In 2015, Donald Trump was viewed as a longshot candidate for president, a non-profit called OpenAI had just been founded, and Keppel Corporation (SGX: BN4) was a conglomerate that derived 60% of its revenue from the offshore and marine (O&M) business, with the remainder from the property, infrastructure, and investment segments. This meant that its share price was highly correlated to the price of oil, which was experiencing a significant downturn at the time. Much has changed since then. For one, Keppel Co ...

Core Insights - Invesco Ltd. has shown strong stock performance, outperforming the broader market and financial sector over the past year [2][3] - The company reported impressive quarterly results for Q3 2025, with significant year-over-year growth in earnings and assets under management [4] - Analysts have a mixed outlook on Invesco, with a consensus rating of "Hold" and expectations for continued earnings growth [5][6] Group 1: Company Overview - Invesco Ltd. is a global investment management firm founded in 1935, headquartered in Atlanta, Georgia, with a market cap of approximately $10.3 billion [1] Group 2: Stock Performance - Invesco's shares have increased by over 33% in the past 52 weeks, compared to an 18.5% rise in the S&P 500 Index [2] - The stock has also risen 33% year-to-date, while the S&P 500 has gained 15.1% during the same period [2] Group 3: Financial Performance - In Q3 2025, Invesco reported adjusted earnings per share of $0.61, reflecting a 38.6% year-over-year increase [4] - The company's assets under management reached approximately $2.1 trillion, marking an 18.3% year-over-year growth [4] Group 4: Analyst Ratings and Expectations - For the fiscal year ending December 2025, analysts project Invesco's EPS to grow by 11.7% year-over-year to $1.91 [5] - The consensus rating among 16 analysts is "Hold," with three "Strong Buy" and thirteen "Hold" ratings [5] - TD Cowen has reiterated a "Buy" rating with a price target of $30, while the mean price target of $26.46 suggests a 13.9% premium to current levels [6]

Core Insights - Apollo Global Management, Inc. (APO) is expected to report an increase in third-quarter 2025 earnings and revenues compared to the previous year [1][9] - The company completed the acquisition of Bridge Investment Group Holdings Inc. for $1.5 billion, enhancing its real estate equity capabilities [4][5] Financial Performance Expectations - The Zacks Consensus Estimate for APO's earnings is $1.89, reflecting a 4.4% increase from the same quarter last year [3] - The consensus estimate for sales is $1.1 billion, indicating an 18.6% year-over-year rise [3] - Total assets under management (AUM) are projected to reach $884.2 billion, representing a sequential growth of 5.3% [6][9] Segment Earnings Estimates - Management fees are estimated at $858 million, showing a sequential increase of 5.1% [7] - Fee-related performance fees are expected to be $61.1 million, down 3.1% from the previous quarter [7] - Net capital solutions fees and other earnings are projected at $181.2 million, indicating a sequential decline of 16% [7] Cost Considerations - Elevated expenses are anticipated due to ongoing investments in capital formation and credit investing teams, as well as merger-related charges [8][9] Market Position and Comparisons - Apollo's recent acquisition is expected to nearly double its real estate AUM to over $110 billion, enhancing its offerings for institutional and wealth clients [5] - Other asset managers like Blackstone and Lazard have reported strong earnings, indicating a competitive landscape [12][13]

