Federated Hermes (FHI) 25 Oct 242024 Q3 Earnings call transcript

Good day, and welcome to the Federated Investors Management Company Q3 2024 Analyst Call and Webcast. [Operator Instructions] I would now like to turn the call over to the President of Federated Investors Management Company, Ray Hanley. The floor is yours.

Good morning. Welcome to the FHI Q3 call. will and Donahue, Officer. Tom call of and today's Hermes; Federated Donahue, leading be CEO Chris President And Chief Financial

us Debbie are Federated Q&A Officer for the Markets. Joining of CEO for Saker Money Hermes the Cunningham, Nusseibeh, and Chief Investment Limited; the

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

our under market assets Thank billion, all. Hermes fixed will you, money performance, Federated management driven Good of QX by billion $XXX review I income morning billion. with record results. We assets of financial $XXX ended comment $XXX assets and record and Ray. on of business Tom will

Looking first at equities.

had from value to million billion of funds had in by Assets the Mid increased negative billion billion. of QX in U.S. Equity positive whereas offset SMA redemptions Cap and Large All of $XX.X $X.X Core Growth, the net XX to UCITS sales U.S. Cap strategies by in strategic due SMID The market net $X.X combined, number partially redemptions in $X.X gains dividend billion MDT $XXX $X.X was mainly net equity billion. We Cap strategies QX, fund. MDT that QX including Growth, MDT

launch net through 'XX. In strategies in about over of collective X MDT the continued billion strategies This the fundamental sales of investment product new $XXX we and little end the trust. quant new have MDT have for QX, million a expanded net our year, strategies ETFs active X sales with expanded to growing and in SMA MDT $X.X in distribution opportunities QX, compared have MDT and We recently set. fund had to success the

these markets. to variety strengthen look and international We kinds to continue of opportunities of a to strategies and enhancements growth domestic product in

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

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

Turning fixed now to income.

by sales combined by by ETF net mentioned and in therefore, had fixed about Fixed Assets sales compared Fund, Ultrashort and QX driven net billion. Return income Government quarter. Fixed income XX increased $X.X income funds $XXX Core Fund. Fund to collective were $X.X net fixed net the and separate of Fixed a driven had billion, were by Bond $X.X in of fund. strategies sales net Total positive investment the QX, of the total account Total previously and including Bond million $XXX.X sales net accounts about were $XXX to high fund $X.X billion in funds income record sales billion. had of income The net sales billion sales, sales SMA in multi-sector institutional of separate Plus net million income second Return fixed We with strategy. QX redemptions

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

sales impact markets FX to combined in alternative/private billion, QX the million. In QX, income fixed of had the category, by and $XXX first mainly the For X net to due assets of million increased by $XXX partially funds offset net rates, $XX.X SMAs weeks redemptions. of

which of GPE is innovation growth the Innovation the second Fund We X vintage with fund. The private programs. Hermes are in pan-European market our II, Federated equity

mandate in this approximately for close was $XXX 'XX million. first in The

million. $XXX is Our raise target

first The vehicle about raised $XXX million.

Lending Next, European Direct III.

European Lending our QX of our Direct for million. We vintage close Fund. had approximately third first $XXX in The

$XXX million. about target EDL-X and $XXX raised $XXX raise EDL-X is about raised million million. Our

debt marketing in pooled and fund, new close estate 'XX. real QX continue European fund, European Next, a debt we're to a plan targeting first

target is $XXX million. overall Our

the vintage P-E-C, funds of QX about in sixth $XXX accounts. net to private total through institutional fund. We We $X.X private About million. to in return developing PEC billion are billion, lending investment equity into expected outflows million market absolute billion in $XXX QX credit, direct about Ag private yet and co-invest is are a separate grade with credit. The fund, global mandates known additions fund targeting PECS with Ultrashort raise into raised yield. both $X.X also strategies, V the loss duration, series, emerging and $XXX target each market I launch. wins the in high Fixed is income government $X debt, began modest come net wins to and a of and net sustainable equity Core with expected bond million with wins in about

billion we in will the sponsor known redemptions, all $X.X offset from QX. that by wins, is account in equities, of that subadvisory million have internalized a $XXX by For of fund be nearly

