Federated Hermes (FHI) 26 Jan 242023 Q4 Earnings call transcript

Greetings. Welcome to the Federated Hermes, Inc. Q4 2023 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.

begin. may You

for welcome. CEO Federated and Officer Chief call be and Nusseibeh, the open will Officer. Q&A Cunningham, in Good be Debbie the will CEO Leading money Federated and for Donahue, Saker up we'll remarks, Hermes some is Donahue, Investment and President; Chris markets. participating After the the morning, who brief today's Q&A, of and Chief Financial Limited; Tom Hermes

we the duty we want results Please call, statements. make results, by in will filings. assurance Federated disclosures our may statements, and our assumes such risk these note the forward-looking update actual future No to and Hermes During can will be to forward-looking that of materially results statements. -- any given be be our to no SEC different review than implied as

Chris?

good Thank performance, comment Tom will business you, will Ray, Hermes' financial and review Federated and the morning. on I results.

growth with money in $XXX market We record had billion. QX, assets by under solid record management $XXX driven ending asset of billion of assets

first looking equities. at Now

$X $X.X up see positive impact but Growth billion including strategies, of Growth, net Mid offset international in Cap billion, MDT QX redemptions billion due to about Cap did and to and combined $X.X were Assets mid partially net XX equity by FX billion. $XX.X We market of gains from sales funds. QX MDT Large small

XX% year, in of were to and quartile performance the fund peers Looking data were the compared equity years their Morningstar category. top funds the beating our trailing XX% at at in for our using end in of equity peers, the X

combined redemptions $XXX of million. and had the SMAs X funds For equity weeks QX, first of net

fixed income. Now turning to

of high and $X.X corporates, increased sales $XX billion, QX accounts of billion, reaching billion billion. record a with led fixed multisector. Assets had multisector $XX.X income net Fixed -- income $X.X separate by separate accounts institutional about to by in

sales QX million net first sales $XXX sales income had slightly net $XXX net had income X respectively. Fixed have SMAs had gross of funds of in million, and and $XXX the weeks about Fixed January. and QX for positive million of redemptions

fixed XX fourth funds the the a Yield the an fund. in net Investment process We High uses including Collective Bond Sterling of Total the our Bond sales quarter, actively and the managed in to Trust Cash had that Fund. We positive fourth income Plus with similar core strategy launched Return quarter ETF

were of end At data fixed income using of funds and Regarding of XX% were the their the in our and performance. beating Morningstar years, category. for X XXXX quartile peers, XX% the trailing top

first had the net combined QX, $XXX For million. weeks SMAs and income fixed funds of sales of X

increased In to billion to assets by FX partially the mainly and million offset prior $XXX impact, alternative due category, by the $XX.X private quarter decreases. from market QX in markets positive

We third funds. Horizon of our series are of in equity market with the private vintage Horizon III, global the

As Horizon previously of billion III year-end. has $XXX.XX on commitments closed through announced,

had our of vintage second growth of We with close our XXXX U.K. for the in equity Fund market. first is Innovation approximately also market EUR is Nature the Fund. the Hermes vintage innovation And in August our we're XXX This in Impact first in pan-European private million. the also fund. II

including private funds private is diversified of wins total billion equity direct with in into XXXX across market These and strategies, and fixed credit. unconstrained and mandates separate began income, yet to markets. come fund are institutional both into $X.X We equity, About lending about to $X.X accounts. billion private net expected wins net

is bio short $XXX Fixed into equity, to sustainable is high strategies, the which duration, the investment markets equity expected Core. the with income ideas, net come Cap in expected About and million, credit. and GEMs, MDT wins net emerging Small totaled additions wins about of including short, million $XXX total global yield equity, ultra

billion, funds, fund marked launched for money XXXX management market money January recently markets. $XX innovation or XX $XXX ever quarter. XX, we and market record market money separate billion assets the fourth X% money year-end assets of to successful market term total assets XXXX, $XX $XXX increased account reached XX% We by of XXXX. Total market the $XXX of money we market and At billion money use of first highs on the assets as of in billion. years money or billion Moving during by fund and to

an money strategies alternatives, in market to continue such direct market elevated and T levels bank in instruments recently, asset and and, system investments from attractive financial Money benefit liquidity to yields as deposits conditions paper. such as commercial as the bills class, cash compared management for market favorable more cash

expected be money we deposit upcoming compared the period declining short-term strategies for continue that to favorable In believe direct conditions will of rates, market market rates bank market rates. and to

X.X% mutual sub-advised about up of end the market quarter money the year. was about which at includes share, market Our 'XX, fund the third funds, last at X.X% end from estimate of of

totals $XXX billion multi-asset. billion Money few billion. markets, market money $XX in private asset $XXX including assets assets days billion in billion, $XX billion mutual in fund in recent alternative as markets in at and managed of income, $XX were $XXX at a looking fixed equities, ago, Now $X were billion approximately

Tom?

