Federated Hermes Inc (FHI) 2024 Q3 法說會逐字稿

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.

美好的一天，歡迎來到聯合投資者管理公司 2024 年第三季分析師電話會議和網路廣播。（操作員指示）我現在想將電話轉給聯邦投資者管理公司總裁。雷·漢利，地板是你的。

Morning and welcome to the FHI Q3 call and leading today's call will be Christ Donahue CEO and President of Federated Hermes; and Thomas Donahue, Chief Financial Officer. Joining us for the Q&A are Saker Nusseibeh the CEO of Federated Hermes Limited; and Debbie Cunningham, the Chief Investment Officer for Money Markets.

早安，歡迎參加 FHI 第三季電話會議，今天的電話會議由 Federated Hermes 執行長兼總裁 Christ Donahue 主持。和首席財務官托馬斯·多納休 (Thomas Donahue)。Federated Hermes Limited 執行長 Saker Nusseibeh 也加入了我們的問答環節；以及貨幣市場首席投資長 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.

在今天的電話會議中，我們可能會做出前瞻性陳述，我們要指出的是，Federated Hermes 的實際結果可能與此類陳述所暗示的結果有重大差異。請查看我們向 SEC 提交的文件中的風險揭露。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。

Chris?

克里斯？

Thank you, Ray. Good morning. All. I will review Federated Hermes business performance and Tom will comment on our financial results.

謝謝你，雷。早安.全部。我將回顧 Federated Hermes 的業務表現，而 Tom 將評論我們的財務表現。

We ended Q3 with record assets under management of $800 billion driven by money market assets of $593 billion and record fixed income assets of $100 billion. Looking first at equities.

第三季結束時，我們管理的資產達到了創紀錄的 8,000 億美元，貨幣市場資產達到了 5,930 億美元，固定收益資產也達到了創紀錄的 1,000 億美元。首先看股票。

Assets increased by $5.7 billion from Q2 to $83.6 billion due mainly to market gains of $6.5 billion partially offset by net redemptions of $1.4 billion. The strategic value dividend strategies had net redemptions of $779 million in the funds in the SMA combined. Whereas in Q2, that negative number was $1.9 billion.

資產較第二季增加 57 億美元，達到 836 億美元，主要是因為 65 億美元的市場收益被 14 億美元的淨贖回部分抵銷。戰略價值股利策略使 SMA 基金的淨贖回總額達到 7.79 億美元。而在第二季度，這一負數為 19 億美元。

We had Q3 positive net sales in 15 equity strategies including MDT mid cap growth, MDT large cap growth, MDT all cap core, and US mid equity usage fund. We continue to have success growing our MDT fundamental quant strategies and have recently expanded the MDT product set. This year through the end of Q3, MDT Fund and SMA strategies have had about $2.2 billion in net sales compared to a little over $400 million in net sales in '23.

我們在第三季的 15 種股票策略中實現了正淨銷售，包括 MDT 中盤成長、MDT 大盤成長、MDT 全盤核心和美國中盤股使用基金。我們繼續成功發展我們的 MDT 基本量化策略，並且最近擴展了 MDT 產品集。今年截至第三季末，MDT 基金和 SMA 策略的淨銷售額約為 22 億美元，而 20 年的淨銷售額略高於 4 億美元。

In Q3, we expanded the distribution opportunities for MDT strategies, with the launch of four new active ETFs and one new Collective Investment Trust. We continue to look to these kinds of product enhancements and a variety of strategies to strengthen growth opportunities in domestic and international markets.

第三季度，我們擴大了 MDT 策略的分銷機會，推出了四隻新的主動 ETF 和一隻新的集體投資信託。我們將繼續尋求此類產品增強和各種策略，以加強國內和國際市場的成長機會。

Looking at our equity fund performance at the end of Q3. And using Morningstar data for the trailing three years, 59% of our equity funds were beating peers and 41% were in the top quartile of their category. For the first three weeks of Q4, combined equity fund and SMAs had net redemptions of $51 million.

看看我們第三季末的股票基金表現。根據晨星公司過去三年的數據，我們 59% 的股票基金表現優於同行，41% 處於同類基金的前四分之一。第四季的前三週，股票基金和 SMA 的合併淨贖回額為 5,100 萬美元。

Turning now to fixed income, assets increased by about $4.9 billion in Q3 to a record high of $100.2 billion. Fixed income funds had Q3 net sales of $305 million and fixed income separate accounts had net sales of $1.1 billion. The total fixed income net sales therefore were $1.4 billion compared to $1.4 billion of net redemptions in the second quarter.

現在轉向固定收益，第三季資產增加約 49 億美元，達到 1,002 億美元的歷史新高。固定收益基金第三季淨銷售額為 3.05 億美元，固定收益獨立帳戶淨銷售額為 11 億美元。因此，固定收益淨銷售額總額為 14 億美元，而第二季的淨贖回額為 14 億美元。

Fixed income fund net sales were driven by about $515 million of combined net sales in total return bond fund ETF and collective investment fund. Fixed income separate account net sales were driven by institutional multisector strategies and by the Core Plus SMA strategy. we had 21 fixed income funds with positive sales in Q3 including total return bond fund net sales previously mentioned and Ultrashort -- the Government Ultrashort fund.

固定收益基金淨銷售額主要由總收益債券基金 ETF 和集合投資基金合計淨銷售額約 5.15 億美元推動。固定收益獨立帳戶淨銷售額是由機構多部門策略和 Core Plus SMA 策略推動的。我們有 21 檔固定收益基金在第三季實現了正銷售，其中包括前面提到的總回報債券基金淨銷售和超短期基金——政府超短期基金。

Regarding performance, at the end of Q3 using Morningstar data for the trailing three years, 37% of our fixed income funds were beating peers and 18% were in the top quartile of their category. For the first three weeks of Q4 combined fixed income funds and SMAs had net sales of $365 million. In the alternative private market category, assets increased by $622 million in Q3 to $20.7 billion, due mainly to the impact of FX rates partially offset by net redemptions.

就業成績而言，截至第三季末，使用晨星公司過去三年的數據，我們的固定收益基金中有 37% 的表現優於同行，18% 的基金處於同類基金的前四分之一。第四季的前三週，固定收益基金和 SMA 的淨銷售額合計為 3.65 億美元。在另類私募市場類別中，第三季資產增加了 6.22 億美元，達到 207 億美元，這主要是由於匯率的影響被淨贖回部分抵消。

We are in the market with three programs. the Federated Hermes GPE Innovation Fund 2, which is the second vintage of our pan European growth Private Equity Innovation Fund. The first close in this mandate was in FY2023 for approximately $110 million. Our target raise is $300 million. The first vehicle raised about $240 million.

我們在市場上推出了三個項目。 Federated Hermes GPE 創新基金 2，這是我們泛歐洲成長私募股權創新基金的第二期。該授權的首次完成是在 2023 財年，金額約為 1.1 億美元。我們的目標融資是 3 億美元。第一輛車籌集了約 2.4 億美元。

Next, European direct lending 3, the third vintage of our European direct lending fund. We had our first close in Q3 for approximately $235 million. Our target raise is $750 million. EDL 1 raised about $300 million and EDL 2 raised about $640 million.

接下來是歐洲直接貸款 3，這是我們歐洲直接貸款基金的第三個年份。我們在第三季首次完成了約 2.35 億美元的融資。我們的目標融資額為 7.5 億美元。乙二醛1籌集了約 3 億美元，EDL 2 籌集了約 6.4 億美元。

Next, European real estate debt fund, a new pool European debt fund. We're targeting a Q1 first close and plan to continue marketing in '25. Our overall target is $300 million. We are also developing the global private equity coinvest fund. The sixth vintage of the PEC series P-E-C targeting a Q1 launch. The target raise is $500 million PECS 1 through 5 raised about $400billion to $600 million in each fund.

