- Total assets under management reach a record $782.7 billion
- Money market assets reach a record $586.6 billion
- Q2 2024 earnings per diluted share of $0.20, including a ($0.76) per diluted share non-cash intangible
asset impairment charge
- Board declares $0.31 per share
dividend
PITTSBURGH, July 25,
2024 /PRNewswire/ -- Federated Hermes, Inc. (NYSE:
FHI), a global leader in active, responsible investing, today
reported earnings per diluted share (EPS) of $0.20 for Q2 2024, compared to $0.81 for the
same quarter last year, on net income of $21.0 million for Q2 2024, compared to $72.2
million for Q2 2023. Federated Hermes' Q2 2024 results include a
$66.3 million non-cash expense, or
($0.76) per diluted share, related to
the impairment of an indefinite-lived intangible asset.
Federated Hermes' total managed assets were a record $782.7
billion at June 30, 2024, up $78.7
billion or 11% from $704.0
billion at June 30, 2023 and up $4.0 billion or 1% from $778.7 billion at March 31, 2024. Total
average managed assets for Q2 2024 were $779.6 billion, up $74.3
billion or 11% from $705.3
billion reported for Q2 2023 and up $3.1 billion or less than 1% from $776.5 billion for Q1 2024.
"Money market asset increases once again drove Federated Hermes
to record total assets under management, as our liquidity
products continued to offer excellent cash management services and
attractive yields," said J. Christopher
Donahue, president and chief executive officer. "In
equities, our range of strong-performing Federated Hermes MDT
quantitative products offered core and complementary strategies for
portfolio diversification. We also saw interest in our Total
Return Bond Fund and core plus strategies, which have the ability
to dynamically shift sector, duration, yield curve and currency
positioning in changing market conditions."
Federated Hermes' board of directors declared a dividend
of $0.31 per share. The dividend is payable on Aug 15,
2024 to shareholders of record as of Aug 8, 2024. During Q2
2024, Federated Hermes purchased 1,559,200 shares of Federated
Hermes class B common stock for $47.5
million.
Equity assets were $77.9 billion
at June 30, 2024, down $5.1
billion or 6% from $83.0
billion at June 30, 2023 and down $2.3 billion or 3% from $80.2 billion at March 31, 2024.
Top-selling equity funds during Q2 2024 on a net basis were
Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT
Mid Cap Growth Fund, Federated Hermes MDT All Cap Core Fund,
Federated Hermes U.S. SMID Equity Fund and Federated Hermes
International Leaders Fund.
Fixed-income assets were $95.3
billion at June 30, 2024, up $7.9 billion or 9% from $87.4 billion at June 30, 2023 and down
$1.0 billion or 1% from $96.3 billion at March 31, 2024.
Top-selling fixed-income funds during Q2 2024 on a net basis were
Federated Hermes Total Return Bond Fund, Federated Hermes
Institutional Fixed Income Fund, Federated Hermes Government
Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF and
Federated Hermes Conservative Microshort Fund.
Alternative/private markets assets were $20.1 billion at June 30,
2024, down $1.5 billion or 7%
from $21.6 billion at June 30, 2023 and down $0.4 billion or 2% from $20.5 billion at March 31,
2024.
Money market assets were a record $586.6
billion at June 30, 2024, up $77.6 billion or 15% from $509.0 billion at June 30, 2023 and up
$7.8 billion or 1% from $578.8 billion at March 31, 2024. Money
market fund assets were a record $425.6
billion at June 30, 2024, up $61.6 billion or 17% from $364.0 billion at June 30, 2023 and up
$8.5 billion or 2% from $417.1 billion at March 31, 2024.
Financial Summary
Q2 2024 non-cash intangible asset impairment
charge
Federated Hermes' Q2 2024 results include a $66.3 million non-cash expense, or ($0.76) per diluted share, related to the
impairment of an indefinite-lived intangible asset associated with
the 2018 acquisition of Federated Hermes Limited, which was driven
by changes in projected cash flows.
Q2 2024 vs. Q2 2023
Revenue decreased $30.6 million
or 7% primarily due to a decrease in carried interest of
$36.1 million, including a decrease
of $23.5 million of carried interest
from consolidated carried interest vehicles, which is largely
offset in compensation expense, and a decrease in revenue due to
lower average equity assets. These decreases were partially offset
by an increase in revenue from higher average money market
assets.
During Q2 2024, Federated Hermes derived 47% of its revenue from
long-term assets (29% from equity, 12% from fixed-income,
and 6% from alternative/private markets and multi-asset), 52%
from money market assets, and 1% from sources other than
managed assets.
Operating expenses increased $27.0
million or 8% primarily due to increased intangible
asset related expense due to the impairment charge, offset by
decreases in compensation expense primarily resulting from the
lower carried interest from consolidated carried interest vehicles
of $23.4 million and a decrease in other expense related to
fund reorganization costs.
Nonoperating income (expenses), net was flat.