Chris. Thanks,

mainly in lower QX was average This $XX.X higher lower million assets. and $X.X due for offset partially performance prior interest interest carried fees to Total performance the carried quarter from compared total decreased fees. money market QX. revenue to assets by Total million were equity and QX average $XX.X million and

$XX.X by interest decreased QX incentive expense in carried vehicles campaign. consolidated expenses compensation expense. Advertising to the to to new of operating increased in related mainly launch expense and million lower due compensation lower quarter due our prior from the QX

decreased mainly FX. to due other The expense impact line the operating item of

all lower being QX. of to fewer million results. income, else result impact is $X to factors operating days seasonal will ahead Looking about impact Certain The expected equal. in in

be primarily to compensation increases. addition, expense expected on early about and In to than of taxes QX million $X compensation, stock for assessment, higher our expense based base is seasonally higher and related pay payroll

higher compensation expense. have also expect incentive to We

vary based all these on course, items Of factors. multiple will

to Holly, we questions. now would for the open up call like

Instructions] first Chase. with from [Operator for JPMorgan question Ken is Worthington Your today coming

Maybe you strategy high Chris. for level ask years. over next starting particularly about to the X X to like you, I'd

So maybe company? starting, what are the for the or top X goals have you X

And you business. the is there, outlook the can the then some then the and and In for of goal and what franchise your for I'm your curious the strategy the alternatives fund talk about about ESG expectations and goals particular, for market money businesses?

Okay.

reverse. in go Let's

the to financial statements. This various information work not the and are On but actual financial that the ready more we ESG -- to we doing that ESG, these concepts integration have into continue analysis. features funds, features been way we with as tag integrated risk-reward where prime and this a is time, various unabated. defend in the show that for fluency on the subject And part to have order of further of ESG it's

in have European the the the is are We which here funds do to want, to that that duty the sustainable also U.S. clients in what going concepts we have sector regular beyond continue fiduciary on

we where remaining are we that. on were So

that believe risk/reward across board. the very analysis this also on We much help the will

forward go with So we to that. continue

the strategy dedication the been rewarded. On keeping had over the higher SEC, it years, we our basis well, arguing higher money all well money marketplace And of of the that funds over have lows terms the and market dealing funds, of of that XX frame. work time with and and alive with highs remember the the to on they realities in have

and of noting all serve as is continue viability funds to as money marketplace, that. market going will it forget money now the money the when that franchise which up, monies is variations the FHI, the to the maintain of ballast engine to are prove don't that future continue date, into in And market money into done funds a differentiated there These fund. ship the back that for the seasons, of for really we supply has

So that business. is we long-term permanent, a think it good

goals various all look internally way And years. double in the to at way is growth simply them enterprises, for one of top in spheres X in the various we view terms

going and not private happen we it's to as what is the on goal but the funds, especially would establish for markets. equity income, that's Now money certainly fixed

to that good things of said to income the the markets fixed equity that has be than a potential this on we the before, already enterprise manage the I of lot as have And private going here. and bigger group side we And business.

equity billion. records. the excellent. infrastructure Now all nonetheless, mind than it The we're The estate excellent. less private on is But is is you, working it's excellent. credit And have $XX private The they -- real is deal. good

are are and there -- that other right, get we management. the we have to investment Now those like to provide structures

what to We structure the are is. as indifferent

fund. bond see you for the now about return me mentioning total ETF So

idea have to a that another ETF move and in a We offerings, the is will some make for And as big plans onto forward. offerings full of more ETF us complement handful to be we add future. our go the

the are Don't the active are forget, ETFs. ETFs only ETF about X% total active market. these of And

money some not we would to goals technology, forget, areas. of of that other be So have on room to the there's we're grow plenty right those mistake. and tons I sure think in on that of we I'm getting goals spending skipped don't have. great a But

and about the here impact attractive can Chris money And and on for outlook dynamics of pivot and money the Great. business? so QT the market of markets, for Debbie. funds Okay. market maybe called yield what has the direct out sort talk that PPP, then versus you the on

