Federated Hermes Inc (FHI) 2023 Q2 法說會逐字稿

Good morning, everybody, and welcome to Federated Hermes, Inc. Q2 2023 Analyst Call and Webcast. (Operator Instructions) Please note, this conference is being recorded. I will now turn the conference over to your host, Raymond Hanley, President of Federated Investors Management Company. Raymond, over to you.

大家早上好，歡迎來到 Federated Hermes, Inc. 2023 年第二季度分析師電話會議和網絡廣播。 （操作員說明）請注意，本次會議正在錄製中。現在我將會議交給東道主聯邦投資者管理公司總裁雷蒙德·漢利 (Raymond Hanley)。雷蒙德，交給你了。

Good morning, and welcome. Thanks for joining us today. Leading today's call will be Chris Donahue, CEO and President of Federated Hermes; and Tom Donahue, Chief Financial Officer. And joining us for the Q&A are Saker Nusseibeh, who is the CEO of Federated Hermes Limited; and Debbie Cunningham, our Chief Investment Officer for the Money Markets.

早上好，歡迎光臨。感謝您今天加入我們。今天的電話會議由 Federated Hermes 首席執行官兼總裁 Chris Donahue 主持。和首席財務官湯姆·多納休(Tom Donahue)。加入我們問答環節的還有 Federated Hermes Limited 首席執行官 Saker Nusseibeh；以及我們貨幣市場首席投資官黛比·坎寧安 (Debbie Cunningham)。

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

在今天的電話會議中，我們可能會做出前瞻性陳述，我們想指出的是，Federated Hermes 的實際結果可能與此類陳述所暗示的結果存在重大差異。請查看我們向 SEC 提交的文件中的風險披露。無法保證未來的結果，Federated Hermes 不承擔更新任何這些前瞻性陳述的責任。克里斯？

Thank you, Ray, and good morning all. I will review Federated Hermes business performance, and Tom will comment on our financial results. Looking first at equities. Assets were down $637 million to $83 billion due largely to net redemptions of $828 million, partially offset by market gains of about $115 million.

謝謝你，雷，大家早上好。我將回顧 Federated Hermes 的業務表現，而 Tom 將評論我們的財務業績。首先看股票。資產減少 6.37 億美元至 830 億美元，主要是由於 8.28 億美元的淨贖回，部分被約 1.15 億美元的市場收益所抵消。

Even so, we saw Q2 positive net sales in 15 equity strategies, including Asia ex-Japan, MDT's large-cap growth, MDT Mid-Cap Growth and international leaders. Now the strategic value dividend domestic strategy had Q2 net redemptions of $700 million compared to net sales of $727 million in the first quarter. As we have talked about before, this strategy is outcome-driven and is benchmark-agnostic. It seeks a high and rising stream of dividend income from high-quality companies.

即便如此，我們在第二季度看到 15 個股票策略的淨銷售額為正，其中包括亞洲（日本除外）、MDT 的大型成長股、MDT 中型成長股和國際領先企業。目前，戰略價值股息國內策略第二季度的淨贖回額為 7 億美元，而第一季度的淨銷售額為 7.27 億美元。正如我們之前討論過的，該策略是結果驅動的並且與基準無關。它尋求來自優質公司的高額且不斷增長的股息收入流。

Over the last 10 years ended June 30, it has returned on average 7.4%. To make the point, the strategy returned 8.5% in 2022 compared to a loss of over 18% from the S&P 500 and thereby ranked in the top 1% of its Morningstar assigned category of large cap value for this 2022 performance. Year-to-date, however, through June of '23, it has a negative return of 5.3% compared to the S&P 16.9% gain, and that ranked it in the 99th percentile of its assigned category.

截至 6 月 30 日的過去 10 年裡，平均回報率為 7.4%。為了說明這一點，該策略在 2022 年的回報率為 8.5%，而標準普爾 500 指數的虧損超過 18%，因此在晨星指定的 2022 年大盤價值類別中排名前 1%。然而，今年迄今為止，截至 23 年 6 月，與標準普爾指數 16.9% 的漲幅相比，它的負回報率為 5.3%，這使其在指定類別中排名第 99%。

This year, the market, as you know, has been led by a small group of technology companies that are largely outside of this strategy's objectives, as they either pay no dividends or have a low dividend yield. The top yielding quintile of stocks in the S&P 500 are underperforming the bottom yielding quintile by nearly 40% to date. Now this strategy would benefit and investors rotate back into cheaper high-yielding defensive stocks.

如您所知，今年的市場由一小部分科技公司主導，這些公司很大程度上不符合該戰略的目標，因為它們要么不支付股息，要么股息收益率較低。迄今為止，標準普爾 500 指數中收益率最高的五分之一股票的表現比收益率最低的五分之一股票低了近 40%。現在，這一策略將受益，投資者將重新轉向更便宜的高收益防禦性股票。

Looking at our equity performance overall compared to peers and using Morningstar data for the trailing 3 years. At the end of the second quarter, 50% of our equity funds were beating peers and 29% were in the top quartile of their category. For the first 3 weeks of Q3, combined equity funds and SMAs had net redemptions of $310 million.

與同行相比，我們使用晨星公司過去三年的數據來觀察我們的整體股票表現。截至第二季度末，我們 50% 的股票基金表現優於同行，29% 的股票基金在同類基金中名列前茅。第三季度的前 3 週，股票基金和 SMA 的淨贖回額合計為 3.1 億美元。

Now turning to fixed income. Assets decreased slightly in the second quarter to $87.4 billion. Fixed income funds and SMAs had Q2 net sales of $454 million, while fixed income institutional separate account net redemptions of $526 million were driven by regular cash flows from a large public entity.

現在轉向固定收益。第二季度資產小幅下降至 874 億美元。固定收益基金和 SMA 第二季度淨銷售額為 4.54 億美元，而固定收益機構獨立賬戶淨贖回額為 5.26 億美元，這是由大型公共實體的定期現金流推動的。

Within funds, our flagship Core Plus strategy, Total Return Bond Fund had Q2 net sales of about $1 billion. Core Plus and other fixed income SMA strategies added $207 million of Q2 net sales while net redemptions of about $354 million occurred in the 3 Ultrashort funds. The Ultrashort net redemptions were down from $1.2 billion in the prior quarter.

在基金方面，我們的旗艦核心加戰略總回報債券基金第二季度淨銷售額約為 10 億美元。 Core Plus 和其他固定收益 SMA 策略使第二季度淨銷售額增加了 2.07 億美元，而 3 個超短期基金的淨贖回額約為 3.54 億美元。超短期淨贖回量較上一季度的 12 億美元有所下降。

Just as a note, total AUM and Ultrashort are about $5.4 billion here at mid-July. We had 15 fixed income funds with positive net sales in the second quarter including, of course, total return bond fund and SDG Engagement High Yield Fund.

需要說明的是，截至 7 月中旬，AUM 和 Ultrashort 的總資產約為 54 億美元。我們有 15 只固定收益基金在第二季度淨銷售額為正，其中當然包括總回報債券基金和 SDG Engagement 高收益基金。

Regarding performance. At the end of the second quarter and using Morningstar data for trailing 3 years, 49% of our fixed income funds were beating peers and 16% were in the top quartile of their category. For the first 3 weeks of Q3, fixed income funds and SMAs had net positive sales of $20 million.

