Federated Hermes (FHI) 26 Jul 242024 Q2 Earnings call transcript

Greetings, and welcome to the Federated Hermes, Inc.

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.

you. Thank morning. Good will Tom call Donahue, and CEO Leading Chief be Financial and Donahue, Officer. President; today's Chris

Joining us Federated for of Q&A with family are Debbie Cunningham, not will and Hanley attending be Nusseibeh, funeral Ray and Money today. Chief Saker CEO Limited. of Hermes us is a Markets; Investment Officer

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

I and We business market driven Thank $XXX review $XXX will with by you, second Richard, Tom billion. of money comment results. financial Federated assets performance, and ended our the record billion, record on quarter all. morning, management will of Hermes under assets good

first equities. Looking at

end International billion the in billion $X.X in of sales fund sales about the XXXX, fund sales. Leaders Fund. quarter, Assets MDT redemptions have space. of and from decreased strategies in strategies, gross sales had through Large net gains partially net by offset did QX The second due billion, of accelerated growth, and and particularly growth growth positive including net QX net $XX.X MDT market billion equity see by have Cap sales shown Year-to-date, in strategies and million. $X.X in Mid the to We to $X.X Cap XX MDT $X.X $XXX MDT billion

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

first of meaningfully net weeks my and for SMAs million, equity Now, funds $XXX say, less combined of redemptions worse. equity QX, X as the had grandkids

income. fixed to now Turning

Fixed $XXX Total redemptions billion. a had income positive QX including institutional redemptions to in those $X net in in on net XX and about more Assets decreased income billion Bond of income of fixed funds $XXX million, QX sales QX, income. Fund We $XX.X net fixed had and Return funds with by fixed accounts moment. numbers million had separate

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

Growth $X.XX strategy market invests Hermes We're Horizon and with a globally pan-European Direct of We're Fund. Equity the III, Lending Private vintage in European Innovation Fund mid-market XX-XX on billion, markets. combined with raised. by a markets For to due We $XXX net mainly the SMAs fixed private about third vintage our $XXX QX, decreased equity in Fund $XX had first million. of X the -- of million category, about series weeks redemptions assets held in $XXX private in SMA to alternative the market third our Fund. now It's billion of and European over Lending in co-investments QX our and income million. In our of redemptions of Horizon III, of to close funds the Credit GPE Horizon final with QX global II, the the second of Unconstrained our net roughly just funds. Continuing vintage private also with the Federated Innovation allocation with with focus. Direct hybrid

of to will $XXX fund offset redemptions, $XXX For later. million up known come by equities, million we wins have that again

private developing developing the private-label side, are fund, QX global we vintage get PEC the on targeting are to -- back a of the co-invest equity sixth the series, We launch.

leverage and as credit process fixed strengths And global basis. high These harmonizing of redemptions yield teams redemptions U.K.-based of credit been and on billion Credit, the portfolio we've estimated about to this in QX a senior asset some $X.X to I are a U.K.-based considerable back attributable Unconstrained our these income Now multi departure certain U.S. We the of mentioned, that to manager. of redemptions. to QX net occurred the strategies. get largely in of -- group

So additions Both and we we in wins mentioned and income expected and is fund the with private fund mandates begin net emerging already million market billion wins billion of market expected fixed accounts. private with funds QX are of losses $XXX the net redemptions. Duration, wins about equity offset in which across with and mandate separate for credit, institutional equity. About both private $X.X strategy known markets, about in come to net in bond direct into of in to $X.X lending. Fixed is wins in to yet Ultrashort equity These million million and global is diversified total and by area. the government equities, have are that $XXX I've debt. Short sustainable wins investment-grade $XXX income

compared we the In and Total market period fund instruments is to will favorable another class, deposits Money reached record expected continue strategies be to that paper. It and cash and deposit rates. market money T-bills cash market mentioned. in quarter. for $XXX and attractive quarter, rates alternatives direct favorable the high system money of money declining levels billion, bank second like money believe bank strategy of market for market to commercial market Now the assets $XXX management and to money total continue liquidity conditions increased elevated conditions short-term market billion for in direct compared the in an investments financial like by yields market rates upcoming $X which second assets moving the asset money already I as we benefit markets. assets of from market to billion, in

share, money including sub-advised end from end fund the the funds, of Our market QX, estimate at market about at X.XX% of about was X.XX% mutual up of QX.