接下來是歐洲房地產債務基金，新池歐洲債務基金。我們的目標是第一季首次結束，並計劃在 25 年繼續行銷。我們的總體目標是 3 億美元。我們也正在開發全球私募股權共同投資基金。PEC 系列 P-E-C 的第六個年份將於第一季推出。PECS 1 至 5 的目標籌資為 5 億美元，每支基金募集了約 4,000 億至 6 億美元。

We began Q4 with about $1.5 billion in net institutional mandates yet to fund into both funds and separate accounts. About $1.4 billion of total net wins is expected to come into private market strategies. With wins in private equity and direct lending and outflows in absolute return credit. Fixed income expected, net additions are about $1 billion with wins in Ultrashort duration, sustainable investment grade credit, emerging market debt, Core ag government bond with a modest known loss in high yield.

第四季開始時，我們仍有約 15 億美元的淨機構授權尚未存入基金和單獨帳戶。預計淨收益總額約 14 億美元將進入私募市場策略。隨著私募股權和直接貸款的勝利以及絕對回報信貸的流出。預計固定收益淨增額約 10 億美元，其中超短期、永續投資級信貸、新興市場債務、核心農業政府債券獲勝，但高收益債券略有已知損失。

For equities, we have 644 in wins offset by $1.5 billion of known redemptions. Nearly all of that is from a sub advisory account that will be internalized by the fund's sponsor in Q4.

對於股票，我們有 644 筆勝利，被 15 億美元的已知贖回所抵消。幾乎所有這些都來自子諮詢帳戶，該帳戶將由基金發起人在第四季度內部化。

Moving to money markets. In Q3, we reached another record high for money market fund assets of $440 billion and total money market assets of the aforementioned $593 million. total money market assets increased by $6.4 billion in Q3 as money market fund gains of $14.8 billion were partially offset by seasonal money market separate account asset decreases of $8.4 billion.

轉向貨幣市場。第三季度，貨幣市場基金資產達4,400億美元，貨幣市場總資產達5.93億美元，再創歷史新高。第三季貨幣市場總資產增加了 64 億美元，貨幣市場基金收益 148 億美元被季節性貨幣市場獨立帳戶資產減少 84 億美元部分抵銷。

Our money market fund assets peaked at about $447 billion on September 23 and decreased by about $7 billion over the last couple of days of the quarter.

我們的貨幣市場基金資產在 9 月 23 日達到約 4,470 億美元的峰值，並在本季最後幾天減少了約 70 億美元。

We believe a late quarter jump in SOFR rates led to certain investors shifting some assets into the direct market. We also saw certain large clients using money market fund assets to pay down debt. Going into quarter end.Q3 saw the first of several expected reductions in the Fed funds target rate driving substantial growth in industry money market fund asset levels, particularly in August and September.

我們認為 SOFR 利率季末的上漲導致某些投資者將部分資產轉移到直接市場。我們也看到某些大客戶使用貨幣市場基金資產來償還債務。進入季度末。

Looking ahead for the rest of '24 and into '25, we believe that market conditions for money market strategies will continue to be favorable and that money market fund yields will continue to be attractive compared to the direct market and bank deposit rates.

展望 24 年剩餘時間和 25 年，我們認為貨幣市場策略的市場條件將繼續有利，貨幣市場基金收益率與直接市場和銀行存款利率相比將繼續具有吸引力。

Our estimate of money market mutual fund market share including sub advised funds was about 7.32% at the end of Q3 down from about 7.45% at the end of the second quarter. Looking now at recent asset totals as of a few days ago, managed assets were approximately $799 billion including $594 billion in money markets. $83 billion in equities, $99 billion in fixed income, $20 billion in alternative private markets, $3 billion in multi asset money market mutual fund assets were $441 billion.

我們預計第三季末貨幣市場共同基金市佔率（包括次級諮詢基金）約為 7.32%，低於第二季末的約 7.45%。現在來看看截至幾天前的近期資產總額，管理資產約為 7,990 億美元，其中貨幣市場資產為 5,940 億美元。 830 億美元的股票、990 億美元的固定收益、200 億美元的另類私募市場、30 億美元的多元資產貨幣市場共同基金資產總計 4,410 億美元。

Tom?

湯姆？

Thanks Chris.

謝謝克里斯。

Total revenue for Q3 increased $5.9 million or 1% from the prior quarter due mainly to $5.1 million of higher revenue from money market assets. $6.4 million from the impact of an additional day in the quarter and $2.6 million from higher revenue from equity, fixed income and private market assets combined.

第三季總收入較上一季增加 590 萬美元，或 1%，主要是由於貨幣市場資產收入增加 510 萬美元。 640 萬美元來自本季增加一天的影響，260 萬美元來自股票、固定收益和私募市場資產總收入的增加。

These increases were partially offset by $5.9 million of higher waivers related to fund proxy costs. As discussed during last quarter's call total. Q3 carried interest and performance fees were $3.5 million compared to $2.8 million in Q2.

這些增長被與基金代理成本相關的 590 萬美元的較高豁免部分抵消。正如上季電話會議中所討論的。第三季的附帶利息和績效費用為 350 萬美元，而第二季為 280 萬美元。

Looking forward the Q4 sub advised account redemption Chris mentioned, will impact annualized revenue by approximately $6 million. The impact for Q4 is expected to be approximately $0.75 million. Q3 operating expenses decreased by $65.2 million from the prior quarter due mainly to the $66.3 million noncash intangible asset impairment charge in Q2. All other operating expenses increased by $1.1 million from the prior quarter.

展望第四季度，克里斯提到的子建議帳戶贖回將影響年化收入約 600 萬美元。第四季的影響預計約為 75 萬美元。第三季營運費用較上一季減少 6,520 萬美元，主要是由於第二季非現金無形資產減損費用為 6,630 萬美元。所有其他營運費用較上一季增加 110 萬美元。

Compensation and related expense included an increase in severance and related costs of $3.7 million primarily from our UK office. As we take steps to enhance the sustainability of our operations there. FX related gains decreased the other expense line item by $5.2 million from the prior quarter. As the pound strengthened versus the dollar.

補償和相關費用包括主要來自我們英國辦事處的遣散費和相關費用增加 370 萬美元。我們採取措施增強我們在那裡運作的可持續性。與上一季相比，外匯相關收益使其他費用項目減少了 520 萬美元。隨著英鎊兌美元走強。

We expect the tax rate to be in the 26% to 28% range for Q4 and for 2025 at the end of Q3 cash and investments were $565 million cash and investments, excluding the portion attributable to non controlling interest was $515 million.

我們預計第四季的稅率將在 26% 至 28% 的範圍內，到 2025 年第三季末的現金和投資為 5.65 億美元，不包括歸屬於非控股權益的部分為 5.15 億美元。

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

凱利，我們現在想開始提問。

Certainly, the floor is now open for questions. (Operator instructions)

當然，現在可以提問。（操作員說明）

Patrick Davitt, Autonomous Research.

派崔克戴維特，自主研究。

Hey, good morning everyone. First one on money fund market share, I guess the $15 billion money funding flow you announced last night was a lot better than the publicly available data we could see. So maybe the real time data we're getting is just wrong, but it's still certainly looks like you lost some flow share in Q3 and that continues in October. So do you think you're losing flow share? And if so, what is the nature of these big chunky flows we're seeing going to your competitors that has you missing out on those big chunky mandates. Thank you.

嘿，大家早安。第一個是關於貨幣基金市場份額，我猜你昨晚宣布的150億美元貨幣資金流量比我們看到的公開數據好得多。因此，也許我們獲得的即時數據是錯誤的，但看起來您在第三季度仍然損失了一些流量份額，這種情況在 10 月仍在繼續。那你認為你正在失去流量份額嗎？如果是這樣，我們看到的這些大塊流量的本質是什麼，流向你的競爭對手，讓你錯過了那些大塊的任務。謝謝。

Well, first of all, over a longer term period, as you've heard me say, 100 times, we end up with higher highs and higher lows over the 50 years, we've been doing the money market funds and so a little noise here in the quarter does not disturb us. I mean, we have one client who took $6 billion out because they were paying down debt and that's the kind of lumpy things that happened that you know, you going to be ready for and that's just part of normal life.

