Federated Hermes, Inc. reports record assets under management with second quarter 2024 earnings
Total assets under management reach a record $782.7 billionMoney 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 chargeBoard 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
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SOURCE Federated Hermes, Inc.