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

QX X% increased of about expenses to quarter. from prior All of to value fees. Total mainly and Thanks, Chris. the XXXX carried intangible in impairment QX market lower performance other million tax foreign Total quarter. Advertising compared cash impact increased the reflects due X% the quarter, the in to the revenue revenue quarter, to carried were by quarter. rate Hermes $X.X The lower performance QX offset charge million operating ad deferred was from prior valuation or projected higher assets $X.X mainly change million revenue and QX assets, one money flows the increased impairment charge. from allowance equity assets compared of charge. The from for $XX.X due $XX.X the in expenses expense decreased due effective Limited fees in partially assets and of intangible of noncash by from changes million first asset the interest on revenue in million prior the due interest to million $X.X by $X.X tax the or $X.X the Federated million prior timing from programs. acquisition higher from million operating to of QX $X.X the our fair impairment and the

Cash of noncontrolling like XX% questions. be the in were remarks, was of to rate QX, completes $XXX We and million. investments, that open up rest $XXX expect portion the and investments to and the the tax the cash XXXX. attributable million. Ali, our XX% for the we'd excluding to end prepared interests over to At call

Research. with is Our from first question Autonomous Davitt [Operator coming Patrick Instructions]

when You've expect Fed say, the up speak to you up. bets pipeline more early on that this fund the you the of hinted kind to those -- -- pickup those conversations year? been later you you're pointing -- at coming starts maybe Are you a money me, you really you like could are cutting, Are could point to, been you've mandates that of soon today. in accounts? pick with it now an again flows, seeing pointing excuse of conversations having to happening And are in institutional picking that would

we began it in detect happened comment will But to it's they're ease I'll to at times they that they gone before rates. when clients to QX they progress and how begun to time of Patrick, hasn't we've also of And exactly with what's Debbie happened when what institutional this. up on long-term XX-or-so this looking us but when on every -- because confident how rates percent went in out worked in the going terms through movement yet. Debbie marketplace, for that 'XX XX%. assets, industry have let remain ease event and hard on began in the of the that discussions of a very increase of comment about number

Thanks, Chris.

XXXX. but we're cuts, the it's ongoing. that in XXXX went in market, X X.X expecting discussions of rate a so been market expecting -- having, estimation, our the As for to say, no volatile. cuts into down quite We came XXXX, overdone, rate We in the with they're low let's

until happens, it's actual far extending is not the And that the of we sort in movement volatility. Everybody funds it so have of rate core but happens, moving But maybe discussing, little operating everybody within much same cut discuss cut to market They're our had anticipation. is curve cycle, their all until extending generally prepare, customers generally so don't bit. that strategic you are to likes likes a which to movement taking happens. clients duration their doesn't see been. start Everybody cash, whether our and with cash, first occur that fact, of their in first duration, conversations for what themselves have cash the any up discussing this different the some the questioning we're or money

about Fed them. There expect in we December, or that having are September of all in we're are that's we when not occur They conversations. cuts type really should movement nothing is yet if what would that So November seeing or the likelihood. are those healthy. but different They

as lot could that just about a that you amount up this it. half around are second of a how have Can price take to still is quick still fair You And share point? that at pick a Got cash, you repurchases? we $XX. follow-up, thinking mean

I to would certainly be that would expect we say active.