關於性能。截至第二季度末，根據晨星公司過去 3 年的數據，我們的固定收益基金中有 49% 的表現優於同行，16% 的基金處於同類基金的前四分之一。第三季度的前 3 週，固定收益基金和 SMA 的淨銷售額為 2000 萬美元。

In the alternative private markets category, assets increased by $428 million in Q2 compared to the prior quarter, reaching 21.6 billion. The increase was due to FX impact, partially offset by net redemptions and distributions. We had the final close of PEC 5, the fifth vintage of our private equity co-invest fund in June, reaching $486 million in commitments, which exceeded our $400 million target.

在另類私募市場類別中，第二季度資產較上一季度增加了 4.28 億美元，達到 216 億美元。這一增長是由於匯率影響造成的，但部分被淨贖回和分配所抵消。我們於 6 月份完成了 PEC 5 期的最終交割，這是我們私募股權聯合投資基金的第五期，承諾金額達到 4.86 億美元，超出了我們 4 億美元的目標。

Commitments came from existing PEC Series investors as well as new investors from Europe and South Korea. Federated Hermes GPE has a 22-year track record of making co-investments having committed $4.5 billion across 278 global co-investments as of March of '23. We continue to market Horizon 3, the third vintage of our Horizon series of private equity funds.

現有 PEC 系列投資者以及來自歐洲和韓國的新投資者做出了承諾。 Federated Hermes GPE 擁有 22 年的聯合投資記錄，截至 2023 年 3 月，已在 278 項全球聯合投資中投入了 45 億美元。我們繼續營銷 Horizo​​n 3，這是 Horizo​​n 系列私募股權基金的第三個版本。

Horizon 3 has commitments of a little over $1 billion through the second quarter. We are also in the market with the Hermes Innovation Fund, which is the second vintage of our Private Equity Innovation Fund, the first vintage of our real estate debt fund and the first vintage of our nature-based solutions fund.

Horizo​​n 3 在第二季度的承諾金額略高於 10 億美元。我們還在市場上推出了愛馬仕創新基金，這是我們的第二期私募股權創新基金、第一期房地產債務基金和第一期基於自然的解決方案基金。

Now we began the third quarter with about $5 billion in net institutional mandates yet to fund, both in the funds and separate accounts. These wins are diversified across fixed income, equity and private markets. Fixed income expected net additions totaled $2.5 billion. This includes wins in active cash, short credit, corporates, high yield and core plus.

現在，我們在第三季度開始時仍有約 50 億美元的淨機構授權尚未提供資金，無論是在基金還是單獨賬戶中。這些勝利涵蓋固定收益、股票和私募市場。固定收益預計淨增總額為 25 億美元。這包括在活躍現金、短期信貸、企業、高收益和核心增值方面的勝利。

Approximately $1.3 billion of total net wins is expected to come into private market strategies. This includes private equity, direct lending and absolute return credit. About $1.2 billion of total net wins is expected to come into equity strategies, including biodiversity, global emerging markets, MDT Mid-Cap Growth and Global Equity.

預計淨收益總額約 13 億美元將納入私募市場策略。這包括私募股權、直接貸款和絕對回報信貸。預計淨收益總額中約 12 億美元將進入股票策略，包括生物多樣性、全球新興市場、MDT 中型股增長和全球股票。

Moving to money markets. We reached record highs for money market fund assets of $364 billion and total money market assets of $509 billion. The second quarter presented a challenging environment for managing money market strategies as the debt ceiling prices significantly impacted short-term debt markets. Despite this challenge, money market strategies continue to benefit from favorable market conditions for cash as an asset class, higher yields, elevated liquidity levels in the financial system and favorable yields compared to bank deposits.

轉向貨幣市場。貨幣市場基金資產達到 3,640 億美元，貨幣市場總資產達到 5,090 億美元，創下歷史新高。由於債務上限價格對短期債務市場產生了重大影響，第二季度貨幣市場策略管理面臨著充滿挑戰的環境。儘管面臨這一挑戰，貨幣市場策略繼續受益於現金作為資產類別的有利市場條件、更高的收益率、金融體系流動性水平的提高以及與銀行存款相比有利的收益率。

As short-term interest rates peak, we expect market conditions for money market strategies will be favorable compared to both direct markets and bank deposit rates. Looking at flows in money funds in the second quarter, we saw good activity from products geared to the retail customers of financial intermediaries.

隨著短期利率見頂，我們預計貨幣市場策略的市場條件將優於直接市場和銀行存款利率。從第二季度貨幣基金的流量來看，我們看到面向金融中介機構零售客戶的產品表現良好。

Institutional product flows were challenged by the aforementioned debt crisis direct security yields and the regular June corporate tax period. Now the SEC, as you know, recently adopted new rules for money market funds. We continue to study these rules to assess their impact. We were pleased to see that swing pricing was not included and that the ability to use a reverse distribution mechanism was included as an option and a remote possibility that negative yields were to occur.

機構產品流受到上述債務危機直接證券收益率和六月常規企業納稅期的挑戰。如您所知，美國證券交易委員會最近通過了針對貨幣市場基金的新規則。我們將繼續研究這些規則以評估其影響。我們很高興地看到波動定價沒有被包括在內，並且使用反向分配機制的能力被作為一種選擇包括在內，並且出現負收益率的可能性很小。

We were also pleased that the SEC agreed with our recommendation to remove temporary redemption gates and the link between weekly liquidity asset thresholds and liquidity fees, which we believe created an incentive for investors to redeem sooner in periods of market stress and prevented the manager from using as much liquidity as was available.

我們還很高興 SEC 同意我們的建議，即取消臨時贖回門以及每周流動性資產閾值與流動性費用之間的聯繫，我們認為這會激勵投資者在市場壓力時期儘早贖回，並防止管理人使用盡可能多的可用流動性。

The inclusion of mandatory redemption fees subject to certain conditions in institutional prime and muni funds presents a challenge for fund advisers and investors. We have approximately $11 billion in third-party institutional assets in institutional prime and muni funds that we believe could shift to alternative products that we offer, including our private prime fund and government money market funds.

在機構優質基金和市政基金中納入符合特定條件的強制贖回費對基金顧問和投資者來說是一個挑戰。我們在機構優質基金和市政基金中擁有約 110 億美元的第三方機構資產，我們相信這些資產可以轉移到我們提供的替代產品，包括我們的私人優質基金和政府貨幣市場基金。

It's worth noting that institutional prime and muni funds already have fluctuating net asset values and that there is an exception or a carve-out for so-called de minimis impact based on the hypothetical selling of a strip of securities that may occur on the rare days when we have a 5% redemption trigger.

值得注意的是，機構優質基金和市政基金的資產淨值已經出現波動，並且基於在極少數情況下可能發生的假設出售證券的情況，存在所謂的“微量影響”的例外情況或排除情況當我們有 5% 的贖回觸發時。

We will be talking with our institutional clients over the coming months on this topic. We believe that these investors will continue to use the institutional prime and muni funds, at least into late next year, when the new rules take effect. Our estimate of money market mutual fund market share, including sub-advised funds, was 7.2% at the end of the second quarter down from 7.4% at the end of the first quarter.

我們將在未來幾個月與我們的機構客戶討論這個話題。我們相信，這些投資者將繼續使用機構優質基金和市政基金，至少到明年年底新規則生效時為止。我們對貨幣市場共同基金市場份額（包括次級顧問基金）的估計為第二季度末的 7.2%，低於第一季度末的 7.4%。

Now looking at recent asset totals as of a few days ago, managed assets were approximately $707 billion, including $510 billion in money markets, $84 billion in equities, $89 billion in fixed income, $22 billion in alternative private markets and $3 billion in multi-asset. Money market mutual fund assets were $365 billion. Thank you. On financials.

