News Galiyara

Federated Hermes, Inc. Reports Second Quarter 2020 Earnings

Press Release
PITTSBURGH, July 30, 2020 /PRNewswire/ — Federated Hermes, Inc. (NYSE: FHI), a leading global, active, responsible investment manager, today reported earnings per diluted share (EPS) of $0.80 for Q2 2020, compared to $0.62 for the same quarter last year, on net income of $81.2 million for Q2 2020, compared to $62.7 million for Q2 2019. Federated Hermes reported YTD 2020 EPS of $1.44, compared to $1.16 for the same period in 2019, on YTD 2020 net income of $145.4 million, compared to $117.3 million for the same period in 2019.

Federated Hermes’ total managed assets were a record $628.8 billion at June 30, 2020, up $126.6 billion or 25% from $502.2 billion at June 30, 2019 and up $23.0 billion or 4% from $605.8 billion at March 31, 2020. Total average managed assets for Q2 2020 were $636.9 billion, up $143.6 billion or 29% from $493.3 billion reported for Q2 2019 and up $56.7 billion or 10% from $580.2 billion reported for Q1 2020.

“While the economy continued to be challenged by the coronavirus in the second quarter, investors sought haven in a range of Federated Hermes investment strategies that offered diversification, performance and competitive yields,” said J. Christopher Donahue, president and chief executive officer. “Federated Hermes’ high-yield and multi-sector fixed-income strategies saw strong sales, leading to record fixed-income assets under management of $73.1 billion at quarter end. Money market assets under management also reached an all-time high of $457.6 billion.”

Federated Hermes’ board of directors declared a quarterly dividend of $0.27 per share. The dividend is payable on Aug. 14, 2020 to shareholders of record as of Aug. 7, 2020. During Q2 2020, Federated Hermes purchased 843,416 shares of Federated Hermes class B common stock for $18.1 million.

Equity assets were $76.9 billion at June 30, 2020, down $5.1 billion or 6% from $82.0 billion at June 30, 2019 and up $8.7 billion or 13% from $68.2 billion at March 31, 2020. The decrease from Q2 2019 was primarily due to net redemptions and market depreciation partially offset by acquisitions, while the increase from the prior quarter largely resulted from a partial recovery in the market value of investments following the impact of the coronavirus. Top-selling equity funds during Q2 2020 on a net basis were Federated Hermes Kaufmann Small Cap Fund, Federated Hermes Global Equity ESG Fund, Federated Hermes Global Small Cap Equity Fund, Federated Hermes MDT All Cap Core Fund and Federated Hermes SDG Engagement Equity Fund (UCITS).

Fixed-income assets were a record $73.1 billion at June 30, 2020, up $8.0 billion or 12% from $65.1 billion at June 30, 2019 and up $8.4 billion or 13% from $64.7 billion at March 31, 2020. Top-selling fixed-income funds during Q2 2020 on a net basis were Federated Hermes Institutional High Yield Bond Fund, Federated Hermes Short-Intermediate Total Return Bond Fund, Federated Hermes Total Return Bond Fund, Federated Hermes Sterling Cash Plus Fund and Federated Hermes Ultrashort Bond Fund.

Money market assets were a record $457.6 billion at June 30, 2020, up $124.5 billion or 37% from $333.1 billion at June 30, 2019 and up $6.3 billion or 1% from $451.3 billion at March 31, 2020. Money market fund assets were $344.8 billion at June 30, 2020, up $113.5 billion or 49% from $231.3 billion at June 30, 2019 and up $8.7 billion or 3% from $336.1 billion at March 31, 2020.

Financial Summary

Q2 2020 vs. Q2 2019

Revenue increased $39.2 million or 12% primarily due to higher average money market assets, an increase in revenue from alternative/private markets primarily due to the revenue of a previously nonconsolidated entity being recorded in operating revenue beginning March 2020 and higher performance fees. These increases in revenue were partially offset by voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers) and a decrease in revenue due to lower average equity assets. See additional information about voluntary yield-related fee waivers in the paragraph at the end of this financial summary.