嗯，首先，在較長時期內，正如你聽我說過 100 次一樣，在 50 年來，我們最終會出現更高的高點和更高的低點，我們一直在做貨幣市場基金等等這個季度的噪音不會打擾我們。我的意思是，我們有一位客戶因為要償還債務而取出了 60 億美元，這就是發生的那種不穩定的事情，你知道，你要做好準備，這只是正常生活的一部分。

I would like Debbie to comment briefly on this dynamic from her perch on the tree.

我想讓黛比在樹上簡單評論一下這種動態。

Thanks Chris and thanks for the question, Patrick and the, ultimately Chris explanation, the information that was provided with regard to the quarter explanation of SOFR rates. That's a very real one. We have a lot of institutional clients who go between the direct market on an overnight basis and money funds and really since the Fed rate cut in mid-September, most of those flows have gone come into the fund side of the market. However, with the jump in SOFR rates at the end of the quarter, there were some that went back out into that sector of the market temporarily on a direct basis.

感謝克里斯，感謝帕特里克提出的問題，最後感謝克里斯的解釋，即所提供的有關 SOFR 利率季度解釋的信息。這是一個非常真實的事情。我們有很多機構客戶，他們在隔夜直接市場和貨幣基金之間流動，實際上自 9 月中旬聯準會降息以來，大部分資金流都進入了市場的基金方面。然而，隨著本季末 SOFR 利率的上升，有些人暫時直接回到該市場領域。

We also are comparing ourselves against a very large group of competitors in the marketplace. In particular, it seems as though some of the larger retail players that are in the direct retail market have been gaining market share on a little bit faster basis. And I believe that might have something to do with some of the heat that they've been taking with regard to, deposit rates and the customers that have been earning the lower deposit rates rather than money funds. So I believe some of that has been more directed into the money fund sector. Obviously, that's not something we can control or are necessarily even really part of.

我們也將自己與市場上大量的競爭對手進行比較。特別是，直接零售市場中一些較大的零售企業似乎正在以更快的速度獲得市場份額。我認為，這可能與他們一直以來對存款利率以及賺取較低存款利率而不是貨幣基金的客戶的熱度有關。所以我相信其中一些更多是針對貨幣基金領域。顯然，這不是我們可以控制的，甚至不一定是我們真正參與的一部分。

And then it also looks like in some of our banking, competitors, there's some internal funds that have been going along those ways. So, in general, I think there's lots of explanations, we are not seeing anything on a client basis that would lead us to have concern. In fact, I would say exactly the opposite when you look at, you know, the complexity and the variation of the client base that we have broker dealer, RIA, trust, wealth management, family offices, they all seem to be very pleased and continuing their increased participation with us.

然後看起來我們的一些銀行業、競爭對手中也有一些內部資金一直沿著這些方式發展。所以，總的來說，我認為有很多解釋，我們在客戶基礎上沒有看到任何會導致我們擔憂的事情。事實上，我想說的恰恰相反，當你看到我們擁有經紀交易商、RIA、信託、財富管理、家族辦公室的客戶群的複雜性和變化時，他們似乎都非常高興並且繼續增加與我們的合作。

Very helpful. Thank you.

非常有幫助。謝謝。

And then a quick follow up on the other expense line. You mentioned $5.2 million decrease from FX. So is the right run rate there, looking into Q4 kind of in the 3.5% to 5% range just trying to make it clear what that number should have been without the FX noise. Thank you.

然後快速跟進其他費用項目。您提到外匯減少了 520 萬美元。正確的運行率也是如此，看看第四季度的運行率在 3.5% 到 5% 的範圍內，只是想弄清楚在沒有外匯噪音的情況下這個數字應該是多少。謝謝。

Well, if there are no changes in the rate, the pound went up and so, giving a run rate on that, if the pound goes up, we're going to get more, FX help on the expense side because we're hedging our expenses in London. If the FX rate, if the pound goes down versus the dollar go the opposite way.

好吧，如果匯率沒有變化，英鎊就會上漲，因此，給出一個運行利率，如果英鎊上漲，我們將在費用方面獲得更多外匯幫助，因為我們正在對沖我們在倫敦的開支。如果匯率下跌，如果英鎊兌美元下跌，則走勢相反。

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

是的，我的意思是，我想說的是，在沒有任何外匯影響的情況下，本季的常規數字是多少。

Take off three-fourth of the number because we hedge basically a year's expenses and if the pound doesn't change for the rest of the year, then we will have this quarter or Q3 expenses in there at the higher rates and we'll get the, the higher expenses in the next three quarters.

去掉四分之三的數字，因為我們基本上對沖一年的費用，如果英鎊在今年剩餘時間裡沒有變化，那麼我們將以更高的利率計算本季或第三季的費用，我們會得到那麼，未來三個季度的支出將會更高。

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

因此，如果你想這樣看，並說它是數字的四分之三，那麼將會有更高的支出，不是在該類別中，也不是在其他類別中，而是在所有其他類別中。

Got it. Okay, thank you.

知道了。好的，謝謝。

Ken Worthington, JP Morgan Chase.

肯‧沃辛頓，摩根大通。

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

嗨，早安。也許首先是監管。我相信在10月份，SEC貨幣市場基金改革的最後一波就會生效。您能提醒我們發生了什麼事嗎？您認為對您的優質基金的興趣有多大程度的影響？

So we have seen, unlike the last round back in the day where basically almost a trillion dollars left those funds, the customers are basically sticking with it and our prime funds are up. And if you look at the stats for say a year, the industry assets are up to over a trillion dollars and that's up 17% over the year. And our assets on that category are up 25%. So we're ahead of the industry on that category. So our clients, I think we're quite appreciative of the fact that we hung in there with those funds, even though we did consolidate from three of those funds down to two. But we went through all the work to make the extra so many basis points available. Ray?

因此，我們看到，與當天上一輪基本上留下了近萬億美元的資金不同，客戶基本上堅持使用它，我們的優質基金也上漲了。如果你看一年的統計數據，該行業的資產已超過一兆美元，並且比去年同期成長了 17%。我們該類別的資產成長了 25%。因此，我們在該類別上處於行業領先地位。因此，我認為我們的客戶非常感謝我們堅持持有這些基金，儘管我們確實將其中的三隻基金合併為兩隻。但我們完成了所有工作，以提供額外的這麼多基點。射線？

If you, if we isolate just the prime money market funds for the first three weeks or so of October, they're up just a fraction. So if there have been any changes, we would have had puts and takes because the prime funds are still very attractive from a retail standpoint, we're still getting considerable interest there even post the race rate cut yields are very attractive. And but there's no discernible impact in October from the last of the rule changes going into.

如果我們只在 10 月的前三週左右隔離主要貨幣市場基金，它們只上漲了一小部分。因此，如果有任何變化，我們就會進行看跌期權和看跌期權，因為從散戶的角度來看，優質基金仍然非常有吸引力，即使在競賽降息之後，收益率也非常有吸引力，我們仍然在那裡獲得了相當大的興趣。但 10 月最後一次規則變更並沒有產生明顯的影響。

I'd like to add a couple of things about the rules. You sort of hinted. Hey, what went in? Well, remember that they told us we had to have 25% in daily cash. Well, that has a big impact on how these funds work and how people look at them. The other thing is these funds were already a variable net asset value, type fund. So people aren't keeping the money they need tomorrow here. They are willing to deal with this modest changes in NAV. So I think those are important dynamics and I'm sure we skipped something that Debbie's just anxious to say.

