Federated Hermes, Inc. (NYSE:FHI) Q3 2022 Earnings Conference Call October 28, 2022 9:00 AM ET
Company Participants
Ray Hanley - President
Chris Donahue - President & Chief Executive Officer
Tom Donahue - Vice President, Chief Financial Officer & Treasurer
Debbie Cunningham - Executive Vice President & Chief Investment Officer of Money Markets
Saker Nusseibeh - Chief Executive Officer & Executive Board Director
Conference Call Participants
Patrick Davitt - Autonomous Research
Dan Fannon - Jefferies
Ken Worthington - JPMorgan
Brian Bedell - Deutsche Bank
Mike Brown - KBW
Kenneth Lee - RBC Capital Markets
John Dunn - Evercore
Operator
Good morning, ladies and gentlemen and welcome to the FHI Q3 2022 Analyst Call and Webcast. [Operator Instructions]
It is now my pleasure to turn the floor over to your host, Mr. Ray Hanley, President of Federated Investors Management Company. Ray, the floor is yours.
Ray Hanley
Thank you. Good morning, all. 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.
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?
Chris Donahue
Thank you, Ray and good morning all. I will review Federated Hermes' business performance, Tom will comment on our financial results. While Q3 presented challenging market conditions across asset classes, our business mix enabled Federated Hermes to achieve positive net sales in equities, fixed income, private markets and long-term assets overall. We also produced increases in revenue, operating and net income compared to the prior quarter as growth in money market revenue offset lower revenues from market-based decreases in long-term assets.
Looking first at equities. Assets declined due to the negative market and FX impact. However, Q3 net sales were $182 million compared to net redemptions in the prior quarter of $969 million and for Q3 of '21 of $1.4 billion. Equity net sales were driven by the strategic value dividend strategy. The domestic strategy had third quarter net sales of nearly $1.6 billion, with both the fund and almost $600 million and the SMA at about $1 billion, producing solid net results in sales. We also saw third quarter positive net sales in 15 equity fund strategies, including several international equity strategies like Asia, ex-Japan, international strategic value, China equity, international equity, international growth and emerging markets equity.