August 20, 2025 02:40 AM GMT China Brokers | Asia Pacific Mapping the Drivers Behind Our Bull Case of Rmb2tn ADT Household financial assets, northbound flows and modestly higher leverage will be the main sources of liquidity to the A share market and could lift ADT towards our bull case of Rmb2tn. Mutual funds could become a more important channel for retail to allocate back to equities. We estimate Rmb1.5-1.7tn inflows to onshore equity market from institutional and retail investors in 1H25. Major institut ...

Core Insights - RiverPark Advisors, LLC is a New York-based investment advisory firm focused on providing "Best in Class" portfolio management services across select style boxes [1] - The firm manages approximately $1.3 billion in mutual funds and separate accounts, utilizing seven different strategies in equities, fixed income, and venture capital [1] - RiverPark has formed strategic alliances with other investment advisers to enhance management services [1]

Financial Data and Key Metrics Changes - The bank reported a net profit of PLN 1,035 million, representing an 18% year-on-year growth for Q2 2025, and a 10% growth year-on-year for the first six months [26] - The cost of risk decreased by 39% year-on-year, indicating improved risk management and lower provisions [27][39] - The cost-to-deposit ratio improved to 76.3%, one of the highest in the sector [35] Business Line Data and Key Metrics Changes - Retail customer base increased by nearly 80,000, while corporate customers grew by 20,000, totaling an annual increase of 155,000 clients [3][4] - Mortgage loans reached a total value of €5 billion in Q2, with a market share of 21% for new production [5] - Cash loans saw a 13% year-on-year increase, marking one of the best quarters in the bank's history [6] - Corporate loans grew by only 1.3% quarter-on-quarter and 3% year-on-year, with SMEs showing faster growth compared to larger corporations [7] Market Data and Key Metrics Changes - The Polish economy is projected to grow by 3.5% in 2025, outperforming regional neighbors like Romania and Hungary [10][11] - Household savings rates are solid, higher than pre-pandemic levels, which supports the bank's business model [12] - Investment in the construction sector is expected to rise slowly, with public investment beginning to increase [14][15] Company Strategy and Development Direction - The bank is focusing on increasing market share through active customer growth and digitization of processes [4][5] - A revision of the bank's strategy is underway, with plans to present it on November 19, emphasizing improved customer service and reduced reliance on physical branches [51][52] - The bank aims to enhance private banking services and mutual fund sales while maintaining a conservative approach to risk [54] Management's Comments on Operating Environment and Future Outlook - Management noted that while corporate lending is facing challenges, there is optimism for a rebound in the second half of the year [63] - The bank is prepared for potential impacts from interest rate changes, with a belief that their sensitivity to these changes is low due to effective risk management [46][47] - The outlook for mortgage lending remains positive, despite demographic challenges, with a significant demand for residential properties still expected [60][61] Other Important Information - The bank's interest margin is stable despite fluctuations in interest rates, supported by effective management of interest rate risk [34][33] - The bank is actively participating in discussions for a model mortgage loan contract to enhance consumer protection and simplify processes [69][71] Q&A Session Summary Question: Future evolution of profitability of interest assets - Management refrained from commenting on forward-looking data but acknowledged that lower interest rates would impact net profit sensitivity [46][47] Question: Impact of obligatory provision on performance - Expected impact on the banking sector is between PLN 1.5 billion and PLN 2 billion, proportional to each bank's market share [48] Question: Interest in fixed-rate mortgage loans - The share of fixed-rate loans has decreased from 80% to 60%, as customers prefer floating rates amid declining interest expectations [49][50] Question: Strategic priorities for the near future - A revised strategy will be presented on November 19, focusing on customer service improvements and operational efficiency [51][52] Question: Improvement in derivatives and FX - The growth in derivatives and FX was attributed to market volatility and effective trading management [56] Question: Cost of hedging remaining flat - The impact of hedging on financial performance should be analyzed over a longer time perspective rather than quarterly [57] Question: Mortgage loans as a fundamental product - The bank views mortgage loans as essential and plans to continue offering them despite market challenges [59][60]

