and restructuring activities, driven by a diverse range of client needs and market conditions [14][72] - Management expressed confidence in achieving operating leverage and reducing the compensation ratio in the Asset Management segment [41] Other Important Information - The company has made significant strides in hiring, with 20 new Managing Directors joining in 2025, enhancing its talent pool [4][15] - The company is expanding its presence in the Middle East and Northern Europe, reflecting its commitment to growth in these regions [11] Q&A Session Summary Question: Thoughts on hiring environment and talent retention - Management noted strong success in attracting high-quality talent and reported very few regrettable departures, indicating a healthy Managing Director pool [25][26] Question: Recent success in driving net inflows in Asset Management - Management highlighted significant inflows in quantitative strategies and emerging markets, with a positive outlook for achieving net neutral flows for the year [30][31] Question: Trends in gross outflows in Asset Management - Management confirmed that gross outflows are lower than last year, primarily from sub-advised accounts, with a more promising trajectory outside that category [40] Question: Outlook for restructuring business amid credit concerns - Management does not view recent bankruptcies as indicative of broader issues and expects both M&A and restructuring activities to coexist due to varied corporate performance [67][70] Question: Differences in M&A activity between Europe and the U.S. - Management observed a tilt towards Europe in revenue mixes and emphasized the strength of European companies despite macroeconomic challenges [74][76] Question: Impact of U.S. government shutdown on advisory deals - Management indicated that deals requiring government approvals may be delayed but expect a quick catch-up once the government reopens [78][79]

Regulatory Changes - Hong Kong is proposing to ease rules for mutual funds [1] - The aim is to attract more international asset managers to establish operations in Hong Kong [1]

Core Insights - The wealth management and asset management industry in China is experiencing significant growth driven by increasing household wealth and income stability [2][3] Demand Side - China's residents' disposable income is projected to grow nominally by 5.3% in 2024, aligning with GDP growth, with the first three quarters of this year maintaining a nominal growth rate above 5% [2] - The income gap between urban and rural residents is narrowing, with rural income growth outpacing urban areas [2] - Wage, operational, and transfer income are increasing, while property net income, although rising, still has substantial room for growth [2] Supply Side - The wealth management and asset management sectors are expanding, with banks, insurance, securities, trusts, and funds enhancing their service capabilities [3] - As of now, there are 135 institutions under the supervision of the financial regulatory authority, including 67 trust companies, 32 wealth management companies, and 36 insurance asset management companies [3] - The total assets under management across these institutions exceed one trillion yuan, with a year-to-date growth rate of nearly 6% and a year-on-year increase of over 15% [3] Future Opportunities - Financial institutions are encouraged to integrate wealth management and asset management, emphasizing the importance of collaboration to prioritize client interests [3] - Institutions should support the high-quality development of the real economy by effectively channeling funds to meet diverse financing needs [4] - There is a need for continuous enhancement of professional capabilities, focusing on knowledge structure optimization and talent development to manage investor expectations [4] Investor Protection - Financial institutions must prioritize client interests, ensuring appropriate management and improving information disclosure and complaint handling mechanisms [5] - The regulatory authority will continue to implement governance rules, enhance risk monitoring, and promote high-quality transformation across asset management institutions [5]

Core Viewpoint - The stock price of PayPal (NASDAQ: PYPL) appreciated by 1%, but it has significantly underperformed the benchmark, yet the bullish thesis remains unchanged [1] Company Performance - Despite the stock price performance, the company is believed to have experienced favorable tailwinds [1] Analyst Background - The analyst has over 10 years of experience in asset management, specializing in equity analysis, macroeconomics, and risk-managed portfolio construction [1] - The analyst has a professional background in both institutional and private client asset management, focusing on equities and derivatives [1] Investment Philosophy - The goal of writing on Seeking Alpha is to share insights, exchange ideas, and promote confidence in long-term investing [1]

Market Overview - The US equity market experienced a rally in Q3 2025, with the S&P 500 Index increasing by 8.12% during the quarter [1] - Bonds also performed well, with the Bloomberg U.S. Aggregate Bond Index rising by 2.03% [1] - The composite return for Aristotle Capital's Value Equity Strategy was 4.33% gross of fees and 3.82% net of fees, underperforming the Russell 1000 Value Index (5.33%) and the S&P 500 Index (8.12%) [1] Company Focus: Ameriprise Financial, Inc. (NYSE:AMP) - Ameriprise Financial, Inc. is highlighted as a primary detractor in the quarter, with a one-month return of -2.06% and a 52-week loss of 7.70% [2][3] - As of October 15, 2025, Ameriprise's stock closed at $481.27, with a market capitalization of $45.37 billion [2] - Despite challenges such as equity volatility and institutional outflows, Ameriprise maintains record client assets of $1.6 trillion, indicating strong long-term potential [3] Business Model and Strategy - Ameriprise has shifted towards fee-based, lower capital-intensive financial advice and asset management, which now accounts for over 80% of its revenues [3] - This strategic evolution has allowed the company to return $3 billion to shareholders over the past year, with an 85% payout ratio targeted for the second half of 2025 [3] - The company’s focus on trusted financial advice and a diversified model positions it well to navigate macroeconomic uncertainties while delivering returns to shareholders [3]

Core Insights - Shopify, Inc. is an online e-commerce platform that provides tools for individuals and businesses to create and manage their online stores [1] Company Overview - Shopify allows users to create their own online stores, offering a suite of tools tailored for e-commerce [1] Analyst Background - The analyst has over 10 years of experience in asset management, focusing on equity analysis, macroeconomics, and risk-managed portfolio construction [1] - The analyst has navigated various market conditions and emphasizes the importance of understanding macro trends in influencing asset prices and investor behavior [1] Investment Philosophy - The goal of sharing insights is to make investing accessible and empowering, encouraging collaboration among investors [1]

Asset managers are looking to raise new private credit funds aimed at emerging markets, to capitalize on an explosion of financing deals in the sector this year https://t.co/wbjPvLfOCX ...