In asset we $XX.X $X.X by of fund market million by market and separate $XXX [ of seasonal aforementioned record billion. money Moving ]. the billion, markets. another assets money decreases Total money gains total (sic) money as in reached of QX, assets $XXX account market market fund to money market $XXX were billion high assets billion of billion $X.X offset QX increased partially money for

in September quarter and led the fund market about $XXX We assets market. direct a at into some couple billion investors SOFR of to over billion shifting assets $X the of last peaked by rates quarter. XX, money about days the certain on late decreased jump Our believe

rate, fund industry levels, We September. quarter pay large and end. QX expected assets going to the target of substantial debt also funds Fed in fund driving into growth clients particularly several market in down money certain saw in using money market saw asset the first August reductions

money to conditions market strategies money market attractive compared we yields continue be rates. and Looking that ahead the to fund deposit bank to and market will continue that 'XX of for believe will for the market direct and favorable rest 'XX, into be

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

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

impact related Total X% in additional from quarter revenue million day an $X.X the million Chris. million from money the $X.X $X.X for mainly of revenue of and the revenue quarter, from higher assets, assets due to increased to from fixed These discussed partially equity, proxy income in $X.X Thanks, higher higher million million million prior offset quarter's were to were and market $X.X QX QX. combined. last or from private $X.X during call. Total of as fees carried compared costs million fund increases interest $X.X QX performance market by and waivers

expenses dollar. of and $X.X we enhance account charge of U.K. $XX.X Looking will $X.X by prior primarily forward, $X million there. is line by the approximately take million for asset office noncash redemption related from sub-advised the by impairment to in annualized the the quarter the million. prior $X.X strengthened from due versus decreased from the sustainability pound the an from decreased approximately QX million, FX-related quarter QX the $XX.X impact operating Chris our the revenue increased as increase mentioned, prior item mainly operating quarter. Compensation expected The expense impact $X.XX in All be expenses other steps to included QX gains QX. other intangible million. million related by our costs expense operations severance as and million to

would We cash tax and Cash the for XX% to and call investments the up for of excluding portion like to the questions was million. Kelly, open QX, $XXX to rate for expect to QX noncontrolling were XX% $XXX the and end now. investments the in be interest attributable XXXX. At range million. we

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

you see. lot money money fund $XX publicly was First last guess the available than the data night billion on one share. market announced could we fund inflow I better a

getting just October. and continues real-time wrong. it lost the looks in data we're that like certainly maybe So XQ But you is some share flow still in

what think to missing big out your chunky share? on going we're so, you has mandates? So big those nature that you're seeing the competitors of losing flows flow these do And if you is chunky

period, the heard say Well, you've up over me higher longer-term a and funds. as we've over times, we been end first with the XX lows of money market all, XXX higher highs years doing

mean, this the does of the we on of tree. part quarter ready things dynamic and would debt. on a disturb took happened like perch us. I Debbie have who you here to her just not that out comment because lumpy And be $X one little kind And that's to billion down briefly for, that normal life. I were client we paying in from the got so noise that's

question, for of rates. And Patrick. the quarter thanks explanation, ultimately, regard Chris, That's Thanks, explanation and -- provided information very was the a the one. that SOFR to with real the Chris'

between money come We most And market on basis institutional overnight flows fund of mid-September, go into those clients have of side funds. cut Fed the who the the market. direct of a have since lot and an really rate the in

direct the that some However, were with basis. the market the sector went SOFR into the end jump of back at of a out on rates in there that quarter, temporarily

