Rithm Capital Quarterly Supplement Q4 2025 Q4 2025 Quarterly Supplement Will/EH reviewed Will reviewed Not reviewed Disclaimers IN GENERAL. This disclaimer applies to this document and the verbal or written comments of any person presenting it. This document, taken together with any such verbal or written comments, is referred to herein as the "Presentation." FORWARD-LOOKING STATEMENTS. Certain statements regarding Rithm Capital Corp. (together with its subsidiaries, "Rithm," "Rithm Capital," the "Company" ...

Core Viewpoint - Hamilton Lane Incorporated reported its third fiscal quarter results for the period ending December 31, 2025, highlighting its performance and future outlook [1]. Financial Performance - The company declared a quarterly dividend of $0.54 per share of Class A common stock, with a target full-year dividend of $2.16, representing a 10% increase from the previous fiscal year [2]. Company Overview - Hamilton Lane is a leading private markets investment firm with over 30 years of experience, managing approximately $1.0 trillion in assets, which includes $146.1 billion in discretionary assets and $871.5 billion in non-discretionary assets as of December 31, 2025 [5]. - The firm employs around 780 professionals across various global offices, focusing exclusively on private markets investing [5]. Conference Call - A conference call to discuss the third quarter fiscal 2026 results is scheduled for February 3, 2026, at 11:00 a.m. Eastern Time, accessible via the company's Shareholders website [3]. - A replay of the webcast will be available approximately two hours after the live broadcast for one year [4].

(1) Full Year 2025 Financial Highlights: (1) | Q4 2025 | | Q3 2025 FY 2025 FY 2024 | | | | | --- | --- | --- | --- | --- | --- | | Summary Operating Results: | | | | | | | (1) | | | | | | | | $ | 0.09 | $ | 0.35 $ 1.04 | $ 1.67 | | GAAP Net Income per Diluted Common Share | | | | | | | GAAP Net Income (in millions) | $ | 53.1 | $ | 193.7 $ 567.2 $ 835.0 | | | Non-GAAP Results: | | | | | | | (1)(2) | | | | | | | | $ | 0.74 | $ | 0.54 $ 2.35 | $ 2.10 | | Earnings Available for Distribution per Diluted Common ...

Core Insights - Vanguard plans to reduce expense ratios on 84 mutual fund and exchange-traded share classes across 53 funds, estimating approximately $250 million in fee reductions for investors by 2026 [1] - Over the past two years, Vanguard has implemented significant fee decreases, resulting in nearly $600 million in cumulative savings for investors, marking the largest cost reduction in the firm's history [1] Expense Ratios and Performance - Following the fee reductions, the average expense ratio for Vanguard's product range across all asset categories and investment styles is now at 0.06% [2] - A significant proportion of Vanguard's funds have outperformed their peer group averages over the past decade, with 84% of mutual funds and 88% of active fixed income funds meeting this performance criterion [2] Affected Products - The fee reductions will impact various products, including US equity 9-box funds such as the Growth ETF (VUG) and Value ETF (VTV), as well as large-, mid-, and small-cap growth, value, and blend funds [3] - Other affected products include the FTSE Emerging Markets ETF (VWO) and dividend-oriented ETFs like the Dividend Appreciation ETF (VIG) and High Dividend Yield ETF (VYM) [3] Company Commitment and Expansion Plans - Vanguard's CEO Salim Ramji emphasized that the fee reductions reflect the company's commitment to its investor-owners, aiming to deliver over half a billion dollars in savings across 2025 and 2026 [4] - The company is also planning to expand its Miami team from five to 15 over the next five years and is considering expanding offshore services in US locations such as California and Houston [5]

Core Insights - Patria Investments Limited reported strong financial results for Q4 2025 and the full year, highlighting significant growth in fundraising and fee-related earnings [2][4] Financial Performance - Organic fundraising reached $1.7 billion in Q4 2025 and a record $7.7 billion for the full year 2025 [2] - Fee Related Earnings (FRE) for Q4 2025 were $64.3 million, a 17% increase from $54.8 million in Q4 2024, with an FRE margin of 63.6% [4] - For the full year 2025, FRE was $202.5 million, up 19% from $170.1 million in 2024, with an FRE margin of 58.9% [4] - Net income attributable to Patria was $34.5 million for Q4 2025 and $85.6 million for the full year [4] - Distributable Earnings were $78.5 million for Q4 2025, or $0.50 per share, and $200.9 million for the full year, or $1.27 per share [4] Acquisitions and Growth Strategy - Patria announced three acquisitions since the end of Q3 2025, enhancing its capabilities in key asset classes [3] - Acquired a 51% stake in Solis, adding $3.5 billion of FEAUM, focusing on the Private Credit market in Brazil [3] - Acquired Brazilian REIT manager RBR, adding $1.3 billion of permanent capital, making Patria the largest independent manager of listed REITs in Brazil [3] - Announced a pending acquisition of WP Global Partners, a U.S.-based Lower-Middle-Market Private Equity Solutions Manager, with $1.8 billion of FEAUM [3] Dividends - Patria declared a quarterly dividend of $0.15 per share, payable on March 12, 2026, to record holders as of February 20, 2026 [5] Company Overview - Patria is a global alternative asset management firm focused on mid-market segments, with approximately $53 billion in assets under management [7] - The firm specializes in resilient sectors across Latin America, Europe, and the U.S., with a strong presence in various asset classes including Infrastructure, Credit, Real Estate, Private Equity, Solutions (GPMS), and Public Equities [8][9]

