Upgrade to SI Premium - Free Trial

Federated Hermes, Inc. reports record assets under management with third quarter 2024 earnings

October 24, 2024 4:17 PM
  • Total assets under management reach a record $800.5 billion
  • Money market assets at record $593.0 billion; fixed income assets at record $100.2 billion
  • Q3 2024 earnings per diluted share of $1.06
  • Board declares $0.31 per share dividend; authorizes new share repurchase program

PITTSBURGH, Oct. 24, 2024 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $1.06 for Q3 2024, compared to $0.86 for the same quarter last year, on net income of $87.5 million for Q3 2024, compared to $75.0 million for Q3 2023.

Federated Hermes' total managed assets were a record $800.5 billion at Sept. 30, 2024, up $85.3 billion or 12% from $715.2 billion at Sept. 30, 2023 and up $17.8 billion or 2% from $782.7 billion at June 30, 2024. Total average managed assets for Q3 2024 were $793.5 billion, up $82.3 billion or 12% from $711.2 billion reported for Q3 2023 and up $13.9 billion or 2% from $779.6 billion for Q2 2024.

"Federated Hermes reached record assets under management for the eighth consecutive quarter on the strength of flows into money market and fixed-income products, along with market appreciation of equity and fixed-income assets. This continued after the Fed's mid-September rate cut, as money market products historically offer a yield advantage when compared to bank deposit accounts and some securities in the direct market," said J. Christopher Donahue, president and chief executive officer. "We also saw interest in our Total Return Bond Fund and core plus strategies—in mutual fund, ETF and collective investment fund offerings—as those products are well positioned to meet changing market conditions. In equities, we saw positive net flows in nine of our strong-performing Federated Hermes MDT quantitative mutual funds and ETFs."

Federated Hermes' board of directors declared a dividend of $0.31 per share. The dividend is payable on Nov 15, 2024 to shareholders of record as of Nov 8, 2024. During Q3 2024, Federated Hermes purchased 818,164 shares of Federated Hermes class B common stock for $26.9 million. The board of directors also authorized an additional share repurchase program, which is the firm's 17th, allowing the buyback of up to an additional 5 million shares of Federated Hermes class B common stock in the open market with no expiration date. The repurchased stock is to be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities. The company's existing 5 million share repurchase program, approved in October 2023, has approximately 1.2 million shares remaining.

Equity assets were $83.6 billion at Sept. 30, 2024, up $6.3 billion or 8% from $77.3 billion at Sept. 30, 2023 and up $5.7 billion or 7% from $77.9 billion at June 30, 2024. Top-selling equity funds during Q3 2024 on a net basis were Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT All Cap Core Fund, Federated Hermes U.S. SMID Equity Fund and Federated Hermes U.S. Strategic Dividend ETF.

Fixed-income assets were a record $100.2 billion at Sept. 30, 2024, up $10.4 billion or 12% from $89.8 billion at Sept. 30, 2023 and up $4.9 billion or 5% from $95.3 billion at June 30, 2024. Top-selling fixed-income funds during Q3 2024 on a net basis were Federated Hermes Total Return Bond Fund, Federated Hermes Government Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Total Return Bond Collective Investment Fund and Federated Hermes Short-Term Income Fund.

Alternative/private markets assets were $20.7 billion at Sept. 30, 2024, up $0.4 billion or 2% from $20.3 billion at Sept. 30, 2023 and up $0.6 billion or 3% from $20.1 billion at June 30, 2024.

Money market assets were a record $593.0 billion at Sept. 30, 2024, up $67.9 billion or 13% from $525.1 billion at Sept. 30, 2023 and up $6.4 billion or 1% from $586.6 billion at June 30, 2024. Money market fund assets were a record $440.4 billion at Sept. 30, 2024, up $55.5 billion or 14% from $384.9 billion at Sept. 30, 2023 and up $14.8 billion or 3% from $425.6 billion at June 30, 2024.

Financial Summary

Q3 2024 vs. Q3 2023

Revenue increased $5.8 million or 1% primarily due to an increase in revenue from higher average money market assets. This increase was partially offset by a decrease in carried interest of $10.7 million, including a decrease of $7.2 million of carried interest from consolidated carried interest vehicles which is offset in compensation expense, and a decrease in revenue due to lower average equity assets.