that regard customers seems to group of some have the competitors been to some a money the We share bit of taking the rates larger In basis. market though been believe little also heat earning the I are a are with lower it been and do might they've deposit that rather market players retail against comparing as gaining funds. than something that large with that in faster retail direct ourselves particular, on have rates have in very deposit marketplace. the of the

of can of it or more not really those So are funds that even that's has ways. part then something internal Obviously, of. And into along looks funds have money like going our we some necessarily I banking in been been some are sector. also believe the directed there some that competitors, control

there's general, I in explanations. So think lots of

client to would us lead not seeing anything We concern. a are have on that basis

wealth their with I opposite. very all variation and the we seem the fact, RIA, to they continuing of say offices, that be trust, When exactly In look broker us. at family management, and client have, the participation complexity increased you pleased would dealer, the base

on a expense then quick line. follow-up And Very the helpful. other

million decrease $X.X mentioned from FX. You

So X% XQ the is there right into looking kind of X.X% in the run rate range. to

noise. clear make FX to it what that have been without should trying number the Just

Well, the if there were the rate, changes up. no in pound went

so that, we're the down goes pound goes our versus a going FX on run to up, expenses go will we're giving the If dollar, because if the expense pound get the way. help the hedging side more rate London. And on in opposite it

regular of I'm quarter number kind Yes. the FX trying impact get. there to in any way is the I just what mean more like what's without

Take number change off expenses X/X in the have pound will a of higher quarters. year's for if we'll there then QX's year, rest the the X hedge higher and the basically the doesn't expenses, we because expenses rates the this of next or quarter get in at had the and we

So through category, not in look going the and that it the its them. if X/X higher all at want to the way it's other in of coming number, you be but rest to of say expenses

Worthington next is Ken from with question Your JPMorgan coming Chase.

interest seeing regulation. Maybe the And reform into an remind to just fund you're of your Can believe to market final what extent took first rules the went wave money effect. impact effect? October, I prime what funds? on us you in in SEC's

industry the category and where say, seen, the our almost the prime year, XX%. at funds trillion $X XX% over customers up have the trillion we year The for, left and with assets basically funds. stats up the are are up day in sticking you round basically last up. So assets back it in over look our a to are those $X unlike if and And that's are that

So we're ahead of category. that the on industry

went consolidate many points through appreciative even funds our think, so X. of clients, basis I to in to from there funds, those available. we though quite So Ray? all those did the extra But the the fact make hung work of down X were with we that we

up Ken, just funds for if the money X fraction. we the weeks isolate or first just so October, they're prime a market of

still very the So would we're there, had in there's impact even last there into cut, getting still the interest attractive changes, Because But have been considerable standpoint, going very funds puts [indiscernible] no from of takes. any a if October from the the are are we rate yields post rule retail and changes prime have discernible attractive.

rules. couple about the I'd like to a other add things of

we us and them. hey, hinted, of what at in. remember, sort they a You work big to on have that these daily told funds impact how people had in how Well, Well, cash. look went XX% has

funds a funds. variable The is were type value thing these net other already asset

here. aren't people willing money the changes They're deal So modest need tomorrow NAV. to keeping they with in this

I I'm sure So those important dynamics. something to are that we say. is just think Debbie And skip anxious

are But from net thorough, a of a flow into by in pour our Chris. we purchase what of than end, continuous which the phase. that we had October shareholders institutional But would funds. of redemption greater be. And with net of because process always the money Ken. basis, are that at in went effect have to to difficult note exceed, very very some the redemption smallest net are prime -- whether price on to look the those is a think is always X% greater funds, this I a monitoring beyond redemption leave a a for basis, in the daily. end, You're might where that a at point, changes X we on ultimately, say, now, par, net who basis now that And of there a fee redeeming total running cost ultimately, than absolutely a or our price, we're I we the if those sectors have the institutional daily muni And liquid yes, is would a activity, on have rule sort a or sector we this universe year, is no we to review if let's which, would running daily process that's phase we hurdle also process which the we phase, to then that redeeming. In potential that assets the are X review get adding simultaneous X% XX% weekly have

rule. continuous monitoring that comfortable very, very and of to marketplace times. the are implementation We that be in the few, very a the on a it would this implementation did of prior impact historical actual fee if backpack the of result on We basis. testing on we're And the any this would

