Federated Hermes, Inc. reports fourth quarter and full-year 2023 earnings
Q4 2023 earnings per diluted share of $0.96; full-year 2023 EPS of $3.40Total assets under management at record $757.6 billionBoard declares $0.28 per share quarterly dividend
PITTSBURGH, Jan. 25, 2024 /PRNewswire/ — Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) for Q4 2023 of $0.96, compared to $0.63 for the same quarter last year, on net income of $82.2 million for Q4 2023, compared to $56.5 million for Q4 2022. Full-year 2023 EPS was $3.40, compared to $2.65 for 2022 on net income of $299.0 million for 2023, compared to $239.5 million for 2022.
Federated Hermes’ total managed assets were a record $757.6 billion at Dec. 31, 2023, up $88.7 billion or 13% from $668.9 billion at Dec. 31, 2022 and up $42.4 billion or 6% from $715.2 billion at Sept. 30, 2023. Average managed assets for Q4 2023 were $728.0 billion, up $94.4 billion or 15% from $633.6 billion reported for Q4 2022 and up $16.8 billion or 2% from $711.2 billion reported for Q3 2023.
“Federated Hermes’ record assets at year-end were driven by another quarter of money market asset increases, as our liquidity products continued to provide a vital cash management resource for clients,” said J. Christopher Donahue, president and chief executive officer. “In addition, as they navigated market volatility, investors turned to a diverse range of our active management strategies—from our fundamentally based MDT equity strategies to high-yield fixed-income to unconstrained credit alternatives.”
Federated Hermes’ board of directors declared a quarterly dividend of $0.28 per share. The dividend is payable on Feb. 15, 2024 to shareholders of record as of Feb. 8, 2024. During Q4 2023, Federated Hermes purchased 1,902,861 shares of Federated Hermes class B common stock for $61.0 million, bringing the total shares of Class B common stock purchased in 2023 to 5,318,442 shares for $178.0 million.
Federated Hermes’ equity assets were $79.3 billion at Dec. 31, 2023, down $2.2 billion or 3% from $81.5 billion at Dec. 31, 2022 and up $2.0 billion or 3% from $77.3 billion at Sept. 30, 2023. Top-selling equity funds on a net basis during Q4 2023 were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes International Small-Mid Company Fund, Federated Hermes U.S. SMID Equity Fund and Federated Hermes MDT Small Cap Core Fund.
Federated Hermes’ fixed-income assets were $94.9 billion at Dec. 31, 2023, up $8.2 billion or 9% from $86.7 billion at Dec. 31, 2022 and up $5.1 billion or 6% from $89.8 billion at Sept. 30, 2023. Top-selling fixed-income funds on a net basis during Q4 2023 were Federated Hermes High Yield Bond Collective Investment Fund, Federated Hermes Sterling Cash Plus Fund, Federated Hermes Intermediate Municipal Fund, Federated Hermes Total Return Bond Collective Investment Fund and Federated Hermes Conservative Municipal Microshort Fund.
Federated Hermes’ alternative/private markets assets were $20.6 billion at Dec. 31, 2023, down $0.2 billion or 1% from $20.8 billion at Dec. 31, 2022 and up $0.3 billion or 1% from $20.3 billion at Sept. 30, 2023.
Federated Hermes’ money market assets were a record $560.0 billion at Dec. 31, 2023, up $83.2 billion or 17% from $476.8 billion at Dec. 31, 2022 and up $34.9 billion or 7% from $525.1 billion at Sept. 30, 2023. Money market mutual fund assets were a record $406.2 billion at Dec. 31, 2023, up $70.3 billion or 21% from $335.9 billion at Dec. 31, 2022 and up $21.3 billion or 6% from $384.9 billion at Sept. 30, 2023. Federated Hermes’ money market separate account assets were a record $153.8 billion at Dec. 31, 2023, up $12.9 billion or 9% from $140.9 billion at Dec. 31, 2022 and up $13.6 billion or 10% from $140.2 billion at Sept. 30, 2023.
Financial Summary
Q4 2023 vs. Q4 2022
Revenue increased $17.6 million or 5% primarily due to an increase in revenue from higher average money market assets and an increase in total carried interest and performance fees of $6.4 million, including an increase of $2.5 million of carried interest from consolidated carried interest vehicles, which is offset in compensation expense. These increases were partially offset by a decrease in revenue from lower average equity assets.
