Federated Hermes, Inc. (FHI) Q4 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Greetings and welcome to the Federated Hermes Incorporated second quarter 2025 analyst call and webcast. At this time all participants are in a listen only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note, this conference is being recorded. I will now turn the conference over to your host, Mr. Raymond Hanley. Sir, the floor is yours. Hello 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. Joining us for the Q&A are Sakhar Nasebi, who is the CEO of Federated Hermes Limited, and Debbie Cunningham, the Chief Investment Officer for 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? Thank you, Ray, and good morning. I will review Federated Hermes' business performance, and Tom will comment on our financial results. We ended Q2 with record assets under management of $846 billion, led by gains from our equity strategies. Equity assets increased by $8.1 billion, or 10% from the prior quarter. Second quarter equity net sales of $1.8 billion represent an organic growth rate of just under 9%. Our MDT fundamental quant strategies produced solid sales results again in the second quarter. MDT equity strategies had net sales of $3.8 billion in the second quarter, up from $3.3 billion...