Intangible Assets (a) Indefinite-lived intangible assets
Indefinite-lived intangible assets are recorded in Intangible Assets, net on the Consolidated Balance Sheets and include rights to manage fund assets ($244.3 million and $237.4 million at December 31, 2025 and 2024, respectively) and trade names ($52.9 million and $49.2 million at December 31, 2025 and 2024, respectively). The increase in indefinite-lived intangible assets at December 31, 2025 as compared to December 31, 2024 was due to an increase in the value of intangible assets denominated in a foreign currency as a result of foreign exchange rate fluctuations.
Due to actual results trailing projected results, driven by a combination of lower gross sales and higher redemptions for the quarter ended June 30, 2024, management concluded that an indicator of potential impairment existed for the indefinite-lived intangible asset related to the FHL right to manage public fund assets acquired in connection with the 2018 FHL acquisition. Management used an income-based approach, the discounted cash flow method, to value the asset as of June 30, 2024, which resulted in a non-cash impairment charge of $66.3 million. The non-cash impairment was recorded in Operating Expenses – Intangible Asset Related on the Consolidated Statements of Income. There were no other impairments during the year ended December 31, 2024 and no impairments during the years ended December 31, 2025 and 2023.
(b) Finite-lived intangible assets
Finite-lived intangible assets primarily represent customer relationships and consist of the following at December 31:
| | | | | | | | | | | | | | |
| (in thousands) | | 2025 | | 2024 |
| Cost | | $ | 129,702 | | | $ | 117,054 | |
| Accumulated Amortization | | (95,365) | | | (75,787) | |
| Carrying Value | | $ | 34,337 | | | $ | 41,267 | |
The decrease in finite-lived intangible assets at December 31, 2025 as compared to December 31, 2024 primarily relates to amortization expense ($13.7 million).
Amortization expense for finite-lived intangible assets was $13.7 million, $13.0 million and $13.9 million in 2025, 2024 and 2023, respectively, and was recorded in Operating Expenses – Intangible Asset Related on the Consolidated Statements of Income.
Expected aggregate annual amortization expense for finite-lived intangible assets in each of the five succeeding years assuming no new acquisitions, impairments or changes in foreign exchange rates is shown in the table below:
| | | | | | | | |
| (in thousands) | | |
| 2026 | | $ | 10,165 | |
| 2027 | | 6,614 | |
| 2028 | | 5,688 | |
| 2029 | | 2,881 | |
| 2030 | | 2,486 | |
(c) Goodwill
Goodwill at December 31, 2025 increased $47.3 million from December 31, 2024 primarily as a result of the Rivington acquisition ($35.6 million) and foreign exchange rate fluctuations on goodwill denominated in a foreign currency ($12.0 million).