Core Insights - Model portfolios utilizing exchange-traded funds (ETFs) are increasingly favored in the financial advisory sector, with a significant portion of assets allocated to these models [2][3]. Group 1: Market Trends - An estimated $36 trillion is allocated to model portfolios across financial intermediary channels, with 65% ($23 trillion) managed in-house by firms creating their own models [2]. - The trend towards model portfolios is expected to continue due to their cost-effectiveness, diversification, and ease of rebalancing, making them suitable for various life stages [2][3]. Group 2: Benefits for Financial Advisors - Model portfolios help financial advisors maintain consistency in investment strategies, reducing the temptation to time the market or pursue short-term trends [3]. - The ability to scale portfolio management processes is a key advantage for advisory firms, allowing them to leverage practice-level resources effectively [4]. Group 3: Outsourcing and Asset Management - For advisory firms that prefer not to manage their own models, outsourcing options are expanding, including broker-dealers, asset managers, and third-party strategists [5]. - Among the 35% of model portfolio assets that are outsourced, there is a mix of purely outsourced assets and those modified by advisors or clients [5]. Group 4: ETF Advantages - ETFs are appealing due to their low costs, comparable to the cheapest mutual funds, and their tax efficiency, which is a significant benefit for end users [6]. - While liquidity is often highlighted as a benefit of ETFs, it is less critical in model portfolios designed for long-term, buy-and-hold strategies [6].

Core Viewpoint - State Street Investment Management is in discussions to acquire a stake in an Indian mutual fund, aiming to enhance its presence in India's asset management industry valued at approximately $900 billion [1][2]. Group 1: Company Strategy - State Street plans to collaborate with the Indian mutual fund by sharing technology to develop quantitative investment strategies [1]. - The company is preparing to launch model portfolios that will include international equities and exchange-traded funds in partnership with Smallcase, a local investment platform [2]. Group 2: Market Positioning - State Street currently manages around $5 trillion in assets and seeks to strengthen its position in the Indian market [2]. - The partnership with the Indian mutual fund would provide State Street with improved access to Indian investors in the equities market [3]. Group 3: Competitive Landscape - Other international firms like BlackRock, Amundi, and Schroders have also formed partnerships with domestic firms to tap into India's retail investor base [4]. - BlackRock, in collaboration with Jio Financial Services, has recently launched mutual fund products in India, indicating significant growth potential in the market [4].

Core Insights - The company reported strong individual credit selection and no exposure to high-profile credit issues, with a robust pipeline of pending transactions in private credit deployment [1] - The strategic collaboration with Goldman Sachs aims to provide diversified public and private market solutions tailored for retirement and wealth investors, focusing on model portfolios, multi-asset offerings, and personalized advice solutions [1][5][6] Investment Performance - Fixed income performance was strong, with over 70% of fund assets outperforming peer groups across all reported time periods, while the target date franchise showed 81%, 71%, and 98% of fund assets beating peers over three, five, and ten years respectively [2] - On an asset-weighted basis, 64%, 57%, and 78% of fund assets outperformed peer groups over three, five, and ten years, with a notable improvement in one-year performance, where 53% of fund assets beat peers [3] Assets Under Management - The company reached a record high of $1.77 trillion in assets under management as of September 30, indicating strong growth and client interest [4] - The company introduced new retirement allocation funds in Asia, marking a significant expansion into retail markets in Hong Kong and Singapore [9] Strategic Initiatives - The collaboration with Goldman Sachs will include a co-branded series of model portfolios and multi-asset public-private market solutions, expected to launch by mid-2026 [5][6][7] - The company is developing a managed account platform for independent advisors, combining investment capabilities from T. Rowe Price and Goldman Sachs [7] Financial Results - The adjusted diluted EPS for Q3 2025 was $2.81, reflecting higher revenue driven by increased average AUM, despite experiencing $7.9 billion in net outflows [12] - Investment advisory fees increased to $1.7 billion, up over 4% from Q3 2024, while total adjusted revenues reached $1.9 billion, a 6% increase year-over-year [14] Expense Management - Adjusted operating expenses for Q3 2025 were $1.1 billion, up slightly from the previous year but down from the prior quarter, with a focus on managing costs effectively [15][16] - The company is implementing a broad expense management program to keep controllable expense growth in the low single digits for 2026 and 2027 [16][19] Capital Management - The company maintains a strong financial position with over $4.3 billion in cash and discretionary investments, and has repurchased $158 million worth of shares in Q3 2025 [18] - The company continues to buy back shares, surpassing $525 million year-to-date, indicating a commitment to returning value to shareholders [18]

