Michael Chell's questions to FEDERATED HERMES, INC. (FHI) leadership • Q4 2024
Question
Michael Chell, on for Ken Worthington, inquired about the outlook for money market fund flows in a 'higher for longer' rate environment and the market positioning of the firm's ESG and sustainability-focused products.
Answer
CEO John Donahue described the current rate environment as 'delightful' for money funds, reinforcing cash as an asset class. CIO Debbie Cunningham noted that new market participants are likely to stay and increase balances. Regarding ESG, John Donahue reiterated the firm's focus on fiduciary duty, using ESG as an analytical tool. Saker Nusseibeh, CEO of Federated Hermes Limited, added that their strategies use ESG to seek better financial returns, while also offering specific thematic funds in Europe to meet client demand for targeted outcomes.