我想補充一些有關規則的內容。你有點暗示了。嘿，什麼進去了？好吧，請記住他們告訴我們必須有 25% 的日常現金。嗯，這對這些基金的運作方式以及人們如何看待它們有很大影響。另一件事是這些基金已經是可變資產淨值型基金。所以人們不會把明天需要的錢留在這裡。他們願意應對資產淨值的這種適度變化。所以我認為這些都是重要的動態，我確信我們跳過了黛比急於說的話。

I'm, -- you're always very thorough Chris, but I think ultimately in the end, we had absolutely no shareholders leave our institutional prime or our institutional muni sectors because of the rule changes that went into effect on October 2, of this year can. And yes, there is a daily process by which we now have to, for those funds which I might note are the smallest sector in the total in the total universe of money funds. But on a daily basis, we on a continuous monitoring basis have to review where we are from a flow activity whether we're in a net purchase or a net redemption phase. And if we get beyond a 5% net redemption phase, we also have a simultaneous process that is running, that would look at the price, the cost of redeeming, what that greater than net 5% redemption phase would be.

我，--你總是非常徹底，克里斯，但我認為最終，由於 10 月 2 日生效的規則變更，我們絕對沒有股東離開我們的機構黃金或我們的機構市政部門。是的，我們現在必須遵循日常流程，因為我可能會注意到這些基金是整個貨幣基金領域中最小的部門。但每天，我們必須在持續監控的基礎上審查我們的流量活動處於何處，無論我們處於淨購買還是淨贖回階段。如果我們超過 5% 的淨贖回階段，我們也會執行一個同步流程，該流程將查看價格、贖回成本，以及超過 5% 淨贖回階段的金額。

And if that price is greater than one basis point, which ultimately with the 50% now, that's a weekly liquid assets always at par, that's a very difficult hurdle to exceed. Then we would have to review the potential for adding some sort of a fee to those who are redeeming. In the end, this is a process that we are running daily. We are monitoring on a continuous basis. We did historical backpack testing on it prior to the implementation of the role. And we're very comfortable that the impact of this on the marketplace and the actual implementation of this that would result in a fee would be very very few if any time.

如果該價格大於一個基點（最終是現在的 50%），那麼每週流動資產始終處於平價，這是一個很難克服的障礙。然後我們必須審查向兌換者增加某種費用的可能性。最後，這是我們每天都在運行的一個過程。我們正在持續監控。在實施該角色之前，我們對其進行了歷史背包測試。我們感到非常放心的是，這對市場的影響以及實際實施所產生的費用將是非常非常小的（如果有的話）。

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

好的。偉大的。湯姆也許會幫你跟進。您提到了代理成本，我認為董事成本可能會在當前第四季產生。您能否提醒我們金額以及這些成本的影響範圍？我認為有些是備抵收入而不是直接支出。

The proxy costs when we said talked about it last quarter. Yeah, it would happen in the third and fourth quarter. We didn't know exactly the timing. Well, all the expense came in the third quarter and it's a contract revenue $5.9 million. And so that should not happen. It will not happen in the in the fourth quarter.

我們上個季度談到的代理成本。是的，這將發生在第三和第四季。我們不知道確切的時間。好吧，所有費用都來自第三季度，合約收入為 590 萬美元。所以這種情況不應該發生。這種情況不會在第四季發生。

Bill Katz, TD Cowen.

比爾·卡茨，TD·考恩。

Thank you very much. Good morning everybody. So just going back to money markets shockingly. So just big picture down if I look at where you ended the quarter and where your intra quarter update is. At What point do you start to think? You see the behavior more robustly migrate back to money markets if you will? Because what we continue to hear from many of your peers, whether it be the traditional managers or the alternative managers, that money sitting on the sideline is going to find its way into risk assets, whether it be fixed income, equity, or alternatives. And I'm looking at sort of flattish quarter to date update despite the 50 basis points cut in the Fed.

非常感謝。大家早安。令人震驚的是，回到貨幣市場。因此，如果我看看您本季末的情況以及季度內的更新情況，那麼就可以大致了解一下。你從什麼時候開始思考？如果您願意的話，您會看到這種行為更強有力地遷移回貨幣市場嗎？因為我們不斷從許多同業聽到，無論是傳統基金經理人還是另類基金經理，觀望的資金將會進入風險資產，無論是固定收益、股票還是另類資產。儘管聯準會降息了 50 個基點，但我認為迄今為止的季度更新數據仍持平。

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

那麼，我們在什麼時候會看到行為發生變化，您如何看待業務的零售部分和機構方面之間的相互作用，也許您可以幫助我們量化這種組合？謝謝。

So it's really tough to come up with a point or a catalyst Bill. But we are seeing from the financial advisors a lot of interest in the short duration, a lot of interest in lengthening duration. We've covered those themes before and we're seeing moves there as I tried to comment on the changes in our fixed income flows during my opening remarks.

因此，比爾想提出一個觀點或催化劑確實很困難。但我們從財務顧問那裡看到，他們對短期存續期很感興趣，對延長存續期也很感興趣。我們之前已經討論過這些主題，當我在開場白中試圖評論我們固定收益流的變化時，我們看到了這些主題的變化。

And but these things do not happen in a catalytic way. And it is one FA and one customer and one firm at a time. And in terms of the dynamic from what Debbie might see on the money market side. I'll let her comment.

但這些事情並不是用催化方式發生的。一次只有一位 FA、一位客戶和一家公司。就黛比在貨幣市場方面可能看到的動態而言。我會讓她評論。

Thanks, Chris. I think I mentioned on this call before that when you look at the flows in 2023 and really through mid-year of 2024, 80% of the flows came from retail and that retail trade was out of deposits and into money market funds and you could almost follow it dollar for dollar. That will continue because banks have already started lowering their deposit rates after having never raised them to the rate of money market fund market rates. So that trade will continue maybe not with as robust a pace, but it will continue.

謝謝，克里斯。我想我之前在這次電話會議上提到過，當你觀察 2023 年以及實際上到 2024 年年中的流量時，80% 的流量來自零售，零售貿易從存款轉向貨幣市場基金，你可以幾乎一美元一美元地跟著它。這種情況將持續下去，因為銀行在從未將存款利率提高到貨幣市場基金市場利率後，已經開始降低存款利率。因此，這種貿易可能不會以那麼強勁的速度繼續下去，但它會繼續下去。

Of the other 20% in flows, I say it probably 10% to 15% is, was what was what you're referring to bill as sideline cash. Those that would be naturally in riskier assets with higher return potentials and longer time frames associated with those. And we're starting to see those move. You heard you, you saw, you heard from Chris introductory remarks, the increases that we're seeing in various of our equity and longer term fixed income products. And that's absolutely a portion of that sideline cash moving back into and fueling those markets in a positive way which we obviously want to see occur. It's a reflection of healthier markets and healthier economies.

在另外 20% 的流量中，我認為可能有 10% 到 15% 是您所說的副業現金。那些自然屬於風險較高的資產，具有較高的回報潛力和與之相關的較長的時間框架。我們開始看到這些改變。您聽到、看到、聽到克里斯的介紹發言，我們看到各種股票和長期固定收益產品的成長。這絕對是副業現金的一部分回到並以積極的方式推動這些市場，我們顯然希望看到這種情況發生。它反映了更健康的市場和更健康的經濟。

On the institutional cash side, that was probably only 5% to 10% of the asset flow in the money markets that we saw, we would expect that as the Fed cuts rates, which we are not expecting to be in that 50 basis points clip, which was sort of a surprise and then start to this, this declining rate cycle. But as they continue to go from a 5% plus rate down to what we think is a terminal rate of around 3% you're going to see that institutional flow pick up. It's not going to be, it's not going to reduce the strength or it's not going to match the strength that we saw in the retail flow, but it will still be a positive. So that ultimately in the end, when we look at industry assets as reported by Crane at this point as an industry source at $6.8 trillion, I can still see $7 trillion by the end of this year growing further into 2025. And ultimately FHI catching a good portion of those flows.

