Company Overview - Trinity Asset Management was founded by Brian Gilmartin in May 1995, focusing on providing attention and service to individual investors and institutions that were underserved by larger firms [1] - Brian Gilmartin has a background as a fixed-income/credit analyst and has experience working with a Chicago broker-dealer and Stein Roe & Farnham before establishing his own firm [1] Educational Background - Brian Gilmartin holds a BSBA in Finance from Xavier University, Cincinnati, Ohio, obtained in 1982, and an MBA in Finance from Loyola University, Chicago, completed in January 1985 [1] - He earned the CFA designation in 1994 [1] Professional Experience - Brian Gilmartin has contributed to financial writing for various platforms, including TheStreet.com from 2000 to 2012 and WallStreet AllStars from August 2011 to Spring 2012 [1] - He has also written for Minyanville.com and has been quoted in numerous publications, including the Wall Street Journal [1]

Group 1 - Global investors are shifting away from high-priced corporate bonds, with many asset management firms and top banks taking defensive positions against the corporate debt market [1][2] - The investment-grade bond spread has narrowed to 78 basis points, nearing the 27-year low of 1998, indicating extreme market optimism that contrasts sharply with official economic forecasts [1][2] - There is a significant increase in demand for options to short corporate bond indices, suggesting that investors foresee a reasonable downside in the stock market over the next three months [1][3] Group 2 - Current credit spread levels imply a global economic growth expectation of nearly 5%, which is significantly higher than the IMF's forecast of 3%, causing unease among some investors [2] - The probability of a recession in the U.S. is estimated at 40% according to the IMF, while other major economies also face risks, leading to a low allocation strategy in credit [2] - The U.S. Treasury market is signaling deep concerns about the economic outlook, with bets on potential interest rate cuts by the Federal Reserve [2] Group 3 - Historically, the credit market has acted as a leading indicator for broader market movements, with recent trends indicating a potential market reversal [3] - A significant change was noted as the proportion of corporate bonds with narrowing spreads dropped from 80% to 60% within five trading days, marking a critical shift [3] - Macro investors are likely taking directional views or hedging against the upward trend in risk assets, indicating a change in market sentiment [3] Group 4 - High-yield bonds are seen as the most vulnerable segment in the overpriced corporate debt market, with expectations of rising refinancing costs and default rates potentially impacting the stock market [4] - The risk premium for U.S. junk bond issuers has fallen to its lowest level since 2020, at approximately 2.8%, indicating severe compression of market risk premiums [4] - A downturn in the credit market is expected to eventually pressure the stock market as well [4] Group 5 - Not all market participants share a pessimistic view, as the Nasdaq 100 index recently recorded its largest weekly gain in over a month, supported by strong technical factors and better-than-expected earnings [5] - Market strategists note that when there is a divergence between the stock and bond markets, the bond market tends to be the more accurate indicator of economic conditions [5]

Market Overview - The Shanghai Composite Index increased by 75.18 points, or 2.11%, reaching a closing price of 3635.13, with a high of 3645.37 and a low of 3547.16, indicating a volatility of 2.76% and a total trading volume of 3.47 trillion yuan [1] - The ChiNext Index rose by 11.33 points, or 0.49%, closing at 2333.96, with a high of 2372.68 and a low of 2304.48, showing a volatility of 2.94% and a total trading volume of 2.50 trillion yuan [1] Private Equity and Fund Management - In July, 676 private equity firms registered 1298 products, marking an 18% month-on-month increase and the highest number in nearly 27 months [3] - Among the newly registered products, 13 firms launched more than 10 products each, with 11 of the 44 billion-yuan quantitative private equity firms adding a total of 286 new funds [3] - The average return of quantitative private equity products reached 28.54% by the end of July 2025, outperforming the average return of subjective long-only products [3] Financing Trends - The financing heat in small-cap stocks is significantly higher than in large-cap stocks, with the overall financing transaction volume in the A-share market accounting for 21.9% of total trading volume [4] - The financing balance as a percentage of free float market value shows similar trends, with the CSI 1000 and CSI 2000 indices exceeding their 2015 peaks [4]