During Q2 2020, Federated Hermes derived 55% of its revenue from long-term assets (34% from equity assets, 12% from fixed-income assets and 9% from alternative/private markets and multi-asset), 44% from money market assets and 1% from sources other than managed assets.

Operating expenses increased $26.9 million or 11% primarily due to increased incentive compensation and increased distribution expenses associated with higher average money market fund assets. The distribution expenses include a reduction resulting from  voluntary yield–related fee waivers.

Nonoperating income (expenses), net increased $14.7 million primarily due to an increase in the market value of investments, which significantly recovered from the Q1 2020 coronavirus impact on the markets.

Q2 2020 vs. Q1 2020

Revenue increased $1.5 million primarily due to higher average money market assets, an increase in revenue from alternative/private markets primarily due to the revenue of a previously nonconsolidated entity being recorded in operating revenue beginning March 2020 and higher performance fees. These increases were partially offset by an increase in voluntary yield-related fee waivers and lower average equity assets.

Operating expenses decreased $3.0 million or 1% primarily due to decreased distribution expenses resulting from higher voluntary yield–related fee waivers on certain money market fund assets offset by increased incentive compensation.

Nonoperating income (expenses), net increased $21.1 million primarily due to an increase in the market value of investments, which significantly recovered from the Q1 2020 coronavirus impact on the markets. This increase was partially offset by a gain from a fair value adjustment to the equity investment of a previously nonconsolidated entity reported in Q1 2020.

YTD 2020 vs. YTD 2019

Revenue increased $91.4 million or 15% primarily due to higher average money market assets, revenue of a previously nonconsolidated entity being recorded in operating revenue beginning March 2020 and an increase in performance fees. These increases were partially offset by voluntary yield-related fee waivers.                                    

For the first half of 2020, Federated derived 56% of its revenue from long-term assets (36% from equity assets, 13% from fixed-income assets and 7% from alternative/private markets and multi-asset), 43% from money market assets and 1% from sources other than managed assets.

Operating expenses increased $57.2 million or 12% primarily due to increased incentive compensation and an increase in distribution expenses associated with higher average money market fund assets. These increases were partially offset by voluntary yield–related fee waivers.

Nonoperating (expenses) income, net increased $6.0 million primarily due to a gain from a fair value adjustment to the equity investment of a previously nonconsolidated entity.

Impact of voluntary yield-related fee waivers

During the three and six months ended June 30, 2020, voluntary yield-related fee waivers totaled $20.0 million and $20.4 million, respectively. These fee waivers were partially offset by related reductions in distribution expenses of $18.0 million and $18.3 million, respectively, such that the net negative pre-tax impact to Federated Hermes was $2.0 million and $2.1 million for the three and six months ended June 30, 2020, respectively.

Federated Hermes’ level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior. These factors and others, including asset levels and mix, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated Hermes’ business activity levels and financial results. Risk factors and uncertainties that can influence Federated Hermes’ financial results are discussed in the company’s annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on July 31, 2020. Investors are invited to listen to the earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (international) prior to the 9 a.m. start time. To listen online, go to the Investor Relations section and the Analyst Information tab of FederatedHermes.com 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 31, 2020. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 35618. The online replay will be available via FederatedHermes.com for one year.

Federated Hermes, Inc. is a leading global investment manager with $628.8 billion in assets under management as of June 30, 2020. Guided by our conviction that responsible investing is the best way to create wealth over the long term, our investment solutions span 162 equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies and a range of separately managed account strategies. Providing world-class active investment management and engagement services to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes’ more than 1,900 employees include those in London, New York, Boston and several other offices worldwide. For more information, visit FederatedHermes.com.

Federated Hermes ranks in the top 6% of equity fund managers in the industry, the top 8% of money market fund managers and the top 10% of fixed-income fund managers1. Federated Hermes also ranks as the 14th-largest SMA manager2. For more information, including an analyst presentation, visit FederatedHermes.com.

