CAPITAL ONE MULTI ASSET EXECUTION TRUST Annual Report - How They Did This Year

I am writing this guide to help you understand how the Capital One Multi Asset Execution Trust performed this year. My goal is to turn complex financial filings into clear information to help you decide if this fits your investment goals.

1. What does this trust do?

This is not a typical company like Apple or Coca-Cola. The Capital One Multi Asset Execution Trust is a financial tool designed to hold credit card debt. It holds a pool of revolving credit card accounts worth about $85 billion. It uses these assets to back investments sold to you and other investors. Think of it as a secure vault that collects credit card payments, interest, and merchant fees. It then passes that money to you as principal and interest payments.

2. Financial Performance & Health

Because this is a specialized trust, it does not have "sales" or "profit" like a retail business. Its health depends on the credit card accounts inside it. The "Net Charge-Off Rate"—the percentage of debt the trust expects it will never collect—stayed steady between 3.5% and 4.2% throughout 2025.

The trust passed its annual health check this year. Capital One and The Bank of New York Mellon confirmed they followed all rules for managing these assets. They found no major issues in how these accounts were handled in 2025. This confirms that the system for paying investors is working exactly as intended.

3. Major Wins and Challenges (Legal Updates)

The biggest news involves ongoing lawsuits regarding "interchange fees." These are the fees merchants pay when you swipe your card, and they make up a large part of the trust's income.

• The Situation: There is a long-running class action lawsuit against major credit card networks and banks.
• The Update: A settlement for damages was finalized in 2023, creating a $5.5 billion fund for merchants. However, a separate part of the case regarding how these networks operate is still in court. A new proposal will be reviewed in April 2026.
• What this means for you: Management does not expect these lawsuits to significantly hurt investors. The trust keeps a financial buffer designed to absorb changes in income.

4. Key Risks

• Legal Uncertainty: The interchange fee lawsuits are ongoing. If rules change, the trust’s income could drop. If this income falls by more than 15%, the buffer that protects you from losses would shrink.
• Operational Reliance: The trust relies on Capital One and BNY Mellon to collect payments. While they passed their audits, the trust depends on them to maintain high standards. If Capital One fails to manage collections well, the trust could be forced to pay back all investors earlier than planned.
• Trustee Litigation: The Bank of New York Mellon faces separate lawsuits regarding other financial products. While these are unrelated to your credit card trust, they highlight the complex legal environment these institutions operate in. Importantly, the trust is "bankruptcy remote." This means these assets are legally separated from Capital One, protecting you if the parent company faces financial trouble.

How to use this information: When considering this investment, focus on the stability of the "Net Charge-Off Rate." Because this trust is designed for steady, predictable income rather than high growth, it is most suitable for portfolios where you are looking to preserve capital and earn consistent interest. If you are comfortable with the current legal landscape regarding interchange fees and trust the operational oversight of the managing banks, this vehicle remains a stable option for income-focused investors.