Q2 2024 vs. Q1 2024
Revenue increased $6.2 million
or 2% primarily due to an increase in carried interest of
$3.4 million, including an increase
of $2.4 million of carried interest
from consolidated carried interest vehicles, which is largely
offset in compensation expense, and an increase in revenue from
higher average money market assets. These increases were partially
offset by a decrease in revenue due to lower average long-term
assets.
Operating expenses increased $64.1
million or 22% primarily due to increased intangible
asset related expense due to the impairment charge.
Nonoperating income (expenses), net decreased $3.5 million or 64% primarily due to
a decrease in the market value of investments in Q2 2024
compared to an increase in the market value of investments in Q1
2024.
YTD 2024 vs. YTD 2023
Revenue decreased $16.5 million
or 2% primarily due to a decrease in carried interest of
$36.2 million, including a decrease
of $23.6 million of carried interest
from consolidated carried interest vehicles, which is largely
offset in compensation expense, and a decrease in revenue due to
lower average equity assets. These decreases were partially offset
by an increase in revenue from higher average money market
assets.
For the first half of 2024, Federated Hermes derived 47% of its
revenue from long-term assets (29% from equity, 12% from
fixed-income and 6% from alternative/private markets and
multi-asset), 52% from money market assets, and 1% from sources
other than managed assets.
Operating expenses increased $27.8
million or 4% primarily due to increased intangible asset
related expense due to the impairment charge offset by a decrease
in compensation expense primarily resulting from the lower carried
interest from consolidated carried interest vehicles of
$23.4 million and a decrease in other
expense related to fund reorganization costs.
Nonoperating income (expenses), net decreased $2.1 million or 22% primarily due to a
smaller increase in the market value of investments in the first
six months of 2024 compared to the increase in the market value of
investments for the same period in 2023. This decrease was
partially offset by an increase in investment yields due to
higher interest rates.
Earnings call information
Federated Hermes will host an earnings conference call at
9 a.m. Eastern on Friday,
July 26, 2024. Investors are invited to listen to the earnings
teleconference by calling 888-506-0062 (domestic) or 973-528-0011
(international) prior to the 9 a.m. start time. To listen
online, go to the About section of FederatedHermes.com/us at least
15 minutes prior to register and join the call. A replay will be
available at approximately 12:30 p.m.
Eastern on July 26, 2024. To access the telephone replay, dial
877-481-4010 (domestic) or 919-882-2331 (international) and enter
access code 50846. The online replay will be available via
FederatedHermes.com/us for one year.
About Federated Hermes
Federated Hermes, Inc. is a global leader in active, responsible
investment management, with $782.7
billion in assets under management1. We deliver
investment solutions that help investors target a broad range of
outcomes and provide equity, fixed-income, alternative/private
markets, multi-asset and liquidity management strategies to more
than 10,000 institutions and intermediaries worldwide. Our clients
include corporations, government entities, insurance companies,
foundations and endowments, banks and broker/dealers. Headquartered
in Pittsburgh, Federated Hermes
has more than 2,000 employees in London, New
York, Boston and offices
worldwide.
Federated Hermes ranks in the top 7% of equity fund managers in
the industry, the top 8% of money market fund managers and the
top 10% of fixed-income fund managers2. Federated Hermes
also ranks as the 9th-largest manager of model-delivered separately
managed accounts3. For more information, including an
analyst presentation, which is updated periodically, visit
FederatedHermes.com/us.
###
1) As of June 30, 2024.
2) Morningstar,
June 30, 2024. Based on U.S. fund flows rankings.
3)
Money Management Institute/Cerulli,Q1 2024.
Federated
Securities Corp. is distributor of the Federated Hermes
funds.
Separately managed accounts are made available through
Federated Global Investment Management Corp., Federated Investment
Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland
Limited, Hermes Investment Management Limited, and Hermes GPE LLP,
each a registered investment advisor in one or more of the U.S.,
U.K. or Ireland.
Cautionary statements
Certain statements in this press release, such as those related
to performance, investment strategies and uses, investor
preferences and demand, asset flows, asset mix, interest rates and
fee waivers constitute or may constitute forward-looking
statements, which involve known and unknown risks, uncertainties
and other factors that may cause the actual results, levels of
activity, performance or achievements of the company, or industry
results, to be materially different from any future results, levels
of activity, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements can
include statements that do not relate strictly to historical or
current facts and are typically identified by words or phrases such
as "trend," "forecast," "project," "predict," "potential,"
"approximate," "opportunity," "believe," "expect," "anticipate,"
"current," "intention," "estimate," "position," "projection,"
"plan," "assume," "continue," "remain," "maintain," "sustain,"
"seek," "achieve," and similar expressions, or future or
conditional verbs such as "will," "would," "should," "could,"
"can," "may" and similar expressions. Any forward-looking
statement, and Federated Hermes' level of business activity and
financial results, are inherently subject to significant business,
market, economic, competitive, regulatory and other risks and
uncertainties, many of which are difficult to predict and beyond
Federated Hermes' control. Other risks and uncertainties include
the ability of the company to predict the level of fee waivers and
expenses in future quarters, predict whether performance fees or
carried interest will be earned and retained, the ability of the
company to sustain product demand, the timing and level of product
sales and redemptions, market appreciation or depreciation,
revenues, and asset levels, flows and mix, which could vary
significantly depending on various factors, such as market
conditions, investment performance and investor behavior. Other
risks and uncertainties include the risk factors discussed in the
company's annual and quarterly reports as filed with the Securities
and Exchange Commission. As a result, no assurance can be given as
to future results, levels of activity, performance or achievements,
and neither the company nor any other person assumes responsibility
for the accuracy and completeness, or updating, of such statements
in the future.