You little but still we the believe did saw $XX, past lower undervalued. a quarter, was the that than is stock we price what this and

Adam Beatty next Our is coming question UBS. with from

was of of toward time maybe a funds, of the X a top-selling cap that and into bit emphasis. Just or more with there large-cap a a rotation among that you, cap, to smaller coincide this tilt or the broader seems of have Mag equity SMID out growth, what noticed bit

fairly it's wondering, recent. Just

that and So just in wondering you're whether how pointing are seeing your their clients direction. that conversations

to flow weeks X do. is hint know a only X that, it's And X weeks, Adam, A thing hint with the of that's because not that you data. worth weeks' best of --

in happened performance what's a for you maybe However, that. the gives reason

take and we Value which that Strategic of facing Dividend, Mag the headwind all reversed, know. was as You been X, that's

down and So quarter-to-date, Strategic is is Value X.X%, the Dividend X.X%. up S&P

But So Morningstar, on those too. look -- the in at in category leaders are right top The leading year percentile with in And we is months is the the as numbers dividend that's an helped one of short. doing trailing group this the the and you you will X that talk is the well which see this for fact don't touching into another fund products X quartile Again, the many bank if and particular for in the ETF in take the July's that's we you that is you're holdings you tear way peers, fund. And X peer And always you so Kaufmann its of net top is the one our the odd #X dividend-oriented numbers, the the funds, like, XX% trailing if and for now. have on Fund, fund. the say, months. clubhouse other fund portfolios, been finance about redemptions. if in that

kind and move. And that's since trailing the expand going of XXnd of report. is ex-Japan of as So Asia It's and percentile the X on green who the little July, months. in good just years our point top And just in top X% that from bit, year-to-date I'm the preceding X The the a of GEMs it's on. and to what's are other across pond a redemptions XXth view the numbers. this is quartile the product about in for of of shoots the leaders approaching a the --

when the curve are So the MBT and rotation join risk they stepping it's for smaller cap intermediaries stocks. and Debbie the -- mentioned the helping on both institutional talking funds and of many rotation yes, and are we step and are And the the going all clients, out both extending especially seeing these the small duration side. about then that to

bit last of marketplace. it has weeks, a the been change a over the X in So

shoots the report I the green detail and appreciate there.

to Just market money funds. turning

been One on pay if there move. but of And of several the that wondering the the management with client firms potential in need to just conversation wealth do obviously, cash. that, different has I to big those channel see topics are opportunity you options yields that higher have was

around of Yes, just money 'XXs age what, their getting started had when Back one. were the from look yields, X.X% yields say, the we the opinion. start funds and money advertising here's talking in taught of it's time people first way X% way fund," But X% about interesting for And lower do. the a you the trade about the sudden, yields. in "Oh, my were yields X%." higher all it And one yields, I the they're or say, going bank and helps the to money They saw raised of guess that to their funds that woah, they stone market "Woah, the than the you retail banks and fund. in when

returns like What move what's on. do marketplace marketplace people whole is better that's for that And if they're we a lot about the and cash. going their so the getting

so And got higher based yields, sell is out we money going I about. think well that's to to if talk they're higher, work they're what then on to and us. the And out for find fund going that's

Dan from next Our coming with question Jefferies. is Fannon

it fee the rates. came quarter better. A a in bit little itself, In the on question

demand that trends prospectively, think So curious also, products underlying within on basis, in in longer-term terms competitively -- be or if -- getting rates how money the where some thinking on as also you're market in certain the may that little a maybe they're of sits products there of about are the both context but you the about better. you of funds fee that your a market? kind Then bit

month, performance, attentive comes a fee prospects think and every have at assets, activity closely a generate to does product, the expense regularly all priced fairly each at more don't product, sales rate the that certainly pretty are, about on monthly and Well, all that so in, basis, products, meeting the where what we look think our of looking the know, we -- high think we where is you analyzing our each that can and mix more for at but product not total but and from cover they are every as and a do very where success. we track fit we we products we and I have our well level,

what's kind here but of half out the as budget there's of in been about buckets, outlook Okay. the first you about on run growth expenses, just second And sub in the year, think of the back seen you've or you the just then think half in various half? the call versus to the curious some anything if as rating