During Q4 2023, Federated Hermes derived 50% of its revenue from money market assets, 49% from long-term assets (29% from equity assets, 12% from fixed-income assets and 8% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.
Operating expenses decreased $21.2 million or 7% primarily due to an intangible asset impairment in Q4 2022.
Nonoperating income (expenses), net increased $3.3 million primarily due to an increase in investment yields due to rising interest rates.
Q4 2023 vs. Q3 2023
Revenue decreased $11.2 million or 3% primarily due to a decrease in revenue from lower average equity assets and a decrease in total carried interest and performance fees of $5.2 million, including a decrease of $5.5 million of carried interest from consolidated carried interest vehicles, which is offset in compensation expense. These decreases were partially offset by an increase in revenue from higher average money market assets.
Operating expenses decreased $12.3 million or 4% primarily due to decreased compensation expense from consolidated carried interest vehicles of $5.5 million and decreased incentive compensation.
Nonoperating income (expenses), net increased $15.2 million primarily due to an increase in the market value of investments in Q4 2023 compared to a decrease in Q3 2023.
2023 vs. 2022
Revenue increased $163.8 million or 11% primarily due to an increase in revenue from higher average money market assets, the elimination of voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers), and an increase in total carried interest and performance fees of $55.4 million, including $34.4 million of carried interest from consolidated carried interest vehicles, which is offset in compensation expense. For further information on the waivers, see “Impact of voluntary yield-related fee waivers” below. These increases were partially offset by a decrease in revenue due to lower average long-term assets.
During 2023, Federated Hermes derived 52% of its revenue from long-term assets (30% from equity assets, 12% from fixed-income assets and 10% from alternative/private markets and multi-asset), 47% from money market assets and 1% from sources other than managed assets.
Operating expenses increased by $113.0 million or 10% primarily due to increased distribution expenses predominantly from lower voluntary yield-related fee waivers, an increase in compensation expense primarily due to consolidated carried interest vehicles of $34.2 million and an increase in other expense due to fund reorganization costs. These increases were partially offset by a decrease in expense due to an intangible asset impairment in the prior year.
Nonoperating income (expenses), net increased $54.4 million primarily due to an increase in the market value of investments in 2023 compared to a decrease in the market value of investments in 2022 and an increase in investment yields due to rising interest rates.
Impact of voluntary yield-related fee waivers
There were no voluntary yield-related fee waivers during 2023. During 2022, voluntary yield-related fee waivers totaled $85.3 million. These fee waivers were largely offset by related reductions in distribution expenses of $66.5 million, such that the net negative pre-tax impact to Federated Hermes was $18.8 million for 2022.
Federated Hermes’ level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior. These factors and others, including asset levels and mix, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated Hermes’ business activity levels and financial results. Risk factors and uncertainties that can influence Federated Hermes’ financial results are discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).
Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Jan. 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, visit 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 Jan. 26, 2024. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 49692. The online replay will be available via FederatedHermes.com/us for one year.
Federated Hermes, Inc. is a global leader in active, responsible investment management, with $757.6 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 9% of money market fund managers and the top 11% of fixed-income fund managers2. Federated Hermes also ranks as the 8th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, visit FederatedHermes.com/us.
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1) As of Dec. 31, 2023.
2) Morningstar, Dec. 31, 2023. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli Associates, Q3 2023.
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.
