22 August 2025 | 1:00PM EDT Weekly Fund Flows Faster Foreign Flows to Mainland China Global fund flows, week ending August 20 | | | Global Fund Flows Summary | | | | --- | --- | --- | --- | --- | | | Millions USD | | % AUM | | | | 4wk sum | 20-Aug | 4wk avg | 20-Aug | | Equity | 7,355 | 3,034 | 0.01 | 0.01 | | Fixed Income | 98,580 | 23,489 | 0.27 | 0.26 | | of which: EM | 9,311 | 3,246 | 0.38 | 0.53 | | Money Markets | 129,229 | 1,283 | 0.32 | 0.01 | | FX Flows* | 26,382 | 20,363 | 0.05 | 0.15 | *Cross-bor ...

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Summary of Key Points from the Conference Call Industry Overview - The report focuses on global cross-asset markets, including equities, fixed income, currencies, and commodities, with insights from Morgan Stanley Research. Core Insights and Arguments 1. **Equity Market Forecasts**: - S&P 500 projected returns range from -20.2% (bear case) to 16.7% (bull case) with a base case return of 5.4% [3] - MSCI Europe shows a similar trend with a bear case of -21.4% and a bull case of 25.8% [3] - Emerging Markets (MSCI EM) also reflect a bear case of -26.5% and a bull case of 13.5% [3] 2. **Currency Projections**: - JPY expected to depreciate to 147 in the bear case, while the bull case sees it strengthening to 122 [3] - EUR forecasted to range from 1.16 (bear) to 1.30 (bull) [3] - BRL shows resilience with a bear case of 5.54 and a bull case of 5.20 [3] 3. **Fixed Income Returns**: - UST 10-year yield forecasted to decline to 2.85 in the bull case, with a bear case of 4.22 [3] - UKT 10-year yield expected to range from 4.53 (bear) to 3.15 (bull) [3] 4. **Commodity Market Trends**: - Brent crude oil projected to drop to 50 in the bear case, with a bull case reaching 120 [3] - Gold prices forecasted to range from 2,975 (bear) to 4,200 (bull) [3] 5. **Market Sentiment**: - ACWI momentum has reached its lowest level since April, indicating a bearish sentiment in the market [7] - Non-farm payroll growth has slowed, with a 3-month moving average of 35,000 [8] 6. **ETF Flows**: - US equities experienced outflows of $0.8 billion, while global equities saw inflows of $5.2 billion [41] - Bond markets showed inflows of $12.8 billion, indicating a shift towards fixed income [41] Additional Important Insights 1. **Market Volatility**: - The VIX index spiked sharply following the US jobs report, indicating increased market uncertainty [16] 2. **Cross-Asset Correlations**: - Current cross-asset correlations are at 43%, reflecting a slight increase from the previous month [73] - Equity and credit correlations are notably high at 71% and 82%, respectively [73] 3. **Positioning Summary**: - US equities show a net positioning of 29% among asset managers, while EM equities are at 44% [66] - Commodities like gold and copper have seen significant shifts in positioning, with gold at 33% long and copper at 13% long [66] 4. **COVA Framework**: - The correlation-valuation (COVA) scorecard identifies portfolio diversifiers, with staples and healthcare showing strong defensive characteristics [81] 5. **Extreme Market Moves**: - Copper experienced a significant decline of 20% due to new tariff details, marking it as one of the largest weekly moves [11][91] This summary encapsulates the key points from the conference call, highlighting the current state and projections of various asset classes, market sentiment, and positioning trends.

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]

ETF vs Mutual Funds - ETFs trade all day, offering liquidity, while mutual funds trade only once daily after the close [2][3] - ETFs often have lower management fees due to passive index tracking, but actively managed ETFs can have higher fees [5] - Mutual funds may have minimum buy-ins around $1,000, while ETFs require only the price of one share [6] - Mutual funds can offer automatic savings plans, while ETFs provide flexibility with options trading and short selling [6][8] ETF Market Growth and Evolution - The number of mutual funds has plateaued since the beginning of the century, currently at over 6,500, down from a pre-pandemic peak [9] - ETF growth has accelerated, nearing 4,000, with assets under management at approximately $11 trillion, half of mutual funds' $22 trillion [10] - SPY (S&P 500 ETF) was launched in 1993, enabling trading of the entire S&P 500 like a stock [14][15] - QQQ (NASDAQ 100 ETF) launched in 1999, allowing trading of the NASDAQ 100 [18] - The ETF rule streamlined the launch process, leading to an explosion in ETF volume and new launches [23] - Invesco seeks to convert its QQQ fund from a fixed unit investment trust to an open-end ETF, potentially increasing its management fee income by over $600 million annually [26][29] SPY vs QQQ Performance - Since 1993, SPY's total price return is over 1,300%, while QQQ's is over 1,007% since 1999 [27] - SPY experienced a worst sell-off of -56% during the global financial crisis, while QQQ had -83% during the dot-com bust [27][28] - SPY's management fee is 00945%, approximately half that of QQQ [28] - SPY's daily trading volume is 67 million shares, equivalent to $42 billion, compared to QQQ's 40 million shares, or $23 billion [28][29]

Q2 2025 Earnings Release Supplement T. Rowe Price Group, Inc. August 1, 2025 A copy of this presentation, which includes additional information, is available at investors.troweprice.com. Data as of June 30, 2025, unless otherwise noted. All figures are USD, unless otherwise noted. Forward-Looking Statement This presentation, and other statements that T. Rowe Price may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to T. Rowe Pric ...