在機構現金方面，這可能只占我們所看到的貨幣市場資產流動的 5% 到 10%，我們預計隨著美聯儲降息，我們預計不會出現 50 個基點的降息，這有點令人驚訝，然後開始這個利率下降週期。但隨著利率繼續從 5% 以上下降到我們認為的 3% 左右的最終利率，您將看到機構資金流回升。它不會，不會降低強度，也不會與我們在零售流量中看到的強度相匹配，但它仍然是積極的。因此，最終，當我們將 Crane 報告的行業資產視為 6.8 兆美元的行業來源時，我仍然可以看到，到今年年底，到 2025 年，這一數字將進一步增長到 7 兆美元。最終 FHI 抓住了這些流量的很大一部分。

And Bill just to on your question about the mix. So the terms are not precise between retail and institutional, but an estimate of that for us would be about 60% of the money market fund assets, including what we sub advise -- about 60% would be considered institutional and 40% retail, which for us is still coming through an intermediary. And by the way that 60-40 split would be about what the industry split is as well using ICI data.

比爾只是回答你關於混合的問題。因此，零售和機構之間的術語並不精確，但對我們來說，貨幣市場基金資產的估計約為60%，包括我們的次級建議——約60% 被視為機構資產，40% 被視為零售資產，這對我們來說仍然是透過中介來的。順便說一句，60-40 的劃分也與使用 ICI 資料的行業劃分有關。

That's helpful and maybe just a question for Saker or whomever and this might just be rounding. So you laid out a nice pathway for several for funds in the market or sort of coming into the market as we look out over the next 6 to 12 months. But you also round maybe just rounding, but the AUM in the alts bucket does seem to be down about $700 million quarter day. Again, it might be rounding.

這很有幫助，也許只是 Saker 或任何人的問題，這可能只是四捨五入。因此，當我們展望未來 6 到 12 個月時，您為市場上的幾隻基金或進入市場的基金制定了一條很好的途徑。但你也可能只是四捨五入，但替代品桶中的資產管理規模似乎確實每季下降了約 7 億美元。同樣，它可能會四捨五入。

Can you talk a little bit about what we should expect in terms of distributions as we look out through the next 6 to 12 months or realizations coming out of the portfolio? And can you actually grow the alt bucket given all the growth opportunities against that? Thank you.

您能否談談我們在展望未來 6 至 12 個月或投資組合的實現時對分配的預期？考慮到所有的成長機會，你真的能增加替代品桶嗎？謝謝。

Saker Your turn.

薩克爾，輪到你了。

Thank you. Well, thank you very much indeed. And you're right, that's part of the nature of particularly private equity funds. But the other aspects of private market is this constantly a two way flow, which is the funds that you've got the plan to expect you to pay out and then you get some more funds coming in.

謝謝。嗯，確實非常感謝。你是對的，這是私募股權基金性質的一部分。但私募市場的其他方面是這種持續的雙向流動，即你有計劃期望你支付的資金，然後你會得到更多的資金進來。

And I can't provide a very detailed structure of what we're going to see. But I can say this, if you look at all the funds that you've heard, Chris talk about the innovation funds, direct lending funds, if you think about the global private equity fund, all of these funds are growing by going back to our client base. And in many cases, they're re upping at a higher level than they had in before.

我無法提供我們將要看到的內容的非常詳細的結構。但我可以這麼說，如果你看看你聽過的所有基金，克里斯談論創新基金、直接借貸基金，如果你想想全球私募股權基金，所有這些基金都在透過回溯到成長我們的客戶群。在許多情況下，他們的水平都比以前更高。

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

現在，在收盤完成之前我們無法量化這一點。但就我們所看到的總體趨勢是，不僅客戶在重新上漲，而且在某些情況下，我們到目前為止看到重新上漲的情況有所增加，但我們無法確認何時所有收盤價都已上漲。

The second aspect of it is we're not sitting still, we're coming up with new funds within the alternative state of the old space which gives us extra flows. You heard Chris again mention real estate debt fund and we're doing some stuff in infrastructure as well. So it's a two way that we I think that the reups will be from existing clients will increase, we're adding to our client base. That's also important. So there's new clients coming in and we're innovating our funds and increasing them. All of that leads us to feel that we continue to generate higher revenues as we go forward. Got it.

第二個面向是我們不會坐以待斃，我們正在舊空間的替代狀態下提出新資金，這為我們提供了額外的資金流。你聽到克里斯再次提到房地產債務基金，我們也在基礎設施領域做一些事情。因此，我們有兩種方式，我認為來自現有客戶的重複將會增加，我們正在增加我們的客戶群。這也很重要。因此，有新客戶進來，我們正在創新我們的基金並增加它們。所有這些都讓我們感到，隨著我們的前進，我們將繼續創造更高的收入。知道了。

Okay.

好的。

Kenneth lee, RBC capital markets.

肯尼斯李，加拿大皇家銀行資本市場。

Hey, good morning. Thanks for taking my question. Just one on the money markets. And I think you mentioned previously that so you saw some clients, corporate clients shift money on on an overnight basis, between direct paper and money markets. Just want to get a little bit more detail on that. How easy is that? And, to the extent that there's some uncertainty around the Fed rate cuts and the trajectory there. Could you see some lumpiness in terms of money market flows just based on, on how easy it is to shift one way or the other? Thanks.

嘿，早安。感謝您提出我的問題。貨幣市場上只有一個。我想你之前提到過，所以你看到一些客戶、企業客戶在直接票據市場和貨幣市場之間隔夜轉移資金。只是想了解更多細節。那有多容易呢？而且，聯準會降息及其軌跡存在一些不確定性。您能否僅根據一種或另一種方式轉變的容易程度來看到貨幣市場流動方面的一些波動？謝謝。

Debbie.

黛比.

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

因此，對於我們的絕大多數客戶來說，這不是一個容易的轉變，因為他們不會回購。基本上，SOFR 利率表明您可以在市場上的隔夜回購中獲得哪種類型的回報。隔夜回購並不是真正的安全，而是一份合約。因此，您必須與交易商和銀行簽訂回購合約才能進入該市場領域。所以對我們的絕大多數客戶來說，這是不可能的。

But for very large clients, large tech firms from the Midwest and West coast, large oil firm like large energy firms, some of the large banks that are players in our market, they have those contracts available and usable by them on a daily basis and are able to switch pretty easily. So even though it's only a small or a small minority of the actual customers that have that capability to do that switch on a daily basis if they choose to do so, it it's still a large volume when that, when that dynamic in the in the market comes into play.

但對於非常大的客戶、來自中西部和西海岸的大型科技公司、大型能源公司等大型石油公司、我們市場中的一些大型銀行，他們每天都可以使用這些合同，並且能夠輕鬆切換。因此，即使只有一小部分或一小部分實際客戶有能力每天進行這種切換（如果他們選擇這樣做），但當這種動態發生時，它仍然是一個很大的數量。

Got you, very helpful there and just one follow up if I may any update thoughts around capital management and outlook for any kind of potential inorganic opportunities out there. Thanks.

明白了，你非常有幫助，如果我對資本管理有任何更新的想法以及對任何潛在的無機機會的展望，只需一個跟進。謝謝。

Well, you saw, we approved a new share -- the board approved a new share repurchase program of 5 million shares. We have 1.2 million left on the on the existing one and we bought over 800,000 shares last quarter and we expect to still be active. We don't think the price is at an appropriate level. Therefore, we expect to be active.

嗯，你看到了，我們批准了新股——董事會批准了 500 萬股新股回購計畫。我們現有的股票還剩 120 萬股，上個季度我們購買了超過 80 萬股，我們預計仍會活躍。我們認為價格沒有處於適當的水平。因此，我們預計會保持活躍。

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

在收購方面。你知道，沒有什麼可以指出我們仍在許多不同領域努力工作，但是，我沒有任何東西讓你興奮或讓我們，你知道，在公告過程中。

Got you very helpful there. Thanks. Again.

你在那裡很有幫助。謝謝。再次。

Dan Fannon, Jefferies.

丹‧範農，傑弗里斯。

Thanks. Good morning. I think you mentioned in the prepared remarks $3.7 million of severance. And I think associated with Hermes, curious if this is a part of a broader restructuring or cost cutting effort, that's more elaborate or more of a one off.