Okay. for maybe follow-up Great. you. to Tom,

hit? maybe think and contra this quarter. think I proxy the dollar rather fourth mentioned some that us there's and I expenses? costs You costs current costs, those Can director are than of revenues remind the in you amounts flow where outright

about said And the expense timing. third the proxy Yes, in it came in quarter. We it fourth a would million. quarter, Ken, didn't costs. quarter. third happen When exactly talked and last contra revenue, we know the $X.X it's the Well, the all

that and in quarter. will the so it And fourth not should happen not happen

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

shockingly. back So markets just to going money

hear continue down, sitting its be be just what many managers is, from the alternative the to picture ended or do to looking So if And equity more assets, back point update robustly traditional big where XX-basis-point and going risk cut Because the way intra-quarter sort fixed you your you you to quarter-to-date look or migrate money whether the money where at to will? see update if sideline you it find managers your at in whether the what despite at we think is that markets, income, start quarter on Fed. the of I I'm behavior of it peers, into the flattish alternatives.

the interplay us? you how side? see business mix part between behavior that we maybe might do point the institutional what of retail and quantify at you of see sort help the that So can change? for And the And maybe

the and there at duration, as Bill. lot up a fixed flows remarks. But So catalyst, in not those one we seeing it moves with do to I financial customer lengthening changes point happen things the of themes opening way. in And in come one our a before. of covered in or one my income seeing and firm a tried We've duration. short interest is catalytic tough advisers we're time. comment these on it's FA a the lot interest really a And from during to But are a

the side, the terms let might market Debbie from her dynamic I'll on In see money what of comment.

Chris. Thanks,

think could dollar of market fund into mentioned flows through money really money their at it market before retail raised out I trade for continue on this of after and And you the funds, XXXX, that have deposits XX% that when I rate and in follow XXXX dollar. banks the came from rates. of because flows lowering the started almost and was call them of look you retail. That will to never deposit rates market already having midyear

other probably but Those see with maybe with potentials will to you're as continue, will in And with what that the sideline XX% XX% referring and pace, naturally those as it robust return be say is to not Bill, riskier frames higher inflows, trade we're time that would continue. Of So associated longer assets I'd to, XX% move. a cash. those. starting

introductory heard a healthier equity fixed we're that back And remarks, You moving and a markets the reflection which from seeing those and positive obviously of to in of various way, that's of in see a It's fueling economies. absolutely occur. longer-term products. portion increases and healthier Chris' we income markets into sideline cash that want our

flow, by It's positive a Fed side, so X-plus to that match the money that the we strength this can terminal On We sort declining think rate X%, be around $X that to which in But reduce see it will as to year you're a a not surprise it's from FHI growing $X.X saw we still of retail continue as by to go in reported portion strength this institutional going is I they to see to going percent when of down of a what a at good rate at flows. those was point, trillion flow cycle. saw. the a or markets the flow the the we at still that assets as start that further ultimately, be Crane in industry rate was ultimately, XXXX that trillion, are in and not institutional of that of we catching the this end, asset clip, to we only the pick to but cuts into expect would in going expecting rates, look source XX% as probably industry the up. XX-basis-point which not an end X% cash

on just Bill, about And your mix. the question

be But So for the be money precise not what fund retail that between would of us estimate would about XX% are an about and of terms including the XX% assets, sub-advised market -- XX-XX institutional. considered we data. that intermediary. and industry ICI which XX% split what by still retail, us an split coming about And as institutional for is well be would way, using the through the is

helpful. -- maybe this then whomever, or might maybe a for That's just And rounding. question be Saker and just

opportunities months? out again, talk distributions quarter-to-date, little as in XX terms out can through all next it alt And the look or might So $XXX just expect for market alts funds into X be pathway out of you portfolio? sort we be but rounding, down out But what to against also rounding. Can maybe the laid that? does the you the of Or you about realizations next you AUM bucket the actually to given growth over market the in grow coming million in nice coming look should of bit a to bucket about months. X seem the a the we several the -- as XX we