Core Insights - Active management and stock picking may be making a comeback after nearly 30 years of passive investing dominance, driven by higher interest rates, increased stock dispersion, and heightened market volatility [2][4] - The shift towards active management is seen as essential for outperforming the market, with financial advisors recognizing the importance of investment management despite the rise of automated solutions [3][4] Group 1: Market Conditions - Current market conditions are favorable for active investors, with T. Rowe Price highlighting that the combination of higher interest rates and greater stock dispersion provides key ingredients for potential outperformance [2] - Active management is becoming increasingly relevant as passive investing can lead to "diworsification," where overly broad diversification negatively impacts returns [2] Group 2: Advisor Strategies - Financial advisors are beginning to realize that investment management remains crucial, even as many have shifted focus to financial planning and model portfolios [3][4] - Many advisors are now outsourcing portfolio construction, but some, like Kimberly Abmeyer, are achieving significant outperformance through targeted stock selection, with her clients' portfolios outperforming the S&P 500 by 10% this year [4] Group 3: Model Portfolios - Assets in model portfolios reached nearly $8 trillion in April 2023, indicating a strong trend towards this investment strategy [6] - Over 80% of fee-based advisors utilize model portfolios for at least some of their client assets, reflecting the growing acceptance of this approach in wealth management [6]

Core Insights - Voya Investment Management has appointed Scott Brady as managing director and head of Intermediary Business Development to enhance its presence in the intermediary channels [1][2] - Brady brings over 30 years of financial services experience, previously serving as head of U.S. Product Development and Strategy at Columbia Threadneedle [2] - Voya IM manages approximately $359 billion in assets as of April 30, 2025, across various investment strategies [3] Company Overview - Voya Investment Management is part of Voya Financial, Inc. and focuses on managing assets for institutions, financial intermediaries, and individual investors [3] - The firm has a legacy of 50 years in active investing and employs over 300 investment professionals [3] - Voya IM emphasizes understanding client needs, strong investment performance, and a commitment to diversity, equity, and inclusion [3]

Core Insights - Franklin Templeton, Inc. (BEN) has formed a strategic partnership with Copenhagen Infrastructure Partners (CIP), DigitalBridge, and Actis to enhance its infrastructure investment offerings for private clients [1][9]. Group 1: Partnership Details - The collaboration aims to provide private wealth clients with access to high-growth infrastructure opportunities, focusing on energy security, electrification, digitalization, and sectors such as data centers, renewable energy, and digital power [2][4]. - The partnership combines the expertise of three institutional infrastructure investment firms to meet the rising demand for sustainable energy and digital infrastructure in the private market globally [3][5]. Group 2: Strategic Rationale - Global infrastructure needs are projected to exceed $94 trillion by 2040, presenting an estimated $15 trillion investment opportunity for private capital [5]. - The partnership is designed to leverage complementary strengths to capture this growth and provide compelling infrastructure opportunities for private wealth investors [5][6]. Group 3: Offerings and Market Position - The expanded private wealth offerings will provide institutional-quality access to private infrastructure, targeting stable, inflation-linked cash flows and long-term resilience across economic cycles [7][8]. - This strategic alliance positions Franklin Templeton to broaden its footprint in private infrastructure, gaining access to attractive deal flow and specialist expertise, while diversifying beyond traditional equity and bond markets [8][9]. Group 4: Market Performance - Shares of BEN have increased by 26.3% this year, outperforming the industry average rise of 15.6% [10].

Group 1 - Sensor Unlimited is part of the investing group Envision Early Retirement, which focuses on generating high income and growth through dynamic asset allocation [2] - The group offers two model portfolios: one for short-term survival and withdrawal, and another for aggressive long-term growth [2] - Monthly updates on holdings, tax discussions, and ticker critiques are provided to members [2] Group 2 - Sensor Unlimited has a PhD in financial economics and has spent the last decade covering the mortgage market, commercial market, and banking industry [3] - The focus areas include asset allocation and ETFs related to the overall market, bonds, banking and financial sectors, and housing markets [3]