Certain statements in this press release, such as those related to performance, 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
Q4 2022 to
Q4 2023
Quarter Ended
% Change Q3
2023 to
Q4 2023
Dec. 31, 2023
Dec. 31, 2022
Sept. 30, 2023
Revenue
Investment advisory fees, net
$ 264,693
$ 256,949
3 %
$ 276,771
(4) %
Administrative service fees, net
90,930
75,847
20
88,023
3
Other service fees, net
35,874
41,103
(13)
37,862
(5)
Total Revenue
391,497
373,899
5
402,656
(3)
Operating Expenses
Compensation and related
127,504
123,994
3
139,123
(8)
Distribution
90,940
90,718
0
89,838
1
Systems and communications
20,944
20,549
2
21,213
(1)
Professional service fees
16,632
16,100
3
17,561
(5)
Office and occupancy
10,159
10,905
(7)
10,632
(4)
Advertising and promotional
9,684
6,967
39
3,857
151
Travel and related
4,308
3,913
10
4,034
7
Intangible asset related
3,676
34,746
(89)
3,451
7
Other
5,080
2,258
125
11,523
(56)
Total Operating Expenses
288,927
310,150
(7)
301,232
(4)
Operating Income
102,570
63,749
61
101,424
1
Nonoperating Income (Expenses)
Investment income (loss), net
17,418
14,413
21
2,722
NM
Debt expense
(3,142)
(3,200)
(2)
(3,133)
0
Other, net
461
191
141
(8)
NM
Total Nonoperating Income (Expenses), net
14,737
11,404
29
(419)
NM
Income before income taxes
117,307
75,153
56
101,005
16
Income tax provision
31,260
13,518
131
26,739
17
Net income including the noncontrolling interests in subsidiaries
86,047
61,635
40
74,266
16
Less: Net income attributable to the noncontrolling interests in subsidiaries
3,869
5,138
(25)
(760)
NM
Net Income
$ 82,178
$ 56,497
45 %
$ 75,026
10 %
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted
$ 0.96
$ 0.63
52 %
$ 0.86
12 %
Weighted-Average Shares Outstanding
Basic
81,961
84,731
83,710
Diluted
81,973
84,743
83,710
Dividends Declared Per Share
$ 0.28
$ 0.27
$ 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 $3.6 million, $2.8 million and $3.3 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Dec. 31, 2023, Dec. 31, 2022 and Sept. 30, 2023, respectively, was excluded from the computation of earnings per share.
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Year Ended
Dec. 31, 2023
Dec. 31, 2022
% Change
Revenue
Investment advisory fees, net
$ 1,115,783
$ 1,011,631
10 %
Administrative service fees, net—affiliates
343,332
294,557
17
Other service fees, net
150,459
139,626
8
Total Revenue
1,609,574
1,445,814
11
Operating Expenses
Compensation and related
563,388
512,713
10
Distribution
371,198
314,554
18
Systems and communications
84,203
77,783
8
Professional service fees
69,514
57,747
20
Office and occupancy
45,069
43,361
4
Advertising and promotional
22,992
20,931
10
Travel and related
15,409
12,456
24
Intangible asset related
13,870
44,066
(69)
Other
36,382
25,407
43
Total Operating Expenses
1,222,025
1,109,018
10
Operating Income
387,549
336,796
15
Nonoperating Income (Expenses)
Investment income (loss), net
35,740
(19,723)
281
Debt expense
(12,519)
(11,073)
13
Other, net
562
222
153
Total Nonoperating Income (Expenses), net
23,783
(30,574)
178
Income before income taxes
411,332
306,222
34
Income tax provision
106,551
71,658
49
Net income including the noncontrolling interests in subsidiaries
304,781
234,564
30
Less: Net income attributable to the noncontrolling
interests in subsidiaries
5,801
(4,932)
218
Net Income
$ 298,980
$ 239,496
25 %
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted
$ 3.40
$ 2.65
28 %
Weighted-Average Shares Outstanding
Basic
83,858
85,762
Diluted
83,863
85,766
Dividends Declared Per Share
$ 1.11
$ 1.08
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 $14.0 million and $11.8 million available to unvested restricted Federated Hermes shareholders for the years ended Dec. 31, 2023 and Dec. 31, 2022, respectively, was excluded from the computation of earnings per share.