謝謝。早安.我想你在準備好的發言中提到了 370 萬美元的遣散費。我認為與愛馬仕有關，好奇這是否是更廣泛的重組或成本削減工作的一部分，這是更複雜的或更一次性的。

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

我將發表初步評論，然後湯姆將對數字發表評論。湯姆，我們始終有責任更好地經營業務。

Yeah, so $3.7 million is the is the severance number out of the London, the London office and we are looking across the board to, as Chris said, run the business properly and in a sustainable effort, you know that, that we had the impairment last quarter. And this is a look at that and make sure we are handling things in a proper fiscal manner.

是的，所以 370 萬美元是倫敦、倫敦辦事處的遣散費，我們正在全面考慮，正如克里斯所說，以可持續的方式正確經營業務，你知道，我們有上季度減值。這是一個審視，並確保我們以適當的財務方式處理事情。

So, yeah, we're looking at things beyond just the severance in terms of expense reductions as we can try to manage it as best we can.

所以，是的，我們正在考慮的不僅僅是遣散費之外的減少費用的事情，因為我們可以盡力管理它。

I think you going to have Saker give a follow up, because we don't want to do expense things that hurt the business. We want to drive the business toward growth and maybe Sacker could give a comment on our expectations and excitement about the London office.

我認為您應該讓 Saker 進行跟進，因為我們不想做有損業務的開支事情。我們希望推動業務成長，也許薩克可以對我們對倫敦辦事處的期望和興奮發表評論。

Well, thank you very much, Tom. So just a couple of a comments. As Chris said, we have a duty to manage the business and that means managing the cost of the business as we integrate the business together, as we get closer to working in the market, there are many opportunities to do two things. One is to become more efficient in the way that you run the business and the other one is to increase your opportunity. So the more efficient, you kind of got the the several cost. And and you've heard Tom talk about other efficiencies that can be done through scale through combined purchasing and so on, but that should not in any way, shape or form, take away from the positive things that are happening. And they briefly, I can point to the following.

嗯，非常感謝你，湯姆。所以只有一些評論。正如克里斯所說，我們有責任管理業務，這意味著在我們將業務整合在一起時管理業務成本，隨著我們越來越接近市場運作，有很多機會做兩件事。一是提高經營業務的效率，二是增加機會。因此，效率越高，您的成本就越高。而且你已經聽過湯姆談論可以透過聯合採購等擴大規模來實現的其他效率，但這不應該以任何方式、形式或形式剝奪正在發生的積極事情。我可以簡單地指出以下幾點。

One is we have seen on the back of strong performance interest come back to risky assets that we run here. I mentioned specifically sustainable global equity, global equity ESG the US Small and mid cap fund and the Asia Ex Japan Fund. And as I say, that came on the back of two things better performance and also on the back of and people coming back more to risk asset.

一是我們看到，在強勁的業績表現的支持下，人們對我們在這裡營運的風險資產產生了興趣。我特別提到了永續全球股票、全球股票 ESG、美國中小型股基金和亞洲（日本除外）基金。正如我所說，這是基於兩件事更好的表現以及人們更多地回歸風險資產的結果。

We talked about private markets and the excitement of launching new vintages and new ideas and becoming known as a specialist player in the market. But we're also doing other stuff. That's exciting, I mean, when we talk about money market funds, generally speaking, Federated Hermes has tended to concentrate mostly on the US for the money markets. What we're now doing is bringing those to our sales force here out of Europe. And we've seen lots of positive responses, the presentations the sterling Prime Money Market Fund has hit an all time high with GBP8.4 billion . So that gives you the potential of growth of money markets here. And in Asia, by the way, where we've seen flows coming in from 23 new family offices totaling approximately $300 million in money market flows not a huge amount yet, but it tells you about the potential that you can see coming through.

我們談論了私人市場以及推出新年份和新想法以及成為市場專家的興奮。但我們也在做其他事情。這很令人興奮，我的意思是，當我們談論貨幣市場基金時，一般來說，聯邦愛馬仕往往主要關注美國的貨幣市場。我們現在正在做的是將這些內容帶到我們歐洲以外的銷售團隊。我們看到了很多正面的回應，英鎊 Prime 貨幣市場基金的介紹已創下歷史新高，達到 84 億英鎊。因此，這給了這裡貨幣市場成長的潛力。順便說一句，在亞洲，我們看到來自 23 個新家族辦公室的資金流入貨幣市場，總額約為 3 億美元，雖然數額還不算大，但它告訴您可以看到的潛力。

MDT which has had such a fantastic run for us in our home market. The US, you come to this market, we've been taking it out to our client base here. And again, we've had some very positive views within that and you won't expect me to finish on a positive note without mentioning our future business EOS and I would say we've gone over $2 trillion, or we are at $2 trillion of assets that we represent. And that includes the winning of a major US state pension fund. So we can see the green shoots of recovery here and we can see the effects of the right kind of investment paying dividends for both assets or funds managed out of London and managed out of the United States. But at the same time, you would expect us to manage our costs in a responsible and dynamic manner. Thank you.

MDT 在我們的國內市場上取得如此出色的成績。美國，你來到這個市場，我們一直把它帶給我們這裡的客戶群。再說一次，我們對此有一些非常積極的看法，你不會指望我會在不提及我們未來業務EOS 的情況下以積極的方式結束，我會說我們已經超過2 萬億美元，或者我們處於2 兆美元我們所代表的資產。其中包括贏得美國主要國家退休基金。因此，我們可以在這裡看到復甦的萌芽，我們可以看到正確的投資方式為倫敦和美國管理的資產或基金支付股息的效果。但同時，您會期望我們以負責任和動態的方式管理成本。謝謝。

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

偉大的。這很有幫助。然後，作為後續行動，您談到了本季度或我認為未來的次級建議授權損失。您能否概括地談談次級建議的總資產管理規模對您來說是多少，以及為此設置的機會的背景，是資產池的萎縮，還是增長的源泉？只是好奇關於這部分業務的更多背景資訊如何？

Well, in total, the sub advised accounts would be about $37 billion of our AUM that's as of the end of the quarter and that would be weighted toward toward cash to money market, but it does include equity and, and fixed as well.

嗯，截至本季末，次級顧問帳戶總計約占我們 AUM 的 370 億美元，並將偏向現金貨幣市場，但它也包括股權和固定資產。

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

資產管理規模的來源是成長還是萎縮？

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

它的貨幣市場部分一直在增長。它具有零售導向，而在機構方面，它有優點和缺點。一直比較穩定。

Understood. Thank you.

明白了。謝謝。

Brennan Hawken, UBS.

布倫南霍肯，瑞銀集團。

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

早安.感謝您提出我的問題。你們看到了債券方面資金流動的建設性成果。我很好奇，考慮到債券經理在整體上遇到的一些困難，自 8 月底以來您注意到的流量或 RFP 是否有任何變化？或者您可能注意到零售與機構參與債券發行的任何有趣趨勢？

The clients were attentive to the incident you're talking about. And to some extent, we're there to help our clients when they run into challenges. So it's impossible for us to detect what asset flows came from, what challenges in the marketplace versus the regular blocking and tackling that we do all the time. So overall, you've seen money come out of that outfit and it went somewhere and we got some of it. But boy, that's hard to follow the bouncing ball.

客戶很關注你所談論的事件。在某種程度上，我們會在客戶遇到挑戰時為他們提供協助。因此，我們不可能檢測到資產流來自何處、市場中存在哪些挑戰以及我們一直在進行的常規阻止和處理。總的來說，你已經看到錢從那套衣服中流出，流向了某個地方，我們得到了一些。但是天哪，跟著彈跳的球很難。

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

當然，當然。這就是為什麼我問八月底的訂婚貼文是否有變化。

What it depends on what you mean by engagement. What goes on is when you are in the marketplace with your clients constantly repeating the sounding joy of the Federated Hermes product array, then when opportunities arrive, you're there to hit the bid. Whereas my father used to say if it's raining money, get your buckets out. And so I think we are engaged with the clients all the time. It's not like, oh, let's go do something new, this is what we've been doing and it's a lot like the football analogy. Those that are running hard and running to the ball, they're going to get an interception, you know, look at what Pit did last night. Okay, let's get on with the meeting.