During Q3 2024, Federated Hermes derived 48% of its revenue from long-term assets (29% from equity, 12% from fixed-income, and 7% from alternative/private markets and multi-asset), 51% from money market assets, and 1% from sources other than managed assets.

Operating expenses decreased $4.5 million or 1% primarily due to a $13.2 million decrease in Other expense resulting primarily from fluctuations in foreign currency exchange rates, partially offset by a $6.0 million increase in distribution expenses resulting primarily from higher average managed money market fund assets.

Nonoperating income (expenses), net increased $11.3 million primarily due to an increase in the market value of investments in Q3 2024 compared to a decrease in the market value of investments in Q3 2023.

Q3 2024 vs. Q2 2024

Revenue increased $5.9 million or 1% primarily due to an increase in revenue from higher average managed assets of all asset classes.

Operating expenses decreased $65.2 million or 18% primarily due to the $66.3 million impairment of an intangible asset associated with the 2018 acquisition of Federated Hermes Limited in Q2 2024.

Nonoperating income (expenses), net increased $8.9 million primarily due to an increase in the market value of investments in Q3 2024 compared to a decrease in the market value of investments in Q2 2024.

YTD 2024 vs. YTD 2023

Revenue decreased $10.7 million or 1% primarily due to a decrease in carried interest of $47.0 million, including a decrease of $30.8 million of carried interest from consolidated carried interest vehicles which is 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 and fixed-income assets.

For the first nine months of 2024, Federated Hermes derived 48% of its revenue from long-term assets (29% from equity, 12% from fixed-income and 7% from alternative/private markets and multi-asset), 51% from money market assets, and 1% from sources other than managed assets.

Operating expenses increased $23.3 million or 2% primarily due to increased intangible asset expense resulting from the impairment charge offset by a decrease in compensation expense primarily resulting from the lower carried interest from consolidated carried interest vehicles and a decrease in other expense primarily due to fluctuations in foreign currency exchange rates and fund reorganization costs in 2023.

Nonoperating income (expenses), net increased $9.2 million primarily due to a larger increase in the market value of investments in the first nine months of 2024 compared to the increase in the market value of investments for the same period in 2023 and, to a lesser extent, an increase in investment yields resulting primarily from higher average interest rates in 2024.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, Oct. 25, 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 Oct. 25, 2024. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 51374. 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 $800.5 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, the top 8% of money market fund managers and the top 10% of fixed-income fund managers2 in the industry. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.

###

1) As of Sept. 30, 2024.
2) Morningstar, Sept. 30, 2024. Based on U.S. fund flows rankings.
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 uses of repurchased class B common stock 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
Q3 2023
to Q3
2024


Quarter Ended

%
Change
Q2 2024
to Q3
2024


Sept. 30, 2024

Sept. 30, 2023


June 30, 2024

Revenue







Investment advisory fees, net

$ 274,621

$ 276,771

(1) %


$ 270,622

1 %

Administrative service fees, net—affiliates

97,687

88,023

11


95,346

2

Other service fees, net

36,148

37,862

(5)


36,615

(1)

Total Revenue

408,456

402,656

1


402,583

1








Operating Expenses







Compensation and related

136,027

139,123

(2)


130,748

4

Distribution

95,859

89,838

7


93,503

3

Systems and communications

23,656

21,213

12


23,194

2

Professional service fees

19,849

17,561

13


19,845

—

Office and occupancy

9,884

10,632

(7)


9,765

1

Advertising and promotional

5,378

3,857

39


6,621

(19)

Travel and related

4,221

4,034

5


3,847

10

Intangible asset related

3,504

3,451

2


69,392

(95)

Other

(1,664)

11,523

(114)


4,951

(134)

Total Operating Expenses

296,714

301,232

(1)


361,866

(18)

Operating Income

111,742

101,424

10


40,717

174








Nonoperating Income (Expenses)







Investment income (loss), net

14,015

2,722

415


5,132

173

Debt expense

(3,170)

(3,133)

1


(3,159)

—

Other, net

16

(8)

300


(34)

147

Total Nonoperating Income (Expenses), net

10,861

(419)

NM


1,939

460

Income before income taxes

122,603

101,005

21


42,656

187

Income tax provision

32,262

26,739

21


23,431

38

Net income including the noncontrolling interests in subsidiaries

90,341

74,266

22


19,225

370

Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries

2,803

(760)

469


(1,802)

256

Net Income

$ 87,538

$ 75,026

17 %


$ 21,027

316 %








Amounts Attributable to Federated Hermes, Inc.