Financial Data and Key Metrics Changes - The bank reported a net profit of PLN 1,035 million, representing an 18% year-on-year growth for Q2 2025, and a 10% growth year-on-year for the first six months [26] - The cost of risk decreased by 39% year-on-year, indicating improved risk management and lower provisions [27][39] - The total assets and liabilities showed consistent growth across all segments, contributing positively to the net result [27] Business Line Data and Key Metrics Changes - Retail customer base increased by nearly 80,000 in Q2, with a total annual increase of 155,000 clients [3][4] - Mortgage loans reached a total value of €5 billion in Q2, with a market share of 21% for new production [5][6] - Cash loans grew by 13% year-on-year, marking one of the best quarters in the bank's history [6] - Corporate loans saw a modest growth of 1.3% quarter-on-quarter and 3% year-on-year, with a notable increase in loans to SMEs [7][8] Market Data and Key Metrics Changes - The Polish economy is projected to grow by 3.5% in 2025, outperforming regional neighbors [10][11] - Household savings rates in Poland are solid, higher than pre-pandemic levels, which supports the bank's business model [12][13] - The bank's market share in mortgage loans is strong, but competition from alternative funding sources is impacting corporate lending margins [8][25] Company Strategy and Development Direction - The bank is focused on increasing market share through real growth based on active customers, emphasizing the importance of customer engagement [4] - A revision of the bank's strategy is underway, with plans to enhance customer service and reduce reliance on physical branches [52][53] - The bank aims to improve its private banking services and mutual fund offerings, reflecting a cautious yet optimistic approach to growth [54][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential in the retail segment, despite challenges in corporate lending due to competitive pressures [25][66] - The bank anticipates a rebound in corporate lending, supported by public sector investments and lower interest rates [22][25] - Inflation is expected to stabilize around 2.8%, which may influence interest rate sensitivity and profitability [19][20] Other Important Information - The bank's cost-to-deposit ratio improved to 76.3%, one of the highest in the sector [35] - The non-performing loan (NPL) ratio remains stable at 3.9%, below the sector average, indicating strong asset quality [41][42] - Capital adequacy ratio stands at 15.66%, reflecting a solid financial position despite recent loan sales [44] Q&A Session Summary Question: Future evolution of profitability of interest assets - Management refrained from commenting on forward-looking profitability but noted that lower interest rates would impact net profit sensitivity [46][47] Question: Impact of obligatory provision on performance - The expected impact on the banking sector is between PLN 1.5 billion and PLN 2 billion, proportional to each bank's market share [48] Question: Interest in fixed-rate mortgage loans - The share of fixed-rate loans has decreased from 80% to 60%, as customers prefer floating rates amid declining interest expectations [49][50] Question: Strategic priorities for the near future - A revised strategy will be presented on November 19, focusing on customer service improvements and private banking initiatives [51][52] Question: Improvement in derivatives and FX - The growth in derivatives and FX was attributed to effective management and market volatility, leading to a 95% increase [56] Question: Cost of hedging and its impact - The cost of hedging remained flat despite rate reductions, with a focus on long-term analysis rather than short-term quarterly impacts [57][58] Question: Mortgage loans as a fundamental product - Management affirmed the importance of mortgage loans, citing ongoing demand despite demographic challenges [60][61] Question: Corporate lending margins and future expectations - Management expressed hope for a pickup in corporate lending in the second half of the year, influenced by regulatory factors and market conditions [62][66]

Core Insights - GAMCO Investors, Inc. reported an increase in assets under management (AUM) to $33.3 billion as of June 30, 2025, up from $30.7 billion a year earlier [1] - The company anticipates second quarter 2025 diluted earnings per share to be between $0.89 and $0.94, compared to $0.61 for the same period in 2024 [1] Group 1: Financial Performance - The investment management services business of Keeley, acquired from Teton Advisors on May 1, 2025, contributed approximately $1.0 billion to AUM [2] - Gabelli plans to provide further details regarding its financial results in early August [2] Group 2: Company Overview - Established in 1977, Gabelli is a recognized provider of investment advisory services, managing 27 open-end funds, 13 closed-end funds in the U.S., and one in the U.K., along with 5 actively managed exchange-traded funds [3] - The company's revenue is primarily derived from AUM levels and associated fees from various investment products [3] Group 3: Investment Strategies - Gabelli launched its All Cap Value equity strategy in 1977 and entered the mutual fund business in 1986, now offering a diverse range of client solutions across various asset classes, regions, and investment styles [4] - The client base includes institutions, intermediaries, offshore investors, private wealth, and direct retail investors [4]

Core Viewpoint - Dividend 15 Split Corp. II has renewed its at-the-market equity program, allowing the issuance of shares until July 19, 2027, with a maximum gross proceeds of $350 million [1][2]. Group 1: ATM Program Details - The renewed ATM Program replaces the previous program established in May 2023 and allows the Company to issue Class A Shares and Preferred Shares at prevailing market prices [1][2]. - Sales will be conducted through the Toronto Stock Exchange or other Canadian marketplaces, with the timing and volume of distributions determined at the Company's discretion [2][3]. - The program is offered under a prospectus supplement dated June 19, 2025, linked to the Company's short form base shelf prospectus dated June 18, 2025 [2]. Group 2: Investment Strategy - The Company primarily invests in a high-quality portfolio of leading Canadian dividend-yielding stocks, including major banks and financial institutions such as Bank of Montreal, Royal Bank of Canada, and CI Financial Corp [4].