expected. up expectations. on the comp that's a eat continue we side of performance investments the comp and half. second on forecast [ go performance not interest to than up. up. probably a number and the would we drive kind performance, Chris what of was Well, first ] you And Advertising market just I that, would whether expect giving I heavier green is we without about like And to on is or carried numbers talking we're more I'm year, shoots line that promotion, through would the based And down see and that in going anticipate Okay. second incentive usually get our the Systems not to little comp answering get the the half distribution higher there. communications, and of numbers comp go the to assets and money half that. But expect will course,

million which see second occupancy, So prospecting the the a reason comes of year be going and do directors, that, the much up. side, our we we much to are It more on elect in other not that do I it, of to why revenue, line the XX a Office reduction it expect really as is little half -- item. service a of comment come about a fund Professional that's year. Travel which I is point, have going a year. And have call but the of kind to is the to years, and $X expenses, would it's in fees, of because be every of one and the or versus half for in have we proxy reduction XX slightly revenue related, And and expense the on. there. changes first to don't of don't that we half waivers. to second

get we all on the but revenue we'll $X so second of doesn't over elected estimate half directors get And million the a the show the expense lines, it up and to properly. cost lower year, that's

next Ken with JPMorgan. is Worthington coming Our question from

love for markets on brand to aspirations the tranche at the that bit charge launch acquired, first I Hermes. to and you the products up it 'XX. color since ESG impairment there leverage know I'd was to and a get in Since So grow. was, announced, the I least the in, U.S. more deal was quite Hermes think are

here? didn't happened Why what out? So What the work impairment?

Okay, Ken.

time did the we assets the the We have and was funds. we assets pooled value i.e. the that we had to time this acquisition, last the assets -- the we to assets, that when impaired and impaired

has turned things, were ex-Japan had GEM last We significant Asia there. just which around, so performance were product. said, the but product the happened there really we redemptions versus quarter had had GEMs the in And what from we Chris where valuing things,

ownership, but had which fixed significant good Chris $X.X departure. always And there. had has side on performance, then mentioned of and the the in China redemptions a the of significant We we the in comments, his ex-Japan has had billion redemptions product, Asia PM because

of negative we take when at flows the forecast, the to things, all in runs right had it and so the value add those impairment. you to up have how And into and look there we

of In the Saker we're think, it's terms business and on of all, excited ought still a entity, we I he that a which he's why it. we here to we rest And to excitement remain give for about first that. going comments -- able global acquisition have, will do and give to of because still and and few what's highly, on, are of were still highly ought the the

Thank much, you Tom. very

look So office, at you at it can in if that's our you the London business in X look ways.

first The is equity funds. one our from that stream traditionally large a income we have comes

Our green And run it, of until but held investors quality want into to we've rotation investing growth. all and about see primarily, out our off funds out example, not that for inflows, equity if with growth speaker of Cap shoots the places. begun totally, the of you U.S. in earlier, quality that Small are primarily, think to have mentioned previous London Fund,

at seen look look are we've our levels and funds, large think we the as to was flows the for you Asia at specifically that levels those ex-Japan, to forward. which revenue GEMs have and substantially. us, at performance you the our generator clients going positively product, the And stage go given a If some slow down valuation of

thing. the that's So first

the think you've fixed The income. is second got element about to

I we've that on like that one senior senior only the outflows you since PM, see of the surprisingly, loss puts As consulting redemption. that had And or we either as PM acquisition not that's will in with you something will the 'XX. with community investment hold follow active lost that, mentioned, note, Tom any

us there. held what's that's So back

see that. the bringing X Pittsburgh, things the between pond and across and London coming we good Now through we've between been together teams

again, rates. that's The held third slightly us element is, back interest

business, know estate that large have a market private and You is particularly business. we development a large real

that cycle, that the can what be despite Now to fees, offices United particularly have to have able them the you never award the been we to thing in that's rates are And harvest low in the country, harvesting have -- to as is developments interest and to come these do beginning fees But we being rates. Kingdom fees a successfully they interest down. to you've second new doing have but able be performance the theoretically, from got need in Leeds. stopped we as able has country your and run But the that performance before. built, be harvest won you us much of is the and to north predict U.K. performance

