Company Overview - Federated Hermes manages $845.7 billion in assets, including $211.3 billion in long-term managed assets: $89.0 billion in equity, $98.7 billion in fixed income, $20.7 billion in alternative/private markets, and $2.9 billion in multi-asset [12] - The company's total revenue for Q2 2025 was $424.8 million [14] - Federated Hermes has $634.4 billion in liquidity assets [10, 16] Asset Class Performance - Equity assets increased by $8.1 billion, a 10% rise from $80.9 billion as of March 31, 2025 [21] - Fixed-income assets decreased by $0.8 billion, a 1% decline from $99.5 billion as of March 31, 2025 [21] Revenue Diversification - In Q2 2025, money market funds contributed an average of 35% to revenue less distribution expense, with a high of 61% and a low of 13% [23] - Equity contributed an average of 43% to revenue less distribution expense, with a high of 56% and a low of 27% [23] - Fixed income contributed an average of 18% to revenue less distribution expense, with a high of 25% and a low of 11% [23] - Alternative/Private Markets and Multi-asset contributed an average of 9% to revenue less distribution expense, with a high of 19% and a low of 6% [23] Distribution Channels - U S Financial Intermediaries account for 67% of assets under management [26] - U S Institutional accounts for 26% of assets under management [26] - International accounts for 7% of assets under management [26] Capital Allocation - Since its IPO in 1998, Federated Hermes has allocated cash towards dividends (45%), share repurchases (35%), and acquisitions (20%) [77] - Total share repurchase, acquisition, and dividend payments since the IPO amount to $6.6 billion [78]

Group 1 - The core objective of the Jinjialing Financial Zone is to establish itself as an international wealth management center, venture capital center, and digital finance center, with a projected increase in financial institutions to over 1,500 by the end of 2025, marking a 50% growth since 2020 [2] - The financial sector in the Jinjialing Financial Zone has achieved an average annual growth rate of approximately 7.78% during the 14th Five-Year Plan period, laying a solid foundation for becoming a top-tier financial district [2] - The financial zone has attracted around 500 new financial institutions over five years, highlighting its competitive advantages in wealth management, venture capital, and digital finance [2][3] Group 2 - Wealth management has become a key focus for the Jinjialing Financial Zone, with three wealth management subsidiaries established since 2019, leading to a product management scale of nearly 2 trillion yuan by the end of 2024, ranking fifth nationally [3] - The financial zone has seen a qualitative and quantitative increase in high-net-worth wealth management institutions, with the establishment of three family offices and significant capital increases in trust companies [3] - The financial zone has developed a diversified wealth management landscape, integrating various financial institutions such as banks, securities firms, and private equity funds [3] Group 3 - The venture capital landscape in the Jinjialing Financial Zone has become increasingly prominent, with 112 registered fund managers and a total fund management scale of 89.2 billion yuan, accounting for over 30% of the city's total [4] - The financial zone has attracted a variety of investment funds, including foreign capital and state-owned capital, enhancing its ability to support the real economy [4] Group 4 - The digital finance sector is emerging as a distinctive feature of the Jinjialing Financial Zone, with over 80 digital finance companies established and the successful implementation of digital yuan applications [5] - The financial zone has hosted three digital finance innovation competitions, showcasing leading innovative cases and establishing a digital finance industry alliance [5] Group 5 - The Jinjialing Financial Zone has effectively facilitated the collaboration between finance and industry, supporting the transformation of the economy and the upgrading of industries [6] - Numerous innovative financial products and services have been launched, including pilot projects in pension wealth management and blockchain applications [6][7] Group 6 - The financial zone has attracted 15 listed companies, with five new listings during the 14th Five-Year Plan period, enhancing its reputation as a hub for listed and pre-listed enterprises [9] - The financial zone is committed to high-quality development, aiming to enhance its international influence in wealth management and deepen reform and opening-up [10]

Group 1 - Emerging Markets Global Advisory LLP (EMGA) announced a $160 million debt financing for its long-term client BTG Pactual, provided by the Asian Infrastructure Investment Bank (AIIB) [1] - This financing is a 7-year senior unsecured loan and is part of a series of transactions totaling $1.1 billion facilitated by EMGA for BTG [1] - The transaction reinforces BTG's position as a leading bank in Brazil's ESG investment sector and supports its growth in the water and sanitation investment area [1] Group 2 - EMGA has facilitated nearly $2 billion in investments in Brazil to date, highlighting the country's significance as a key market [1] - AIIB is recognized as the world's second-largest multilateral development bank, focusing on economic development and social progress in the Asian region [2] - EMGA operates in London and New York, assisting financial institutions and companies in seeking new debt or equity capital, with a track record of over $9 billion in debt and private equity transactions in emerging markets [2]