Saker, your turn.

about fund, more pay is other you've I about, funds private Thank thank we're funds, to got you flow, back than equity constantly a re-upping get structure the detailed I -- there's right, nature is funds very can before. but and all particularly talk funds, can't global But you're the going equity going what private very think client if at cases, look of out that that's you clients these our in this, you a funds, you've then to level Well, direct they private indeed. to you X-way of markets the the in much provide part many coming of aspects funds if see. say a you. the of in. And the which -- had expect and some you that Chris funds higher lending innovation growing are all at of base, heard by they're And

this re-upping, we trend, general see, that that quantify is we until cases there we that our confirm the far, but is see But can't the is, clients can as not so in an Now closes in can't all as close finished. are finished. far increase when but some the only we re-upping,

The within old the not the second funds aspect new up coming which it sitting we're alternative extra We're space, still. is of gives state us with flows. of

mentioned as and Chris You again in infrastructure stuff doing we're real fund, some estate debt heard well.

X-way also clients re-ups So increase. will the We think client to adding it's existing We're be That's a base. our bet. important. that will from

there's new we're clients innovating and funds coming in, increasing them. our and So

feel continue to All of that we generate to leads go forward. that us we higher as revenues

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

clients, the saw direct Just and mentioned think clients, money between some an money shift that And one previously markets. money corporate paper basis on markets. overnight I you on you

Just could some that. trajectory in easy Fed way more to see flows the there, money get detail easy rate How that of uncertainty the on little and shift lumpiness the how market you some or bit the wanted other? it And just cuts that? a around to is terms there's to extent is one based on

Debbie?

sector that the you repo order the really And basically, marketplace. our SOFR in banks to have as not is rate they for security, -- a majority it into contracts on of dealers not repo can switch it's -- to vast have return Ken, clients, with in get So repo of the don't market. the repo such, type indicates Overnight is you go in of because an and what easy place overnight contract.

and -- our clients, daily market, large to majority and on contracts very a able of pretty some basis vast from clients, by available that Midwest that the and for firm firms, the like in tech is large players for firms our energy those usable banks not large So easily. Coast, they possible. But oil have switch large are West of them are the large

So customers a dynamic to still have minority that small a play. a when they choose if of in capability on that only even it's do that so, do switch large daily into basis the volume market though to the actual that it's comes

helpful updated I just outlook Got around opportunities management may. follow-up, Very one inorganic And Any for thoughts of if there. you. potential capital there? and kind out any

Well, the million you saw program share approved of shares. approved a -- we share a new Board repurchase X new

We on shares have X.X appropriate the active. existing be to We left million one, and XXX,XXX is and active. expect at quarter, we bought to think we last price level. expect don't still the be an over we Therefore,

of On areas, to lot still in point to to. on away anything working the an We're process. get get or announcement I don't us you a have about nothing acquisition but excited side, different

from Your question is Dan coming with Fannon Jefferies. next

effort a think remarks, one-off? broader I more or part Curious the Hermes. restructuring of $X.X mentioned elaborate a if of severance, cost-cutting in is prepared or you this million I associated with a more of that's think,

business I'll initial numbers. then Tom? the comment, an make to comment the always have We duty run on Tom a better. will

Yes.