這取決於您所說的參與是什麼意思。發生的事情是，當您在市場上與您的客戶不斷重複聯邦愛馬仕產品系列聽起來令人愉悅時，那麼當機會到來時，您就在那裡出價。而我父親常說，如果天上下金錢雨，就把你的水桶拿出來。所以我認為我們一直在與客戶接觸。這並不是說，哦，讓我們去做一些新的事情，這就是我們一直在做的事情，這很像足球的比喻。那些努力跑動並跑向球的人，他們會被攔截，你知道，看看皮特昨晚做了什麼。好的，我們繼續開會吧。

All right, I don't know how to run with the buckets or with the interception, but good enough. Thanks for taking my question.

好吧，我不知道如何帶桶跑或攔截，但已經足夠好了。感謝您提出我的問題。

John Dunn, Evercore ISI.

約翰‧鄧恩，Evercore ISI。

Thank you. Could you maybe talk a little bit about at the time, the funding of the pipeline and direction where you might expect it to go over the next year or so? And then also, could you describe the kind of the temperature of institutional investors and consultants, you know, looking into next quarter and then '25?

謝謝。您能否談談當時的情況，管道的資金狀況以及您預計它在未來一年左右的發展方向？然後，您能否描述一下機構投資者和顧問對下個季度以及 25 年的看法？

I can talk about the time line, and then we'll get to the rest of it. So of course, in Q4, because of the subadvisor mandate that we talked about we would expect a negative from an equity standpoint. And, and positive both fixed income and alternative. But those and fixed incomes waited so that is, the pipeline amounts come in more over Q4 and Q1. Alternative has portions that come in more ratably. Some of that, a good chunk of it is money that's already been committed, but it is not yet earning fees. So you'll see that, really on of a almost ratable growth over the next several quarters out through the end of next year.

我可以談談時間安排，然後我們再討論剩下的事情。當然，在第四季度，由於我們討論過的副顧問授權，從股權的角度來看，我們預計會出現負面影響。並且，固定收益和另類收益都是正面的。但這些和固定收益等待著，也就是說，第四季和第一季的管道金額更多。另類的部分內容更受歡迎。其中一部分，很大一部分是已經承諾的資金，但尚未賺取費用。所以你會看到，到明年年底的接下來的幾個季度，實際上幾乎是可比的成長。

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

因此，固定收益、更多的前置股票、負數、更多的前置然後是另類、更多的分散。

And in, in terms of RFP activity is very very strong. And that's why on the fixed income side, I go to the trouble of listing the various mandates where we're actually scoring wins. You can go back to the beginning of the call and see the list and it's a half a dozen real strong ones. And we see continued RFP interest there. So that's where that pipeline builds. And I just said in answer to the last question, we're in the market all the time waiting, looking and bringing solutions to clients as needs change.

就 RFP 活動而言，非常非常強勁。這就是為什麼在固定收益方面，我不厭其煩地列出了我們實際上取得勝利的各種任務。你可以回到通話開始處查看列表，其中有六個真正的強者。我們看到 RFP 的興趣持續存在。這就是管道構建的地方。我剛剛在回答最後一個問題時說過，我們一直在市場上等待，隨著需求的變化尋找並為客戶提供解決方案。

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

知道了。然後我認為我們都會比過去更多地談論主動 ETF，你知道，你是否做了任何——必須做出任何補充或行為改變？就市場而言，活躍的 ETF 套件以及您認為該細分市場對您來說有多重要？

Well, we think it could be very big, very strong. Right now the ETFs make up about 7%. I mean, the active ETFs make up about 7% of the overall ETF market and they're continuing to have an increasing percentage of the flows, maybe up to 30% or something depending on what numbers you look at. And then if you look at our numbers that from the gang that we have, we're seeing good results in the total return bond fund and in the strategic value dividend fund and the whole suite of products is now over $500 million. And I think Ray can give you the accurate numbers.

嗯，我們認為它可能會非常大、非常強大。目前ETF約佔7%。我的意思是，活躍的 ETF 約佔整個 ETF 市場的 7%，而且它們在流量中所佔的比例繼續增加，可能高達 30% 或更高，具體取決於你看到的數字。然後，如果你看看我們現有的團隊的數據，我們會看到總回報債券基金和戰略價值股息基金以及整套產品都取得了良好的業績，目前已超過 5 億美元。我認為雷可以給你準確的數字。

No, that, that's about right. Over $500 million weighted toward the two strategies that Chris mentioned. But you know, we've had a lot of good response out of the gate on the MDT strategies that we recently added both four of them that we launched active ETFs one. We launched also in a collective format. And we'll continue to look at the product line. You should expect us to continue to add to the active ETF menu over time. But we've certainly covered some of the bigger strategies both in terms of equity and fixed income with total return bond and strategic value.

不，那個，差不多是這樣。克里斯提到的兩種策略投入了超過 5 億美元。但你知道，我們在 MDT 策略上一開始就收到了很多很好的反響，我們最近添加了這四種策略，我們推出了主動 ETF 策略之一。我們也以集體形式推出。我們將繼續關注產品線。您應該期待我們隨著時間的推移繼續增加活躍的 ETF 菜單。但我們確實涵蓋了一些更大的策略，包括股票和固定收益的總回報債券和策略價值。

Thank you very much.

非常感謝。

Brian Bedell, Deutsche Bank Securities.

布萊恩‧比德爾 (Brian Bedell)，德意志銀行證券公司。

Great. Thanks. Thanks for taking my questions. Just one back on the institutional cash management. And I know we have talked about that a lot during this call. Obviously, it's difficult to predict, what types of cash flow needs those clients will have both coming in and going out. But do you have a sense of for those clients that are using your money market funds? What level of assets roughly at least are parked in overnight rate agreement. So almost like an addressable market if you will, if they were to, let's say, switch all the money funds in a rate cutting cycle?

偉大的。謝謝。感謝您回答我的問題。只是回顧一下機構現金管理。我知道我們在這次電話會議中對此進行了很多討論。顯然，很難預測這些客戶會進來和出去需要什麼類型的現金流。但是您對那些使用您的貨幣市場基金的客戶有了解嗎？隔夜利率協議中至少大約有多少水準的資產。那麼，如果你願意，比如說，在降息週期中轉換所有貨幣基金，那麼幾乎就像可尋址市場？

Well, if someone knows how long our clients want to keep their money in and what percentage of them are thinking overnight, they'd be smarter than I and that's why I mentioned the longer-term trends, 50 years, 1 year's numbers on prime. And Debbie has gone through the catalog of the variety of clients that we have, which is an underlying strength to the business because they move at counter times, counter-balancing one from the other and I don't think we can go past this question without letting Debbie have a comment.

好吧，如果有人知道我們的客戶希望將資金保留多久以及他們中有多少人會在一夜之間思考，他們會比我更聰明，這就是為什麼我提到長期趨勢，50年，1年的黃金數字。黛比已經瀏覽了我們擁有的各種客戶的目錄，這是業務的潛在優勢，因為他們在相反的時間移動，相互平衡，我認為我們不能繞過這個問題不讓黛比發表評論。

Thanks,Chris. Sorry, I was having difficulty getting it off of mute. Brian, we, we definitely have a very rigorous KYC, know your customer process. And so yes, we have various spreadsheets that provide information on expectations for various clients, their needs, their cyclicality to some degree and what their other options are. We have both from a sales perspective of close relationships with especially the largest clients and also from a portfolio management standpoint. And we review and look at that on a regular basis.