現在看看截至幾天前的近期資產總額，管理資產約為 7070 億美元，其中貨幣市場 5100 億美元，股票 840 億美元，固定收益 890 億美元，另類私募市場 220 億美元，多邊市場 30 億美元。資產。貨幣市場共同基金資產為 3,650 億美元。謝謝。關於財務。

Thank you, Chris. As described in the press release, Q2 results included 2 transactions that impacted results for a combined loss, net of tax of $800,000. The transactions include a sale by a shareholder in one of our private equity funds of a portion of their investment to a third party and a restructuring of one of our infrastructure funds.

謝謝你，克里斯。正如新聞稿中所述，第二季度業績包括影響業績的 2 筆交易，導致綜合虧損（稅後淨額為 800,000 美元）。這些交易包括我們一隻私募股權基金的股東將其部分投資出售給第三方，以及我們一隻基礎設施基金的重組。

We continue to manage both funds. Total revenue for Q2 increased $51 million from the prior quarter due mainly to an increase of $38 million in carried interest and performance fees, of which $25.9 million is from carried interest revenue from consolidated carried interest vehicles that was offset mainly by compensation expense. Retained carried interest and performance fees increased by $12.1 million from the prior quarter. Total Q2 performance fees and carried interest were $39.4 million. All other revenue increased by $13.1 million or 3% due mainly to higher average money market assets, bringing in $11.6 million of revenue and an additional day in the quarter, bringing in $4.6 million of revenue partially offset by lower average equity assets, reducing revenue by $2.5 million.

我們繼續管理這兩隻基金。第二季度總收入較上一季度增加 5100 萬美元，主要是由於附帶權益和績效費用增加了 3800 萬美元，其中 2590 萬美元來自合併附帶權益工具的附帶權益收入，該收入主要被補償費用抵消。保留附帶權益和績效費用比上一季度增加了 1210 萬美元。第二季度績效費用和附帶利息總額為 3940 萬美元。所有其他收入增加了 1,310 萬美元，即 3%，主要是由於平均貨幣市場資產增加，帶來了 1,160 萬美元的收入，並且本季度增加了一天，帶來了 460 萬美元的收入，部分被平均權益資產的下降所抵消，收入減少了250萬美元。

Q2 operating expenses increased $37.8 million from the prior quarter due mainly to $25.7 million of compensation expense from the consolidated carried interest vehicles and from $9.8 million due to the restructuring of the infrastructure fund recorded in other expense. All other expenses increased by $2 million or 1%.

第二季度運營費用較上一季度增加 3,780 萬美元，主要是由於合併附帶權益工具產生的 2,570 萬美元補償費用，以及由於記錄在其他費用中的基礎設施基金重組而增加的 980 萬美元。所有其他費用增加了 200 萬美元或 1%。

The $23 million increase in compensation and related expense from Q1 to included the $25.7 million in consolidated carry interest vehicle compensation and $1.4 million in severance partially offset by $4.1 million of lower incentive compensation expense.

薪酬及相關費用較第一季度增加 2300 萬美元，其中包括 2570 萬美元的合併附帶權益工具薪酬和 140 萬美元的遣散費，部分被 410 萬美元的較低激勵薪酬費用所抵消。

The increase in professional service fees from Q1 was due mainly to higher legal and consulting fees. The increase in advertising and promotional from the prior quarter is mainly due to the timing of certain conference and advertising spending. The effective tax rate was 27.4% for the quarter.

專業服務費用較第一季度增加主要是由於法律和諮詢費用增加。廣告和促銷較上季度增加主要是由於某些會議和廣告支出的時間安排。該季度的有效稅率為 27.4%。

The Q2 rate was impacted by the restructuring of the infrastructure fund, which included the purchase rights to receive future carried interest, this purchase and related expenses were not deductible for tax purposes. As a result, our effective tax rate was higher this quarter compared to our expected rate of 24% to 26% for 2023.

第二季度利率受到基礎設施基金重組的影響，其中包括獲得未來附帶權益的購買權，此次購買和相關費用不可扣除稅收目的。因此，我們本季度的有效稅率高於我們對 2023 年 24%​​ 至 26% 的預期稅率。

At the end of Q2, cash and investments were $521 million, of which about $459 million was available to us. Jenny, we would like to now open up the call for questions, please?

截至第二季度末，現金和投資為 5.21 億美元，其中我們可用的金額約為 4.59 億美元。珍妮，我們現在想開始提問，好嗎？

(Operator Instructions) Your first question is coming from Daniel Fannon of Jefferies.

（操作員說明）您的第一個問題來自 Jefferies 的 Daniel Fannon。

So I wanted to start with just money market flows and understand your comments that as rates stabilize or peak, you expect to see those flows pick up. But also just want to contrast that to what we're hearing just broadly about fixed income flows also picking up when that occurs. So how do you think investors and the balance between what bond funds and money market funds are going to look like as we -- our allocations are going to trend as we get towards more of that peak rate or lower rates potentially dynamic.

因此，我想從貨幣市場流量開始，並了解您的評論，即隨著利率穩定或見頂，您預計會看到這些流量回升。但也只是想將其與我們廣泛聽到的固定收益流量在這種情況發生時也會增加的情況進行對比。那麼，您如何看待投資者以及債券基金和貨幣市場基金之間的平衡，因為我們的配置將隨著我們接近峰值利率或潛在動態的較低利率而變化。

Daniel, I'll comment on the bond fund portion, and I'll let Debbie add on the money market portion. So our franchise, the Core Plus franchise, total return bond has over $18 billion in it, and it is a great bucket to have a very good story over the long term. And so as we're looking at the fixed income market, that is a big allocation, almost no matter what is going on in the marketplace.

丹尼爾，我將評論債券基金部分，我將讓黛比補充貨幣市場部分。因此，我們的特許經營權，Core Plus 特許經營權，總回報債券超過 180 億美元，從長遠來看，這是一個很好的機會。因此，當我們關注固定收益市場時，幾乎無論市場發生什麼，這都是一個很大的配置。

And therefore, we are winning mandates where that is a core position and how people are feeling is a little different than a core allocation. And so we're winning in that space. If you talk to the they are somewhat reticent to go into the market full bore, even though you've seen some changes along those lines with market performance. And so they are quite sanguine about a core position in the Core Plus fund that has this kind of record. And I'll let Debbie comment on the money market portion, and then I'll draw them back together after her comments.

因此，我們正在贏得核心地位的授權，而人們的感受與核心分配略有不同。所以我們在這個領域取得了勝利。如果您與他們交談，即使您已經看到市場表現發生了一些變化，他們也不太願意全力進入市場。因此，他們對擁有這種記錄的 Core Plus 基金的核心地位非常樂觀。我會讓黛比對貨幣市場部分發表評論，然後我會在她發表評論後將它們拉回到一起。

Thanks, Chris. So from the money market side of the equation, much of the growth that we have seen so far has come from the retail side of the market. And that's simply because compared to bank deposit rates where they were for a lot of the zero rate environment. Money market funds are now paying much more attractive market rate of return for institutional buyers, however, they have the ability generally to be able to be in direct markets specifically, so buying direct commercial paper, buying direct CDs.