Unaudited Condensed Consolidated Balance Sheets
(in thousands)
Dec. 31, 2023
Dec. 31, 2022
Assets
Cash and other investments
$ 560,675
$ 521,754
Other current assets
160,054
129,277
Intangible assets, net, including goodwill
1,216,605
1,209,574
Other long-term assets
164,510
159,874
Total Assets
$ 2,101,844
$ 2,020,479
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities
$ 287,343
$ 257,413
Long-term debt
347,843
347,581
Other long-term liabilities
312,561
307,972
Redeemable noncontrolling interests
25,845
61,821
Equity excluding treasury stock
1,649,655
1,411,055
Treasury stock
(521,403)
(365,363)
Total Liabilities, Redeemable Noncontrolling Interests and Equity
$ 2,101,844
$ 2,020,479
Unaudited Changes in Long-Term Assets – By Asset Class
(in millions)
Quarter Ended
Year Ended
Dec. 31, 2023
Sept. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Equity
Beginning assets
$ 77,315
$ 82,992
$ 74,684
$ 81,523
$ 96,716
Sales1
3,335
3,897
5,265
17,732
23,985
Redemptions1
(8,005)
(6,304)
(6,015)
(24,742)
(25,600)
Net sales (redemptions)1
(4,670)
(2,407)
(750)
(7,010)
(1,615)
Net exchanges
(6)
18
86
120
(59)
Impact of foreign exchange2
891
(532)
1,219
538
(1,621)
Market gains and (losses)3
5,761
(2,756)
6,284
4,120
(11,898)
Ending assets
$ 79,291
$ 77,315
$ 81,523
$ 79,291
$ 81,523
Fixed Income
Beginning assets
$ 89,765
$ 87,425
$ 85,365
$ 86,743
$ 97,550
Sales1
7,594
8,277
5,920
26,809
28,016
Redemptions1
(6,669)
(5,133)
(9,755)
(23,892)
(34,726)
Net sales (redemptions)1
925
3,144
(3,835)
2,917
(6,710)
Net exchanges
7
(25)
(142)
(113)
(64)
Acquisitions/(dispositions)
0
0
3,524
0
3,524
Impact of foreign exchange2
143
(96)
239
128
(321)
Market gains and (losses)3
4,080
(683)
1,592
5,245
(7,236)
Ending assets
$ 94,920
$ 89,765
$ 86,743
$ 94,920
$ 86,743
Alternative / Private Markets
Beginning assets
$ 20,337
$ 21,602
$ 20,182
$ 20,802
$ 22,920
Sales1
700
660
1,127
3,268
3,833
Redemptions1
(755)
(866)
(1,190)
(3,158)
(3,715)
Net sales (redemptions)1
(55)
(206)
(63)
110
118
Net exchanges
(3)
(3)
(6)
(9)
1
Impact of foreign exchange2
836
(762)
1,513
981
(2,317)
Market gains and (losses)3
(564)
(294)
(824)
(1,333)
80
Ending assets
$ 20,551
$ 20,337
$ 20,802
$ 20,551
$ 20,802
Multi-asset
Beginning assets
$ 2,728
$ 2,922
$ 2,902
$ 2,989
$ 3,780
Sales1
34
30
72
144
243
Redemptions1
(142)
(119)
(165)
(548)
(572)
Net sales (redemptions)1
(108)
(89)
(93)
(404)
(329)
Net exchanges
8
0
2
11
8
Market gains and (losses)3
239
(105)
178
271
(470)
Ending assets
$ 2,867
$ 2,728
$ 2,989
$ 2,867
$ 2,989
Total Long-term Assets
Beginning assets
$ 190,145
$ 194,941
$ 183,133
$ 192,057
$ 220,966
Sales1
11,663
12,864
12,384
47,953
56,077
Redemptions1
(15,571)
(12,422)
(17,125)
(52,340)
(64,613)
Net sales (redemptions)1
(3,908)
442
(4,741)
(4,387)
(8,536)
Net exchanges
6
(10)
(60)
9
(114)
Acquisitions/(dispositions)
0
0
3,524
0
3,524
Impact of foreign exchange2
1,870
(1,390)
2,971
1,647
(4,259)
Market gains and (losses)3
9,516
(3,838)
7,230
8,303
(19,524)
Ending assets
$ 197,629
$ 190,145
$ 192,057
$ 197,629
$ 192,057
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
Dec. 31, 2023
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
$ 40,801
$ 36,514
$ 42,569
$ 47,196
$ 12,409
$ 7,928
$ 2,599
$ 129
$ 98,378
$ 91,767
Sales
1,979
1,356
3,538
4,056
448
252
34
0
5,999
5,664
Redemptions
(4,189)
(3,816)
(4,526)
(2,143)
