Summary of Key Points Core Viewpoint - John W. Rogers Jr. of Ariel Appreciation Fund has made significant reductions in his equity holdings, indicating a strategic shift in response to valuation concerns and macroeconomic factors affecting various sectors. Group 1: Notable Reductions - **Northern Trust Corp (NTRS)**: A reduction of 47.22% with 158,349 shares sold, reflecting potential concerns over fee compression and macro headwinds in wealth management [1]. - **JM Smucker Co (SJM)**: A decrease of 35.16% with 68,878 shares cut, possibly due to input cost inflation and changing consumer preferences [2]. - **Charles Schwab Corp (SCHW)**: A reduction of 33.48% with 112,370 shares sold, linked to rate-related margin pressures and lower trading activity post-peak retail trading enthusiasm [3]. - **Kennametal Inc (KMT)**: A decrease of 30.91% with 267,930 shares trimmed, suggesting caution towards slowing manufacturing demand despite operational improvements [4]. - **CBRE Group Inc – A (CBRE)**: A reduction of 18.12% with 25,409 shares cut, reflecting concerns in the commercial real estate sector due to remote work trends and higher financing costs [5]. Group 2: Strategic Implications - The reductions across these holdings suggest a tightening of the portfolio around higher-conviction names, as the company responds to a shifting macro environment and potential valuation concerns [5].

Financial Performance - The company reported non-GAAP operating earnings of $415 million, a 5% increase compared to Q1 2024[5] - Non-GAAP operating earnings per diluted share (EPS) reached $1.81, reflecting a 10% growth from Q1 2024[5] - The company returned $370 million of excess capital to shareholders, including $200 million in share repurchases and $170 million in common stock dividends[4] - The common stock dividend was raised to $0.76 for Q2 2025, a 7% increase from Q2 2024 and a 9% increase on a trailing twelve-month (TTM) basis[4] - Total company Assets Under Management (AUM) stood at $718 billion, a 1% increase compared to Q4 2024[6] Segment Performance - Retirement and Income Solutions (RIS) pre-tax operating earnings, excluding significant variances, increased by 9%[11] - RIS recurring deposits grew by 9% year-over-year, with Small and Medium Business (SMB) recurring deposit growth at 12%[2, 14] - Principal Asset Management non-affiliated private real estate Net Cash Flow (NCF) was +$1.1 billion[2, 9] - Mexico and Southeast Asia locally managed strategies saw a NCF of +$0.7 billion[2, 9] - Life Insurance business market premium and fee growth increased by 20%[4, 24] - Specialty Benefits incurred loss ratio improved by 40 bps from 1Q24[2] Capital and Liquidity - The company's excess and available capital position was $1.75 billion, including $400 million pre-funding of Q2 2025 maturity[4, 5] - The debt to capital ratio was 22.3%, pro forma for Q2 2025 debt maturity[4, 5]