謝謝，克里斯。因此，從貨幣市場方面來看，我們迄今為止看到的增長大部分來自市場的零售方面。這僅僅是因為與許多零利率環境下的銀行存款利率相比。貨幣市場基金現在為機構買家支付更具吸引力的市場回報率，但是，他們通常有能力進入直接市場，因此可以直接購買商業票據，購買直接CD。

And as the market has increased, they have been purchasing direct market securities such as those in order to pick up the yield, the higher yield more quickly. Money market funds operate with a lag, maybe 25 to 30 days depending upon what our weighted average maturities are. Once markets peak or plateau in this case. And even then, even more so when they start to go down the other side, the opposite occurs for the institutional investor where they come into those funds that actually lag the market and therefore, stay at that higher rate for a longer period of time. So generally, that's when we would see institutional markets and the institutional flows pick up while retail will be maintained at that point. So it comes from 2 different sources. The retail side, as money is coming off of and very attractive versus bank deposits. And then once rates plateau and start to go down even marginally, it comes from the institutional side. So that's -- and these are generally cash managers cash management flows. It doesn't include what Chris was talking about, those flows that ultimately may, may make their way back to the longer side of the fixed income markets or even the equity markets for that matter. Chris, back to you.

隨著市場的增加，他們一直在購買直接市場證券，例如那些為了提高收益率，收益率越高越快。貨幣市場基金的運作存在滯後性，可能有 25 至 30 天，具體取決於我們的加權平均期限。在這種情況下，一旦市場達到頂峰或平台期。即便如此，當它們開始下跌時，機構投資者就會發生相反的情況，他們進入那些實際上落後於市場的基金，因此在較長時間內保持較高的利率。因此，一般來說，那時我們會看到機構市場和機構資金流動回升，而零售將維持在這一點上。所以它有兩個不同的來源。零售方面，因為資金正在流出，並且相對於銀行存款非常有吸引力。一旦利率趨於穩定並開始小幅下降，它就來自機構方面。這就是——這些通常是現金管理者的現金流管理。它不包括克里斯所說的內容，這些資金流最終可能會回到固定收益市場的長期一側，甚至是股票市場。克里斯，回到你身邊。

Okay. Thanks. And so what's really going on here is it's almost independent decisions in addition to filling out a core position, those FAs that are willing to lengthen duration like the product. The product does a very good job of capturing alpha on the downside and on the upside. And if you look at its 3-year rolling returns over 72 periods, about 90-some percent of the time, this fund beats the competitors and the bench. And so it's a very solid product. And others are consolidating managers and doing other things like that. And that's why you're seeing these strong flows into the total return bond fund category.

好的。謝謝。所以這裡真正發生的事情是，除了填補核心職位之外，那些願意像產品一樣延長期限的 FA 幾乎是獨立的決定。該產品在捕捉下行和上行阿爾法方面做得非常好。如果你觀察 72 個時期的 3 年滾動回報率，大約 90% 的時間裡，這只基金擊敗了競爭對手和替補。所以它是一個非常可靠的產品。其他人正在整合經理並做其他類似的事情。這就是為什麼你會看到這些強勁資金流入總回報債券基金類別。

Okay. That's helpful. And then I was hoping to clarify some of the dynamics within the carried interest in the quarter. I think you mentioned the restructuring of the infrastructure fund. So -- and I believe something else I might have missed it. But if you could just talk about specifically what happened and then the understanding what the impact was to carried interest and comp. But I believe there was -- is that partly why the elevated legal costs as well? I just want to make sure we're looking at the kind of normalized expense levels exiting kind of the second quarter would be helpful.

好的。這很有幫助。然後我希望澄清本季度附帶權益的一些動態。我想你提到了基建基金的重組。所以——我相信我可能還錯過了一些其他的事情。但是，如果您能具體談論發生的事情，然後了解其對利息和薪酬的影響。但我相信這也是法律成本上升的部分原因嗎？我只是想確保我們正在研究第二季度退出的正常化費用水平會有所幫助。

Yes. Okay, Dan. That's why we put that kind of specific things in the press release under financial summary, but just to talk about it. So we have the Horizon product, which has a long-term large private equity investor was looking to exit some of their position. And we worked on this for a long time and they were able to complete the transaction, sell their position to somebody else. And importantly, we still are managing it. So it's just we're managing it for somebody else.

是的。好的，丹。這就是為什麼我們將此類具體內容放在新聞稿中的財務摘要下，但只是為了談論它。因此，我們有 Horizo​​n 產品，該產品有一個長期大型私募股權投資者正在尋求退出其部分頭寸。我們為此工作了很長時間，他們能夠完成交易，將其職位出售給其他人。重要的是，我們仍在管理它。所以我們只是在為別人管理它。

That triggered the carry from the gains that they got by selling it, which triggered the carrier of which we get some of it, we being the ink and which the managers get some of it, which is why it is compensation. So that stand-alone by itself, that would have been a positive contribution to earnings.

這觸發了他們通過出售它獲得的收益的利差，這觸發了我們得到一些它的載體，我們是墨水，經理們得到了一些它，這就是為什麼它是補償。因此，就其本身而言，這將對盈利做出積極貢獻。

So the second transaction was in our infrastructure business, where we kind of looked at it and realized that we needed to update it to more satisfied the existing investors and to transfer it into a better structure to grow it in the future. And that -- what that did was triggered carried interest from the past that we were able to recognize. The reason why we were able to recognize it -- the reason why we didn't recognize it before it was because there was a clawback. Once we restructured it, the clawback ends and therefore, we recognized it.

因此，第二筆交易是在我們的基礎設施業務中，我們對此進行了研究，並意識到我們需要對其進行更新，以使現有投資者更加滿意，並將其轉移到更好的結構中，以便在未來發展。那--所做的事情引發了我們能夠認識到的過去的興趣。我們之所以能夠認識到它——之前我們之所以沒有認識到它，是因為有回撥。一旦我們重組了它，回撥就結束了，因此，我們認識到了這一點。

And what we also had to do was went out and got a fair market value of the cherry for the people who get the carried interest, and we had to take that as an expense. By the way, that was not a comp expense even though it's paid to the employees and it shows up in the other line. Now both those things, and we continue to manage that portfolio too. And I think it's important for Saker if he wants to make any follow-up comments on those businesses.

我們還要做的就是出去為那些獲得附帶權益的人獲得櫻桃的公平市場價值，我們必須將其作為費用。順便說一句，這不是補償費用，即使它支付給員工並且顯示在另一行中。現在這兩件事，我們也繼續管理該投資組合。我認為，如果薩克想對這些企業做出任何後續評論，這對他來說很重要。

Sure. Thank you. So 2 things about this. One, if you think about the first transaction, it is actually a success because when you have a private market investor, they tactically the in-depth of the long term, you want to ensure that there for the long term. And you also want to make sure that if they need liquidity at some stage, they can find or we can help them find somebody else, and that's what we did. And that then triggers a realization of some of our carry both for us and for the managers.

當然。謝謝。關於這個有兩件事。第一，如果你考慮第一筆交易，它實際上是成功的，因為當你有一個私人市場投資者時，他們在戰術上是長期的深入，你希望確保長期存在。你還想確保，如果他們在某個階段需要流動性，他們可以找到，或者我們可以幫助他們找到其他人，這就是我們所做的。然後，這就會觸發我們和經理們意識到我們的一些利益。

The second one is different in the sense that the clients themselves wanted us to restructure the fund so that we can adapt it to what they want to do. And again, we kept the management of it. So the first key point is that we have control of the management of both. The second one is something like this gives an indication. This is neither a forecast or it's just simply the numbers are the numbers. But it gives you an indication of how private markets work, which is there's a lot of revenue that is generated within private markets, it comes through these lumpy carry payments that happen over time, which we do not predict, but you can look at our past strategies and the notes as actually the press release and you can see the averages over time. And that's an integral part of how we do it.

