My 2c on Financials: US Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Research evidence excerpt

My 2c on Financials: US Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Rob O'Dwyer - Specialist Sales - US Financials AC North America Specialist Sales J P M O R G A Nrob.odwyer@jpmorgan.com

J.P. Morgan Securities LLC 10 July 2026

My 2c on Financials

Rob O’Dwyer

+1 2126222673

rob.odwyer@jpmorgan.com

Key Highlights

• Tracking the Traditionals

• OWL news / Health of wealth channel for alts?

• COIN & CRCL news

Morning – I didn’t expect to be talking so much about asset managers this week given that next week is the week of banks

reporting (I sent some previews on those yesterday evening at 4pm, more to come) but here we are.

First, I want to flag a new product from Mike Cho, called “Tracking the Traditionals”. This is a periodical deep dive into the

Trad AMs, which as I highlighted earlier this week, have been consistent outperformers over the last 12 months. Mike highlights

some key themes, which I’ll flag below but in particular, I’d draw your attention to page 18 of the deck which flags that BEN and

TROW relative performance has been improving of late. I think investors are there for the BEN improvement but TROW remains

a relative short in the space.

Key Themes:

• Rising ETF distribution costs present prospective headwind for key scaled players – Ken has written about this in detail

and while newsflow has been a little slow on this front, I do think that this will remain an overhang, at least for the balance of

the year given comments from Schwab that they were working on this.

• Potential shifts in market share ahead – potential for BLK and State Street to take share from IVZ given their recently

launched Nasdaq100 products.

• Active ETFs are a scaling pocket of growth – the key pocket of growth remains active ETFs.