Core Insights - Three stocks with strong momentum and buy rank are highlighted for investors: Amphenol, Bank7, and T. Rowe Price Group 1: Amphenol (APH) - Amphenol designs, manufactures, and markets electrical, electronic, and fiber optic connectors, interconnect systems, antennas, sensors, and specialty cables [1] - The company has a Zacks Rank of 1 (Strong Buy) and a 1.1% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - Amphenol's shares increased by 40.6% over the last three months, outperforming the S&P 500's gain of 17.5% [2] - The company possesses a Momentum Score of A [2] Group 2: Bank7 (BSVN) - Bank7 is a community banking company that offers deposits, loans, card facilities, investments, wealth management, and online banking services [2] - The company has a Zacks Rank of 1 and a 3.7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - Bank7's shares gained 38.9% over the last three months, also outperforming the S&P 500's gain of 17.5% [3] - The company possesses a Momentum Score of A [3] Group 3: T. Rowe Price (TROW) - T. Rowe Price is a global investment management organization providing mutual funds, sub-advisory services, and separate account management for various investors [4] - The company has a Zacks Rank of 1 and a 7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [4] - T. Rowe Price's shares increased by 26.6% over the last three months, again outperforming the S&P 500's gain of 17.5% [5] - The company possesses a Momentum Score of A [5]

Investment Recommendation - Recommends selling Mutual Funds or ETFs from Schwab, State Street, Goldman Sachs, and Franklin Templeton before the end of August [2] Companies Mentioned - Schwab @CharlesSchwab [2] - State Street @StateStreet, @StateStreetETFs, @StateStreetIM [2] - Goldman Sachs @GoldmanSachs [2] - Franklin Templeton @FTI_Global @FTI_US [2]

Core Insights - AGF Management Limited reported total assets under management and fee-earning assets of $53.5 billion as of May 31, 2025, a slight decrease from $53.8 billion as of February 28, 2025, but an increase from $47.8 billion as of May 31, 2024 [1][6][10] - The company experienced a decline in mutual fund gross sales, reporting $1,148 million for the quarter compared to $1,568 million in the previous quarter and $934 million in the same quarter last year [2][5] - AGF's retail mutual fund net sales were $65 million, down from $342 million in the previous quarter and a net redemption of $112 million in the prior year quarter [2][10] Financial Performance - Adjusted diluted earnings per share for the quarter were $0.39, down from $0.48 in the previous quarter and up from $0.35 in the same quarter last year [6][7] - Adjusted EBITDA for the three months ended May 31, 2025, was $39.5 million, compared to $47.9 million for the previous quarter and $37.0 million for the same period last year [7][9] - Net management, advisory, and administration fees for the quarter were $83.8 million, a decrease from $85.2 million in the previous quarter and an increase from $81.2 million in the prior year [7][9] Business Highlights - AGF was recognized as the Mutual Fund Provider of the Year at the 2025 Wealth Professional Awards, highlighting the company's innovative product lineup and commitment to client value [3][6] - The company announced lower management and administration fees for certain funds, reflecting its strategy to remain competitive and responsive to market trends [8][10] - AGF's total adjusted net revenue for the quarter was $99.0 million, down from $111.5 million in the previous quarter and up from $97.0 million in the prior year [9]

Group 1: Joint Venture Approval and Investment - BlackRock Inc. and Jio Financial's joint venture, Jio BlackRock Investment Advisers, has received approval from the Securities and Exchange Board of India (SEBI) to operate as an investment adviser in India [1][8] - Earlier this year, both entities invested INR665 million ($7.78 million) into the joint venture, raising their total investment to INR845 million [1] Group 2: Joint Venture History and Goals - BlackRock and Jio Financial formed the joint venture in July 2023, aiming to transform India's asset management industry through a 50:50 partnership that leverages BlackRock's expertise and Jio's local market knowledge [2] - The joint venture targets an initial investment of $150 million each from both parties, focusing on democratizing access to investment solutions for millions of Indian investors [3] Group 3: Strategic Expansion and Market Positioning - In April 2024, the joint venture plans to establish a wealth management and broking business in India, capitalizing on the growing wealth market and increasing retail investor base [4] - BlackRock's strategy aligns with its inorganic growth approach, aiming to enhance market share in both domestic and global markets, particularly in light of India's rising affluence and digital transformation [5] Group 4: Recent Acquisitions and Partnerships - BlackRock has made significant acquisitions, including Preqin for $3.2 billion and Global Infrastructure Partners, to enhance its private markets and infrastructure offerings [6] - The company has also formed strategic alliances, such as a collaboration with Banco Santander to expand into infrastructure markets and a partnership with Partners Group to improve retail investors' access to alternative investments [7] Group 5: Industry Context - Other financial firms are also expanding in India, with State Street Global Advisors entering a strategic alliance with smallcase to enhance market access for Indian investors [10] - The Bank of New York Mellon has secured a license to establish a regional headquarters in Saudi Arabia, indicating a broader trend of financial firms seeking to enhance their presence in emerging markets [11][12]