Sure.

the increase retail the the I towards and it what's side, the side. is the mostly flows XX perspective does a with XXXX has over from a But think steep I in of you've curve what money XXXX. itself yield is institutional from that it months from the standpoint, That the curve in and market turn context has and more seen and the because well QT of been flows it expectations emphasizes think a relatively take side. of that's certainly more course of what It X been from away pivot the fairly a the institutional happening doesn't driver side. direction perspective as government the out into relatively something months, prime inverted last as flat yield on been, take

into for instances, that in that longer. bit going to go And and to the And securities is would, of money on -- something the last been most holds some be funds. out they've XX where cash market ultimately, that that of yield of way market securities means months little a in institutional buyer cash the the

mostly regard driven. shift is 'XX into to institutionally with being being our lot somewhat So outlook a of positive based 'XX on the retail institutional flows from occurs very and XXXX and a coming that

Adam coming from Your with next question Beatty is UBS.

have rates recent up most I'm Obviously, as behavior. get Just the XX bps. articles about flows gone your the XX additional still But comments some press on -- are with up. paying the wanted in that to accounts" seeing over "high-yield retail around and thoughts follow folks or strong year savings

inertia So some that supposed. than have suggests might more retail maybe

to get money time So some even market maybe I inflows how your back thoughts rate strengthening in just lag that sticky with maybe funds. then the long around a and wanted money be there side might and how of on might of be a how your retail continuing much cuts, tail, in

from the Sure. that -- just They close rates. zero-rate And or and 'XX, of $XX under something really deposits during trillion the X.X XXXX trillion $X point XXXX go in that with let X bit standpoint at you over years the lesson. a to and pandemic through start was just up started with to ran And trillion, to the environment then so, a higher that just continued prior little of $XX in history area. financial back a problems if me we're a little XXXX,

safety So wasn't the ultimately, of yield, from attractiveness there not -- trades deposit was any products environment. perspective, into went yield thought the doubled deposits think because concern marketplace. retail I in that a of they really the in the because but And

with last that are why money course saying funds deposits What past are the decreasing the done. you've over year, trade increasing reversal surprising seen equatable. is not in $X.X I'm not of trillion, the numbers trillion Certainly, retail it's that the which has years small X.X that those is X of that, $X been a

there, payment from point Having said many $XX out that, there's in XX a XX, as XX, of in you know, basis still are trillion which, perspective. camp deposits the left

have expectations look rates betas quick would increase a as been for that, you from increasing, banking they to when to deposit Certainly, that with continues. decrease. their the trade So at products, perspective have are deposit be been but markets very loaded

far given at Now I'm that, up this be not to haven't point scenario very in gone will the begin with. sure that that case they this

But continue. and in awakened, retail all cases, I trade has think will been the it

basically contribute the but market. in that the institutional will I trade flows to think a XXXX, by continues matched factor this be certainly it be will in to

to Tom particularly That's Yes. what and step-up great wanted XQ just gave drives there. perspective. to the incentive compensation, wanted guidance kind a just of some on comp. And But turn then around around a incentives. reminder

markets. some the pretty and in of outflows Recently, strong money we've also market growth Obviously, asset very funds. had funds but long-term separate accounts, some the in strong

could you really what if put incentive So just context around some comp. drives

Adam, of Yes, year. the we recalibrate for course,

is So performance. -- say management the how group. break line investment year on primarily based comp of and kind They on the the go. does. it operations that then are the we side on side for in paid In down I things, of compensated expect company And the how go did incentive they're and up well to sales sales

to to we expect So grow. continue

pretty performance to We the expecting uptick. expect we're investment and good sales,

I earnings that's and we company to the in, why expect come So grow.