(724)
(31)
(139)
(3)
(9,578)
(5,993)
Net sales (redemptions)
(2,210)
(2,460)
(988)
1,913
(276)
221
(105)
(3)
(3,579)
(329)
Net exchanges
(16)
10
4
3
(3)
0
8
0
(7)
13
Impact of foreign exchange2
414
477
99
44
489
347
0
0
1,002
868
Market gains and (losses)3
3,524
2,237
2,224
1,856
(240)
(324)
228
11
5,736
3,780
Ending assets
$ 42,513
$ 36,778
$ 43,908
$ 51,012
$ 12,379
$ 8,172
$ 2,730
$ 137
$ 101,530
$ 96,099
Year Ended
Dec. 31, 2023
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
$ 43,342
$ 38,181
$ 43,180
$ 43,563
$ 13,050
$ 7,752
$ 2,851
$ 138
$ 102,423
$ 89,634
Sales
9,038
8,694
14,739
12,070
2,272
996
142
2
26,191
21,762
Redemptions
(13,987)
(10,755)
(16,608)
(7,284)
(2,878)
(280)
(530)
(18)
(34,003)
(18,337)
Net sales (redemptions)
(4,949)
(2,061)
(1,869)
4,786
(606)
716
(388)
(16)
(7,812)
3,425
Net exchanges
69
51
(91)
(22)
14
(23)
11
0
3
6
Impact of foreign exchange2
345
193
95
33
585
396
0
0
1,025
622
Market gains and (losses)3
3,706
414
2,593
2,652
(664)
(669)
256
15
5,891
2,412
Ending assets
$ 42,513
$ 36,778
$ 43,908
$ 51,012
$ 12,379
$ 8,172
$ 2,730
$ 137
$ 101,530
$ 96,099
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
Year Ended
Dec. 31, 2023
Sept. 30, 2023
Dec. 31, 2022
Dec. 31, 2023
Dec. 31, 2022
Total Fund Assets
Beginning assets
$ 98,378
$ 104,387
$ 100,993
$ 102,423
$ 135,294
Sales
5,999
5,413
8,274
26,191
34,002
Redemptions
(9,578)
(8,018)
(12,559)
(34,003)
(48,712)
Net sales (redemptions)
(3,579)
(2,605)
(4,285)
(7,812)
(14,710)
Net exchanges
(7)
0
(32)
3
(85)
Impact of foreign exchange1
1,002
(798)
1,810
1,025
(2,624)
Market gains and (losses)2
5,736
(2,606)
3,937
5,891
(15,452)
Ending assets
$ 101,530
$ 98,378
$ 102,423
$ 101,530
$ 102,423
Total Separate Accounts Assets3
Beginning assets
$ 91,767
$ 90,554
$ 82,140
$ 89,634
$ 85,672
Sales4
5,664
7,451
4,110
21,762
22,075
Redemptions4
(5,993)
(4,404)
(4,566)
(18,337)
(15,901)
Net sales (redemptions)4
(329)
3,047
(456)
3,425
6,174
Net exchanges
13
(10)
(28)
6
(29)
Acquisitions/(dispositions)
0
0
3,524
0
3,524
Impact of foreign exchange1
868
(592)
1,161
622
(1,635)
Market gains and (losses)2
3,780
(1,232)
3,293
2,412
(4,072)
Ending assets
$ 96,099
$ 91,767
$ 89,634
$ 96,099
$ 89,634
Total Long-term Assets3
Beginning assets
$ 190,145
$ 194,941
$ 183,133
$ 192,057
$ 220,966
Sales4
11,663
12,864
12,384
47,953
56,077
Redemptions4
(15,571)
(12,422)
(17,125)
(52,340)
(64,613)
Net sales (redemptions)4
(3,908)
442
(4,741)
(4,387)
(8,536)
Net exchanges
6
(10)
(60)
9
(114)
Acquisitions/(dispositions)
0
0
3,524
0
3,524
Impact of foreign exchange1
1,870
(1,390)
2,971
1,647
(4,259)
Market gains and (losses)2
9,516
(3,838)
7,230
8,303
(19,524)
Ending assets
$ 197,629
$ 190,145
$ 192,057
$ 197,629
$ 192,057
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)
Dec. 31, 2023
Sept. 30, 2023
June 30, 2023
March 31, 2023
Dec. 31, 2022
By Asset Class
Equity
$ 79,291
$ 77,315
$ 82,992
$ 83,629
$ 81,523
Fixed-income
94,920
89,765
87,425
87,461
86,743
Alternative / private markets
20,551
20,337
21,602
21,174
20,802
Multi-asset
2,867
2,728
2,922
2,973
2,989
Total long-term assets
197,629
190,145
194,941
195,237
192,057
Money market
559,993
525,085
509,017
505,800
476,844
Total Managed Assets
$ 757,622
$ 715,230
$ 703,958
$ 701,037
$ 668,901
By Product Type
Funds:
Equity
$ 42,513
$ 40,801
$ 44,383
$ 44,732
$ 43,342
Fixed-income
43,908