-- out is the London million number Chris the the in And $X.X the to, So a effort. as we said, sustainable business across board office. are the and properly severance of looking London run primarily

is last and handling and are a a manner. we had the quarter, this look we make proper know that sure impairment that things fiscal at You in

the can. beyond to we business. expectations expense And things to I could it a want to give don't we We the follow-up the best because as And expense about to severance things at give on Saker maybe think that and looking Saker a manage want hurt toward comment try drive [Technical do reductions office. growth. can our in as the just of Difficulty] excitement we yes, have terms London business So we're

Thank Tom. you very much

couple just of comments. So a

As duty managing and we the to of the business. have business, that the manage cost Chris a said, means

efficient the increase together, as X there we get become the is in business the As the many closer do to we way opportunity. One things. opportunities that is to more other you to to integrate and are market, in the working business one your run

So done responses, player performance doing the stuff market. exciting. money talk of back that's coming generally mean, of markets excitement more private But I people we specialist other we other talked we're vintages way, and Tom of assets. We has through to or not, back we've should on. be and But more in things funds, lots when that scale, the costs to take also briefly, an about combined you form, got speaking, and also the talk about so are sales the on through that positive I any kind away now severance heard can and money you've that high the from the What purchasing and the can launching efficient a GBP back happening have prime point came and market shape performance, presentations. doing on mostly efficiencies is The seen, to run in we're money come Federated new force on risk Hermes I billion. to fund. mentioned ESG, has we U.S. strong of concentrate markets. global and specifically the and and hit interest assets And X.X to new fund market ideas back about X here. is, becoming as sustainable positive the sterling and known of that risky as following. One funds of say, the ex back the equity, U.S. here that on the out small things, I Europe, for global of Japan seen with tended Asia those the equity all-time mid-cap the bringing better

gives home flows. our I million finish to you you has a that. seen taking a mentioning on a the very coming me some we've potential the views family of we've about trillion And $XXX out U.S. way, we've huge without So see trillion, had been of money at coming client our of the by or to flows Not tells base we in in fantastic to money market stewardship here. totaling of state offices funds. we've growth approximately market, that are where represent, for And come that won't it we run from you in major potential XX would EOS. positive say pension a markets here and that Asia, business, $X new over us had assets amount through. MDT, $X market, you our winning can you this note a such U.S., includes yet, within which it that gone but And positive and again, in expect

or of can of manner. managed out would of costs time, the and we of same of kind effects London to expect us out recovery we at investment and So shoots the managed see see our the here, States. the right a and you the funds in both paying responsible for manage assets green United dynamic But can dividends

Great. and as That's context helpful. of for is quarter total about of a the the curious it maybe of I around or some you business. you a Can pool follow-up, assets? part you set what in sub-advised loss AUM think in a -- context Just a Or that the more growth? of shrinking that? Is for source that the prospectively. talked then just a opportunity is bit And talk the aggregate mandate just sub-advised

billion it as of $XX And would but total, our that accounts end fixed be AUM. equity of money the of as weighted cash the about market, include the to toward in That's Well, be sub-advised quarter. and does well. would

source And has growing of AUM a that shrinking? or been

side, growing. it It's it's the of -- on stable. of sort minuses. retail a institutional been orientation. been pluses the And money It's relatively has has market and It part

with question from coming UBS. Hawken is Brennan next Your

since large the or the constructive or bond And saw with guys a struggles a given manager, not outcome I'm flows side. curious kind You of on versus some bond that late your regarding whether whether not you retail of the August? in at you RFPs flows either bond change there noticed interesting that Or institutional might in offering? note engagement was trends or any any

were into The clients attentive our about. to they help incident to And talking to extent, when clients we're challenges. there the some you're run

to what tackling versus flows the in So marketplace it's the regular from all what the detect time. impossible challenges asset that we and us came blocking for do

bouncing the hard But outfit that's we it So went overall, come follow some that money ball. of out you've somewhere, of it. seen got and boy, and to

about change engagement August? sure. post late was That's I not in why Sure, whether or there's asking a

you whereas What the It you're your what sounding if the to opportunities clients, joy product the by say, then repeating it's raining you used bid, my money, in Hermes there of to Federated with father buckets array, engagement. are arrive, depends is on your goes the hit on marketplace mean when constantly when out. get

and Look the And to been It's so all not it's we've going ball, And are the a to an get with running at go hard they're what the something doing. clients did new." I what time. analogy. think the last do lot "Oh, football that engaged Those This is running like like, intersection. let's night. are we Pit

let's with on get the Okay, meeting.

