Q2 2024 Federated Hermes Inc Earnings Call Transcript
Key Points
- Federated Hermes Inc (FHI) ended the second quarter with record assets under management of $783 billion, driven by record Money Market assets of $587 billion.
- The company saw positive net sales in 11 equity strategies, including MDT large-cap growth, MDT mid-cap growth, and International Leaders Fund.
- Money Market strategies continue to benefit from favorable market conditions, with total Money Markets assets increasing by $8 billion in the second quarter.
- Federated Hermes Inc (FHI) is in the market with new private equity and direct lending funds, indicating ongoing expansion in private markets.
- The company expects net additions of about $835 million in fixed income, with wins in ultra-short and short duration, sustainable investment-grade credit, government bond, and emerging market debt.
- Equity assets decreased by $2.3 billion from Q1 due to net redemptions of $3.3 billion.
- Fixed income assets decreased by about $1 billion in Q2, with net redemptions in both fixed income funds and separate accounts.
- The company faced a $66.3 million non-cash intangible asset impairment charge, impacting operating expenses.
- Federated Hermes Inc (FHI) experienced significant redemptions due to the departure of a UK-based senior portfolio manager.
- The alternative private markets category saw a decrease of about $400 million in Q2, mainly due to net redemptions in the unconstrained credit fund.
Greetings and welcome to the Federated Hermes Incorporated second quarter 2024 analyst call and webcast. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Mr. Richard Donahue, Vice President, Financial Planning and Analysis. Sir, you may begin.
Thank you. Good morning. Leading today's call will be Chris Donahue, CEO and President, and Tom Donahue, Chief Financial Officer. Joining us for Q&A are Debbie Cunningham, Chief Investment Officer at Money Markets; and Saker Nusseibeh, CEO of Federated Hermes Limited. Ray Hanley is attending a family funeral and will not be with us today.
During today's call we may make forward-looking statements, and we want to note that Federated Hermes actual results may be materially different than the results implied by such statements. We invite you to review the risk disclosures in our SEC filings. No insurance can be given as to future results and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