42,569
43,884
43,616
43,180
Alternative / private markets
12,379
12,409
13,338
13,040
13,050
Multi-asset
2,730
2,599
2,782
2,832
2,851
Total long-term assets
101,530
98,378
104,387
104,220
102,423
Money market
406,166
384,896
364,014
357,346
335,937
Total Fund Assets
$ 507,696
$ 483,274
$ 468,401
$ 461,566
$ 438,360
Separate Accounts:
Equity
$ 36,778
$ 36,514
$ 38,609
$ 38,897
$ 38,181
Fixed-income
51,012
47,196
43,541
43,845
43,563
Alternative / private markets
8,172
7,928
8,264
8,134
7,752
Multi-asset
137
129
140
141
138
Total long-term assets
96,099
91,767
90,554
91,017
89,634
Money market
153,827
140,189
145,003
148,454
140,907
Total Separate Account Assets
$ 249,926
$ 231,956
$ 235,557
$ 239,471
$ 230,541
Total Managed Assets
$ 757,622
$ 715,230
$ 703,958
$ 701,037
$ 668,901
Unaudited Average Managed Assets
Quarter Ended
(in millions)
Dec. 31, 2023
Sept. 30, 2023
June 30, 2023
March 31, 2023
Dec. 31, 2022
By Asset Class
Equity
$ 76,009
$ 82,203
$ 83,025
$ 84,155
$ 79,544
Fixed-income
91,927
88,677
87,504
88,209
87,849
Alternative / private markets
20,623
21,413
21,411
20,938
20,926
Multi-asset
2,744
2,861
2,929
3,012
2,988
Total long-term assets
191,303
195,154
194,869
196,314
191,307
Money market
536,727
516,046
510,418
483,083
442,334
Total Avg. Managed Assets
$ 728,030
$ 711,200
$ 705,287
$ 679,397
$ 633,641
By Product Type
Funds:
Equity
$ 40,296
$ 43,687
$ 44,218
$ 45,055
$ 43,131
Fixed-income
42,705
43,437
43,827
43,961
44,099
Alternative / private markets
12,571
13,184
13,181
13,062
13,140
Multi-asset
2,615
2,724
2,787
2,869
2,855
Total long-term assets
98,187
103,032
104,013
104,947
103,225
Money market
392,946
373,088
362,608
333,358
309,232
Total Avg. Fund Assets
$ 491,133
$ 476,120
$ 466,621
$ 438,305
$ 412,457
Separate Accounts:
Equity
$ 35,713
$ 38,516
$ 38,807
$ 39,100
$ 36,413
Fixed-income
49,222
45,240
43,677
44,248
43,750
Alternative / private markets
8,052
8,229
8,230
7,876
7,786
Multi-asset
129
137
142
143
133
Total long-term assets
93,116
92,122
90,856
91,367
88,082
Money market
143,781
142,958
147,810
149,725
133,102
Total Avg. Separate Account Assets
$ 236,897
$ 235,080
$ 238,666
$ 241,092
$ 221,184
Total Avg. Managed Assets
$ 728,030
$ 711,200
$ 705,287
$ 679,397
$ 633,641
Unaudited Average Managed Assets
Year Ended
(in millions)
Dec. 31, 2023
Dec. 31, 2022
By Asset Class
Equity
$ 81,348
$ 84,793
Fixed-income
89,079
89,776
Alternative / private markets
21,096
21,799
Multi-asset
2,887
3,273
Total long-term assets
194,410
199,641
Money market
511,568
432,992
Total Avg. Managed Assets
$ 705,978
$ 632,633
By Product Type
Funds:
Equity
$ 43,314
$ 47,047
Fixed-income
43,482
50,043
Alternative / private markets
12,999
13,903
Multi-asset
2,749
3,130
Total long-term assets
102,544
114,123
Money market
365,500
294,490
Total Avg. Fund Assets
$ 468,044
$ 408,613
Separate Accounts:
Equity
$ 38,034
$ 37,746
Fixed-income
45,597
39,733
Alternative / private markets
8,097
7,896
Multi-asset
138
143
Total long-term assets
91,866
85,518
Money market
146,068
138,502
Total Avg. Separate Account Assets
$ 237,934
$ 224,020
Total Avg. Managed Assets
$ 705,978
$ 632,633
View original content:https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-fourth-quarter-and-full-year-2023-earnings-302045162.html
SOURCE Federated Hermes, Inc.
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