Federated Hermes, Inc. reports record assets under management with third quarter 2024 earnings
- 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.
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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 | % | Quarter Ended | % | |||
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 | Multi-asset | Total | ||||||
Funds | Separate | Funds | Separate | Funds | Separate | Funds | Separate | Funds. | Separate | |
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 | Multi-asset | Total | ||||||
Funds | Separate | Funds | Separate | Funds | Separate | Funds | Separate | Funds | Separate | |
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 | ||
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SOURCE Federated Hermes, Inc.