1) ISS Market Intelligence (SIMFUND), June 30, 2020. Based on assets under management in open-end funds.
2) Money Management Institute/Cerulli, Q1 2020.
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 adviser.

Certain statements in this press release, such as those related to performance, investor preferences and demand, asset flows and mix, fee waivers, and the coronavirus and efforts to combat it, 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. 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, sustain product demand, asset 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 SEC. 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 of such statements in the future.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)
















Quarter Ended

% Change
Q2 2019 to
Q2 2020


Quarter Ended

% Change
Q1 2020 to
Q2 2020


June 30, 2020

June 30, 2019


March 31, 2020

Revenue







Investment advisory fees, net

$

245,126


$

220,669


11

%


$

240,660


2

%

Administrative service fees, net—affiliates

83,733


57,968


44



72,199


16


Other service fees, net

31,853


42,842


(26)



46,324


(31)


  Total Revenue

360,712


321,479


12



359,183


0









Operating Expenses







Compensation and related

123,583


107,248


15



115,335


7


Distribution

89,038


82,000


9



96,160


(7)


Systems and communications

15,091


12,111


25



14,896


1


Professional service fees

13,888


10,281


35



13,268


5


Office and occupancy

10,190


11,066


(8)



11,771


(13)


Advertising and promotional

3,065


4,697


(35)



4,995


(39)


Travel and related

325


4,459


(93)



3,159


(90)


Other

8,281


4,677


77



6,855


21


  Total Operating Expenses

263,461


236,539


11



266,439


(1)


Operating Income

97,251


84,940


14



92,744


5









Nonoperating Income (Expenses)







Investment income (loss), net

14,841


1,526


NM



(14,451)


203


Debt expense

(785)


(1,332)


(41)



(931)


(16)


Other, net

(24)


(832)


(97)



8,345


(100)


  Total Nonoperating Income (Expenses), net

14,032


(638)


NM



(7,037)


(299)


Income before income taxes

111,283


84,302


32



85,707


30


Income tax provision

26,482


20,462


29



22,442


18


Net income including the noncontrolling interests in subsidiaries

84,801


63,840


33



63,265


34


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

3,605


1,116


223



(913)


(495)


Net Income

$

81,196


$

62,724


29

%


$

64,178


27

%








Amounts Attributable to Federated Hermes, Inc.







Earnings Per Share1







Basic

$

0.81


$

0.62


31

%


$

0.63


29

%

Diluted

$

0.80


$

0.62


29

%


$

0.63


27

%

Weighted-Average Shares Outstanding







Basic and Diluted

96,800


97,330




97,345



Dividends Declared Per Share

$

0.27


$

0.27




$

0.27





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 basic earnings per share under the “two-class method.” As such, total net income of $3.2 million, $2.4 million and $2.4 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended June 30, 2020, June 30, 2019 and March 31, 2020, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)










Six Months Ended



June 30, 2020

June 30, 2019

% Change

Revenue




Investment advisory fees, net

$

485,787


$

431,868


12

%

Administrative service fees, net—affiliates

155,932


112,103


39


Other service fees, net

78,176


84,558


(8)


  Total Revenue

719,895


628,529


15






Operating Expenses




Compensation and related

238,918


218,464


9


Distribution

185,198


159,632


16


Systems and communications

29,987


24,905


20


Professional service fees

27,156


20,767


31


Office and occupancy

21,961


22,428


(2)


Advertising and promotional

8,061


8,886


(9)


Travel and related

3,484


8,307


(58)


Other

15,135


9,311


63


  Total Operating Expenses

529,900


472,700


12


Operating Income

189,995


155,829


22






Nonoperating Income (Expenses)




Investment income (loss), net

390


4,235


(91)


Debt expense

(1,717)


(2,732)


(37)


Other, net

8,322


(508)


NM


  Total Nonoperating Income (Expenses), net

6,995


995


NM


Income before income taxes

196,990


156,824


26


Income tax provision

48,924


38,373


27


Net income including the noncontrolling interests in subsidiaries

148,066


118,451


25


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

2,692


1,181


128


Net Income

$

145,374


$

117,270


24

%





Amounts Attributable to Federated Hermes, Inc.