第二個是不同的，因為客戶自己希望我們重組基金，以便我們能夠使其適應他們想要做的事情。再次，我們保留了對它的管理。所以第一個關鍵點是我們對兩者的管理都有控制權。第二個是這樣的，給出了一個指示。這既不是預測，也只是數字而已。但它向您展示了私募市場的運作方式，即私募市場內產生了大量收入，這些收入是通過隨著時間的推移發生的這些不穩定的套利支付產生的，我們無法預測這一點，但您可以看看我們的過去的策略和註釋實際上是新聞稿，您可以看到一段時間內的平均值。這是我們的工作方式中不可或缺的一部分。

Now we have established an incredibly strong reputation in all parts of private markets and private equities. The track record is outstanding. And that's part of why we managed to posed above our expectations in property. It's the same in direct lying and so on. So it's a combination of us keeping clients -- of actually expanding our client bases in many ways and then realizing the carry, some of which goes to the managers, which is typical with the private markets and some of it comes to ink, which is the house. So it gives you an insight, if you like, of how private markets works and how attractive this business is because of its stickiness, its longevity and the carrier's interest that you generate within it for us as well as for our clients.

現在，我們在私募市場和私募股權的各個領域都建立了令人難以置信的良好聲譽。往績記錄非常出色。這就是我們在房地產領域取得超出預期的部分原因。直接說謊等也是如此。因此，這是我們留住客戶的結合 - 實際上以多種方式擴大我們的客戶群，然後實現收益，其中一些流向經理，這是私人市場的典型特徵，而另一些則流向墨水，這是房子。因此，如果您願意，它可以讓您深入了解私人市場的運作方式以及這項業務的吸引力，因為它的粘性、持久性以及您在其中為我們和我們的客戶產生的承運人利益。

So Dan, the last comment that I have is we put in the net-net on all these things, which I understand are complicated to figure out. And that's why we put in that an after-tax impact was only $800,000 when you take all these transactions and all these millions of dollars, we kind of wanted to give you an indication that that wouldn't have impacted earnings too much about $800,000 exactly.

丹，我的最後一個評論是，我們將所有這些事情放在網絡中，我知道這些事情很難弄清楚。這就是為什麼當你考慮所有這些交易和所有這些數百萬美元時，我們將稅後影響僅為 800,000 美元，我們想向您表明，這不會對收入產生太大影響，大約為 800,000 美元。

Your next question is coming from Patrick Davitt of Autonomous Research.

您的下一個問題來自自主研究的帕特里克戴維特。

Perhaps reported on some money fund fee cuts earlier in the month, but I think misrepresented the impact. So could you frame any immediate impact to the earnings model from those reported changes? And then more broadly, what exactly are the changes you made? And any color on the reasoning for the new framework?

也許本月早些時候報導了一些貨幣基金費用削減，但我認為歪曲了影響。那麼您能否列出這些報告的變化對盈利模式的直接影響？更廣泛地說，您到底做了哪些改變？新框架的推理有何色彩？

Yes, Patrick, it's Ray. We did, in the beginning of May, the fund board approved a reduction in investment advisory fees on a group of our money funds. But as you indicated, there's no impact to our revenue because we already had long-standing advisory fee waivers. So this was not revenue that we were collecting. It may have been reported as such or indicated that. In addition, in the beginning of July, we launched 10 new share classes on 3 of our treasury funds. And we did that to give clients additional product options and also have some when looking at our treasury products compared to the government and prime funds when you look at things like expenses and minimum investments and some other features. As a consequences of these creating these new share classes, certain number priced at 15 basis points net of waivers. And so that does represent on a new share class, a lower net effective fee rate than what was previously available. And that's kind of in line with -- moving in line with where some of the competition funds are. And again, giving us consistency. We already had that pricing option on the government side, which is the bigger category. So those are the changes at a high level. Debbie, I don't know if you want to add anything to that?

是的，帕特里克，我是雷。我們確實在五月初批准了降低我們一組貨幣基金的投資諮詢費。但正如您所指出的，這對我們的收入沒有影響，因為我們已經長期免除諮詢費。所以這不是我們收取的收入。可能已經這樣報導或表明了這一點。此外，7 月初，我們針對 3 個庫存基金推出了 10 個新股票類別。我們這樣做是為了給客戶提供更多的產品選擇，當你考慮費用和最低投資以及其他一些功能時，與政府和優質基金相比，我們的國債產品也有一些選擇。由於這些新股票類別的創建，某些股票的定價為 15 個基點（扣除豁免）。因此，這確實代表了新的股票類別，淨有效費率低於以前的水平。這與一些競爭基金的情況是一致的。再次，給我們一致性。我們已經在政府方面有了定價選項，這是更大的類別。這些是高層的變化。黛比，我不知道你是否想補充什麼？

Yes. I think just that we really don't expect it to be impactful in the assets in those products and any kind of shift that might take place between share classes within a product we expect to be modest at this point.

是的。我認為，我們真的不希望它對這些產品的資產產生影響，也不會對產品中的股票類別之間可能發生的任何形式的變化產生影響，我們預計目前這種變化不會太大。

And the intention, of course, is to regardless of shifting and if any of that occurs or when our -- when we undertake changes like this, our expectation is that they will be revenue enhancing.

當然，我們的目的是無論發生什麼變化，如果發生任何變化，或者當我們進行這樣的改變時，我們的期望是它們將增加收入。

Got it. And as my follow-up, you're building a fairly nice cash balance and did a lot more repurchase in the second quarter than I think maybe your tone on the last call would have suggested. So should we be leaning more into repurchases as we think about our models for the second half now and now that your price is much lower than it was last quarter?

知道了。作為我的後續行動，您正在建立相當不錯的現金餘額，並且在第二季度進行了比我認為您在上次電話會議中的語氣所暗示的更多的回購。那麼，當我們考慮下半年的車型時，既然你們的價格比上季度低得多，我們是否應該更多地傾向於回購？

Yes, Patrick, it's Tom. So we had the Russell -- we got to tick down in the index in the Russell. And so we weren't sure what was going to happen there and wanted to be prepared. And then we also knew that the money market regulation was coming, and we're exactly sure what was going to happen there. And so looking into the future, the Russell is behind us. And we did buy shares during that period. We thought that there was lower price than was appropriate so a buying opportunity. And now that the money market thing is not as bad as it could have been. We think that our stock is underpriced and so we will review as we buy shares based on that thought process.

是的，帕特里克，是湯姆。所以我們有了羅素指數——我們必須在羅素指數中打勾。所以我們不確定那裡會發生什麼，並希望做好準備。然後我們也知道貨幣市場監管即將到來，我們完全確定那裡會發生什麼。因此，展望未來，羅素就在我們身後。在那段時期我們確實購買了股票。我們認為價格低於合適的價格，因此是買入機會。現在貨幣市場的情況並沒有想像的那麼糟糕。我們認為我們的股票價格被低估，因此我們將根據這一思維過程在購買股票時進行審查。

Your next question is coming from Mike Brown of KBW.