謝謝，克里斯。抱歉，我很難將其取消靜音。Brian，我們，我們絕對有非常嚴格的 KYC，了解您的客戶流程。所以，是的，我們有各種電子表格，可以提供有關不同客戶的期望、他們的需求、某種程度上的周期性以及他們的其他選擇的資訊。從銷售的角度來看，我們與特別最大的客戶保持著密切的關係，從投資組合管理的角度來看，我們也都擁有密切的關係。我們會定期檢討和研究這一點。

And although when you look at it on an individual basis, Chris noted the $6 billion that went out right at the end of the quarter due to debt repayment. When you think of it in the context of the $600 billion that we manage in this type of liquidity, it's not a large number. Nonetheless, if you had 10 of those $6 billion together for all the same reason on all the same day, it would that, that that would be a different type of environment.

儘管從個人角度來看，克里斯指出，在本季末，由於償還債務而支出了 60 億美元。考慮到我們管理的此類流動性為 6000 億美元，這並不是一個大數字。儘管如此，如果你在同一天出於同樣的原因將這 60 億美元中的 10 美元放在一起，那就會是一種不同類型的環境。

Thankfully, I think the complexity and the diversification of our clients works in our favor. And often times when you see a $6 billion outflow, you may see somebody else six $1 billion inflows that offset that in this particular case, it just happened to, to be highlighted because it was at a quarter end.

值得慶幸的是，我認為客戶的複雜性和多元化對我們有利。通常，當你看到60 億美元的流出時，你可能會看到其他人有6 筆10 億美元的流入抵消了這一點，在這種特殊情況下，它恰好被強調，因為它是在季度末。

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

好的。但是，您是否知道什麼可能會轉移到目前正在隔夜分配的機構，然後總計？

Yeah, I think it's probably something that's less than 10% of the total assets at this point, which is not insignificant but it's not out of the realm of consideration and into the problematic phase, anything like that.

是的，我認為目前這可能還不到總資產的 10%，這並不是微不足道的，但它並沒有超出考慮範圍，進入有問題的階段，諸如此類。

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

黛比，你說的是從貨幣市場走出去直接——

To direct security.

指揮安全。

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

我認為你的問題是有多少可以走另一條路？

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

是的。多少可以走另一條路，那是完全正確的。

How much could go the other way in going into, riskier types of assets, longer term equity?

有多少可能會以另一種方式進入風險較高的資產類型、長期股權？

No going from direct overnight cash into money market bonds. when the --

無法從直接隔夜現金轉為貨幣市場債券。當--

Oh, okay. So on the inflow side of things. Well, I think, going back to raise split of about 60% institutional, 40% retail at different points in time, that number has been higher towards the institutional side. So I think it's somewhat substantial, probably at least another 10% to 20% of asset flows as a potential, if in fact, money funds are able to maintain a yield that is better than the direct securities market, especially in a declining rate environment.

哦好的。所以在事物的流入方面。嗯，我認為，回顧一下在不同時間點提高約 60% 機構和 40% 散戶的比例，機構方面的數字更高。所以我認為這有點可觀，可能至少還有另外10%到20%的資產流動作為潛力，如果事實上貨幣基金能夠維持比直接證券市場更好的收益率，尤其是在利率下降的環境下。

That would have been very difficult to do after the Fed's initial 50 basis points rate cut back in, September, the curve was anticipating faster cuts by the Fed and that we were not in agreement with that. So having difficulty buying longer dated securities to keep our yield for a longer period of time. Having said that with some of the stronger economic numbers that have come to fruition over the course of the last three weeks that has changed. And so we have been able, the market has been able and given us the opportunity to maintain and lengthen our weighted average maturity so that we will maintain that healthy advantage over the direct securities market.

在聯準會 9 月最初降息 50 個基點之後，要做到這一點是非常困難的，曲線預計聯準會會更快降息，而我們並不同意這一點。因此，很難購買期限較長的證券來長期維持我們的收益率。話雖如此，隨著過去三週內一些強勁的經濟數據取得成果，這種情況已經改變了。因此，我們已經能夠，市場已經能夠並給了我們機會來維持和延長我們的加權平均期限，以便我們能夠保持相對於直接證券市場的健康優勢。

And I think probably, with that attracts some portion of increasing institutional flows over the next quarter.

我認為，這可能會在下個季度吸引部分不斷增加的機構資金流動。

Right? My answer to you is one word, trillions period. Then you go, okay. We could go through catalogs of where all that money is. But it's so much that we're certainly optimistic about our ability to play in that game.

正確的？我對你的回答就是一個字，兆個週期。那你就走吧，好吧。我們可以透過目錄查看所有這些錢的去向。但它是如此之多，以至於我們對我們在這場比賽中的表現感到樂觀。

Yeah. Okay. No, that is fantastic color. Thank you so much. Maybe I'll just finish up with strategic value. Performance has improved rather dramatically. Looks like I know you don't like to compare this one in the morning to our categories, but your top quartile over the past two quarters by our measure, your top third in that over a one year and three year time frame, the product still in outflows, do you expect this performance to you know, convert to inflows? You know, any time soon.

是的。好的。不，那是美妙的顏色。太感謝了。也許我會以戰略價值結束。性能有了相當顯著的提升。看來我知道您不喜歡將早上的這個產品與我們的類別進行比較，但按照我們的衡量標準，您在過去兩個季度中排名前四分之一，在一年和三年的時間範圍內前三分之一的產品仍處於流出狀態，您是否期望這種表現能夠轉化為流入？你知道，很快就會。

Anytime soon, I hate putting deadlines on it like that, but that's why I gave you the changes over quarter to quarter so that you could see what was going on and we're seeing it in the marketplace and we get comments now from the field like boy, I'm sure glad I hung on to my strategic value dividend versus what the heck is happening with the performance on Morningstar with strategic value dividend and months and months ago, that was the comment you were getting from the field. Now. It's boy, I'm glad I'm still there and it is still a way that the underlying clients can keep some income get in the market and buy the kinds of stocks that are owned in strategic value dividend. So yes, I would expect those trends to continue exactly when it will cross over to positive, is really hard for me to predict.

很快，我討厭這樣設定最後期限，但這就是為什麼我給你每個季度的變化，這樣你就可以看到正在發生的事情，我們正在市場上看到它，我們現在收到來自現場的評論就像男孩一樣，我很高興我堅持了我的戰略價值股息，而不是晨星公司的戰略價值股息的表現到底發生了什麼，幾個月前，這就是你從現場得到的評論。現在。是的，我很高興我還在那裡，這仍然是基礎客戶可以在市場上保留一些收入併購買戰略價值股息所擁有的股票的一種方式。所以，是的，我預計這些趨勢何時會轉變為正面的趨勢，這對我來說真的很難預測。

Yeah. fair enough. Thank you so much for all the color.

是的。很公平。非常感謝您提供的所有顏色。

Patrick Davitt, Autonomous Research.

派崔克戴維特，自主研究。

Hey, thanks for the follow up. Just a quick another quick housekeeping on the $6 million of the $5.9 million contra revenue?

嘿，謝謝你的跟進。只是快速清理 590 萬美元對銷收入中的 600 萬美元嗎？

Was that all in management fees or split across the three buckets? And then if, if there is some management fees, how should we adjust the individual, asset bucket? Trying to get our fee rates better?

全部是管理費還是分成三個部分？那如果,如果有一些管理費的話,我們個人、資產桶該怎麼調整呢？試圖提高我們的費率？

Yeah, that was all in management fees.

是的，這都是管理費。

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

好的。而且，它是如何在股權類別中分配的？我指的是資產桶，你知道嗎？

Well, it's, every fund shares.

嗯，是的，每個基金都有股票。

(multiple speaker) proportionally would be, you know, for modeling for be okay.

（多個發言者）按比例建模就可以了。

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

順便說一句，我們得到了投票。好，好。成功了。

All right, great.

好吧，太好了。

Thank you.

謝謝。

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

目前隊列中沒有其他問題。現在我想請雷漢利 (Ray Hanley) 發表結束語。

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

嗯，非常感謝。我們的通話到此結束。感謝您今天加入我們。

Thank you, everyone. This does conclude today's conference call. You may disconnect your phone lines at this time and have a wonderful day. 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並度過美好的一天。感謝您的參與。