Earnings Per Share1




Basic and Diluted

$

1.44


$

1.16


24

%

Weighted-Average Shares Outstanding




Basic and Diluted

97,073


97,163



Dividends Declared Per Share

$

0.54


$

0.54





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 basic earnings per share under the “two-class method.” As such, total net income of $5.6 million and $4.5 million available to unvested restricted Federated Hermes shareholders for the six months ended June 30, 2020 and June 30, 2019, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary.

Unaudited Condensed Consolidated Balance Sheets



(in thousands)

June 30, 2020

Dec. 31, 2019

Assets



  Cash and other investments

$

372,603


$

340,635


  Other current assets

148,797


120,649


  Intangible assets, net, including goodwill

1,241,808


1,220,762


  Other long-term assets

170,687


198,085


  Total Assets

$

1,933,895


$

1,880,131





Liabilities, Redeemable Noncontrolling Interests and Equity



  Current liabilities

$

248,996


$

230,713


  Long-term debt

90,000


100,000


  Other long-term liabilities

303,560


296,052


  Redeemable noncontrolling interests

204,672


212,086


  Equity excluding treasury stock

1,384,809


1,322,312


  Treasury stock

(298,142)


(281,032)


  Total Liabilities, Redeemable Noncontrolling Interests and Equity

$

1,933,895


$

1,880,131


Unaudited Changes in Long-Term Assets – By Asset Class

(in millions)

Quarter Ended


Six Months Ended


June 30, 2020

March 31, 2020

June 30, 2019


June 30, 2020

June 30, 2019

Equity







Beginning assets

$

68,239


$

89,011


$

80,245



$

89,011


$

72,497


Sales1

4,579


6,080


4,812



10,659


9,948


Redemptions1

(7,280)


(7,842)


(4,404)



(15,122)


(10,330)


  Net sales (redemptions)1

(2,701)


(1,762)


408



(4,463)


(382)


Net exchanges

(56)


(37)


191



(93)


204


Acquisitions/(dispositions)

0


(71)


0



(71)


0


Impact of foreign exchange2

439


(768)


4



(329)


(118)


Market gains and (losses)3

10,938


(18,134)


1,151



(7,196)


9,798


Ending assets

$

76,859


$

68,239


$

81,999



$

76,859


$

81,999









Fixed Income







Beginning assets

$

64,715


$

69,023


$

64,107



$

69,023


$

63,158


Sales1

11,755


7,687


5,193



19,442


10,609


Redemptions1

(5,407)


(9,398)


(5,181)



(14,805)


(11,522)


  Net sales (redemptions)1

6,348


(1,711)


12



4,637


(913)


Net exchanges

146


(115)


(191)



31


(224)


Acquisitions/(dispositions)

0


(1)


0



(1)


0


Impact of foreign exchange2

29


(155)


(25)



(126)


(17)


Market gains and (losses)3

1,905


(2,326)


1,149



(421)


3,048


Ending assets

$

73,143


$

64,715


$

65,052



$

73,143


$

65,052









Alternative/Private Markets4







Beginning assets

$

18,061


$

18,102


$

17,854



$

18,102


$

18,318


Sales1

792


888


320



1,680


633


Redemptions1

(961)


(582)


(302)



(1,543)


(1,160)


   Net sales (redemptions)1

(169)


306


18



137


(527)


Net exchanges

(3)


2


(1)



(1)


(3)


Acquisitions/(dispositions)

0


452


0



452


0


Impact of foreign exchange2

(33)


(1,121)


(435)



(1,154)


(48)


Market gains and (losses)3

(371)