Earnings Per Share1







Basic and diluted

$ 1.06

$ 0.86

23 %


$ 0.20

430 %

Weighted-Average Shares Outstanding







Basic

78,690

83,710



80,026


Diluted

78,706

83,710



80,026


Dividends Declared Per Share

$ 0.31

$ 0.28



$ 1.31




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 $3.7 million, $3.3 million and $4.7 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Sept. 30, 2024, Sept. 30, 2023 and June 30, 2024, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Statements of Income




(in thousands, except per share data)





Nine Months Ended


Sept. 30, 2024

Sept. 30, 2023

% Change

Revenue




Investment advisory fees, net

$ 809,537

$ 851,089

(5) %

Administrative service fees, net—affiliates

287,819

252,402

14

Other service fees, net

110,054

114,586

(4)

Total Revenue

1,207,410

1,218,077

(1)





Operating Expenses




Compensation and related

403,321

435,884

(7)

Distribution

284,257

280,258

1

Intangible asset related

76,131

10,194

NM

Systems and communications

68,672

63,259

9

Professional service fees

58,046

52,881

10

Office and occupancy

29,617

34,910

(15)

Advertising and promotional

16,306

13,308

23

Travel and related

11,341

11,101

2

Other

8,679

31,303

(72)

Total Operating Expenses

956,370

933,098

2

Operating Income

251,040

284,979

(12)





Nonoperating Income (Expenses)




Investment income (loss), net

27,630

18,322

51

Debt expense

(9,478)

(9,377)

1

Other, net

85

101

(16)

Total Nonoperating Income (Expenses), net

18,237

9,046

102

Income before income taxes

269,277

294,025

(8)

Income tax provision

84,701

75,291

12

Net income including the noncontrolling interests in subsidiaries

184,576

218,734

(16)

Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries

978

1,932

(49)

Net Income

$ 183,598

$ 216,802

(15) %





Amounts Attributable to Federated Hermes, Inc.




Earnings Per Share1




Basic and diluted

$ 2.20

$ 2.44

(10) %

Weighted-Average Shares Outstanding




Basic

79,804

84,499


Diluted

79,809

84,502


Dividends Declared Per Share

$ 1.90

$ 0.83




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 $8.0 million and $10.3 million available to unvested restricted Federated Hermes shareholders for the nine months ended Sept. 30, 2024 and Sept. 30, 2023, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Balance Sheets



(in thousands)




Sept. 30, 2024

Dec. 31, 2023

Assets



Cash and other investments

$ 565,028

$ 560,675

Other current assets

158,158

160,054

Intangible assets, net, including goodwill

1,156,135

1,216,605

Other long-term assets

158,230

164,510

Total Assets

$ 2,037,551

$ 2,101,844




Liabilities, Redeemable Noncontrolling Interests and Equity



Current liabilities

$ 263,138

$ 287,343

Long-term debt

348,040

347,843

Other long-term liabilities

289,449

312,561

Redeemable noncontrolling interests

53,408

25,845

Equity excluding treasury stock

1,706,212

1,649,655

Treasury stock

(622,696)

(521,403)

Total Liabilities, Redeemable Noncontrolling Interests and Equity

$ 2,037,551

$ 2,101,844

Unaudited Changes in Long-Term Assets - By Asset Class




(in millions)

Quarter Ended


Nine Months Ended


Sept. 30, 2024

June 30, 2024

Sept. 30, 2023


Sept. 30, 2024

Sept. 30, 2023

Equity







Beginning assets

$ 77,851

$ 80,157

$ 82,992


$ 79,291

$ 81,523

Sales1

3,607

3,811

3,897


11,333

14,397

Redemptions1

(5,046)