Financial Data and Key Metrics Changes - Firm-wide assets under management (AUM) reached $860 billion, with a record high of $153 billion in Bernstein Private Wealth [4][5] - Adjusted earnings per unit increased by 12% year-over-year to $0.86, while net revenues rose by 5% to $885 million [25][26] - Total adjusted operating expenses remained flat at $582 million, with total compensation and benefits expenses increasing by 6% to $439 million [26][28] Business Line Data and Key Metrics Changes - Institutional asset management business AUM stood at $351 billion, while the retail platform AUM was $356 billion [4] - Tax-exempt fixed income saw over $4 billion in inflows, marking 11 consecutive quarters of positive organic growth [6][7] - Private markets generated nearly $3 billion in net inflows, reflecting improved conditions in commercial real estate [7][8] Market Data and Key Metrics Changes - The U.S. equity markets delivered strong returns, with the S&P 500 returning 8.1% in Q3 2025 [11] - Emerging markets outperformed, while global developed equities underperformed compared to the U.S. [12][13] - The firm observed a rebound in client flows into American Income, indicating renewed interest in U.S. dollar-denominated assets [10] Company Strategy and Development Direction - The company aims to expand its third-party insurance asset management business, leveraging partnerships like the one with Fortitude [8][9] - A strategic alliance with Equitable enhances the firm's competitive advantage, allowing for the scaling of higher-fee private alternative strategies [9][10] - The focus remains on scalable, long-duration assets that align with sustainable organic growth and long-term profitability [31][34] 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 [11] - The firm is well-positioned to capture growth opportunities in Asia, particularly in taxable fixed income [47][49] - The company is committed to investing in growth initiatives while maintaining expense discipline [34][56] Other Important Information - The firm has successfully expanded its private markets platform to nearly $80 billion, representing a 17% year-over-year growth [22] - The effective tax rate for the third quarter was 6%, consistent with full-year guidance [28] - The firm is raising its full-year performance fee guidance to $130 million-$155 million, driven by strong public market performance [32] Q&A Session Summary Question: Can you elaborate on the insurance opportunity and the Ruby Re sidecar? - Management expressed excitement about the insurance asset management business, confirming that the Ruby Re relationship is performing as expected and that the FCA REIT sidecar is additive to their strategy [38][40] 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, with manageable maturities and positive cash flow generation [42][43] Question: How is the Asia business performing post-trade conflicts? - The Asia business showed improvement, particularly in taxable fixed income, with strong engagement from institutional clients despite external noise [47][48] Question: What is the capital allocation strategy regarding buybacks? - The light buyback in the quarter was attributed to timing rather than any strategic shift, with plans to continue funding the deferred compensation plan [57] Question: How is the firm positioned for the bond reallocation? - Management indicated that they are well-positioned to benefit from the bond reallocation, particularly in Asia, with a strong distribution capability [60][61]

Core Insights - BlackRock's third-quarter 2025 adjusted earnings per share (EPS) reached $11.55, exceeding the Zacks Consensus Estimate of $11.25, reflecting a slight increase from the previous year [1][8] - The company's assets under management (AUM) grew to a record $13.46 trillion, marking a 17.3% year-over-year increase, driven by long-term net inflows of $171 billion [5][8] - Despite revenue growth, higher expenses posed challenges, with total expenses rising 42.7% year-over-year to $4.55 billion [3][4] Financial Performance - BlackRock's net income on a GAAP basis was $1.32 billion, down 18.9% from the prior year, falling short of the projected $1.59 billion [2] - Revenues on a GAAP basis were $6.51 billion, surpassing the Zacks Consensus Estimate of $6.20 billion, and reflecting a 25.2% increase year-over-year [3][8] - Non-operating income decreased to $42 million from $259 million in the prior-year quarter, while adjusted operating income rose 23.2% to $2.62 billion [4] Assets Under Management - As of September 30, 2025, AUM totaled $13.46 trillion, significantly above the estimated $12.59 trillion, with an average AUM of $12.96 trillion, up 17.1% year-over-year [5] - The acquisition of HPS Investment Partners added $165 billion in client AUM and $118 billion in fee-paying AUM [2] Shareholder Actions - BlackRock repurchased shares worth $375 million during the reported quarter [6] Strategic Outlook - The company's diversification efforts and acquisitions, including Global Infrastructure Partners, Preqin, and HPS Investment Partners, are expected to strengthen its position as a global asset manager [7] - Elevated expenses remain a significant challenge for the company [7]

Financial Performance - BlackRock's Assets Under Management (AUM) reached $135 trillion as of September 30, 2025[2] - Q3 2025 Base Fees and Securities Lending Revenue amounted to $50 billion[2] - Q3 2025 Operating Income, as adjusted, was $2621 million[9] - Q3 2025 Net Income, as adjusted, reached $1907 million[11] - Q3 2025 EPS, as adjusted, was $1155[11] Net Flows - Total BlackRock experienced net inflows of $22 billion in Q3 2025[5] - ETFs Long-term net inflows were $153 billion in Q3 2025[5] Revenue Breakdown - Base fees constituted 75% of the quarterly revenue[23] - Securities lending revenue accounted for 1% of the quarterly revenue[23] - Performance fees represented 8% of the quarterly revenue[23] - Tech services & subscription revenue made up 8% of the quarterly revenue[23] Expense Analysis - Employee compensation and benefits represented 43% of the adjusted quarterly expenses[33] - General & administration expenses accounted for 17% of the adjusted quarterly expenses[33] Alternatives - Alternatives Fee-Paying AUM was $663 billion in Q3 2025[38]