320


481



(51)


177


Ending assets

$

17,485


$

18,061


$

17,917



$

17,485


$

17,917









Multi-asset







Beginning assets

$

3,494


$

4,199


$

4,259



$

4,199


$

4,093


Sales1

48


98


78



146


182


Redemptions1

(168)


(235)


(228)



(403)


(469)


  Net sales (redemptions)1

(120)


(137)


(150)



(257)


(287)


Net exchanges

(5)


(14)


0



(19)


2


Market gains and (losses)3

336


(554)


104



(218)


405


Ending assets

$

3,705


$

3,494


$

4,213



$

3,705


$

4,213









Total Long-term Assets4







Beginning assets

$

154,509


$

180,335


$

166,465



$

180,335


$

158,066


Sales1

17,174


14,753


10,403



31,927


21,372


Redemptions1

(13,816)


(18,057)


(10,115)



(31,873)


(23,481)


  Net sales (redemptions)1

3,358


(3,304)


288



54


(2,109)


Net exchanges

82


(164)


(1)



(82)


(21)


Acquisitions/(dispositions)

0


380


0



380


0


Impact of foreign exchange2

435


(2,044)


(456)



(1,609)


(183)


Market gains and (losses)3

12,808


(20,694)


2,885



(7,886)


13,428


Ending assets

$

171,192


$

154,509


$

169,181



$

171,192


$

169,181




1)

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.

4)

The balance at June 30, 2019 includes $8.4 billion of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Federated Hermes held an equity method investment. As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP.

Unaudited Changes in Long-Term Assets – By Asset Class and Product Type

(in millions)



Quarter Ended


June 30, 2020


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

$

36,955


$

31,284


$

40,601


$

24,114


$

11,365


$

6,696


$

3,330


$

164


$

92,251


$

62,258


Sales

3,094


1,485


8,356


3,399


704


88


47


1


12,201


4,973


Redemptions

(4,330)


(2,950)


(4,845)


(562)


(684)


(277)


(163)


(5)


(10,022)


(3,794)


  Net sales (redemptions)

(1,236)


(1,465)


3,511


2,837


20


(189)


(116)


(4)


2,179


1,179


Net exchanges

(56)


0


146


0


(3)


0


(5)


0


82


0


Impact of foreign exchange2

99


340


13


16


(19)


(14)


0


0


93


342


Market gains and (losses)3

7,961


2,977


1,775


130


(326)


(45)


307


29


9,717


3,091


Ending assets

$

43,723


$

33,136


$

46,046


$

27,097


$

11,037


$

6,448


$

3,516


$

189


$

104,322


$

66,870














Six Months Ended


June 30, 2020


Equity

Fixed Income

Alternative / Private
Markets

Multi-asset

Total


Funds

Separate
Accounts1

Funds

Separate
Accounts1

Funds2

Separate
Accounts1

Funds

Separate
Accounts1

Funds2

Separate
Accounts1

Beginning assets

$

48,112


$

40,899


$

44,223


$

24,800


$

11,389


$

6,713


$

4,000


$

199


$

107,724


$

72,611


Sales

7,486


3,173


14,628


4,814


1,328


352


120


26


23,562


8,365


Redemptions

(9,132)


(5,990)


(12,977)


(1,828)


(1,125)


(418)


(392)


(11)


(23,626)


(8,247)


  Net sales (redemptions)

(1,646)


(2,817)


1,651


2,986


203


(66)


(272)


15


(64)


118


Net exchanges

(87)


(6)


31


0


(1)


0


(19)


0


(76)


(6)


Acquisition-related

0


(71)


0


(1)


0


452


0


0


0


380


Impact of foreign exchange2

(245)


(84)


(128)


2


(698)


(456)


0


0


(1,071)


(538)


Market gains and (losses)3

(2,411)


(4,785)


269


(690)


144


(195)


(193)


(25)


(2,191)


(5,695)