您的下一個問題來自 KBW 的 Mike Brown。

You just touched on the dynamic with the Russell removal there. We did receive a number of inbounds about that dynamic and the resulting technical pressure on the stock. Can you just touch on this dynamic a little bit more? And I guess given your governance is kind of part of your investment strategy. Why not meet the requirements to stay in the index?

你剛剛談到了拉塞爾被撤職的動態。我們確實收到了許多關於這種動態以及由此給股票帶來的技術壓力的消息。您能多談談這個動態嗎？我想鑑於你們的治理是你們投資策略的一部分。為什麼不滿足留在指數的要求？

So I'll deal the first part, and Chris can answer the last question. The dynamics are hard to understand, know exactly, but we looked at our volume and saw that before the index date, our volume picked up and the price came down leading up to it. If you look at a month or so before hand, the price went -- kept going down, down, down, and the volume went up, whether that was people addressing and preparing their portfolios in advance of the Russell change or whether it was people betting or selling based on what they thought was going to happen in the money market business, you can pick. I think it was probably both. After you had a big volume day, I forget 12 million shares or something on the day that Russell changed. And actually, the few days before the stock we kind of outperformed relative to the market. And then roughly the 5 days after we kind of underperformed. So maybe that was the people who were tied to the ReltoIndex but not actually index funds. We're adjusting their portfolios -- we thought that was the buying opportunity and participated. And I would think it's in the rearview mirror now because our share trading seems to have settled down to more historical levels.

所以我將處理第一部分，克里斯可以回答最後一個問題。這種動態很難理解，也很難確切地知道，但我們查看了我們的交易量，發現在指數日期之前，我們的交易量有所增加，而價格在指數發布之前有所下降。如果你提前一個月左右觀察，就會發現價格一直在下跌、下跌、下跌，而成交量卻在上升，無論是人們在羅素變化之前處理和準備他們的投資組合，還是人們根據他們對貨幣市場業務的預期進行投注或出售，您可以選擇。我想可能兩者都是。在成交量大的一天之後，我忘記了拉塞爾改變的那天有 1200 萬股之類的東西。事實上，在股票上市前幾天，我們的表現相對於市場來說有點跑贏。然後大約 5 天后我們表現不佳。因此，也許這些人與 ReltoIndex 相關，但實際上並不是指數基金。我們正在調整他們的投資組合——我們認為這是買入機會並參與其中。我認為它現在已經成為過去，因為我們的股票交易似乎已經穩定到歷史水平。

So changing in order to get with an index didn't strike us as the way to do the strategy for Federated Hermes, Inc. The index people decide not to be an index doesn't mean that we have to decide to join their non-index index. We have had this structure going all the way back into the 60s when we went public. It was an intervening time in the '80s when we were owned by Aetna. But when we bought ourselves back in '89, we went back to the same structure.

因此，為了獲得指數而進行的改變並沒有讓我們感到驚訝，因為這是 Federated Hermes, Inc. 制定戰略的方式。指數人決定不成為指數並不意味著我們必須決定加入他們的非指數。索引索引。我們的這種結構可以追溯到 20 世紀 60 年代我們上市時的情況。那是 80 年代的一個中間時期，當時我們屬於 Aetna。但當我們在 89 年重新收購自己時，我們又回到了同樣的結構。

And in conjunction with looking at the funds, the money that we manage on the institutional side, it's been our conclusion, and it's worked well for us that it's very clear as to who is in charge and who is managing the money. And we're not worried about who's having lunch with whom. And we are able to, therefore, focus on investment management performance and growth of the enterprise. I would also add that because we do generate cash flow, we can take these incongruities in the marketplace as buying opportunities for the underlying stock. So we are happy with our structure where we are.

結合我們在機構方面管理的資金，我們得出的結論是，誰負責、誰管理資金非常清楚，這對我們來說效果很好。我們並不擔心誰和誰一起吃午餐。因此，我們能夠專注於投資管理績效和企業的成長。我還想補充一點，因為我們確實產生現金流，所以我們可以將市場上的這些不協調視為購買標的股票的機會。因此，我們對目前的結構感到滿意。

Okay. And then just as a follow-up, if I just take -- approach the capital allocation question a little bit differently. And just -- are you seeing any opportunities on the M&A front? And how are you thinking about some of the strategic opportunities that would best fit Federated Hermes that you think could kind of take you on your next evolution of growth here?

好的。然後，作為後續行動，如果我採取稍微不同的方式處理資本分配問題。只是——您在併購方面看到了任何機會嗎？您如何看待最適合 Hermes 聯邦的一些戰略機會，您認為這些機會可以帶您在這裡進行下一次增長？

Okay. It's Tom. We have -- we've talked about before, looking in the real estate development area. That's going to be a long, long process. It's going to probably be a acquisition in the U.S., and we've got to get the skills and expertise that we have in London and trying to bring that over here will require boots on the ground in the U.S. And so that's a long-term thing. It has to fit with us. It has to culturally and all the things it took us a long time to find acquisition in Hermes. I would expect that it's going to take us a long time to find something that makes sense for us there, too. That would kind of be the biggest thing. We don't have needs in growth or quant or value. So those would probably expect to be more roll-up type of things that happen. And then, of course, in the money fund business. We're all in, in the Money fan business. And if someone wants to be out, we are a highly interested player.

好的。是湯姆。我們之前已經討論過，正在尋找房地產開發領域。這將是一個漫長的過程。這可能會在美國進行收購，我們必須獲得我們在倫敦擁有的技能和專業知識，並試圖將其帶到這裡，這將需要在美國實地開展工作，所以這是一個長期的過程事物。它必須適合我們。它必須在文化上以及我們花了很長時間才在愛馬仕身上找到的所有東西。我預計我們需要很長時間才能找到對我們來說也有意義的東西。這將是最重要的事情。我們沒有增長、數量或價值的需求。因此，這些可能會發生更多的匯總類型的事情。當然，還有貨幣基金業務。我們都參與了金錢迷行業。如果有人想退出，我們是一個非常感興趣的球員。

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

您的下一個問題來自德意志銀行的布萊恩·比德爾（Brian Bedell）。

Great. First on the money market side, sort of a combo question on the on the proposals from the SEC, particularly the liquidity rules, I think, going from 10% to 30% in -- I think overnight and weekly to 25% and 50% debt proposal, which subset of funds would that impact on the money side for you? And then, I guess, sort of connected with that, I know you tend to manage relatively conservatively across the money fund asset class. How do you see the competitive yield dynamic on the retail side of the business? Sometimes you get obviously flows chasing -- sort of money chasing higher yielding and you don't typically engage in that, but maybe just some perspective on where you see your competitive yields in the marketplace and how that might change in the near to intermediate term?

偉大的。首先在貨幣市場方面，這是關於 SEC 提案的組合問題，特別是流動性規則，我認為，從 10% 到 30%，我認為隔夜和每周到 25% 和 50%債務提案，哪個基金子集會對您的資金方面產生影響？然後，我想，與此相關的是，我知道您傾向於相對保守地管理貨幣基金資產類別。您如何看待零售業務方面的競爭性收益動態？有時你會明顯地看到流量追逐——某種資金追逐更高的收益率，而你通常不會這樣做，但也許只是對你在市場上看到的有競爭力的收益率以及在中短期內可能發生的變化有一些看法？

Debbie?

黛比？

Sure, I can take that. So going from 10% in overnight and 30% in weekly liquid assets that are required in the current role to 25% in dailies and which will be required in the new rules. The only funds that, that will impact would be the prime funds. First of all, the municipal funds are exempt from any kind of daily liquid asset requirements. So it's only weekly liquid assets that impact them. And from both a municipal and a government standpoint, they operate well in excess of those either 25% or 50% requirements for dailies and weekly. So it's really the prime funds that will be impacted.