Now more as the say would specialize looking rotation would to Seven, to to the money expect future, we back funds. away goes into begin I That's Magnificent managed the investors put actively that from you in. what

interest The with with of to note Irish to you grow the that wealth business to said integrate fund it will that very You about wind would I to years. sovereign do lower public going property behind large has I'd slightly sustainability, invest more better. And announcement for that's importantly, managers ESG, going who the over which be rates the strong. the like fund, and few very trend a expect is next sustainability. only and mentioned that's talk

gives that indication an of is going the where Europe. in market So you

investment think is So I good a reasons, understandable tough seen we in think what quarter, from the I here that's management. looking it's key manufacture as performance And we've and performance but it's for turnaround on. the been perfectly

let If I company real, deal, Ken, other before. the -- we global for couple okay? do are would weren't with I -- just whole So of a now me a add things. which it again we enthusiasm, could add started we

to well were companies We jazz data enables have never the is works the buying at terms that us investment ESG understanding political edge of the and what gaining where a enterprises, that really able just in out. looking happened markets, they're would or in of enormous. And cost think And and all creating people going we where mandates We were what's in Europe. in private get who they've an hold up leaders to statistics, some be decided with a have of and U.S. been. industry this especially is make of an whole engagement activity to with sets which in us the variety that

are moral. we political, not So we are not

come to excellent ahead. up are performance, would Hermes do happily thing with the risk Go we and We mentioned, Saker as whole trying again. and evaluate

keep just I'll here. digging And

in multi-asset If heyday and the alternative look business, you of assets investing. the We're market at private the the growing. aren't

think have those the multi-asset alternative for of on assets think, since the years. announced. I sort assets or been I stagnant so was X are acquisition first down, side, And XX%

of other warrants are mentioned really you the is sort is real of I of on So sort fact factors estate the factors. that Are there know going the one the there so question are weighing multi-asset as well. the what's growth assets tiny, that alternative the there? And side the on much down on but business

if look -- at this So Saker is you again.

business, private private in markets much good good look but we're the traction part seeing you at really of If not other the as parts. tractions markets in

Lending we're Chris in Now, lending which on we Fund, to that level process story the the by direct we've of a business. performance in a close mentioned closing And and strong seeing that Direct II. of way -- the or been strong approaching earlier growth market. traction pushed the we're parts our in that's very a III and of really higher than very unique to good I expect launched,

and our We that's equity So that's doing business, about done well. talked well. private been

Other more parts difficult. been have

about United and the way interacted that. If business, that we're that of Kingdom, is particularly more difficult the infrastructure the you look with the talking they've at because regulators,

a happen, commenting would market and does tends about money, rotation general And client-oriented. markets. And private that that matter think more our the people I is into cautious positioning be can not private investing the So but more assets I'm specifically. multi-strategy to and in in of the -- explain in them. approach raise our it's

of making Ken, and a view, Tom. money we got this markets was was and and salable is has we amount long have for and business this parent. still of and the company are get an get to times And which with a it. effort built when successfully and a work to significant investment point the talked acquisition team we've the [ other of performance institutional out From from along that ] many a one, process taken we -- up at and before, about in business, continuing private time, look and having product, just clients it it the it that, taken of to get time great investment to

there's other investors. on we treadmill we're generate treadmill good on, The and of really raise a whereas and send part money we're funds return a that the thing investing to assets the that in back that

So happy with we grow, new sell although the we look the as the BTPS investor, like has and particularly doesn't getting to assets it been product. out treadmill, we are something distribute

a get the and business, we than it's still the delivering. So -- and great faster treadmill hope to and redemptions go the that do off returns to clients that we're

from Cowen. coming TD Bill Our is with next question Katz

terms sitting figure out start go income fixed billion that longer expectation going in in back and to sort out peers just here money and organic scratching for you step out that trying quarterize for the of path sort The go of sort a in mentioned if that's again to to of into forward redemptions growth. my Just you migrate over rates $X head money is most is to of markets your lower, moment, duration. the of

