Federated Hermes achieves record assets under management of $871 billion in Q3, driven by equity and money market gains, despite slight equity net sales decline.
In this transcript
Summary
- Federated Hermes reported record assets under management of $871 billion for Q3, driven by gains in money market and equity strategies.
- Equity assets rose by $5.7 billion or 6% from the previous quarter, primarily due to market gains, despite a slight net sales decline of $130 million.
- Net redemptions in separate accounts were influenced by specific client actions, including strategy shifts in pension funds and mergers.
- Management highlighted strong performance in money market funds, contributing significantly to overall asset growth.
- The company maintains a cautious outlook, acknowledging potential market volatility and strategic adjustments in client portfolios.
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OPERATOR - (00:00:31)
Greetings. Welcome to the Federated Hermes Q3 2025 Analyst Call and webcast. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star 0 on your telephone keypad. 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.
Ray Hanley - President - (00:01:05)
Good morning and welcome. Leading today's call will be Chris Donahue, CEO and President, Federated Hermes, and Tom Donohue, Chief Financial Officer. And participating in the Q&A are Saker Nusseibeh, the CEO of Federated Hermes Limited and Debbie Cunningham, our Chief Investment Officer for Money Markets. 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. Please review the risk disclosures in our SEC filings. No assurance can be given as to future results and Federated Hermes assumes no duty to update any of these forward-looking statements. Chris.
Chris Donahue - CEO and President - (00:01:49)
Thank you, Ray. Good morning. I will review Federated Hermes business performance. Tom will comment on the financial results. We ended the third quarter with record assets under management of $871 billion, led by gains from our money market and equity strategies. Equity assets increased by $5.7 billion or 6% from the prior quarter due mainly to market gains. Q3 equity net sales were slightly negative $130 million as solid net fund sales of 1.4 billion, were offset by about 1.5 billion, of separate account net redemptions driven by one client and all their CIT strategies. Moving to passive ETFs and another client where pension funds were merged and the surviving plan happens to use private strategies. Passive strategies.
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