|
Unaudited
Condensed Consolidated Statements of Income
|
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
Quarter
Ended
|
% Change
Q2 2023 to
Q2 2024
|
|
Quarter
Ended
|
% Change
Q1 2024 to
Q2 2024
|
|
June 30,
2024
|
June 30, 2023
|
|
March 31, 2024
|
|
Revenue
|
|
|
|
|
|
|
|
Investment advisory
fees, net
|
$
270,622
|
$
310,337
|
(13) %
|
|
$
264,294
|
2 %
|
|
Administrative service
fees, net—affiliates
|
95,346
|
85,199
|
12
|
|
94,786
|
1
|
|
Other service fees,
net
|
36,615
|
37,696
|
(3)
|
|
37,291
|
(2)
|
|
Total
Revenue
|
402,583
|
433,232
|
(7)
|
|
396,371
|
2
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
|
Compensation and
related
|
130,748
|
159,883
|
(18)
|
|
136,546
|
(4)
|
|
Distribution
|
93,503
|
97,086
|
(4)
|
|
94,894
|
(1)
|
|
Intangible asset
related
|
69,392
|
3,418
|
NM
|
|
3,235
|
NM
|
|
Systems and
communications
|
23,194
|
22,074
|
5
|
|
21,823
|
6
|
|
Professional service
fees
|
19,845
|
19,099
|
4
|
|
18,352
|
8
|
|
Office and
occupancy
|
9,765
|
11,404
|
(14)
|
|
9,969
|
(2)
|
|
Advertising and
promotional
|
6,621
|
5,109
|
30
|
|
4,306
|
54
|
|
Travel and
related
|
3,847
|
3,835
|
0
|
|
3,273
|
18
|
|
Other
|
4,951
|
12,935
|
(62)
|
|
5,392
|
(8)
|
|
Total Operating
Expenses
|
361,866
|
334,843
|
8
|
|
297,790
|
22
|
|
Operating
Income
|
40,717
|
98,389
|
(59)
|
|
98,581
|
(59)
|
|
|
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
|
|
|
Investment income
(loss), net
|
5,132
|
5,289
|
(3)
|
|
8,483
|
(40)
|
|
Debt
expense
|
(3,159)
|
(3,118)
|
1
|
|
(3,149)
|
0
|
|
Other, net
|
(34)
|
(15)
|
(127)
|
|
103
|
(133)
|
|
Total Nonoperating
Income (Expenses), net
|
1,939
|
2,156
|
(10)
|
|
5,437
|
(64)
|
|
Income before income
taxes
|
42,656
|
100,545
|
(58)
|
|
104,018
|
(59)
|
|
Income tax
provision
|
23,431
|
27,543
|
(15)
|
|
29,008
|
(19)
|
|
Net income including
the noncontrolling interests in subsidiaries
|
19,225
|
73,002
|
(74)
|
|
75,010
|
(74)
|
|
Less: Net income
(loss) attributable to the noncontrolling interests in
subsidiaries
|
(1,802)
|
827
|
(318)
|
|
(23)
|
NM
|
|
Net Income
|
$
21,027
|
$
72,175
|
(71) %
|
|
$
75,033
|
(72) %
|
|
|
|
|
|
|
|
|
Amounts Attributable
to Federated Hermes, Inc.
|
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
|
Basic and
diluted
|
$
0.20
|
$
0.81
|
(75) %
|
|
$
0.89
|
(78) %
|
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
|
Basic
|
80,026
|
84,930
|
|
|
80,709
|
|
|
Diluted
|
80,026
|
84,939
|
|
|
80,710
|
|
|
Dividends Declared
Per Share
|
$
1.31
|
$
0.28
|
|
|
$
0.28
|
|
|
1)
|
Unvested share-based awards that receive
non-forfeitable dividend rights are deemed participating securities
and are required to be considered in the computation of
earnings
per share under the "two-class method." As such,
total net income of $4.7 million, $3.5 million and $3.4 million
available to unvested restricted Federated Hermes
shareholders
for the quarterly periods ended June 30, 2024, June
30, 2023 and March 31, 2024, respectively, was excluded from the
computation of earnings per share.
