- 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
|
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.