Federated Hermes, Inc. (NYSE:FHI) Q4 2022 Earnings Conference Call January 27, 2023 9:00 AM ET
Company Participants
Ray Hanley - President, Federated Investors Management Company
Chris Donahue - President and Chief Executive Officer
Tom Donahue - Vice President, Chief Financial Officer & Treasurer
Debbie Cunningham - Chief Investment Officer of Money Markets
Saker Nusseibeh - Chief Executive Officer, Federated Hermes Limited
Conference Call Participants
Patrick Davitt - Autonomous Research
Mike Brown - KBW
Operator
Good day and welcome to the FHI Q4 2022 Analyst Call and Webcast. At this time, all participants have been placed on a listen-only mode. [Operator Instructions]
It is now my pleasure to turn the floor over to your host, Ray Hanley, President of Federated Investors Management Company. Sir, the floor is yours.
Ray Hanley
Good morning, and welcome. Leading today's call will be Chris Donahue, Federated Hermes’ CEO and President; 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 Money Markets.
Today's call, we will 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 our 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?
Chris Donahue
Thank you Ray, and good morning all. I will review Federated Hermes' business performance, Tom will comment on our financial results. We ended 2022 with record total assets under management of 669 billion. This was driven by growth of 35.6 billion in money market assets in Q4 to reach a record high of 477 billion at year-end.
Turning to equities. Assets increased by about 7 billion to 81.5 billion due to market gains, FX impact, and net positive sales in separate accounts, all of which were partially offset by net fund redemptions. The strategic value dividend strategy continued to produce solid net sales with nearly $1 billion in the Q4 with about a quarter of that from the fund, and almost three quarters of that from the SMA.
The U.S. Strategic Value Dividend ETF launched in mid-November now has 42 million in assets. We saw Q4 positive net sales in 16 equity fund strategies, including Asia ex-Japan, International Strategic Value Dividend, MDT Large Cap Growth, European Alpha Equity, International Growth and Clover Small Value. Q4 equity fund net redemptions of [1.4 billion] [ph] were concentrated in our growth strategies.