Group 1 - The Virtus Equity & Convertible Income Fund (NYSE: NIE) is a multi-asset, closed-end fund aimed at providing capital appreciation and current income to investors [1] - The fund's strategy involves deploying capital across equities, convertible securities, and derivatives to achieve growth and income [1] - The fund pays out a distribution to its investors, although specific payout details are not provided in the text [1] Group 2 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of industry experience, previously working in professional services across various sectors [1] - Investment recommendations are based on a comprehensive view of the investment ecosystem rather than evaluating companies in isolation [1]

Market Overview - The S&P 500 is reaching record highs, currently above 6,600, which is seen as reasonable given the economic backdrop despite extended valuations [1][2] - Retail sales have exceeded expectations, indicating that consumer spending remains strong even as the job market shows signs of cooling [2][3] Employment and Wages - The demand for workers is decreasing, but the supply is also slowing due to retirements and reduced immigration, leading to a balanced job market [3] - The unemployment rate remains low, and real wages are experiencing positive growth, which supports consumer spending [3] Market Drivers - The current market rally is not solely driven by technology; financials and industrials are also participating, indicating a broader market strength [4][5] - A potential US-China trade deal could provide additional positive sentiment, although the market has largely moved past trade concerns [6][7] Federal Reserve and Interest Rates - The Federal Reserve is expected to cut rates by at least 25 basis points, which is already priced into the market [8][9] - The rate cut is seen as a move towards normalizing the yield curve and could help smaller businesses participate more in the market rally [12][13] Investment Strategies - Investors are encouraged to diversify beyond big tech, considering small and mid-cap stocks as well as European equities to benefit from a potential economic reacceleration [14][15] - Corporate and municipal bonds are recommended for income generation, as yields are expected to decline [15][16] Commodities and Gold - Despite gold reaching all-time highs, the sentiment is more optimistic towards equities and credit rather than investing heavily in gold [17][18] - The central bank's actions and political uncertainties have driven gold prices, but equities are still favored for long-term investment [18][19] Future Market Outlook - The market is expected to continue its upward trajectory, with projections suggesting the S&P could approach 7,000 by year-end [19]

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, Del Monte spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. - The investment recommendations made by Del Monte are based on a comprehensive understanding of the investment landscape, rather than solely focusing on individual companies [1].

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, Michael spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. - The investment recommendations made by Michael are based on a comprehensive analysis of the investment ecosystem [1].

Here with us onset is Strategist chief market strategist Chris Veron. Chris, it was it's been a blistering run. Yeah.But one that hasn't been filled with massive upside volatility. It's been kind of like that meltup approach. Incremental highs all the time in almost a straight line.Is now the time to keep that momentum going and play that momentum or to be a little bit more cautious about these sets of record highs. Well, listen, we know where we are, Dom, with the calendar. It's the middle of September. We ...

Summary of China Equity Strategy Conference Call Industry Overview - **Industry**: China Equity Market - **Key Focus**: 1H25 results, 15th Five-Year Plan, sector performance, and investment strategies Key Findings from 1H25 Results - **Performance Metrics**: Among 445 A and H share companies, 28% reported earnings beats, 40% in-line, and 31% misses [3][14] - **Top Performing Sectors**: - **Transportation**: 67% beats due to strong volume gains and cost control - **Semi-conductor**: 46% beats driven by revenue growth from tariff pull-ins and localization - **Industrial**: 40% beats attributed to margin expansion from lower commodity costs [14][15] - **Underperforming Sectors**: - **Utilities**: 55% misses due to weaker gas demand and renewable tariff cuts - **Small Caps & Education**: 45% misses linked to muted macro conditions - **Hardware**: 43% misses primarily from auto and surveillance demand [14][15] Economic Outlook for 2H25 - **GDP Growth**: PRC GDP grew by 5.3% in 1H25, exceeding the target of 5.0% for 2025 [21] - **PPI/CPI Trends**: PPI down 2.8% and CPI down 0.1% in 1H25, indicating challenges in industrial production prices [21] - **Government Focus**: Emphasis on supply-side reforms to boost CPI/PPI in 2H25, with key themes including economic development, technological innovation, social welfare, green development, and reform [4][20] Sector Recommendations - **Upgrades**: - **Healthcare and Insurance**: Upgraded to overweight due to aging population and increasing insurance needs [5] - **Downgrades**: - **Telecom and Oil & Gas**: Downgraded to underweight due to low profit growth and reduced price competitiveness [5] - **Technology Sector**: Increased weighting expected to benefit from the 15th Five-Year Plan [5] Index Target Revisions - **HSI Targets**: Revised targets for HSI are 26,800 (+7%) by end-2025, 27,500 (+6%) by mid-2026, and 28,800 by end-2026, driven by higher EPS growth [6] - **Valuation Metrics**: HSI's forward P/E at 10.3x and PB at 1.2x are in line with historical averages [6] Top Investment Picks - **H-Share Top Buys**: - Hengrui (Healthcare) - Sunny Optical - ASMPT - **Removed from Top Buys**: Anta, Huaneng Power, and BYD [7] Additional Insights - **Consumer Sector**: Anticipated shifts in consumer behavior and potential government pro-consumption policies in 2H25 [20] - **Yield Plays**: Domestic investors are focusing on yield plays amid cautious outlook for the PRC economy [22][23] Conclusion The conference call highlighted a mixed performance in the Chinese equity market for 1H25, with significant sectoral variations. The outlook for 2H25 suggests a focus on supply-side reforms and strategic investments in healthcare, technology, and insurance sectors, while maintaining caution in telecom and oil & gas. The revised index targets reflect optimism for EPS growth driven by government initiatives and market dynamics.