So look income growth revenue think organic what based money I given growth? relatively the for about implication the and weak how the -- just disclosed, rate on performance at versus when business for market I then do you fixed

we differently. is grow. that market money fund money the see let's asset What side markets this little So that, a in continues to attack

from share. so to the people to, part or there's the and see yield service. the system we're money continue growth for our expand one other, funds just much curve, you And ask you the very into management But us maintain, me that $X is you to cash a, or out have going to move the If market more march somebody this will thing fixed to coming income. a money and move -- money up Debbie else, he trillion, would whole if not even going though difficult say

not So our it rates part I money look business look would opposite. declining rise, the at market I of because on for the

reason And in a government the snaps isn't reticent there That's people Now, it. And and a Bond excellent been Fund's call. And yield they if mentioned of the it call their are as very that all the little when like seen you those bond fixed franchise into is the performance performance side back. that. make strong and been go things on have high-yield And straight and snaps strong wins curve, it that Return so, institutional has performance them we've on where I income, it's before. that's that with Total through. short-duration, why on then back, side, in the

So growth forward the continued and organic income curve. on fixed the for across side yield market funds continued the money is path activity

only which began is thing been in embellish money since flows flows institutional have XX% The add be this we flows still the and the comparison. market Debbie, deposit the I'd the fund. cycle by driven will is been that retail had products minor into to The that to of favor -- products, there versus liquidity have in continue

start XX-XX, Our be flows retail, see to go you'll expectation XX% would be that XX% lower, about institutional. when of rates that makeup

just It's continue. will the pick up. retail the institutional So will

what confirmed. to a that's has Chris So just embellishment little already

follow-up. a just And Okay.

doing of alliances players and the the like pure-play alliance open ability and trying just scaling out either of of Can to to player terms a larger to do seeing Capital to to side, selling ways on the de organic basis? franchise are Group retail that of about, talk b, your or a of beginning KKR privately. here, democratization strategic lot you there's bigger publicly you're some growth? And co-branded are invest others a novo that there's either the this of potentially positioning In on an opportunity catalyze and between sort figure the to how instead you a, sort

So I'll last let take the first Tom the comment one. and part on

succeeding be we many As then we if have the And you the about this transaction. more consider we or from remember big and talked big a run Bill, is up a available, even full company a said is company the investment public on maybe though us up talked divide appropriate Federated days, player, and run might as hairy that hairy way the is equity calls about that called as other by would with partner. in would there that it have years, then of we've would and some a deal public these managers, that, for as assets way enterprise back because said, comes but a that Hermes old we name

just you of doing the private one democratization recent others those Kaufmann be running if things would of little that quite terms we that. I'll give guys at do always at kinds were equity And of And things first it's how maybe you In about, impressive, democratizing and hedge talked open their tough notwithstanding. in at to contrary, they of felt such deal the hint have to terms funds. a like their they look they the were over felt in years, effect, funds. that's XX Tom? record as

smaller the it to at class them figure available to to the that how to asset only private are and comment there you say, we do people that, thing almost have the in interesting on looking readily and private in have be at get investor So Yes, equity would can't infrastructure, get and enhance to U.S. the get Chris. have funds our look teams, out funds great I "Wow, about, we that can follow and can that you're in is business. And we don't things is The can how bigger because to have the we talking out in there's I'd that absolutely an we sizes." to distribution that make much up equity $X consider. billion that attached they with get think to

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

maybe been of have and to questions asked, to the just -- Most been funds. but have market asked my back money come

that that into money a of how action Going your you around fund from of you back from deposits. move concerns asset if some Can that of particular I from those channel? kind make -- to a asset that earlier and or your an the to actual presence would talk guess, what terms on sweep your potential benefit potential exposure sweep channels in someone question these were in size size where in your benefit deposit -- about