|
|
Unaudited
Condensed Consolidated Statements of Income
|
|
|
|
|
(in thousands,
except per share data)
|
|
|
|
|
Six Months
Ended
|
|
June 30,
2024
|
June 30, 2023
|
%
Change
|
|
Revenue
|
|
|
|
|
Investment advisory
fees, net
|
$
534,916
|
$
574,318
|
(7) %
|
|
Administrative service
fees, net—affiliates
|
190,132
|
164,378
|
16
|
|
Other service fees,
net
|
73,906
|
76,725
|
(4)
|
|
Total
Revenue
|
798,954
|
815,421
|
(2)
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
Compensation and
related
|
267,294
|
296,761
|
(10)
|
|
Distribution
|
188,398
|
190,420
|
(1)
|
|
Intangible asset
related
|
72,627
|
6,743
|
NM
|
|
Systems and
communications
|
45,017
|
42,046
|
7
|
|
Professional service
fees
|
38,197
|
35,320
|
8
|
|
Office and
occupancy
|
19,734
|
24,278
|
(19)
|
|
Advertising and
promotional
|
10,927
|
9,451
|
16
|
|
Travel and
related
|
7,119
|
7,066
|
1
|
|
Other
|
10,343
|
19,781
|
(48)
|
|
Total Operating
Expenses
|
659,656
|
631,866
|
4
|
|
Operating
Income
|
139,298
|
183,555
|
(24)
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
Investment income
(loss), net
|
13,615
|
15,601
|
(13)
|
|
Debt
expense
|
(6,308)
|
(6,243)
|
1
|
|
Other, net
|
69
|
107
|
(36)
|
|
Total Nonoperating
Income (Expenses), net
|
7,376
|
9,465
|
(22)
|
|
Income before income
taxes
|
146,674
|
193,020
|
(24)
|
|
Income tax
provision
|
52,439
|
48,552
|
8
|
|
Net income including
the noncontrolling interests in subsidiaries
|
94,235
|
144,468
|
(35)
|
|
Less: Net income
(loss) attributable to the noncontrolling interests in
subsidiaries
|
(1,825)
|
2,692
|
(168)
|
|
Net Income
|
$
96,060
|
$
141,776
|
(32) %
|
|
|
|
|
|
Amounts Attributable
to Federated Hermes, Inc.
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
Basic and
diluted
|
$
1.12
|
$
1.59
|
(30) %
|
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
Basic
|
80,367
|
84,902
|
|
|
Diluted
|
80,368
|
84,907
|
|
|
Dividends Declared
Per Share
|
$
1.59
|
$
0.55
|
|
|
1)
|
Unvested share-based awards that receive
non-forfeitable dividend rights are deemed participating securities
and are required to be considered
in the computation of earnings per share under the
"two-class method." As such, total net income of $5.8 million and
$7.0 million available to
unvested restricted Federated Hermes shareholders for
the six months ended June 30, 2024 and June 30, 2023, respectively,
was excluded from
the computation of earnings per
share.
|
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
|
(in
thousands)
|
June 30,
2024
|
Dec. 31,
2023
|
|
Assets
|
|
|
|
Cash and other
investments
|
$
452,879
|
$
560,675
|
|
Other current
assets
|
160,422
|
160,054
|
|
Intangible
assets, net, including goodwill
|
1,141,623
|
1,216,605
|
|
Other long-term
assets
|
156,583
|
164,510
|
|
Total
Assets
|
$
1,911,507
|
$
2,101,844
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
|
Current
liabilities
|
$
223,380
|
$
287,343
|
|
Long-term
debt
|
347,974
|
347,843
|
|
Other long-term
liabilities
|
292,637
|
312,561
|
|
Redeemable
noncontrolling interests
|
30,491
|
25,845
|
|
Equity excluding
treasury stock
|
1,612,617
|
1,649,655
|
|
Treasury
stock
|
(595,592)
|
(521,403)
|
|
Total
Liabilities, Redeemable Noncontrolling Interests and
Equity
|
$
1,911,507
|
$
2,101,844
|
|
Unaudited Changes
in Long-Term Assets - By Asset Class
|
|
|
|
|
(in
millions)
|
Quarter
Ended
|
|
Six Months
Ended
|
|
June 30,
2024
|
March 31, 2024
|
June 30, 2023
|
|
June 30,
2024
|
June 30, 2023
|
|
Equity
|
|
|
|
|
|
|
|
Beginning
assets
|
$
80,157
|
$
79,291
|
$
83,629
|
|
$
79,291
|
$
81,523
|
|
Sales1
|
3,811
|
3,915
|