I'm why go I expect comp the that's up. saying to So

question coming next Bill Katz with is Your Cowen. today from for TD

Just questions a couple this morning. of

Just the go to benefit down, to between and on the year equilibrium of follows institutional the that market? say, now? money Fed little sort more back So scope transitory from you this the bit funds ultimately in the if given and sticky highs money the there market here of markets, T-bill, direct push higher the get let's just path think How structure does are is market the or a dynamic. you is argument a

back. is first welcome Debbie answer let of that, And on her Bill, all, higher and to higher and the to lows. closer highs is my And market comment. that Well, I'll

more what it generally response are, sticky? does. the while. retail Bill. a than have once stays investors conditions trend a I given in Certainly, -- to How begun investor sticky. market think what institutional very Ultimately, has market options for But

that inverted what associated investors in duration institutional flat a, with it. call, a rate has you're environment, I'll in So declining product to see to or going more

investors and about in depending part market X% type into put money would cash, institutional of of a created upon essentially what cash maybe became measured the very ultimately, from the then overnight strategic cash the be And in and almost cash sort perspective, was needs needs all Now term, which cash, environment a that and short operating and rate more cash is in ultimately their how market. They buckets environment, transactions firms. their declining core becomes of of longer-term the stable franchise. play

go to when and context longer yields It's bit up or little time. for becomes longer higher the yields those only a in you the strategic a transitory start trying see capture interest rates that -- of more to for of to back start a period it operating,

'XX, rate in So and In there's and nothing we current different expectations saw during ultimately the something time different kind 'XX in the change it's in are We last marketplace a seen over drive cycle. we've that products trend flows of decline really that. expect that that as it. rising of our the dynamics -- there's COVID. saw 'XX, no similarly would this that on But it the environment drives

follow-up. if I it's for or one know Saker for Just Tom. don't

or you of help Just your how have for much performance private as are track carry a about to bit fees? of to us more business to AUM a sort terms there get continues how is larger building think monitor eligible markets way opportunities, performance some understand trying and carry fees wondering, and/or you or in to

of was help a that could to transparency triangulate becoming bigger if that wondering your think versus number, much I how us not peers. through. and some It's there's you

or and the each to the of it. give that we're performance know cannot year. for and quarter and go to "Hey, has -- we -- just of again. willing to there. we range is the fees what numbers dilemma come been we kind Yes. how that past," your to we've out understand not I predict past, the And going in the over do the We've It's out say willing We're tried much here's said,

So much you there. I'm guidance not really giving

follow-up you my a Is don't Saker non-answer. to have Saker, if I know on?

to kind than other no, what So to maybe you said, and explain. of just Tom, reiterate

our about makes is which building market a private difference markets private us other business business, we're different. The diversified very

So to that's And players, private equity. performance we private our yes, for comparable carry equity from fee other example.

where you also take varied. estate, But our is have real we if fees, performance that

Some of when it has buildings we to do with renting out finish the placemaking.

also of has targets. we similar strategies, achieving performance have it other then Some to do fees. with And

we That at not to look here win like. over only but not. And targets, fees whether implies private we can it's help. The record. can't track our you you which We to our we're our is is something performance can much thing guarantee. are say they is performance hit look time historical growing look a market not then future obviously, can't growth, afraid the or what we I'm right assuming and proper, we which that numbers, predict So business,

So not just help I'm tell of it's the our much than you nature to other business. afraid

coming from Kenneth next is Your RBC Markets. Lee with question Capital

the In mandates anything Any to terms changes saw? that you in call was quarter, there? outflows out equity there in of the

about One on the phrase that it's pretty fund, that comment for dividend were $XXX were negative I sizable they you whole strategic at December, October, the is million. I the -- would November, put million. they worse, make In negative and, $XXX value million. it negative less In good we're that they And just redemptions let's sure, would look $XXX year. In were way. you if getting way if those,

far this this or about so And month. XX year, they're XX negative

it's so declining. And

namely they little a are And what's on that people growth going clientele selling it into to does that, going wanting that's and the on product the some just dividend is there? out more Well, a risk what of of more, of it is see there what the product the What's on, beauty market who with understand it says, that a is. dividend. go

that's one I So make. observation would that

one may. helpful I if Very you. follow-up, just And Got there.

meaningful give share in outlook potential repurchases any this the M&A for the Given environment. especially in could acquisitions, if just quarter, updated thoughts you wondering around

to we Yes. Ken, it's active and that Tom. continue think will We shares, bought we that. be doing

of some have money looking on roll-ups. In active, interested in group actively more M&A, maybe We're always type out little some able in things to interested be they're We're our buy and We're in a terms funds. things. the we'll roll-up there we as Europe, working there.

then And what there's efforts the purchase or we the see And talk our though. we've private announce to U.K. before, talked to can team. as in specifically, we've markets, some in put in U.S. nothing complement about to

Your next question Fannon is coming with from Dan Jefferies.