Group 1 - The combination of capital and innovation is a key driver of economic growth in the rapidly changing global economy [1] - Private equity involves investing in the equity of non-listed companies, typically injecting capital into mature enterprises to enhance value through operational improvements, market share expansion, or strategic restructuring [1][3] - Private equity funds seek long-term investment returns rather than short-term market fluctuations [1] Group 2 - Venture capital focuses on investing in startups or early-stage companies with disruptive technologies and innovative business models, providing necessary funding and valuable industry experience [3][4] - Investment strategies play a central role in both private equity and venture capital, with private equity funds diversifying their portfolios to balance risk and return [4] - Venture capitalists conduct in-depth research on individual projects to identify high-growth potential investment opportunities [4] Group 3 - The digital transformation of the global economy has made sectors like technology, healthcare, and renewable energy hotspots for investment [4] - The rise of Environmental, Social, and Governance (ESG) investment principles is influencing investment decisions, emphasizing corporate social responsibility and sustainability [4] - Private equity and venture capital not only provide funding but also introduce advanced management practices and technological innovations, driving transformation across industries [4][5] Group 4 - Private equity and venture capital are two pillars of modern capital markets, continuously driving economic development and innovation [5] - As the global economy evolves, private equity and venture capital will play a crucial role in shaping market trends and promoting economic growth [5]

Core Insights - The aging population in China is accelerating, with projections indicating that by 2024, the population aged 60 and above will reach 310 million, accounting for 22% of the total population [2]. - The development of pension finance is crucial to address the needs arising from this demographic shift, yet it currently does not fully meet the demands of an aging society [1][2]. Group 1: Current Status and Challenges of Pension Finance - By 2035, the population aged 60 and above in China is expected to reach 422 million, representing 30.7% of the total population, indicating a shift into a severe aging phase [2]. - The pension finance system includes three pillars: basic pension insurance led by the government, enterprise annuities, and personal savings plans, with 1.07 billion people covered by basic pension insurance by the end of 2024 [2]. - The pension service finance sector is still in its early stages, with long-term care insurance and pension target funds developing rapidly, while other products lag behind [3]. - The pension industry finance market size reached 9.4 trillion yuan in 2022, with expectations to exceed 20 trillion yuan by 2027, highlighting significant growth potential [3]. Group 2: Policy and Regulatory Framework - Recent policies have been introduced to promote the development of pension finance, including the 2016 guidelines for financial support of the pension service industry and the 2023 Central Financial Work Conference emphasizing the strategic importance of pension finance [4]. - Multiple regulatory bodies, including the Ministry of Human Resources and Social Security and the People's Bank of China, collaborate to ensure the safety and liquidity of pension funds [4]. Group 3: Key Issues Facing Pension Finance - The pension finance system faces a supply-demand imbalance, with projections indicating that by 2028, the basic pension insurance will experience a deficit [4]. - The low coverage of enterprise annuities and the slow development of personal pensions hinder the ability to effectively supplement pension funding gaps [4]. - The pension service finance sector struggles with product innovation and meeting the diverse needs of the elderly population [4]. Group 4: Role of Patient Capital in Pension Finance - Patient capital aligns with pension finance in terms of investment strategies and social responsibility, focusing on long-term stable returns and improving the quality of life for the elderly [5][6]. - Patient capital can provide substantial long-term funding necessary for the development of the pension industry, with a significant portion of pension finance needing to come from stable, long-term sources [6]. - The integration of patient capital into pension finance can help balance the uncertainties and return demands associated with pension industry projects [11]. Group 5: Pathways for Promoting Patient Capital and Pension Finance Integration - Optimizing the institutional environment is essential to strengthen the support of patient capital for pension finance, including expanding the coverage of the second and third pillars of the pension system [15]. - Establishing a multi-layered pension finance support system can facilitate the penetration of patient capital into pension finance [15]. - Encouraging financial innovation in pension products can attract more long-term savings into the capital market, enhancing the scale of patient capital [16].