Core Viewpoint - Goldman Sachs and T. Rowe Price have announced a strategic collaboration to provide diversified public and private market solutions tailored for retirement and wealth investors [1][2]. Group 1: Collaboration Details - The collaboration aims to leverage the strengths of both firms, focusing on wealth and retirement offerings that include access to private markets for various clients [2]. - Goldman Sachs plans to invest up to $1 billion in T. Rowe Price common stock, aiming to own up to 3.5% of the company [3]. - The partnership is expected to enhance T. Rowe Price's and OHA's capabilities in delivering a wider range of investment strategies, emphasizing innovation and new product creation [4]. Group 2: Investment Strategies - New co-branded target-date strategies will be offered, utilizing T. Rowe Price's retirement expertise and incorporating Goldman Sachs' investment capabilities [7]. - A series of jointly created model portfolios will be introduced, combining various investment vehicles tailored for mass-affluent and high-net-worth clients [7]. - The firms are considering multi-asset offerings that provide access to private equity, private credit, and private infrastructure within a single vehicle [7]. Group 3: Advisory Solutions - The collaboration will deliver a scalable advisory platform for advisors to manage retirement accounts both in-plan and out-of-plan [7]. - Integration of retirement planning and advice into T. Rowe Price's recordkeeping and Individual Investor platforms is part of the collaboration [7]. Group 4: Company Backgrounds - Goldman Sachs oversees approximately $3.3 trillion in assets under supervision as of June 30, 2025, and is a leading global financial institution [8]. - T. Rowe Price manages $1.70 trillion in client assets as of July 31, 2025, with a significant portion related to retirement [10]. - OHA, as part of T. Rowe Price Group, manages approximately $98 billion in assets across various credit strategies as of June 30, 2025 [12].

Core Insights - BlackRock has completed the acquisition of ElmTree Funds, enhancing its private markets capabilities and expanding access to alternative investments [1][9] - The acquisition aligns with BlackRock's long-term goal of raising $400 billion for private markets by 2030 [1] - ElmTree managed $7.3 billion in assets as of March 31, 2025, and is a leader in commercial net-lease assets [1][2] Expansion of Private Markets - The acquisition of ElmTree builds on BlackRock's previous acquisition of HPS Investment Partners, reinforcing its focus on private credit and real estate [2] - ElmTree's expertise will enhance BlackRock's Private Financing Solutions platform, providing long-term income opportunities for clients [2][3] - Over the past year, BlackRock has invested more than $28 billion to strengthen its position in high-growth private markets [3] Shift Towards Alternative Investments - BlackRock's CEO Larry Fink indicated a shift from traditional 60/40 portfolios to a 50/30/20 mix of stocks, bonds, and private assets for stronger returns [4] - The company plans to launch a target-date fund incorporating private equity, private credit, and other alternative investments [5] - BlackRock is integrating private equity and credit into pre-built portfolios to meet rising demand among individual investors [6] Competitive Landscape - Competitors like Apollo Global Management and Blackstone are also making significant strides in private markets, expanding their multi-strategy platforms and asset-backed credit offerings [7] - Both competitors are focusing on evergreen and private wealth channels, originating larger financings previously dominated by banks [7] Performance Metrics - BlackRock's shares have risen 8.7% this year, contrasting with a 1.6% decline in the industry [10]

Core Insights - Ameriprise Financial reported adjusted operating earnings per share of $9.11 for Q2 2025, surpassing analyst expectations of $9.00, while revenue was $4.30 billion, slightly below consensus estimates, indicating strong profitability despite mixed growth momentum [1][2] Financial Performance - Adjusted operating earnings per share (Non-GAAP) increased by 6.8% year-over-year from $8.53 to $9.11 [2] - Revenue (Non-GAAP) rose by 4.0% year-over-year from $4.17 billion to $4.34 billion [2] - Net income (GAAP) increased by 27.9% year-over-year from $829 million to $1,060 million [2] - Total assets under management reached $1.58 trillion, an 8.6% increase from the previous year [2] Business Segments Overview - Wealth management remains the primary growth driver, with total client assets reaching a record $1.08 trillion, up 11% year-over-year [5] - The asset management segment, represented by Columbia Threadneedle Investments, reported $690 billion in assets under management, a 2% increase year-over-year, despite net outflows of $8.7 billion [7] - The retirement and protection solutions segment saw a 9% rise in pretax adjusted operating earnings to $214 million, with adjusted operating net revenues increasing by 1% to $936 million [8] Strategic Developments - The company launched the Signature Wealth Program, a new unified managed account platform, aimed at simplifying investment solutions for clients and advisors [6][12] - Advisor productivity increased by 11%, reaching $1.07 million in trailing twelve-month adjusted operating net revenue per advisor [5] - The company emphasized ongoing investments in compliance, digital client service, and operational transformation to support long-term growth [10] Capital Management - Ameriprise distributed $158 million in dividends and repurchased $573 million in shares, totaling $731 million, which is about 81% of adjusted operating earnings [9] - The return on equity, excluding accumulated other comprehensive income, was 45.8% for the trailing twelve months ended Q2 2025 [9] - The balance sheet showed $7.96 billion in cash and a debt-to-capital ratio of 33.6%, down from 40.5% a year earlier [9] Future Outlook - Management did not provide explicit full-year earnings or revenue guidance but indicated that general and administrative expenses in wealth management are expected to increase by low to mid-single digits for the full year [14] - Investors are advised to monitor net client flow trends in wealth management, as this metric has slowed, and asset management's net outflows, which, while improved, remain a concern [15]