just One question business on the backlog. alts and the more

it that Can what of you a as was $X.X time show mentioned. of a I the is see around think that and/or you us up billion backlog? kind fee reasonable average And to expectation rate give flow? of that then what's fund

that's it a and fee private year time income over market it the X. typically The Equity money out a so longer move strategy, pipeline, than more commitments. And money typically fixed markets fee about, X Yes. would numbers runway earnings. the is an And actually when longer we years take the quarters. becomes is other when depending out has or fund become that then earning. But investing, flow the really of that's Dan, frames. actual to that of wins be and private couple the that get on flow, talked are move a will we when down to and the up into drawn happens

comes be and and faster. a And maybe markets direct that, in the illuminating. bunch has lending the is other And credit, timing Saker would is more a billion that half. that part private that of on And $X.X of unconstrained about

lending X been The we'd estate we that private to -- year we equity, difference and expect So and do which on, things come is growth, in, have within that -- take is -- we do as And start it's and Chris. at down different, if is difference like it's private we so from direct real equity quarters about enough, committed. soon announced the we in as it Horizon or well. this as stage, investing, it you've normally, horizon. When drawing large funny any a thank and a to as heard deals, whether longer-time haven't when tend like does things you, we

best stage. straight quite the that guidance lending give that's So certainly at fast good But direct can and is lending. this is so I

roughly. And the of average fee rate that backlog

go go -- varies It Saker. ahead, ahead,

exactly I same. no. to say the going No, was

So then base strategy, is and -- structures, the so give very guys pick percentage hard for up example, it's guidance know it strategy. The different where give private and it it of the other of base a because performance varies private with strategy of to to and fee the on equity like on you would hard the and I But kind a performance have varies equity and on. different fees fees, we kinds strategies fees. very

singular I'm strategy. very or So you fixed do -- because still from strategy just to is business It income. alternative our like to very depends difficult market private it's number or a afraid, give equities for

bit Okay. that reasonable XQ rate higher, Or ongoing? an a what's And the a then that ad in ad drove for spend a run Tom, 'XX? just is as follow-up. quick campaign

look we're I the expect 'XX, -- I whole when and 'XX we're as 'XX as than on. to we're QX Dan, the the at still whole I'd use the do take to a little add I'd divide and bit a run exactly number. would it year campaigns, working then more to But guidance, but of And up. 'XX's going the I'd going rate. run

Brian from Bank. is Deutsche next Bedell with Your coming question

Great. from A comments. couple expansions prior

maybe will side. start money we So Debbie, market the fund with

great color might But a do addressable for have be market inflows things sense like money from into what Federated T-bills? funds again, Just the there. coming of dynamics market on you the

could -- proxy and now do better is the we the see market addressable that? into in Or think of XXXX we as you XXXX for general a inflows? should And be thinking larger

that on 'XX of I basis, teens, experience one. on and increase. probably sort something let's time we're the in a say. think goes that's up markets the basis percentage with that the high I 'XX frame the using a Obviously, expecting, think But good there is percentage to a probably

just answers, of Chris' Saker's then and on And helpful. That's to okay. back this. answer the private markets, triangulating on back first answers Okay, some a couple

terms of the and well. But if substantially, just think know track name got I the view and you very particular -- about I this what's and U.K. great In and growing assets fund a market nature-based for now? Is you've have infrastructure more good energy on obviously fund infrastructure the as you transition, you record. that brand than and are up? guess, of your scaling kind are dramatically really these

Is feel it really a capacity and constraint? dramatically? Do launching teams? place and the market in something you you after you funds need Or to infrastructure it's acquire that do that have more start you more like can going on

old it at doing needed open it viable When operation. follow a type and to will the wasn't done of private done if a that be first, Hermes thing a be and days, pitch called, needed make to to take platform I'll originally for to bought work question. of enterprise, all then all we was in next order client that entities you was the a Saker in the lot gain there And market we was the proper the the it answered a control things. swing structures. The And up. those Generally, of needed client. single market

infrastructure X things particular in we working working still of the last years, had those over on been get we're right. on subjects. the So on have And those that the on things to of couple some

happens, sales, market, we're internal thing we sounding is had to the I things happen. The and have sales in in next repeat that say, there's in person joy great a as last conference London So of week. that the

now Pittsburgh. have global to the week is the But take marketplace. point in will and virtual. over score We sales it's time coming our the coming next of sales for out be play up conference that It

And I'll let well. as Saker make some comments

Thank you, Chris.