Group 1 - The member community focuses on constructing income-oriented portfolios, with the Core Income Portfolio yielding over 8% through closed-end funds [1] - Private credit is highlighted as an investment avenue that is not limited to ultra-high net worth individuals, with closed-end funds being an effective way to hold bonds [2] - Alpha Gen Capital leads a team dedicated to income investors, emphasizing the importance of closed-end funds for generating yield while minimizing equity market risks [2][3] Group 2 - Alpha Gen Capital has a decade of experience in investment analysis, aiming to assist investors in constructing safer income-generating portfolios [3] - The service offers expert guidance on various investment vehicles, including closed-end funds, preferred stocks, ETFs, and mutual funds [1][2]

Investment Rating - The report indicates a negative trend in global equity fund flows, with net outflows of $10 billion for the week ending June 11, contrasting with inflows of $5 billion in the previous week [3] Core Insights - There were significant net outflows from equity funds, particularly in G10 markets, while fixed income funds experienced robust inflows, particularly in emerging markets [3][9] - Emerging market local currency bond funds saw strong inflows, indicating a preference for these assets amidst the broader market trends [3][9] - The report highlights a shift in investor preference towards short-duration bond funds over long-duration options [3][9] Summary by Sections Global Fund Flows - Total equity experienced net outflows of $18.2 billion over the past four weeks, with a weekly outflow of $10 billion [9] - Fixed income funds saw inflows of $77.1 billion, with $15.1 billion in the latest week, driven by demand for credit products [9] - Money market funds had a decline of $9.1 billion in assets [9] Equity Flows - Developed markets saw significant outflows, particularly from US equities, which had outflows of $24.2 billion [9] - Emerging markets showed mixed results, with mainland China experiencing outflows of $7.2 billion, while Taiwan and Brazil saw inflows of $4.7 billion and $0.8 billion respectively [9] Fixed Income Flows - Total fixed income inflows were $77.1 billion, with $64.2 billion from developed markets [9] - Emerging market fixed income funds had inflows of $10.8 billion, with local currency bonds being particularly favored [9] FX Flows - Cross-border FX flows remained elevated at $56.4 billion, with G10 currencies attracting strong inflows [11] - The report notes that the South Korean won (KRW) saw the strongest net inflows among Asian currencies [11] Sector Flows - Consumer goods funds saw the largest net inflows, while technology funds experienced the greatest net outflows [3][9] - The report indicates a notable preference for sectors such as consumer goods and utilities, contrasting with the outflows from technology and financial sectors [9]

Company Overview - Aegon is an international financial services holding company focused on investment, protection, and retirement solutions [8][9] - The company operates fully owned businesses in the United States and the United Kingdom, along with global asset management and joint ventures in various countries [8][9] Financial Performance - In Q1 2025, Aegon reported a 4% increase in operating capital generation (OCG) to EUR 267 million, driven by business growth despite unfavorable mortality experience in the US [7] - The company’s cash capital at Holding was EUR 1.6 billion, indicating 68% completion of an ongoing EUR 150 million share buyback program as of March 31, 2025 [7] - Aegon announced a new EUR 200 million share buyback program, expected to be completed by the end of 2025, as part of a strategy to reduce cash capital at Holding to around EUR 1.0 billion by the end of 2026 [3][7] Business Segments - Aegon’s US operations saw strengthened distribution capabilities and increased individual new life sales through Transamerica [2] - The UK Workplace business generated strong net inflows, while international joint ventures reported higher sales [2] - Asset management third-party net flows remained positive, although there were net outflows in US mid-sized retirement plans and the UK Adviser platform [7] Market Outlook - Despite an uncertain macroeconomic environment, Aegon expects to meet its 2025 financial targets, supported by well-capitalized businesses and significant excess liquidity at the Holding [3] - The solvency ratio under the Bermuda framework, applicable from January 2028, is expected to be broadly similar to the current solvency ratio [7]

GREENWICH, Conn. and CHICAGO, May 01, 2025 (GLOBE NEWSWIRE) -- GAMCO Investors, Inc. (“Gabelli”) (OTCQX: GAMI) announced today that it has reached an agreement with Teton Advisors, Inc. (OTC Pink: TETAA) for the investment management services business of Keeley – Teton Advisors, LLC (“Keeley”). Keeley consists of four mutual funds and approximately 500 separately managed accounts (SMAs) with assets under management (“AUM”) of close to $1.0 billion. As part of the transaction, employees of Chicago-based Keel ...