Federated Hermes, Inc. (NYSE:FHI) Q1 2024 Earnings Conference Call April 26, 2024 9:00 AM ET
Company Participants
Raymond Hanley - President of Federated Investors Management Company
Christopher Donahue - President and Chief Executive Officer
Thomas Donahue - Chief Financial Officer, Vice President, Director and Treasurer
Deborah Cunningham - Chief Investment Officer
Conference Call Participants
William Katz - TD Cowen
Patrick Davitt - Autonomous Research
Ken Worthington - JPMorgan
Brian Bedell - Deutsche Bank
Kenneth Lee - RBC Capital Markets
Daniel Fannon - Jefferies
John Dunn - Evercore
Operator
Greetings. Welcome to the Federated Hermes, Inc. Q1 2024 Analyst Call and Webcast. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] Please note this conference is being recorded.
I will now turn the conference over to your host, Ray Hanley, President of Federated Investors Management Company. You may begin.
Raymond Hanley
Good morning and welcome to our call. 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 is Debbie Cunningham, 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?
Christopher Donahue
Thank you, Ray. Good morning all. I will review Federated Hermes' business performance. Tom will comment on our financial results.
We ended the first quarter with record assets under management of $779 billion, driven by record money market assets of $579 billion. Looking at equities, assets increased by $866 million from year-end, reaching $80.2 billion due to market gains of $4.9 billion, partially offset by net redemptions of $3.4 billion and FX impact of about negative $567 million.
The strategic value dividend domestic strategy had Q1 net redemptions of $1.3 billion when you combine it with the fund and the SMA, and the comparable number in the fourth quarter was $2.2 billion. We did see Q1 positive net sales in 12 equity fund strategies, including MDT Mid Cap Growth, MDT Large Cap Growth and US SMID Equity Fund.
The MDT strategies have shown accelerated sales and net sales in the first quarter and here the first part of the second quarter, particularly in the growth space. Looking at our equity performance at the end of the first quarter and using Morningstar data for trailing three years, 56% of the equity funds were beating peers and 36% were in the top quartile of their category.