Core Viewpoint - The article discusses dividend-paying stocks as a stable income option for investors amid fluctuating trade policies, highlighting recommendations from top Wall Street analysts [1]. Chevron (CVX) - Chevron reported market-beating earnings for Q2, although earnings declined year-over-year due to lower oil prices [2]. - The company returned $5.5 billion to shareholders in Q2 through share repurchases of $2.6 billion and dividends of $2.9 billion, with a dividend yield of 4.4% [3]. - Morgan Stanley analyst Devin McDermott resumed coverage with a buy rating and a price target of $174, while TipRanks' AI Analyst has an "outperform" rating with a price target of $171 [3]. - The recent Hess acquisition is expected to enhance Chevron's growth and portfolio duration, removing a major overhang [4]. - McDermott noted that Chevron's free cash flow yield for 2026 is projected at 8%, compared to Exxon Mobil's 6% and ConocoPhillips' 7% [5]. Rithm Capital (RITM) - Rithm Capital announced better-than-expected Q2 results, paying a dividend of 25 cents per share, resulting in an annualized dividend yield of 8.2% [7]. - RBC Capital analyst Kenneth Lee raised the price forecast for RITM stock to $14 from $13, maintaining a buy rating [8]. - Rithm's Q2 earnings available for distribution (EAD) were 54 cents per share, exceeding estimates, leading to an increase in EAD estimates for 2025 and 2026 [9]. - The company is focusing on growth and return on equity enhancement, with notable cost benefits from AI initiatives [10]. AT&T (T) - AT&T delivered better-than-expected Q2 earnings, driven by strong wireless equipment revenues, and offers a quarterly dividend of $0.2775 per share, resulting in a dividend yield of about 4% [12]. - RBC Capital analyst Jonathan Atkin reiterated a buy rating with a price target of $31, while TipRanks' AI Analyst has a neutral rating with a price target of $30 [13]. - The company's revised 2025 guidance reflects cash tax benefits and an improved trajectory in the Wireline business, with free cash flow outlook adjusted to the low-to-mid $16 billion range [15]. - AT&T's free cash flow outlook for 2026 and 2027 was increased by $1 billion, supporting management's focus on capital investments for long-term growth [16].

Group 1 - WisdomTree Efficient Gold Plus Equity Strategy Fund ETF (GDE) is highlighted as a potentially effective investment tool if utilized wisely [1] - The initiative aims to provide in-depth analysis of the asset management market dynamics [2] - The focus is on delivering data-driven perspectives to assist investors in making informed decisions in a changing market [2] Group 2 - The author emphasizes the importance of personal opinions and the need for individual research before making investment decisions [4] - There is a clear disclaimer regarding the lack of financial advice and the responsibility for investment decisions [4][5] - The article does not guarantee the accuracy of the data presented [4]

Core Insights - The Vanguard Value ETF (VTV) is highlighted as a preferable investment option over the Vanguard S&P 500 ETF (VOO) for those seeking passive income and better valuation [4][16] - The S&P 500 has seen a decline in yield, currently at 1.2%, while the Vanguard Value ETF offers a higher yield of 2.2% [3][6] Expense Ratios - The Vanguard S&P 500 ETF has an expense ratio of 0.03%, while the Vanguard Value ETF has a slightly higher expense ratio of 0.04% [2][6] - The minimal difference in fees translates to just one cent more per $100 invested in the Value ETF compared to the S&P 500 ETF [6] Yield and Valuation - The Vanguard Value ETF provides a 30-day SEC yield of 2.2%, significantly higher than the S&P 500 ETF's yield of 1.2% [6] - The price-to-earnings (P/E) ratio for the Value ETF is 19.6, compared to 27.2 for the S&P 500 ETF, indicating a more attractive valuation for the Value ETF [7] Composition and Holdings - The Vanguard Value ETF holds 335 stocks, while the S&P 500 ETF has 505 holdings, with a more concentrated top-heavy structure in the S&P 500 [7][11] - The top holdings of the Value ETF include Berkshire Hathaway (4%) and JPMorgan Chase (3.6%), while the S&P 500 ETF is dominated by companies like Nvidia (7.3%) and Microsoft (7%) [10] Performance and Returns - Over the last decade, the Vanguard Value ETF has increased by 111.5%, with a total return of 173.5%, indicating strong capital gains [12] - The investment strategy of the Value ETF focuses on the quality of companies held rather than solely on yield, contrasting with other ETFs that prioritize passive income [12][17] Market Positioning - The Vanguard Value ETF is positioned as a strong option for investors looking to diversify their portfolios and achieve higher passive income compared to the S&P 500 [16] - The ETF is recommended for those already invested in top growth stocks and seeking to balance their investments with value-oriented options [16]

