Federated Hermes, Inc. (NYSE:FHI) Q2 2023 Earnings Call Transcript

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 two days ago.

Ken Worthington: Congratulations for that. And thank you for answering. 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?

Tom Donahue: Debbie?

Debbie Cunningham: 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.

Ken Worthington: Okay. Great. Thank you very much.

Operator: 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.

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

Operator: 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.