(7,071)

(6,304)


(19,468)

(16,737)

Net sales (redemptions)1

(1,439)

(3,260)

(2,407)


(8,135)

(2,340)

Net exchanges

(4)

9

18


10

126

Impact of foreign exchange2

725

12

(532)


170

(353)

Market gains and (losses)3

6,476

933

(2,756)


12,273

(1,641)

Ending assets

$ 83,609

$ 77,851

$ 77,315


$ 83,609

$ 77,315








Fixed Income







Beginning assets

$ 95,294

$ 96,325

$ 87,425


$ 94,920

$ 86,743

Sales1

7,345

5,262

8,277


19,190

19,215

Redemptions1

(5,942)

(6,699)

(5,133)


(18,036)

(17,223)

Net sales (redemptions)1

1,403

(1,437)

3,144


1,154

1,992

Net exchanges

(12)

(179)

(25)


(198)

(120)

Impact of foreign exchange2

98

(8)

(96)


19

(15)

Market gains and (losses)3

3,388

593

(683)


4,276

1,165

Ending assets

$ 100,171

$ 95,294

$ 89,765


$ 100,171

$ 89,765








Alternative/Private Markets







Beginning assets

$ 20,061

$ 20,465

$ 21,602


$ 20,551

$ 20,802

Sales1

558

647

660


1,966

2,568

Redemptions1

(881)

(1,177)

(866)


(2,798)

(2,403)

Net sales (redemptions)1

(323)

(530)

(206)


(832)

165

Net exchanges

12

174

(3)


188

(6)

Impact of foreign exchange2

1,017

21

(762)


812

145

Market gains and (losses)3

(84)

(69)

(294)


(36)

(769)

Ending assets

$ 20,683

$ 20,061

$ 20,337


$ 20,683

$ 20,337








Multi-asset







Beginning assets

$ 2,876

$ 2,928

$ 2,922


$ 2,867

$ 2,989

Sales1

38

42

30


124

110

Redemptions1

(94)

(113)

(119)


(319)

(406)

Net sales (redemptions)1

(56)

(71)

(89)


(195)

(296)

Net exchanges

4

1

0


5

3

Market gains and (losses)3

134

18

(105)


281

32

Ending assets

$ 2,958

$ 2,876

$ 2,728


$ 2,958

$ 2,728








Total Long-term Assets







Beginning assets

$ 196,082

$ 199,875

$ 194,941


$ 197,629

$ 192,057

Sales1

11,548

9,762

12,864


32,613

36,290

Redemptions1

(11,963)

(15,060)

(12,422)


(40,621)

(36,769)

Net sales (redemptions)1

(415)

(5,298)

442


(8,008)

(479)

Net exchanges

0

5

(10)


5

3

Impact of foreign exchange2

1,840

25

(1,390)


1,001

(223)

Market gains and (losses)3

9,914

1,475

(3,838)


16,794

(1,213)

Ending assets

$ 207,421

$ 196,082

$ 190,145


$ 207,421

$ 190,145



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


Sept. 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

$ 42,404

$ 35,447

$ 43,842

$ 51,452

$ 12,258

$ 7,803

$ 2,743

$ 133

$ 101,247

$ 94,835

Sales

2,261

1,346

3,876

3,469

476

82

33

5

6,646

4,902

Redemptions

(2,874)

(2,172)

(3,571)

(2,371)

(699)

(182)

(90)

(4)

(7,234)

(4,729)

Net sales (redemptions)

(613)

(826)

305

1,098

(223)

(100)

(57)

1

(588)

173

Net exchanges

(4)

0

2

(14)

12

0

4

0

14

(14)

Impact of foreign exchange2

397

328

75

23

588

429

0

0

1,060

780

Market gains and (losses)3

3,207

3,269

1,803

1,585

(77)

(7)

133

1

5,066

4,848

Ending assets

$ 45,391

$ 38,218

$ 46,027

$ 54,144

$ 12,558

$ 8,125

$ 2,823

$ 135

$ 106,799

$ 100,622













Nine Months Ended


Sept. 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

7,093

4,240

11,251

7,939

1,667

299

119

5

20,130

12,483

Redemptions

(10,537)