the in on just a hoping So we're which Chris we for some to endeavor that. much we we're to doing more as had side, add particularly And sales to the marketplace. work, hope are new the is finish, we very infrastructure were where Nature seen said, innovators. what with and

returns, is trendy as it what Now say was that And Hermes we would general could follows, of we true or it is about everything the did, enhance I of in which transition. the old we because is did the because theme just we moment. thought the was franchise not

various we are clients that in we private various involved in ways and invest just much markets So transition very of looking the could in strategies, the energy our across not process. and in theme the ways in benefit at whole board

that the it's that The think rewarding it's we've when to this we're in whether it We we we that and go we of difference nature if which sure make do foundations sales because the is to the rewards we slow, do sense, thematic fast, sense something, not this but ESG makes risk back kind at will an of going is differentiator is profile, as Chris whether the believe right I launching us place. And to thinking fund right about we something in we bring that so do a strong think it's said I rewards. seeing for enterprise thoughtfully, when the hope others, beginning that differentiates you is integrating -- launched, right. what funds, return with call, the this way from think I time the it's and approach, the we that stronger whether start and foundations happen, will the everybody,

have you to internal feel do now? you execute accelerate you Or strategy do the right capacity M&A think that? bolt-on would And that

the put let's this question first. way Well,

we're as bolt-ons. love call it throw already Tom But do on viable not talked in that right toys estate would about before on We do how some has mentioned accelerate the States. would a right to now. like now. We love the thing real it United this the it. efforts, we could have hard to place something to We Saker buildings.

bolt-ons would but yes, good, are So be mutually exclusive. they

you bolt-on or have do don't future that the get able to toys mean a for it looking would you're because Just the be to doesn't to anyway.

Your next John Evercore. from Dunn question coming is with

be beneficiary. for do the picture of For you What big income next takes guys? seems should are franchise, affects you think areas? puts fixed that phase major product and the It rates the you the the how like

are to of of I'm excellent. here the under of increased there record with CW assets munis. there, several management. off including And performance interest seeing has and in going Well, in the them the terms And been funds start SMAs both Henderson growing the there. terms in we're

look as go. to people bigger place that's So for yield, one

places, and of core And total strategy, records obviously, SMAs type other why fund core we the strategy. ETF the -- are our bond In with that's where did simply that the return outstanding. the

gets It's which Sooner now or credit that later, refinancing. we high-yield and the And job companies all there. think you of and lot a a you visibility. opportunistic analysis having more and the our do a good own of trouble more own we on ones the excellent are question whether history

product that. answers. very they solid if when their the what you the it, And the say, well, want income look intermediates, reliable, you helpful want have all maturities?" them are when about we out then got shorts, ultra that of people to shorts, you the gauge at and money across So have approach, we really to the fixed we spectrum spectrum, "Okay, the do the to way And funds and micro ladder

very strong the I income is future. and very, up the for So fixed franchise think well very set

over Got you. U.S. retail the into we normal seem Hermes going and to both institutional? environment as U.K., for specifically, a of course strategy of kind and 'XX, more outlook and the be then And in what's the the

swing that a one. at I'll let take Saker

Thank you.

U.K., in That's somewhat exposure have break large out if an So emerging exposure markets. been franchise the to you a that's we of favor. equity in our it down,

of China As the of you world, you particularly if tells performance you at emerging versus rest the it why. know, look the the markets,

over by is We which team, of of strategies. one outstanding One running have strategy, an is performing value strategies which -- the we're here a kinds best another and the separate there. we one two have

contention more stage, attractively our inflows. back, come get allocators would would worldwide, valued we more we Now is the asset into at some that some strategies. general more assets they particularly with as those And put will inflows environment see year things this that imagine so see

to want to would funds people the franchises, equity other them. of to and and allocate have we the so We impact thematic on, expect biodiversity, continue

at demand, our expect look team you our and from as flows you've continue our income, see fixed If continue. teams release, that to good to seen we our --

happy So I'm with that.

pipeline, we've And already covered. the very strong which talked And lending, alternative is franchises. market in we've about already our direct

but move prediction, you I environment market is imagine of couple market none market behave that's the tough would can't obviously, a to So as over we this predict, of years. because the because this the how last environment in of forward

the end Hanley will the remarks. now We And for have I Ray closing the turn reached over session. to question-and-answer call of

joining for concludes Thank and We our you, today. Holly, call. thank you us that

for conclude and This disconnect at this your participation. may conference, time. does Thank your lines you today's you