Evercore is Dunn next with ISI. coming from Your question John

'XX? then next expect time consultants little about or might a temperature where directionally the then it talk go to and or over you pipeline into the bit and quarter the you maybe describe you the of looking Could institutional and year to so? And funding investors the kind also, next of could

it. I can to of get talk then line, we'll the the about and rest time

So amounts equity the of -- income mandate that ratably. QX. in pipeline expect positive, those standpoint over talked because QX sub-advisory more QX, and income But and we both from portions negative so course, the Alternative an in is would has that fixed that fixed come weighted of in and and come about, more alternative. we

it, a not money already been that's committed, earning yet that, but chunk of good of is is fees. Some

kind So several the end out year. through you'll on the almost see over really ratable that of next growth quarters of next

and equity, front-loaded, more more the spread alternative negative out. front-loaded then income fixed So more

that's of the very I trouble And it actually we're on scoring of activity, go why And strong. very, wins. the where to side, listing income in various the mandates fixed terms RFP is

beginning dozen back of the And You list. call the strong the go see And we it's a half continued a and there. RFP real to interest can ones. see

that's solutions looking that answer in just all said in the change. builds. And time waiting, clients bringing to the So last we're question, I market where to pipeline the needs the as and

any you active talking for be more And we past. think active you market be guys? think to behavioral you than can going about that the then it. significant made ETFs the changes ETF to do Got all additions any And were to had -- I how we're segment suite? or make Have in

over the increasing numbers overall big, could the the numbers numbers. Right our what now, you at suite look we're have Well, at. And we up I $XXX ETF about bond the if Dividend ETFs or seeing Strategic to return good now look whole the of can something you depending very have, XX% maybe strong. from fund the And think in is on X% flows, of Value very active the that percentage they're an be then the And it gang think up make of products million. give market. continuing we Ray to Fund. you results in and And accurate total

response about that launched that in No, we've active of at to the both. X lot toward collective that one $XXX we Over gate of strategies Four format. And the we'll Chris that's But line. million we had out look continue on the mentioned. them the a good recently of strategies a added MDT we right. also ETFs, launched product weighted

over continue the terms menu we've bigger expect total should active equity fixed and in some with to both to You and ETF value. strategies, the return us strategic bond of of add income certainly time, but to covered

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

know we've types Just one to of lot management, needs the roughly during a talked about flow are clients your predict difficult both it's agreements. overnight institutional and sense have, in cash clients of what cash those you call. in that coming level a on at for are back will what of I Obviously, do But using those rate least going this market parked out. assets and money funds, have that

you an funds were let's almost cycle? rate-cutting to say, they will, a money all addressable to, if market, So if in switch like

how has have, at knows question to trends, someone because smarter numbers move clients comment. percentage be business strength I in or they underlying that to the their catalog And X past what thinking don't letting long variety Debbie years, money this other. go year's want from can we gone we mentioned a them they'd if longer-term think XX I have is Prime. the without the clients an which on the overnight, through And the of counter times, Well, one counterbalancing are and keep And why of our than Debbie that's I.