Core Insights - T. Rowe Price Group (TROW) and Apollo Global Management (APO) are prominent players in the asset management industry, each with distinct strengths and focuses [1][20] - Apollo emphasizes private equity and alternative assets, while T. Rowe Price specializes in mutual funds and active management of equity and fixed income [1] Apollo Global Management (APO) - Apollo's diversified business model supports sustainable earnings, with a compound annual growth rate (CAGR) of 7.8% in assets under management (AUM) from 2021 to 2024, driven by retirement services and new financing [3] - The company expects its total AUM to reach nearly $1.5 trillion by 2029, primarily through scaling its private equity business [3][9] - Recent acquisitions, such as Bridge Investment Group Holdings, and partnerships with Mubadala and Citigroup enhance Apollo's capabilities and growth potential [4] - Apollo's revenues grew at a CAGR of 63.7% from 2021 to 2024, although growth moderated in the first half of 2025 [5] - The Zacks Consensus Estimate projects a year-over-year earnings increase of 4.7% for 2025 and 19.3% for 2026, with upward revisions in estimates over the past 60 days [10] T. Rowe Price Group (TROW) - T. Rowe Price's AUM experienced a CAGR of 2.3% from 2020 to 2024, supported by market appreciation and strength in multi-asset and fixed income [6] - The company has formed strategic alliances, including a partnership with Goldman Sachs to enhance access to private markets and an acquisition of Retiree for retirement income planning [7] - T. Rowe Price's net revenues grew at a CAGR of 3.4% over the past four years, continuing into the first half of 2025 [8] - The Zacks Consensus Estimate indicates a year-over-year earnings decline of 1.6% for 2025, followed by a 4.9% increase in 2026, with upward revisions in estimates [13] Comparative Performance - Over the past year, Apollo outperformed the industry with a stock gain of 17.3%, while T. Rowe Price only rose 0.5% [15] - Apollo trades at a forward price-to-earnings (P/E) multiple of 16.3X, while T. Rowe Price trades at 11X, both below the industry average of 17.45X [17] - Both companies have increased dividends five times in the past five years, with Apollo's yield at 1.5% and T. Rowe Price's at 4.8% [19] Investment Outlook - Apollo is positioned for greater upside potential due to its diversified and rapidly growing alternative asset platform, aggressive expansion, and strong earnings growth trajectory [20] - T. Rowe Price offers steady growth and high dividend yield but has a more conservative approach, limiting its upside compared to Apollo [21]

Group 1 - Artisan Partners Asset Management announced a preliminary AUM of $178.1 billion as of August 31 [1] - This represents an increase from the preliminary AUM of $175.0 billion at July 31 [1] - Artisan Funds and Artisan Global Funds accounted for $87.0 billion of the total AUM at the end of August [1]

Core Insights - Franklin Resources modestly surpassed analysts' expectations for Q3 FY2025 in both revenue and non-GAAP earnings per share, with EPS at $0.49 versus an estimate of $0.48 and GAAP revenue reaching $2,064.0 million compared to a consensus of $1,582.2 million [1][2] - Despite the positive surprise, both revenue and profit metrics declined year-over-year, with GAAP revenue down 2.8% and operating income down 30.7% [2][5] - The company experienced improved net flows outside of its Western Asset Management subsidiary, although pressures from Western continued to impact overall profitability and margins [1][6] Financial Performance - Non-GAAP EPS for Q3 FY2025 was $0.49, down 18% from $0.60 in Q3 FY2024 [2] - GAAP revenue was $2,064.0 million, a decrease of 2.8% from $2,122.9 million in the previous year [2] - Operating income fell to $154.1 million, a 30.7% decline year-over-year [2] - Operating margin decreased to 7.5% from 10.5% a year ago, while adjusted operating margin narrowed to 23.7% from 25.7% [2][5] - Assets under management (AUM) were $1,611.8 billion, down 2.1% from the previous year [2][6] Business Overview - Franklin Resources manages a diverse range of investment portfolios across various asset classes, with a business model focused on collecting management fees based on AUM [3][4] - The company aims to capture client assets through mutual funds, ETFs, separately managed accounts, and alternative investment strategies [4] Growth Areas - Alternative investments are a significant growth area, with fundraising totaling $19.0 billion year-to-date, including $15.7 billion in private markets [7] - The company announced an agreement to acquire a majority interest in Apera Asset Management, enhancing its capabilities in private credit [7] - The ETF platform achieved record assets of $44.1 billion, supported by $4.3 billion in positive flows, marking 15 consecutive quarters of inflows [8] Geographic Performance - The international business performed well, with AUM from outside the U.S. nearing $500 billion, and positive net flows reported in both the EMEA region and the Americas ex-U.S. [9] Cost Management and Shareholder Returns - The company is focused on expense control, with FY2025 expenses expected to remain consistent with the previous year, excluding performance compensation related to acquisitions [9] - A quarterly dividend of $0.32 per share was declared, reflecting a 3% increase from the same period last year, alongside a share buyback of 7.3 million shares [10] Strategic Focus - Management emphasized priorities such as the integration of new acquisitions, expansion in alternatives, and disciplined cost management, with a goal to reduce costs by $200–$250 million entering FY2026 [11] - The firm's institutional "won-but-unfunded" pipeline reached a record $24.4 billion, indicating strong future potential [11] - Ongoing investments in ETFs, digital asset vehicles, and custom indexing are part of the company's strategy to diversify its product lineup [12]

