Q4 2024 Federated Hermes Inc Earnings Call Transcript
Key Points
- Federated Hermes Inc (FHI) ended 2024 with record assets under management of $830 billion, driven by record money market assets of $630 billion.
- The MDT fundamental quant strategies saw strong performance, with assets reaching $13 billion at year-end, up 70% from the previous year.
- The company successfully launched four active ETFs and a new collective fund, accumulating approximately $424 million in assets.
- Money market fund assets reached a record high of $462 billion, with total money market assets increasing by about $37 billion in Q4.
- Federated Hermes Inc (FHI) has a positive outlook for money market strategies due to favorable short-term interest rate conditions, supporting cash as an attractive asset class.
- Equity assets decreased by $4.2 billion in Q4 due to net redemptions and FX impacts.
- Fixed income assets decreased by about $2.1 billion in Q4, primarily due to market valuations and net redemptions.
- Alternative private markets assets decreased by $1.8 billion in Q4, mainly due to FX rates and net redemptions.
- Q4 operating expenses increased by $17.5 million from Q3, largely due to FX-related expense increases.
- The company's market share in money market mutual funds slightly decreased from 7.32% to 7.22% at the end of 2024.
Greetings. Welcome to the Federated Hermes, Inc. Q4 2024 analyst call and webcast.
(Operator Instructions)
Please note, this conference is being recorded. I will now turn the conference over to your host, Ray Hanley, President of Federated Investors Management Company. You may begin.
Thank you, Holly. Good morning, and welcome to our call. Leading today's call will be Chris Donahue, Chief Executive Officer and President of Federated Hermes; and Tom Donahue, Chief Financial Officer. Joining us for the Q&A are Saker Nusseibeh who is the CEO of Federated Hermes Limited; and Debbie Cunningham, the Chief Investment Officer for our money markets.
During today's call, we will 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. Please review the risk disclosures in our SEC filings. No assurance can be given as to future results, and Federated Hermes assumes
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