4,869
|
|
7,726
|
10,500
|
|
Redemptions1
|
(7,071)
|
(7,351)
|
(5,697)
|
|
(14,422)
|
(10,433)
|
|
Net sales
(redemptions)1
|
(3,260)
|
(3,436)
|
(828)
|
|
(6,696)
|
67
|
|
Net
exchanges
|
9
|
5
|
5
|
|
14
|
108
|
|
Impact of foreign
exchange2
|
12
|
(567)
|
71
|
|
(555)
|
179
|
|
Market gains and
(losses)3
|
933
|
4,864
|
115
|
|
5,797
|
1,115
|
|
Ending
assets
|
$
77,851
|
$
80,157
|
$
82,992
|
|
$
77,851
|
$
82,992
|
|
|
|
|
|
|
|
|
Fixed
Income
|
|
|
|
|
|
|
|
Beginning
assets
|
$
96,325
|
$
94,920
|
$
87,461
|
|
$
94,920
|
$
86,743
|
|
Sales1
|
5,262
|
6,583
|
4,891
|
|
11,845
|
10,938
|
|
Redemptions1
|
(6,699)
|
(5,395)
|
(4,963)
|
|
(12,094)
|
(12,090)
|
|
Net sales
(redemptions)1
|
(1,437)
|
1,188
|
(72)
|
|
(249)
|
(1,152)
|
|
Net
exchanges
|
(179)
|
(7)
|
6
|
|
(186)
|
(95)
|
|
Impact of foreign
exchange2
|
(8)
|
(71)
|
43
|
|
(79)
|
81
|
|
Market gains and
(losses)3
|
593
|
295
|
(13)
|
|
888
|
1,848
|
|
Ending
assets
|
$
95,294
|
$
96,325
|
$
87,425
|
|
$
95,294
|
$
87,425
|
|
|
|
|
|
|
|
|
Alternative/Private
Markets
|
|
|
|
|
|
|
|
Beginning
assets
|
$
20,465
|
$
20,551
|
$
21,174
|
|
$
20,551
|
$
20,802
|
|
Sales1
|
647
|
761
|
643
|
|
1,408
|
1,908
|
|
Redemptions1
|
(1,177)
|
(740)
|
(745)
|
|
(1,917)
|
(1,537)
|
|
Net sales
(redemptions)1
|
(530)
|
21
|
(102)
|
|
(509)
|
371
|
|
Net
exchanges
|
174
|
2
|
(4)
|
|
176
|
(3)
|
|
Impact of foreign
exchange2
|
21
|
(226)
|
539
|
|
(205)
|
907
|
|
Market gains and
(losses)3
|
(69)
|
117
|
(5)
|
|
48
|
(475)
|
|
Ending
assets
|
$
20,061
|
$
20,465
|
$
21,602
|
|
$
20,061
|
$
21,602
|
|
|
|
|
|
|
|
|
Multi-asset
|
|
|
|
|
|
|
|
Beginning
assets
|
$
2,928
|
$
2,867
|
$
2,973
|
|
$
2,867
|
$
2,989
|
|
Sales1
|
42
|
44
|
33
|
|
86
|
80
|
|
Redemptions1
|
(113)
|
(112)
|
(143)
|
|
(225)
|
(287)
|
|
Net sales
(redemptions)1
|
(71)
|
(68)
|
(110)
|
|
(139)
|
(207)
|
|
Net
exchanges
|
1
|
0
|
1
|
|
1
|
3
|
|
Market gains and
(losses)3
|
18
|
129
|
58
|
|
147
|
137
|
|
Ending
assets
|
$
2,876
|
$
2,928
|
$
2,922
|
|
$
2,876
|
$
2,922
|
|
|
|
|
|
|
|
|
Total Long-term
Assets
|
|
|
|
|
|
|
|
Beginning
assets
|
$
199,875
|
$
197,629
|
$
195,237
|
|
$
197,629
|
$
192,057
|
|
Sales1
|
9,762
|
11,303
|
10,436
|
|
21,065
|
23,426
|
|
Redemptions1
|
(15,060)
|
(13,598)
|
(11,548)
|
|
(28,658)
|
(24,347)
|
|
Net sales
(redemptions)1
|
(5,298)
|
(2,295)
|
(1,112)
|
|
(7,593)
|
(921)
|
|
Net
exchanges
|
5
|
0
|
8
|
|
5
|
13
|
|
Impact of foreign
exchange2
|
25
|
(864)
|
653
|
|
(839)
|
1,167
|
|
Market gains and
(losses)3
|
1,475
|
5,405
|
155
|
|
6,880
|
2,625
|
|
Ending
assets
|
$
196,082
|
$
199,875
|
$
194,941
|
|
$
196,082
|
$
194,941
|
|
1)
|
For certain
accounts, including separately managed accounts, institutional
accounts, certain sub-advised funds and other
managed products,
Sales and Redemptions are calculated as the remaining
difference between beginning and ending
assets after the
calculation of total investment return.
|
|
2)
|
Reflects the impact
of translating non-U.S. dollar denominated assets under management
(AUM) into U.S. dollars for
reporting
purposes.
|
|
3)
|
Reflects the
approximate changes in the fair value of the securities held by the
portfolios and, to a lesser extent, reinvested
dividends,
distributions and net investment income.
|
|
Unaudited Changes
in Long-Term Assets - By Asset Class and Product
Type
|
|
(in
millions)
|
|
|
Quarter
Ended
|
|
June 30,
2024
|
|
Equity
|
Fixed
Income
|
Alternative /
Private
Markets
|
Multi-asset
|
Total
|
|
Funds
|
Separate
Accounts1
|
Funds
|
Separate
Accounts1
|
Funds
|
Separate
Accounts1
|
Funds
|
Separate
Accounts1
|
Funds.