當然，我可以接受。因此，從當前職位要求的隔夜流動資產 10% 和每周流動資產 30% 增加到新規則中要求的每日流動資產 25%。唯一會受到影響的基金是優質基金。首先，市政基金不受任何日常流動資產要求的限制。因此，只有每週的流動資產會對他們產生影響。從市政府和政府的角度來看，它們的運營遠遠超出了日報和周刊 25% 或 50% 的要求。因此，真正受到影響的是優質基金。

And for the most part, since 10% and 30%, and especially the 30% had a negative consequence of the potential for gates and fees we tended to never manage our funds with 10% and 30%, but rather something that was probably closer to 20% and 40%. So 20% and 40% going to 25%, and 50% is impactful. It will have a basis point impact in those particular products, prime retail and prime institutional but they should still be able to maintain their competitive spread over the government sector, which is where they're mostly compared.

在大多數情況下，由於 10% 和 30%，尤其是 30% 會對門檻和費用的潛力產生負面影響，我們傾向於永遠不會用 10% 和 30% 來管理我們的資金，而是使用可能更接近的東西至 20% 和 40%。所以 20%、40% 到 25%、50% 是有影響的。它將對這些特定產品、主要零售和主要機構產生基點影響，但它們仍然應該能夠保持相對於政府部門的競爭優勢，而政府部門是它們主要進行比較的地方。

From a competitive yields perspective in the market, our products at this point are for retail, especially are kind of the top of the heap from a standpoint of what their alternatives are, generally speaking, for cash management products. Mostly our highest competitor outside the industry would be the bank deposit market, the retail bank deposit market. And that continues to lag from a standpoint of what those banks are paying in an administered rate versus what the funds are earning and passing through as a market rate. On the institutional side, again, as yields peak plateau and start to go down the other side, the comparison to the direct market for the institutional customers will also become very attractive at that point.

從市場上有競爭力的收益率角度來看，我們目前的產品適用於零售，特別是從他們的替代品的角度來看，一般來說，現金管理產品是頂級的。大多數情況下，我們行業外的最大競爭對手是銀行存款市場，即零售銀行存款市場。從這些銀行按管理利率支付的費用與基金按市場利率賺取和流通的費用的角度來看，這仍然滯後。在機構方面，隨著收益率達到頂峰並開始下降，機構客戶與直接市場的比較此時也將變得非常有吸引力。

That's great color. And my follow-up will be on the strategic value fund. This is -- Chris, as you described this, it's typical classic performance versus the peer group and now we're in this, obviously, mega cap tech rally. Maybe just some color on your sales force and the advisers that you're selling this product to. Is it resonating that this is probably a good buying opportunity from at least a mean reversion perspective? Or do you really -- do advisers typically chase performance on this and buy it more when it's actually outperforming?

那顏色真棒。我的後續行動將是戰略價值基金。這是——克里斯，正如你所描述的，這是與同行相比的典型經典表現，現在我們顯然正處於這場大型科技股反彈中。也許只是對你的銷售人員和你向其銷售該產品的顧問進行一些描述。至少從均值回歸的角度來看，這可能是一個很好的買入機會，是否引起共鳴？或者你真的——顧問通常會追逐這個股票的表現，並在它實際上表現出色時購買更多股票嗎？

Well, you need to look at that in terms of when the money came in, how long it's been there and how the advisers presented the product. Last year, when it was #1, this is the exact experience we had before, the money that comes in because it's the #1 fund, it's the money that goes out when that performance changes. However, the money that went in because it was a growth dividend story stays in. And so what the FAs prefer over the long haul is us sticking with our knitting and staying with the concept. And the PM and the team have written books on these subjects, coming up with a new one as we speak. In terms of the efficacy of this type of investing, recent performance to the contrary, notwithstanding. So the core group of those fundholders remain very, very steady. And that's why I mentioned the 7.4% return overall over the last 10 years. because that's what it takes. But at the margin, when the money comes in, when it's #1 and because of #1, it goes out when that backs up.

嗯，你需要考慮資金何時進來、存在多久以及顧問如何展示產品。去年，當它排名第一時，這正是我們之前的經歷，因為它是排名第一的基金而流入的資金，當業績發生變化時流出的資金。然而，因為這是一個增長股息故事而投入的資金會保留下來。因此，從長遠來看，足總更喜歡的是我們堅持我們的編織並堅持這個概念。首相和他的團隊已經就這些主題撰寫了書籍，在我們發言時又推出了一本新書。然而，就此類投資的功效而言，最近的表現卻恰恰相反。因此，這些基金持有人的核心群體仍然非常非常穩定。這就是為什麼我提到過去 10 年總體回報率為 7.4%。因為這就是它所需要的。但在邊際上，當錢進來時，當它是第一名時，並且由於第一名，當它支持時，它就會消失。

And Brian, I would just add, we've had continue to have the strategy added and added 2 platforms and exposed to growth opportunities within platforms, precisely because it is an alternative to the growth-oriented small group of stocks driving returns. And I'd also mention that ETFs that we launched late last year, it's around $60 million in assets but we're having the same kind of experience. It's being added as an option. And so from an adviser standpoint, it's a strategy that they want to continue to have access to.

布萊恩，我想補充一點，我們已經繼續增加了該策略，並增加了 2 個平台，並在平台內接觸到增長機會，正是因為它是推動回報的增長型小股股票的替代品。我還要提到我們去年年底推出的 ETF，其資產約為 6000 萬美元，但我們也有同樣的經驗。它被添加為一個選項。因此，從顧問的角度來看，這是他們希望繼續使用的策略。

And one other comment would be, don't forget, there have written near $500 million worth of gross sales in that fund in that quarter when we had the net redemptions. So the product is alive and well. And our commitment to the whole thing is demonstrated by what Ray just mentioned, namely the new ETF. Maybe I went the best time to come out with it and it's a long-term look at a viable product for the long term.

另一條評論是，不要忘記，當我們進行淨贖回時，該基金在該季度的總銷售額接近 5 億美元。所以這個產品還活著而且很好。 Ray 剛才提到的新 ETF 就證明了我們對整個事情的承諾。也許我推出這個產品的最佳時機，是對長期可行產品的長期審視。

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

您的下一個問題來自 Evercore ISI 的 John Dunn。

Maybe continuing on the theme of money market roll-ups. Can you frame for us with the higher rates, with closer to the plateau, and maybe some more certainty around regulation. How do smaller players look at that environment, maybe the guys in the 10% to 25% range. Does it give more confidence of joining up with someone bigger or it doesn't work that way, and it's just more episodic?

也許會繼續討論貨幣市場捲起的主題。您能否為我們提供更高的利率、更接近穩定水平以及監管方面的更多確定性？較小的玩家如何看待這種環境，也許是 10% 到 25% 範圍內的玩家。它是否會讓你更有信心與更大的人聯合起來，或者它不會那樣工作，而只是更加偶然？

It depends on how the money got in there and who controls the money at the moment of redemption. So there are 50, maybe 60 listed money market fund players. The top 25 have all the assets, the top 20 are the only ones who really compete for the big assets. And it all depends on how that fits into your regular business. So we have a sales force that goes around and calls on all the players in the money market fund business to, as Tom pointed out, be a warm and loving home should they decide to change their mind on doing this.

