0001056288false00010562882024-07-252024-07-25

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 25, 2024


FEDERATED HERMES, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania001-1481825-1111467
  (State or other jurisdiction(Commission File Number)(I.R.S. Employer
of incorporation)Identification No.)

1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Address of principal executive offices, including zip code)


(412) 288-1900
(Registrant's telephone number, including area code)


Not Applicable
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class B common stock, no par valueFHINew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 25, 2024, Federated Hermes, Inc. (Federated Hermes) issued the earnings press release attached hereto as Exhibit 99.1 to report second quarter 2024 results.
    

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:
Earnings press release issued by Federated Hermes, Inc. dated July 25, 2024
Exhibit 104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
                                    
FEDERATED HERMES, INC.
(REGISTRANT)
DateJuly 25, 2024By:/s/ Thomas R. Donahue
Thomas R. Donahue
Chief Financial Officer




Exhibit 99.1

fhipressreleaseimageq12020a.gif
Federated Hermes, Inc. reports record assets under management with second quarter 2024 earnings
•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, Pa., July 25, 2024) — 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.

MEDIA:ANALYSTS:
Ed Costello 412-288-7538Ray Hanley 412-288-1920
    
Federated Hermes reports Q2 2024 earnings
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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,

    
Federated Hermes reports Q2 2024 earnings
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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.

    
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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.

    
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Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Quarter Ended% Change Q2 2023 to Q2 2024Quarter Ended% Change Q1 2024 to Q2 2024
June 30, 2024June 30, 2023March 31, 2024
Revenue
Investment advisory fees, net$270,622 $310,337 (13)%$264,294 2  %
Administrative service fees, net—affiliates95,346 85,199 12 94,786 1 
Other service fees, net36,615 37,696 (3)37,291 (2)
Total Revenue402,583 433,232 (7)396,371 2 
Operating Expenses
Compensation and related130,748 159,883 (18)136,546 (4)
Distribution93,503 97,086 (4)94,894 (1)
Intangible asset related69,392 3,418 NM3,235 NM
Systems and communications23,194 22,074 5 21,823 6 
Professional service fees19,845 19,099 4 18,352 8 
Office and occupancy9,765 11,404 (14)9,969 (2)
Advertising and promotional6,621 5,109 30 4,306 54 
Travel and related3,847 3,835 0 3,273 18 
Other4,951 12,935 (62)5,392 (8)
Total Operating Expenses361,866 334,843 8 297,790 22 
Operating Income40,717 98,389 (59)98,581 (59)
Nonoperating Income (Expenses)
Investment income (loss), net5,132 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), net1,939 2,156 (10)5,437 (64)
Income before income taxes42,656 100,545 (58)104,018 (59)
Income tax provision23,431 27,543 (15)29,008 (19)
Net income including the noncontrolling interests in subsidiaries19,225 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
Basic80,026 84,930 80,709 
Diluted80,026 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.

    
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Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Six Months Ended
June 30, 2024June 30, 2023% Change
Revenue
Investment advisory fees, net$534,916 $574,318 (7)%
Administrative service fees, net—affiliates190,132 164,378 16 
Other service fees, net73,906 76,725 (4)
Total Revenue798,954 815,421 (2)
Operating Expenses
Compensation and related267,294 296,761 (10)
Distribution188,398 190,420 (1)
Intangible asset related72,627 6,743 NM
Systems and communications45,017 42,046 7 
Professional service fees38,197 35,320 8 
Office and occupancy19,734 24,278 (19)
Advertising and promotional10,927 9,451 16 
Travel and related7,119 7,066 1 
Other10,343 19,781 (48)
Total Operating Expenses659,656 631,866 4 
Operating Income139,298 183,555 (24)
Nonoperating Income (Expenses)
Investment income (loss), net13,615 15,601 (13)
Debt expense(6,308)(6,243)1 
Other, net69 107 (36)
Total Nonoperating Income (Expenses), net7,376 9,465 (22)
Income before income taxes146,674 193,020 (24)
Income tax provision52,439 48,552 8 
Net income including the noncontrolling interests in subsidiaries94,235 144,468 (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
Basic80,367 84,902 
Diluted80,368 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.




    
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Unaudited Condensed Consolidated Balance Sheets
(in thousands)June 30, 2024Dec. 31, 2023
Assets
  Cash and other investments$452,879 $560,675 
  Other current assets160,422 160,054 
  Intangible assets, net, including goodwill1,141,623 1,216,605 
  Other long-term assets156,583 164,510 
  Total Assets$1,911,507 $2,101,844 
Liabilities, Redeemable Noncontrolling Interests and Equity
  Current liabilities$223,380 $287,343 
  Long-term debt347,974 347,843 
  Other long-term liabilities292,637 312,561 
  Redeemable noncontrolling interests30,491 25,845 
Equity excluding treasury stock1,612,617 1,649,655 
Treasury stock(595,592)(521,403)
  Total Liabilities, Redeemable Noncontrolling Interests and Equity$1,911,507 $2,101,844 



    
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Unaudited Changes in Long-Term Assets - By Asset Class
(in millions)Quarter EndedSix Months Ended
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 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 exchanges9 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 exchanges174 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 exchanges1 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 exchanges5 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.