|
Separate
Accounts1
|
|
Beginning
assets
|
$
43,415
|
$
36,742
|
$ 44,481
|
$ 51,844
|
$
12,458
|
$ 8,007
|
$ 2,789
|
$
139
|
$ 103,143
|
$ 96,732
|
|
Sales
|
2,413
|
1,398
|
3,326
|
1,936
|
537
|
110
|
42
|
0
|
6,318
|
3,444
|
|
Redemptions
|
(3,594)
|
(3,477)
|
(3,957)
|
(2,742)
|
(1,098)
|
(79)
|
(108)
|
(5)
|
(8,757)
|
(6,303)
|
|
Net sales
(redemptions)
|
(1,181)
|
(2,079)
|
(631)
|
(806)
|
(561)
|
31
|
(66)
|
(5)
|
(2,439)
|
(2,859)
|
|
Net
exchanges
|
9
|
0
|
(178)
|
(1)
|
174
|
0
|
1
|
0
|
6
|
(1)
|
|
Impact of foreign
exchange2
|
(11)
|
23
|
(1)
|
(7)
|
7
|
14
|
0
|
0
|
(5)
|
30
|
|
Market gains and
(losses)3
|
172
|
761
|
171
|
422
|
180
|
(249)
|
19
|
(1)
|
542
|
933
|
|
Ending
assets
|
$
42,404
|
$
35,447
|
$ 43,842
|
$ 51,452
|
$
12,258
|
$ 7,803
|
$ 2,743
|
$
133
|
$ 101,247
|
$ 94,835
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
|
|
June 30,
2024
|
|
Equity
|
Fixed
Income
|
Alternative /
Private
Markets
|
Multi-asset
|
Total
|
|
Funds
|
Separate
Accounts1
|
Funds
|
Separate
Accounts1
|
Funds
|
Separate
Accounts1
|
Funds
|
Separate
Accounts1
|
Funds
|
Separate
Accounts1
|
|
Beginning
assets
|
$
42,513
|
$
36,778
|
$ 43,908
|
$ 51,012
|
$
12,379
|
$ 8,172
|
$ 2,730
|
$
137
|
$ 101,530
|
$ 96,099
|
|
Sales
|
4,832
|
2,894
|
7,375
|
4,470
|
1,191
|
217
|
86
|
0
|
13,484
|
7,581
|
|
Redemptions
|
(7,663)
|
(6,759)
|
(7,441)
|
(4,653)
|
(1,667)
|
(250)
|
(216)
|
(9)
|
(16,987)
|
(11,671)
|
|
Net sales
(redemptions)
|
(2,831)
|
(3,865)
|
(66)
|
(183)
|
(476)
|
(33)
|
(130)
|
(9)
|
(3,503)
|
(4,090)
|
|
Net
exchanges
|
14
|
0
|
(183)
|
(3)
|
176
|
0
|
1
|
0
|
8
|
(3)
|
|
Impact of foreign
exchange2
|
(246)
|
(309)
|
(47)
|
(32)
|
(132)
|
(73)
|
0
|
0
|
(425)
|
(414)
|
|
Market gains and
(losses)3
|
2,954
|
2,843
|
230
|
658
|
311
|
(263)
|
142
|
5
|
3,637
|
3,243
|
|
Ending
assets
|
$
42,404
|
$
35,447
|
$ 43,842
|
$ 51,452
|
$
12,258
|
$ 7,803
|
$ 2,743
|
$
133
|
$ 101,247
|
$ 94,835
|
|
1)
|
Includes separately
managed accounts, institutional accounts, certain sub-advised funds
and other managed products. For certain accounts, Sales
and
Redemptions are
calculated as the remaining difference between beginning and ending
assets after the calculation of total investment
return.
|
|
2)
|
Reflects the impact
of translating non-U.S. dollar denominated AUM into U.S. dollars
for reporting purposes.
|
|
3)
|
Reflects the
approximate changes in the fair value of the securities held by the
portfolios and, to a lesser extent, reinvested dividends,
distributions and net investment income.