(8,931)

(11,012)

(7,024)

(2,366)

(432)

(306)

(13)

(24,221)

(16,400)

Net sales (redemptions)

(3,444)

(4,691)

239

915

(699)

(133)

(187)

(8)

(4,091)

(3,917)

Net exchanges

10

0

(181)

(17)

188

0

5

0

22

(17)

Impact of foreign exchange2

151

19

28

(9)

456

356

0

0

635

366

Market gains and (losses)3

6,161

6,112

2,033

2,243

234

(270)

275

6

8,703

8,091

Ending assets

$ 45,391

$ 38,218

$ 46,027

$ 54,144

$ 12,558

$ 8,125

$ 2,823

$ 135

$ 106,799

$ 100,622



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


Nine Months Ended


Sept. 30, 2024

June 30, 2024

Sept. 30, 2023


Sept. 30, 2024

Sept. 30, 2023

Total Fund Assets







Beginning assets

$ 101,247

$ 103,143

$ 104,387


$ 101,530

$ 102,423

Sales

6,646

6,318

5,413


20,130

20,192

Redemptions

(7,234)

(8,757)

(8,018)


(24,221)

(24,425)

Net sales (redemptions)

(588)

(2,439)

(2,605)


(4,091)

(4,233)

Net exchanges

14

6

0


22

10

Impact of foreign exchange1

1,060

(5)

(798)


635

23

Market gains and (losses)2

5,066

542

(2,606)


8,703

155

Ending assets

$ 106,799

$ 101,247

$ 98,378


$ 106,799

$ 98,378








Total Separate Account Assets3







Beginning assets

$ 94,835

$ 96,732

$ 90,554


$ 96,099

$ 89,634

Sales4

4,902

3,444

7,451


12,483

16,098

Redemptions4

(4,729)

(6,303)

(4,404)


(16,400)

(12,344)

Net sales (redemptions)4

173

(2,859)

3,047


(3,917)

3,754

Net exchanges

(14)

(1)

(10)


(17)

(7)

Impact of foreign exchange1

780

30

(592)


366

(246)

Market gains and (losses)2

4,848

933

(1,232)


8,091

(1,368)

Ending assets

$ 100,622

$ 94,835

$ 91,767


$ 100,622

$ 91,767








Total Long-term Assets3







Beginning assets

$ 196,082

$ 199,875

$ 194,941


$ 197,629

$ 192,057

Sales4

11,548

9,762

12,864


32,613

36,290

Redemptions4

(11,963)

(15,060)

(12,422)


(40,621)

(36,769)

Net sales (redemptions)4

(415)

(5,298)

442


(8,008)

(479)

Net exchanges

0

5

(10)


5

3

Impact of foreign exchange1

1,840

25

(1,390)


1,001

(223)

Market gains and (losses)2

9,914

1,475

(3,838)


16,794

(1,213)

Ending assets

$ 207,421

$ 196,082

$ 190,145


$ 207,421

$ 190,145



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)

Sept. 30, 2024

June 30, 2024

March 31, 2024

Dec. 31, 2023

Sept. 30, 2023

By Asset Class






Equity

$ 83,609

$ 77,851

$ 80,157

$ 79,291

$ 77,315

Fixed-income

100,171

95,294

96,325

94,920

89,765

Alternative / private markets

20,683

20,061

20,465

20,551

20,337

Multi-asset

2,958

2,876

2,928

2,867

2,728

Total long-term assets

207,421

196,082

199,875

197,629

190,145

Money market

593,030

586,647

578,811

559,993

525,085

Total Managed Assets

$ 800,451

$ 782,729

$ 778,686

$ 757,622

$ 715,230







By Product Type






Funds:






Equity

$ 45,391

$ 42,404

$ 43,415

$ 42,513

$ 40,801

Fixed-income

46,027

43,842

44,481

43,908

42,569

Alternative / private markets

12,558

12,258

12,458

12,379

12,409

Multi-asset

2,823

2,743

2,789

2,730

2,599

Total long-term assets

106,799

101,247

103,143

101,530

98,378

Money market

440,397

425,627

417,102

406,166

384,896

Total Fund Assets

$ 547,196

$ 526,874

$ 520,245

$ 507,696

$ 483,274

Separate Accounts:






Equity

$ 38,218

$ 35,447

$ 36,742

$ 36,778

$ 36,514

Fixed-income

54,144

51,452

51,844

51,012

47,196

Alternative / private markets

8,125

7,803

8,007

8,172

7,928

Multi-asset

135

133

139

137

129

Total long-term assets

100,622

94,835

96,732

96,099

91,767

Money market

152,633

161,020

161,709

153,827

140,189

Total Separate Account Assets

$ 253,255

$ 255,855

$ 258,441

$ 249,926

$ 231,956

Total Managed Assets

$ 800,451

$ 782,729

$ 778,686

$ 757,622

$ 715,230

Unaudited Average Managed Assets

Quarter Ended

(in millions)

Sept. 30, 2024

June 30, 2024

March 31, 2024

Dec. 31, 2023

Sept. 30, 2023

By Asset Class






Equity

$ 80,220

$ 78,137

$ 78,969

$ 76,009

$ 82,203

Fixed-income

97,563

95,484

95,791

91,927

88,677

Alternative / private markets

20,455

20,306

20,485

20,623

21,413

Multi-asset

2,910

2,889

2,874

2,744

2,861

Total long-term assets

201,148

196,816

198,119

191,303

195,154

Money market

592,304

582,758

578,383

536,727

516,046

Total Avg. Managed Assets

$ 793,452

$ 779,574

$ 776,502

$ 728,030

$ 711,200







By Product Type






Funds:






Equity

$ 43,632

$ 42,274

$ 42,355

$ 40,296

$ 43,687

Fixed-income

44,977

43,910

43,857

42,705

43,437

Alternative / private markets

12,451

12,331

12,377

12,571

13,184

Multi-asset

2,775

2,737

2,739

2,615

2,724

Total long-term assets

103,835

101,252

101,328

98,187

103,032

Money market

436,418

419,999

414,902

392,946

373,088

Total Avg. Fund Assets

$ 540,253

$ 521,251

$ 516,230

$ 491,133

$ 476,120

Separate Accounts:






Equity

$ 36,588

$ 35,863

$ 36,614

$ 35,713

$ 38,516

Fixed-income

52,586

51,574

51,934

49,222

45,240

Alternative / private markets

8,004

7,975

8,108

8,052

8,229

Multi-asset

135

152

135

129

137

Total long-term assets

97,313

95,564

96,791

93,116

92,122

Money market

155,886

162,759

163,481

143,781

142,958

Total Avg. Separate Account Assets

$ 253,199

$ 258,323

$ 260,272

$ 236,897

$ 235,080

Total Avg. Managed Assets

$ 793,452

$ 779,574

$ 776,502

$ 728,030

$ 711,200

Unaudited Average Managed Assets


Nine Months Ended

(in millions)


Sept. 30, 2024


Sept. 30, 2023

By Asset Class





Equity


$ 79,108


$ 83,128

Fixed-income


96,280


88,130

Alternative / private markets


20,415


21,254

Multi-asset


2,891


2,934

Total long-term assets


198,694


195,446

Money market


584,482


503,182

Total Avg. Managed Assets


$ 783,176


$ 698,628






By Product Type





Funds:





Equity


$ 42,754


$ 44,320

Fixed-income


44,248


43,741

Alternative / private markets


12,386


13,143

Multi-asset


2,751


2,794

Total long-term assets


102,139


103,998

Money market


423,773


356,351

Total Avg. Fund Assets


$ 525,912


$ 460,349

Separate Accounts:





Equity


$ 36,354


$ 38,808

Fixed-income


52,032


44,389

Alternative / private markets


8,029


8,111

Multi-asset


140


140

Total long-term assets


96,555


91,448

Money market


160,709


146,831

Total Avg. Separate Account Assets


$ 257,264


$ 238,279

Total Avg. Managed Assets


$ 783,176


$ 698,628

Cision View original content:https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-record-assets-under-management-with-third-quarter-2024-earnings-302286549.html

SOURCE Federated Hermes, Inc.

Categories

PRNewswire Press Releases

Next Articles