Financial Data and Key Metrics Changes - Fundraising in Q2 2025 was $1.3 billion, contributing to a total of approximately $4.5 billion for the first half of the year, which is 75% of the original $6 billion target for 2025 [6][14] - Fee-related earnings for Q2 2025 were $46.1 million, reflecting an 8% sequential increase and a 17% year-over-year growth [6][29] - Total AUM reached $48.7 billion, with fee-earning AUM growing 6% sequentially and 20% year-over-year [7][11] - The company generated over $600 million in organic net inflows into fee-earning AUM in Q2 2025, totaling $1.3 billion year-to-date [7][11] Business Line Data and Key Metrics Changes - Fee-earning AUM rose to $37.2 billion, with a 20% year-over-year increase and a 6% sequential increase [11][25] - The company reported a 34% year-over-year reduction in redemptions, indicating improved organic growth [12] - Infrastructure fundraising in 2025 was approximately three times greater than in all of 2024, driven by strong demand for Infrastructure Fund V [15] Market Data and Key Metrics Changes - The company noted a shift in investor interest towards Latin America and Europe due to geopolitical uncertainties and high inflation concerns in the U.S. [17][20] - Local investors accounted for approximately 55% of fundraising in 2025, up from 68% in 2024 [21] Company Strategy and Development Direction - The company aims to achieve a full-year fundraising target of $6.3 billion to $6.6 billion, reflecting a 5% to 10% increase from the original target [6][22] - The strategy includes leveraging acquisitions to enhance fee-earning AUM, as demonstrated by the acquisition of seven listed REITs in Brazil [13][70] - The company is focusing on expanding its presence in Mexico, particularly in real estate and credit sectors, while maintaining a cautious approach to growth [37][43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2025 fee-related earnings target of $200 million to $225 million, with a strong start to the year [22][30] - The company highlighted the resilience of its business model, which is designed to grow regardless of macroeconomic conditions [12][20] - Management noted that the current high interest rate environment is driving demand for credit and infrastructure investments [12][18] Other Important Information - The company reported a net accrued performance fee balance of $394 million, which rose approximately 7% from the previous quarter [9] - The effective tax rate for Q2 2025 was 8%, with expectations to hover around 10% annually [31] Q&A Session Summary Question: Expansion in Mexico - The company sees Mexico as an attractive long-term market and is looking for local partners in real estate, credit, and infrastructure [36][37] - A small acquisition of a Mexican real estate fund was made, with plans to expand into logistics real estate [38][39] Question: Deployment Pipeline in Infrastructure - The company has a significant pipeline in infrastructure, particularly in Brazil and Colombia, focusing on toll roads and energy projects [45][46] Question: Fundraising Guidance Clarification - The increase in fundraising guidance is separate from the REIT acquisitions, with strong interest from Asian, Middle Eastern, and local investors [52][54] - The company is experiencing a shift in capital allocation towards Latin America due to geopolitical uncertainties [56] Question: Timeline for REIT Consolidation - The acquisition of REITs is already closed, and the numbers will be reflected in Q3 results [70]