|
|
Unaudited Changes
in Long-Term Assets - By Product Type
|
|
|
|
|
(in
millions)
|
Quarter
Ended
|
|
Six Months
Ended
|
|
June 30,
2024
|
March 31, 2024
|
June 30, 2023
|
|
June 30,
2024
|
June 30, 2023
|
|
Total Fund
Assets
|
|
|
|
|
|
|
|
Beginning
assets
|
$
103,143
|
$
101,530
|
$
104,220
|
|
$
101,530
|
$
102,423
|
|
Sales
|
6,318
|
7,166
|
6,462
|
|
13,484
|
14,779
|
|
Redemptions
|
(8,757)
|
(8,230)
|
(7,916)
|
|
(16,987)
|
(16,407)
|
|
Net sales
(redemptions)
|
(2,439)
|
(1,064)
|
(1,454)
|
|
(3,503)
|
(1,628)
|
|
Net
exchanges
|
6
|
2
|
(5)
|
|
8
|
10
|
|
Impact of foreign
exchange1
|
(5)
|
(420)
|
487
|
|
(425)
|
821
|
|
Market gains and
(losses)2
|
542
|
3,095
|
1,139
|
|
3,637
|
2,761
|
|
Ending
assets
|
$
101,247
|
$
103,143
|
$
104,387
|
|
$
101,247
|
$
104,387
|
|
|
|
|
|
|
|
|
Total Separate
Account Assets3
|
|
|
|
|
|
|
|
Beginning
assets
|
$
96,732
|
$
96,099
|
$
91,017
|
|
$
96,099
|
$
89,634
|
|
Sales4
|
3,444
|
4,137
|
3,974
|
|
7,581
|
8,647
|
|
Redemptions4
|
(6,303)
|
(5,368)
|
(3,632)
|
|
(11,671)
|
(7,940)
|
|
Net sales
(redemptions)4
|
(2,859)
|
(1,231)
|
342
|
|
(4,090)
|
707
|
|
Net
exchanges
|
(1)
|
(2)
|
13
|
|
(3)
|
3
|
|
Impact of foreign
exchange1
|
30
|
(444)
|
166
|
|
(414)
|
346
|
|
Market gains and
(losses)2
|
933
|
2,310
|
(984)
|
|
3,243
|
(136)
|
|
Ending
assets
|
$
94,835
|
$
96,732
|
$
90,554
|
|
$
94,835
|
$
90,554
|
|
|
|
|
|
|
|
|
Total Long-term
Assets3
|
|
|
|
|
|
|
|
Beginning
assets
|
$
199,875
|
$
197,629
|
$
195,237
|
|
$
197,629
|
$
192,057
|
|
Sales4
|
9,762
|
11,303
|
10,436
|
|
21,065
|
23,426
|
|
Redemptions4
|
(15,060)
|
(13,598)
|
(11,548)
|
|
(28,658)
|
(24,347)
|
|
Net sales
(redemptions)4
|
(5,298)
|
(2,295)
|
(1,112)
|
|
(7,593)
|
(921)
|
|
Net
exchanges
|
5
|
0
|
8
|
|
5
|
13
|
|
Impact of foreign
exchange1
|
25
|
(864)
|
653
|
|
(839)
|
1,167
|
|
Market gains and
(losses)2
|
1,475
|
5,405
|
155
|
|
6,880
|
2,625
|
|
Ending
assets
|
$
196,082
|
$
199,875
|
$
194,941
|
|
$
196,082
|
$
194,941
|
|
1)
|
Reflects the impact
of translating non-U.S. dollar denominated AUM into U.S. dollars
for reporting purposes.
|
|
2)
|
Reflects the
approximate changes in the fair value of the securities held by the
portfolios and, to a lesser extent, reinvested
dividends,
distributions and net investment income.
|
|
3)
|
Includes separately
managed accounts, institutional accounts, certain sub-advised funds
and other managed products.
|
|
4)
|
For certain
accounts, Sales and Redemptions are calculated as the remaining
difference between beginning and ending assets after the
calculation of total investment return.
|
|
Unaudited Managed
Assets
|
|
|
(in
millions)
|
June 30,
2024
|
March 31, 2024
|
Dec. 31, 2023
|
Sept. 30, 2023
|
June 30, 2023
|
|
By Asset
Class
|
|
|
|
|
|
|
Equity
|
$
77,851
|
$
80,157
|
$
79,291
|
$
77,315
|
$
82,992
|
|
Fixed-income
|
95,294
|
96,325
|
94,920
|
89,765
|
87,425
|
|
Alternative / private
markets
|
20,061
|
20,465
|
20,551
|
20,337
|
21,602
|
|
Multi-asset
|
2,876
|
2,928
|
2,867
|
2,728
|
2,922
|
|
Total long-term
assets
|
196,082
|
199,875
|
197,629
|
190,145
|
194,941
|
|
Money
market
|
586,647
|
578,811
|
559,993
|
525,085
|
509,017
|
|
Total Managed
Assets
|
$
782,729
|
$
778,686
|
$
757,622
|
$
715,230
|
$
703,958
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
|
Equity
|
$
42,404
|
$
43,415
|
$
42,513
|
$
40,801
|
$
44,383
|
|
Fixed-income
|
43,842
|
44,481
|
43,908
|
42,569
|
43,884
|
|
Alternative / private
markets
|
12,258
|
12,458
|
12,379
|
12,409
|
13,338
|
|
Multi-asset
|
2,743
|
2,789
|
2,730
|
2,599
|
2,782
|
|
Total long-term
assets
|
101,247
|
103,143
|
101,530
|
98,378
|
104,387
|
|
Money
market
|
425,627
|
417,102
|
406,166
|
384,896
|
364,014
|
|
Total Fund
Assets
|
$
526,874
|
$
520,245
|
$
507,696
|
$
483,274
|
$
468,401
|
|
Separate
Accounts:
|
|
|