But to us. Debbie to is for yield, has was before I hard help one the do. to be what Maybe figure magic that's that start wand out. going advertising they would That saying me if

You obviously that. heard

know on And on as negatively increases at for us?" would I like how think to don't clients, I'm you any "Well, and us to do it us A don't at those moves, if and at look difficult to verse could wirehouse or chapter say, see through money it it in -- be y, looking from x that I go very I wisdom and much impacting go helps negatively these impacting we clients Debbie, we their but yield have is do us. what it all. know that? does potentially

The something say, it X%, in in to intermediaries. of a deposit Chris, at only mentioned, where see you like X%. is account and we an that then coming sweeps sweep is fund increase And they products the their with thing lot look advertise do I'd at as through maybe over Chris, have they sweep money when their

-- there's so advertisement of more realization are to I and true the today as us. where beneficial in think yields And market an of it's the to

those As became to products lines many institutional institutional floating money funds, relationships place our prior NAV. far sweep took prime when XXXX as reforms products funds many, have that we The sweep the products. into into prime in went along

those And to products go the deposit viable. double part, asset government a increased and products. value the very than even with now net And our those continue most with For into stable sweep rates. with rates, be more the yield

there of from agree the out of knowledge or positive of sort in is benefit business the of regard. a rates our kind is there good yields socialization think standpoint that I just and our higher would So any just

if it just on taking switch higher those meant follow-up. funds in even potentially rates I positive a to advisers then of as to just sweep channels. And money a move maybe And were decided instead --

-- about about know, little more a Can franchise bit I might money start funds. you might are don't or you the And how what the talk in much in the think if X? across how that I last, cutting, the thoughts going more funds? is money Fed in extend extended the you you about Debbie, market your duration extending a mentioned, earlier month that? How has to much

by in Product that of the last are month what Not so. but it reflection time probably in product X that course neighborhood different, today. the good today, little to value curve we And is is X Sure. bit number extended a relative much a be somewhere days in early the of or would difficult extending period. one, so more was, of getting we some, on the think over

XX-day maturity most we days. are happy today, So products low is to XX call our of XX -- in product the we're be average range. for maintain what low The cap are. And our just able I at to weighted where target XX to

at September, all. us just with that we don't XXs is So low to extend that we expectation that around with XX room point. of the makes rate are the the it's are there's this in which cuts in been sense XXs discussion yield to low probably July, those points right no those honestly, those even agree the at in overdone that And where But won't very much. have coming as with basis soon extend, think now, as curve contemplating,

So much. be rate really hasn't expectation our would current too for cuts, changed it X

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my still that's So X X.XX% But start. November which that a behind rate rather than rate today. reasoning the X.XX% is level target cuts in why it with would where the XXXX, take into again, down

from question ISI. Evercore Our with is coming final today John Dunn

maybe having, up. talk on the maybe half? the you of leveling the a institutional the Could to kind bit pipeline prospects time funding little the conversations it of in for based about And you're second

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on a of market other the stuff. of kind quarter, shorter quarter, and then So X longer on private mishmash stuff next quarters next the

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make world. as rate just because years, particular that, people uncertainty interesting our the have the in can have means seen been and were that start the have you clients their there environment, huge don't I looking And because hands sitting of institutional that's happen to indications fund. quite fund up clients small U.S. last and Without rises. returns the because to X.X equity rate on becomes I the about really attractive retail in that of to is the of That market declining Europe, of interest a general, again. And said, because see of of but in interest attractive the you specific come because allocate cap parts in the say beginning flows begin commenting rotation are in predictions, we've assets. the Over London that to business to are narrowness want into I'd value most if

further no I Mr. back closing to time, over Donahue for management have we questions at As remarks. any it will hand this and

That concludes call. you. our Thank

call, for very ladies this disconnect you you lines Thank we participation. much, This and your you today's time, your thank does and conclude gentlemen. and may at