Chris. Thanks,

having a your have we customer, Sorry, getting process. off it definitely was know of difficult Brian, KYC, I very mute. rigorous

provide spreadsheets needs, other options on are. And so various their their various clients, yes, cyclicality have to expectations what information that we for some and their degree

large just was $X number. offset end. have our to context at not review In it with, although else those Chris works Nonetheless, that when in We sales of the it out of to billion had billion oftentimes, an six quarter would the noted regular this that the at $X I When of basis. And from highlighted on different and manage the we be close outflow, altogether basis, also we on the And billion that same look if quarter case, that. a especially happened the because largest you you think right of a standpoint. all for reason inflows billion when you clients of went management both on due it you and it's it of portfolio billion clients end and this that complexity at a think XX look at environment. Thankfully, a the relationships from And a an of $X particular the see day, may $XXX individual a same type that favor. see somebody in liquidity, diversification the all debt be the a our repayment. perspective, type in you $X

Okay. you over institutional now of that's sense have then potentially could in But what right to being do move allocated a overnight aggregate?

Yes.

at into but not less phase, the anything problematic total think that. of like realm I which than probably XX% the and this out point, the is that's not of it's assets something insignificant, it's of consideration

about from direct... Debbie, you're to money out going market talking

security. direct To

think your much could go question I how other way? the is And

can that's Yes. exactly right. How go much way, the other

go in other longer types much How could going [indiscernible]. into the of assets, way riskier term

direct No, cash overnight bonds. money into going the... from market When

Okay.

Okay.

the the back I that split side. of XX% about on number think inflow raise institutional, towards So points Well, in institutional been XX% retail. time, to At going higher things. has different side of

have and is in at potential as a So declining funds the if, environment. That were a anticipating after in rate Fed's curve it's are not cuts initial would probably XX-basis-point to by been maintain we difficult with Fed, securities than think September. in The back to that of better do faster was least I yield flows direct cut XX% in to market, very especially the rate agreement that. the somewhat money asset substantial, fact, another able XX% a

numbers that, to course to the that the difficulty for of keep securities that said economic some buying the changed. of last time. So yield longer-dated has fruition come a period X having of longer Having weeks, our stronger have with over

has direct healthy the us the so average quarter. we and of And market. And so maintain securities with given our next weighted the opportunity lengthen that flows increasing that market probably institutional been over portion maturity the some will able to that, think attract advantage and over maintain I

go Right. to our we're is through optimistic we that "Okay, it's so you game. ability that go, much you in catalogs certainly My one trillions, about that to play is," period. of then could answer but And money word, where all

Yes.

like that value. Morningstar don't this fund over the Do looks is just fantastic to improved quartile X you finish inflows I'll your in I that rather in third outflows. No, to top like categories. still soon? a -- dramatically. color. our to has strategic Okay. the X-year you this top X-year quarters, Maybe Performance It up know time with But over expect past product by and The you're convert measure, frame. performance anytime in compare

on. on deadlines it now see was why And you we over we're And changes I could what on seeing dividend on comment getting heck like with marketplace. is field. Anytime Morningstar like, that's I that get And months sure gave were my boy, from that, performance months dividend. I'm what putting the in the from value you was hate value the the the it that going quarter-to-quarter versus strategic I to so strategic but ago, comments soon, you glad field with the happening the hung and

buy market that is Now get the can I'm value that glad the strategic still still owned And the stocks keep and kinds some way in income, in dividend. of I'm are it's, boy, underlying a there. clients it

cross So to for hard those is continue. me Exactly really will over to trends when yes, I would expect to it positive predict.

a Davitt Patrick follow-up from Autonomous Research. have coming You question with

another Just housekeeping. quick

how that management was revenue, all if some that fees Just there asset or And the split the we get management contra million adjust in trying helps. across is buckets? $X.X fees, the in X fee our individual rates should buckets? On then to

Yes.

was that in all So fees. management

buckets? the Okay. equity know? asset And you split is I across mean, markets, how it do the

it's fund Well, shares. every

purposes. modeling proportionately be would for [indiscernible]

got vote. we It the By way, the was successful.

remarks. further I to the would Ray for like to closing are in Hanley floor time. now any There no back turn questions over at this queue

Well, today. very our call. us for joining much. you concludes Thank thank That you

Thank everyone. This does conclude call. conference today's you,

your wonderful have lines disconnect phone may participation. you at You a this Thank and time, for day. your