Core Viewpoint - U.S. brokerage firms and custodians may start charging distribution fees from ETF managers, indicating a significant shift in the $13.5 trillion ETF market due to the rise of commission-free trading and the migration of assets from mutual funds to ETFs [1][3]. Group 1: Market Dynamics - The U.S. ETF market has been disrupted by fintech firms like Robinhood, which attracted retail investors with zero trading fees and user-friendly mobile applications, leading to a decline in traditional brokerage trading volumes [2]. - Legacy brokerages such as Fidelity and Charles Schwab have responded by reducing trade commissions to zero for ETFs in an effort to retain clients [2]. Group 2: Financial Implications - The transition from mutual funds to ETFs has negatively impacted revenue for brokers, prompting them to consider charging distribution fees to recover losses from zero-commission trading [3]. - J.P. Morgan estimates the U.S. ETF management fee pool at $21 billion, with brokers potentially targeting 10% to 20% of total expense ratios, which could result in $2 billion to $4 billion in new distribution costs annually [3]. Group 3: Competitive Landscape - The shift towards charging distribution fees is seen as crucial for financial intermediaries, especially as the SEC may implement rule changes that facilitate the tax-free transition from mutual funds to ETFs [4]. - Larger ETF managers like BlackRock and Vanguard may have a better position to negotiate these fees, while mid-sized managers such as Invesco could face more challenges [5].

Financial Performance - Franklin Resources, Inc. reported adjusted earnings per share of $0.70 for Q1 2026, exceeding the average estimate of $0.55 by $0.15 [1] - The company's revenue reached $2.37 billion, significantly above the consensus forecast of $1.71 billion and up 3% from $2.25 billion in the same period last year [1] Net Inflows and Growth - Long-term net inflows, excluding Western Asset Management, totaled $34.6 billion, a substantial increase from $17.9 billion in the year-ago quarter, indicating strong organic growth [3] - The alternatives business was a key growth driver, raising $10.8 billion in the quarter, which included $9.5 billion in private market assets [4] Assets Under Management - Franklin's ETF platform achieved an all-time high of $58 billion in assets under management, with $7.5 billion in net flows during the quarter [4] - The company operates globally under the Franklin Templeton umbrella, serving clients in over 150 countries [4]

T. Rowe Price Group, Inc. (NASDAQ:TROW) ranks among the biggest publicly traded asset managers. On January 29, T. Rowe Price Group, Inc. (NASDAQ:TROW) debuted the active T. Rowe Price Innovation Leaders ETF (TNXT) on the NASDAQ exchange. The fund focuses on companies that are at the heart of technological advancement, healthcare, and finance, with an actively managed portfolio of approximately 150-250 holdings. Pixabay/Public Domain Sean McWilliams and Som Priestley, both accomplished professionals with ...

Group 1 - Northern Trust Corporation (NASDAQ:NTRS) is one of the largest publicly traded asset managers, with TD Cowen raising its price target to $175 from $165 while maintaining a Buy rating [1] - The company's fourth-quarter 2025 core EPS was reported at $2.62, surpassing market expectations due to increased pre-tax pre-provision income and lower provision expenditure, with total revenue reaching $2.14 billion against an expected $2.06 billion [1] - Northern Trust's fee businesses are gaining traction, and the company has demonstrated effective expenditure management, contributing to a favorable forecast for 2026 [2] Group 2 - Northern Trust has upgraded its medium-term pre-tax margin and return on equity (ROE) projections, indicating confidence in its long-term profitability [2] - The company operates through subsidiaries, including The Northern Trust Company, providing wealth management, asset servicing, asset management, and banking solutions to various clients [3]

Core Viewpoint - Morgan Stanley's diverse business model has led to solid performance, with RBC Capital raising its price target to $207 from $185 while maintaining a Sector Perform rating [1][3]. Group 1: Financial Performance - Morgan Stanley achieved a return on tangible common equity (ROTCE) exceeding 20% [3]. - The Wealth Management segment reported a record pre-tax margin of 31.0%, highlighting its strong performance [3]. Group 2: Business Strategy and Future Outlook - The company plans to leverage operating efficiencies with a projected tax rate of 22-23% in 2026 [4]. - Continued investments in technology and client competencies are anticipated, focusing on artificial intelligence and digital assets [4]. - Morgan Stanley operates as a global financial services company, offering investment banking, securities, wealth management, and investment management services [4].