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - The analyst, Michael Del Monte, has over 5 years of experience in the investment management industry and previously worked for over a decade in professional services across various sectors including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. - Investment recommendations are based on a comprehensive understanding of the investment landscape, highlighting the interconnectedness of different sectors and companies [1].

Summary of 2Q25 Earnings Interim Review for MSCI China and A-shares Industry Overview - The review focuses on the performance of MSCI China and A-shares during the 2Q25 earnings season, highlighting earnings and revenue results across various sectors. Key Points on MSCI China 1. **Earnings Performance**: - MSCI China reported earnings largely in line with consensus forecasts, showing a slight miss of -2.4% compared to -3.8% in 1Q25, but a significant beat in weighted surprise at +9.6% compared to +3.1% in 1Q25 [2][13] - 217 constituents out of 557 in MSCI China had reported results as of August 26, 2025 [12] 2. **Sector Highlights**: - **Strong Performers**: Communication Services, Consumer Discretionary, and Financials posted solid results [5] - **Weak Performers**: Energy, Materials, Real Estate, and Utilities missed on both number of companies and weighted earnings [5] 3. **Revenue Performance**: - Reported revenues missed consensus estimates by -7.9% in terms of the number of companies, but were in line by weighted surprise at +1.3% [22][23] - Better cost control and self-help strategies contributed to the earnings performance despite revenue misses [4] Key Points on A-shares 1. **Earnings Performance**: - A-shares reported earnings fell short of consensus forecasts by -11.6%, a decline from -4.8% in 1Q25, but were in line by weighted surprise at +0.0% [30][31] - 233 companies in MSCI China A Onshore had reported results, with 146 companies providing reasonable quality data for consensus estimates [29] 2. **Sector Highlights**: - **Strong Performers**: Communication Services and Consumer Discretionary showed some positive results, with Communication Services beating both number of companies and weighted surprise [31] - **Weak Performers**: Materials and Real Estate sectors missed on both measures [32] 3. **Revenue Performance**: - A-shares reported revenue missed consensus by -22.4% in terms of the number of companies, consistent with 1Q25, but were in line by weighted surprise at -4.7% [39][40] - No sector posted a revenue beat, with significant misses in Energy, Information Technology, Materials, and Real Estate [41] Additional Observations - The earnings season is still in its early stages, and trends may evolve as more companies report [2][30] - The analysis indicates a mixed outlook for the Chinese equity market, with some sectors showing resilience while others struggle to meet expectations [5][31] This summary encapsulates the key findings from the 2Q25 earnings interim review, providing insights into the performance of MSCI China and A-shares across various sectors.

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - The analyst, Michael Del Monte, has over 5 years of experience in the investment management industry and previously worked for over a decade in professional services across various sectors including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. - Investment recommendations are based on a comprehensive understanding of the investment landscape, highlighting the interconnectedness of different sectors and companies [1].

Core Insights - The article emphasizes the importance of a holistic approach to investment recommendations, considering the entire investment ecosystem rather than evaluating companies in isolation [1]. Group 1 - Michael Del Monte is identified as a buy-side equity analyst with over 5 years of experience in the investment management industry [1]. - Prior to his current role, Del Monte spent over a decade in professional services across various industries, including Oil & Gas, Oilfield Services, Midstream, Industrials, Information Technology, EPC Services, and Consumer Discretionary [1]. - The investment recommendations made by Del Monte are based on a comprehensive understanding of the investment landscape, integrating various factors that influence company performance [1].