Company Overview - Westwood Holdings Group is an asset management firm offering investment strategies and wealth services[5] - The firm's Assets Under Management (AUM) totaled $18.3 billion as of June 30, 2025, including $17.3 billion in AUM and $0.9 billion in Assets Under Advisement (AUA)[7, 20] - Employees and directors own approximately 33% of the company's equity[6] Investment Strategies and Asset Allocation - U S Value Equity accounts for 51% of the firm's strategy breakdown[12] - Multi-Asset/Multi-Strategy represents 28% of the strategy breakdown[12] - Wealth strategy makes up 21% of the strategy breakdown[12] Client Base - Institutional Separate Accounts & Other Managed Accounts comprise 53% of assets by account type[12] - Wealth Management accounts for 24% of assets by account type[12] - Westwood Mutual Funds & ETFs represent 23% of assets by account type[12] Diversity and Inclusion - Women make up 41% of the company's employees[16] - Women hold 43% of the corporate board member positions[16] Financial Performance - The company's revenues for Q2 2025 were $23.1 million[20] - The company reported income of $1.0 million for Q2 2025[20]

Core Insights - Westwood Holdings Group, Inc. (WHG) reported a significant increase in assets under management (AUM), reaching $18.3 billion, up from $16.8 billion a year ago [2][3] - The company achieved several milestones, including its addition to the Russell 2000 Index, enhancing institutional accessibility [2] - The Enhanced Midstream Energy ETF (MDST) surpassed $100 million in assets with a distribution rate of 10.2% per annum [1][2] Financial Performance - Second quarter net income was $1.0 million, compared to a net income of $0.5 million in the first quarter and a loss of $2.2 million in the same quarter last year [3][4] - Diluted earnings per share (EPS) for the second quarter was $0.12, an increase from $0.05 in the first quarter and a loss of $0.27 in the second quarter of 2024 [3][4] - Non-GAAP Economic Earnings for the second quarter were $2.8 million, or $0.32 per share, compared to $2.5 million, or $0.29 per share, in the first quarter [3][4][6] Revenue and Expenses - Quarterly revenues totaled $23.1 million, slightly down from $23.3 million in the first quarter but up from $22.7 million a year ago [6] - Total expenses for the second quarter were $22.3 million, down from $23.3 million in the first quarter and significantly lower than $26.9 million in the second quarter of 2024 [6] - The company held $33.1 million in cash and liquid investments as of June 30, 2025, an increase of $6.0 million from the first quarter [6] Dividends and Equity - Westwood declared a cash dividend of $0.15 per common share, payable on October 1, 2025, to stockholders of record on September 2, 2025 [6] - Stockholders' equity totaled $120.3 million, with no debt reported [6]

Key Takeaways PRAA posted Q2 EPS of $1.08, up from $0.54 and 74.2% above the Zacks Consensus Estimate.PRAA's revenues rose 1.2% to $287.7M, driven by higher cash collections and portfolio income growth.Cash collections hit $536.3M, up 13.2%, with strength across both U.S. and European markets.PRA Group, Inc. (PRAA) reported second-quarter 2025 earnings per share (EPS) of $1.08, which beat the Zacks Consensus Estimate by 74.2%. The bottom line rose from 54 cents per share a year ago.Total revenues improved 1 ...

These materials and any presentation of which they form a part are neither an offer to sell, or a solicitation of an offer to purchase, an interest in the Company. The information presented in this presentation is as of June 30, 2025 unless indicated otherwise. Other Important Information Any forecasts in this document are based upon Barings' opinion of the market at the date of preparation and are subject to change without notice, dependent upon many factors. Any prediction, projection or forecast is not n ...