    
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Unaudited Changes in Long-Term Assets - By Asset Class and Product Type
(in millions)
Quarter Ended
June 30, 2024
EquityFixed IncomeAlternative / Private MarketsMulti-assetTotal
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 
Sales2,413 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 exchanges9 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
EquityFixed IncomeAlternative / Private MarketsMulti-assetTotal
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 
Sales4,832 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 exchanges14 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.









    
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Unaudited Changes in Long-Term Assets - By Product Type
(in millions)
Quarter EndedSix Months Ended
June 30, 2024March 31, 2024June 30, 2023June 30, 2024June 30, 2023
Total Fund Assets
Beginning assets$103,143 $101,530 $104,220 $101,530 $102,423 
Sales6,318 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 exchanges6 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 exchanges5 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.




















    
Federated Hermes reports Q2 2024 earnings
Page 11 of 13
Unaudited Managed Assets

(in millions)
June 30, 2024March 31, 2024Dec. 31, 2023Sept. 30, 2023June 30, 2023
By Asset Class
Equity$77,851 $80,157 $79,291 $77,315 $82,992 
Fixed-income95,294 96,325 94,920 89,765 87,425 
Alternative / private markets20,061 20,465 20,551 20,337 21,602 
Multi-asset2,876 2,928 2,867 2,728 2,922 
Total long-term assets196,082 199,875 197,629 190,145 194,941 
Money market586,647 578,811 559,993 525,085 509,017 
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-income43,842 44,481 43,908 42,569 43,884 
Alternative / private markets12,258 12,458 12,379 12,409 13,338 
Multi-asset2,743 2,789 2,730 2,599 2,782 
Total long-term assets101,247 103,143 101,530 98,378 104,387 
Money market425,627 417,102 406,166 384,896 364,014 
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-income51,452 51,844 51,012 47,196 43,541 
Alternative / private markets7,803 8,007 8,172 7,928 8,264 
Multi-asset133 139 137 129 140 
Total long-term assets94,835 96,732 96,099 91,767 90,554 
Money market161,020 161,709 153,827 140,189 145,003 
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 

    
Federated Hermes reports Q2 2024 earnings
Page 12 of 13
Unaudited Average Managed AssetsQuarter Ended
(in millions)
June 30, 2024March 31, 2024Dec. 31, 2023Sept. 30, 2023June 30, 2023
By Asset Class
Equity$78,137 $78,969 $76,009 $82,203 $83,025 
Fixed-income95,484 95,791 91,927 88,677 87,504 
Alternative / private markets20,306 20,485 20,623 21,413 21,411 
Multi-asset2,889 2,874 2,744 2,861 2,929 
Total long-term assets196,816 198,119 191,303 195,154 194,869 
Money market582,758 578,383 536,727 516,046 510,418 
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-income43,910 43,857 42,705 43,437 43,827 
Alternative / private markets12,331 12,377 12,571 13,184 13,181 
Multi-asset2,737 2,739 2,615 2,724 2,787 
Total long-term assets101,252 101,328 98,187 103,032 104,013 
Money market419,999 414,902 392,946 373,088 362,608 
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-income51,574 51,934 49,222 45,240 43,677 
Alternative / private markets7,975 8,108 8,052 8,229 8,230 
Multi-asset152 135 129 137 142 
Total long-term assets95,564 96,791 93,116 92,122 90,856 
Money market162,759 163,481 143,781 142,958 147,810 
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 


    
Federated Hermes reports Q2 2024 earnings
Page 13 of 13
Unaudited Average Managed AssetsSix Months Ended
(in millions)June 30, 2024June 30, 2023
By Asset Class
Equity$78,553 $83,590 
Fixed-income95,638 87,856 
Alternative / private markets20,395 21,174 
Multi-asset2,882 2,971 
Total long-term assets197,468 195,591 
Money market580,570 496,751 
Total Avg. Managed Assets$778,038 $692,342 
By Product Type
Funds:
Equity$42,315 $44,637 
Fixed-income43,884 43,893 
Alternative / private markets12,354 13,121 
Multi-asset2,738 2,828 
Total long-term assets101,291 104,479 
Money market417,450 347,983 
Total Avg. Fund Assets$518,741 $452,462 
Separate Accounts:
Equity$36,238 $38,953 
Fixed-income51,754 43,963 
Alternative / private markets8,041 8,053 
Multi-asset144 143 
Total long-term assets96,177 91,112 
Money market163,120 148,768 
Total Avg. Separate Account Assets$259,297 $239,880 
Total Avg. Managed Assets$778,038 $692,342 


v3.24.2
Cover Page
Jul. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 25, 2024
Entity Registrant Name FEDERATED HERMES, INC.
Entity Incorporation, State or Country Code PA
Entity File Number 001-14818
Entity Tax Identification Number 25-1111467
Entity Address, Address Line One 1001 Liberty Avenue
Entity Address, City or Town Pittsburgh
Entity Address, State or Province PA
Entity Address, Postal Zip Code 15222-3779
City Area Code 412
Local Phone Number 288-1900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class B common stock, no par value
Trading Symbol FHI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001056288
Amendment Flag false
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