|
|
|
|
Equity
|
$
35,447
|
$
36,742
|
$
36,778
|
$
36,514
|
$
38,609
|
|
Fixed-income
|
51,452
|
51,844
|
51,012
|
47,196
|
43,541
|
|
Alternative / private
markets
|
7,803
|
8,007
|
8,172
|
7,928
|
8,264
|
|
Multi-asset
|
133
|
139
|
137
|
129
|
140
|
|
Total long-term
assets
|
94,835
|
96,732
|
96,099
|
91,767
|
90,554
|
|
Money
market
|
161,020
|
161,709
|
153,827
|
140,189
|
145,003
|
|
Total Separate
Account Assets
|
$
255,855
|
$
258,441
|
$
249,926
|
$
231,956
|
$
235,557
|
|
Total Managed
Assets
|
$
782,729
|
$
778,686
|
$
757,622
|
$
715,230
|
$
703,958
|
|
Unaudited Average
Managed Assets
|
Quarter
Ended
|
|
(in
millions)
|
June 30,
2024
|
March 31, 2024
|
Dec. 31, 2023
|
Sept. 30, 2023
|
June 30, 2023
|
|
By Asset
Class
|
|
|
|
|
|
|
Equity
|
$
78,137
|
$
78,969
|
$
76,009
|
$
82,203
|
$
83,025
|
|
Fixed-income
|
95,484
|
95,791
|
91,927
|
88,677
|
87,504
|
|
Alternative / private
markets
|
20,306
|
20,485
|
20,623
|
21,413
|
21,411
|
|
Multi-asset
|
2,889
|
2,874
|
2,744
|
2,861
|
2,929
|
|
Total long-term
assets
|
196,816
|
198,119
|
191,303
|
195,154
|
194,869
|
|
Money
market
|
582,758
|
578,383
|
536,727
|
516,046
|
510,418
|
|
Total Avg. Managed
Assets
|
$
779,574
|
$
776,502
|
$
728,030
|
$
711,200
|
$
705,287
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
|
Equity
|
$
42,274
|
$
42,355
|
$
40,296
|
$
43,687
|
$
44,218
|
|
Fixed-income
|
43,910
|
43,857
|
42,705
|
43,437
|
43,827
|
|
Alternative / private
markets
|
12,331
|
12,377
|
12,571
|
13,184
|
13,181
|
|
Multi-asset
|
2,737
|
2,739
|
2,615
|
2,724
|
2,787
|
|
Total long-term
assets
|
101,252
|
101,328
|
98,187
|
103,032
|
104,013
|
|
Money
market
|
419,999
|
414,902
|
392,946
|
373,088
|
362,608
|
|
Total Avg. Fund
Assets
|
$
521,251
|
$
516,230
|
$
491,133
|
$
476,120
|
$
466,621
|
|
Separate
Accounts:
|
|
|
|
|
|
|
Equity
|
$
35,863
|
$
36,614
|
$
35,713
|
$
38,516
|
$
38,807
|
|
Fixed-income
|
51,574
|
51,934
|
49,222
|
45,240
|
43,677
|
|
Alternative / private
markets
|
7,975
|
8,108
|
8,052
|
8,229
|
8,230
|
|
Multi-asset
|
152
|
135
|
129
|
137
|
142
|
|
Total long-term
assets
|
95,564
|
96,791
|
93,116
|
92,122
|
90,856
|
|
Money
market
|
162,759
|
163,481
|
143,781
|
142,958
|
147,810
|
|
Total Avg. Separate
Account Assets
|
$
258,323
|
$
260,272
|
$
236,897
|
$
235,080
|
$
238,666
|
|
Total Avg. Managed
Assets
|
$
779,574
|
$
776,502
|
$
728,030
|
$
711,200
|
$
705,287
|
|
Unaudited Average
Managed Assets
|
|
Six Months
Ended
|
|
(in
millions)
|
|
June 30,
2024
|
|
June 30, 2023
|
|
By Asset
Class
|
|
|
|
|
|
Equity
|
|
$
78,553
|
|
$
83,590
|
|
Fixed-income
|
|
95,638
|
|
87,856
|
|
Alternative / private
markets
|
|
20,395
|
|
21,174
|
|
Multi-asset
|
|
2,882
|
|
2,971
|
|
Total long-term
assets
|
|
197,468
|
|
195,591
|
|
Money
market
|
|
580,570
|
|
496,751
|
|
Total Avg. Managed
Assets
|
|
$
778,038
|
|
$
692,342
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
|
$
42,315
|
|
$
44,637
|
|
Fixed-income
|
|
43,884
|
|
43,893
|
|
Alternative / private
markets
|
|
12,354
|
|
13,121
|
|
Multi-asset
|
|
2,738
|
|
2,828
|
|
Total long-term
assets
|
|
101,291
|
|
104,479
|
|
Money
market
|
|
417,450
|
|
347,983
|
|
Total Avg. Fund
Assets
|
|
$
518,741
|
|
$
452,462
|
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
|
$
36,238
|
|
$
38,953
|
|
Fixed-income
|
|
51,754
|
|
43,963
|
|
Alternative / private
markets
|
|
8,041
|
|
8,053
|
|
Multi-asset
|
|
144
|
|
143
|
|
Total long-term
assets
|
|
96,177
|
|
91,112
|
|
Money
market
|
|
163,120
|
|
148,768
|
|
Total Avg. Separate
Account Assets
|
|
$
259,297
|
|
$
239,880
|
|
Total Avg. Managed
Assets
|
|
$
778,038
|
|
$
692,342
|
View original
content:https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-record-assets-under-management-with-second-quarter-2024-earnings-302207050.html
SOURCE Federated Hermes, Inc.