這取決於錢是如何進入的以及在贖回時誰控制著錢。因此，有 50 家、也許 60 家上市貨幣市場基金公司。前25名擁有全部資產，真正爭奪大資產的只有前20名。這完全取決於它如何適應您的日常業務。因此，我們有一支銷售隊伍，他們四處走動，呼籲貨幣市場基金業務的所有參與者，正如湯姆指出的那樣，如果他們決定改變主意，就成為一個溫暖而有愛的家。

And it's episodic. There was no avalanche after the last go-round of SEC regulation. I don't expect an avalanche out of this one. But periodically, CFOs, CEOs and managers decide that the time has come to (inaudible) to get out of it. And that's what we're looking for. So I don't believe it will be a catalyst to an avalanche.

而且它是間歇性的。在美國證券交易委員會最後一輪監管之後，並沒有出現雪崩。我不認為這次會發生雪崩。但首席財務官、首席執行官和經理們會定期決定（聽不清）擺脫困境的時候了。這就是我們正在尋找的。所以我不相信這會成為雪崩的催化劑。

Got you. And then you talked about strategic value dividend. But outside of that, can you talk a little more about your other equity strategies that you think can see pickup in demand to kind of soak up some of those redemptions from SPD?

明白你了。然後您談到了戰略價值紅利。但除此之外，您能否多談談您認為需求回升的其他股票策略，以吸收 SPD 的部分贖回？

Well, the 2 MDT offerings have been very excellent. The large cap and the mid-cap growth are picking up both regular fund business and large institutional business and their growth is excellent. If you look at the International Leaders Fund, that's another one that has excellent performance across the time frames and is a very good offering inside the retail distribution.

嗯，2 個 MDT 產品非常出色。大盤股和中盤股的增長正在加速常規基金業務和大型機構業務的增長，並且增長勢頭良好。如果你看一下國際領袖基金，你會發現這是另一隻在不同時間段內表現出色的基金，並且是零售分銷中非常好的產品。

If you go across the pond and you look at Asia, ex-Japan, this fund is outstanding in terms of its flows and performance. The GEM product, the emerging markets fund is also -- continues to win institutional mandates. I'm probably skipping some of my children who I love dearly, but those are ones that pop up immediately.

如果你看看大洋彼岸，看看亞洲（日本除外），這只基金的流量和業績都非常出色。創業板產品、新興市場基金也繼續贏得機構授權。我可能會跳過一些我深愛的孩子，但那些是立即出現的孩子。

Your next question is coming from Ken Worthington of JPMorgan.

您的下一個問題來自摩根大通的肯·沃辛頓。

Chris, SEC filings suggest you sold a substantial portion of the stock that you owned during 2Q. Some digging suggests that some of this was done by a trust and others were just transfers to other vehicles controlled by your family. But the end result seems like your direct interest in Federated is substantially lower than it has been in the past. So maybe first, can you explain what appears to be selling during the quarter? How much stock do you directly own at this point? And is that enough to adequately align your interest with shareholders?

克里斯，美國證券交易委員會的文件顯示，您在第二季度出售了您所擁有的大部分股票。一些挖掘表明，其中一些是由信託完成的，另一些只是轉移到您家人控制的其他車輛上。但最終結果似乎是您對 Federated 的直接興趣大大低於過去。首先，您能否解釋一下本季度銷售的產品是什麼？您目前直接擁有多少股票？這足以使您的利益與股東的利益充分一致嗎？

Well, as I just said, I love my children, too. And so there was no selling of the stock. There was transfers in trusts that are controlled inside our family, me, 8 kids, 6 spouses and 40 grandchildren. And as to my commitment to the enterprise, it goes way beyond the stock interest in terms of our family and my commitment in terms of what's going on. I don't know exactly how many shares I have right now. I could find that out and get back to you on that one. But the big bunch of shares are still owned and are -- by the family and are still very, very much a role in adding incentive.

嗯，正如我剛才所說，我也愛我的孩子。因此沒有出售股票。我們的家庭（我、8 個孩子、6 個配偶和 40 個孫子）內部控制著信託轉賬。至於我對企業的承諾，它遠遠超出了我們家族的股票權益和我對正在發生的事情的承諾。我不知道我現在有多少股票。我可以查出這一點，然後再回复你。但大部分股份仍然由家族擁有，並且仍然在增加激勵方面發揮著非常非常重要的作用。

But what I'm telling you is there's plenty of incentive in this whole family to keep the ball rolling. Remember, not almost 20% of that stock is owned inside the Fort and counting the family enterprise. And so it's a very good deal. Now one thing that did occur was that my mom, who passed away December 12 of last year, did sell her shares of which I am the trustee. And so that in effect counts against me. But that's all related to distributions due to estate planning to various entities, various charities and various children and grandchildren and great children, PS, the 179th great grandchild of my mother was born 2 days ago.

但我要告訴你的是，整個家庭都有足夠的動力讓事情繼續下去。請記住，如果算上家族企業，堡壘內部擁有的股票不到 20%。所以這是一筆非常划算的交易。現在發生的一件事是，去年 12 月 12 日去世的我媽媽確實出售了我作為受託人的股票。所以這實際上對我不利。但這一切都與由於遺產規劃而分配給各個實體、各個慈善機構以及各個子孫和曾孫有關，PS，我母親的第 179 個曾孫於 2 天前出生。

Congratulations for that. Just as a follow-up, money market fund share you highlighted fell from 7.4% to 7.2% in 2Q. And the dynamics for retail and institutional highlighted by Debbie for 2Q were true for your peers as well as for you during the quarter. So what drove the loss share in 2Q? And would you expect that loss share to rebound in the second half of the year?

對此表示祝賀。作為後續行動，您強調的貨幣市場基金份額在第二季度從 7.4% 下降至 7.2%。 Debbie 在第二季度強調的零售和機構動態對於您的同行以及本季度的您來說都是真實的。那麼是什麼導致了第二季度的虧損份額呢？您預計下半年虧損份額會反彈嗎？

Debbie?

黛比？

Sure. I think what drives it is that if you look at other money fund providers, that have a larger retail presence than we do, that -- and that retail sector being the largest growth sector, disadvantages us to some degree during an environment when retail is growing more than institutional. We do expect that to even itself out as rates increase only in a minor way going forward, plateau, and then ultimately start going down in slow fashion back down again. We do expect that to influence then the institutional side of flows in a much larger way where we play a larger role in that market.

當然。我認為推動這一趨勢的原因是，如果你看看其他貨幣基金提供商，它們的零售業務比我們更大，而且零售部門是最大的增長部門，在零售業蓬勃發展的環境下，在某種程度上對我們不利。增長超過了製度化。我們確實預計這種情況會自行平衡，因為利率只會以較小的方式增長，進入穩定狀態，然後最終開始緩慢下降。我們確實預計這會以更大的方式影響流動的製度方面，讓我們在該市場中發揮更大的作用。

And that appears to be all the questions that we have in the queue today. I'm going to hand back over to the management for any closing remarks.

這似乎就是我們今天隊列中的所有問題。我將把閉幕詞交還給管理層。

Thanks very much, and that concludes our call. Thank you for joining us today.

非常感謝，我們的通話到此結束。感謝您今天加入我們。

Thank you, everybody. That does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day and a wonderful weekend. Thank you for your participation.

謝謝大家。今天的電話會議到此結束。此時您可以斷開電話線，度過美好的一天和美好的周末。感謝您的參與。