Ending assets

$

43,723


$

33,136


$

46,046


$

27,097


$

11,037


$

6,448


$

3,516


$

189


$

104,322


$

66,870




1)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

3)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets – By Product Type

(in millions)

Quarter Ended


Six Months Ended


June 30, 2020

March 31, 2020

June 30, 2019


June 30, 2020

June 30, 2019

Total Fund Assets1







Beginning assets

$

92,251


$

107,724


$

98,482



$

107,724


$

92,359


Sales

12,201


11,361


7,502



23,562


15,424


Redemptions

(10,022)


(13,604)


(7,020)



(23,626)


(15,371)


  Net sales (redemptions)

2,179


(2,243)


482



(64)


53


Net exchanges

82


(158)


(1)



(76)


4


Impact of foreign exchange2

93


(1,164)


(331)



(1,071)


(83)


Market gains and (losses)3

9,717


(11,908)


2,314



(2,191)


8,613


Ending assets

$

104,322


$

92,251


$

100,946



$

104,322


$

100,946









Total Separate Account Assets4







Beginning assets

$

62,258


$

72,611


$

67,983



$

72,611


$

65,707


Sales5

4,973


3,392


2,901



8,365


5,948


Redemptions5

(3,794)


(4,453)


(3,095)



(8,247)


(8,110)


  Net sales (redemptions)5

1,179


(1,061)


(194)



118


(2,162)


Net exchanges

0


(6)


0



(6)


(25)


Acquisitions/(dispositions)

0


380


0



380


0


Impact of foreign exchange2

342


(880)


(125)



(538)


(100)


Market gains and (losses)3

3,091


(8,786)


571



(5,695)


4,815


Ending assets

$

66,870


$

62,258


$

68,235



$

66,870


$

68,235









Total Long-term Assets1,4







Beginning assets

$

154,509


$

180,335


$

166,465



$

180,335


$

158,066


Sales5

17,174


14,753


10,403



31,927


21,372


Redemptions5

(13,816)


(18,057)


(10,115)



(31,873)


(23,481)


  Net sales (redemptions)5

3,358


(3,304)


288



54


(2,109)


Net exchanges

82


(164)


(1)



(82)


(21)


Acquisitions/(dispositions)

0


380


0



380


0


Impact of foreign exchange2

435


(2,044)


(456)



(1,609)


(183)


Market gains and (losses)3

12,808


(20,694)


2,885



(7,886)


13,428


Ending assets

$

171,192


$

154,509


$

169,181



$

171,192


$

169,181




1)

The balance at June 30, 2019 includes $8.4 billion of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Federated Hermes held an equity method investment.  As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP.

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.

4)

Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.

5)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Unaudited Managed Assets
(in millions)

June 30, 2020

March 31, 2020

Dec. 31, 2019

Sept. 30, 2019

June 30, 2019

By Asset Class






Equity

$

76,859


$

68,239


$

89,011


$

80,750


$

81,999


Fixed-income

73,143


64,715


69,023


65,824


65,052


Alternative / private markets1

17,485


18,061


18,102


17,156


17,917


Multi-asset

3,705


3,494


4,199


4,140


4,213


  Total long-term assets

171,192


154,509


180,335


167,870


169,181


Money market

457,624


451,330


395,539


359,292


333,066


Total Managed Assets

$

628,816


$

605,839


$

575,874


$

527,162


$

502,247








By Product Type






Funds:






Equity

$

43,723


$

36,955


$

48,112


$

42,575


$

43,443


Fixed-income

46,046


40,601


44,223


42,329


42,084


Alternative / private markets1

11,037


11,365


11,389


10,826


11,400


Multi-asset

3,516


3,330


4,000


3,952


4,019


  Total long-term assets

104,322


92,251


107,724


99,682


100,946


Money market

344,846


336,133


286,612


261,215


231,321


Total Fund Assets

$

449,168


$

428,384


$

394,336


$

360,897


$

332,267


Separate Accounts:






Equity

$

33,136


$

31,284


$

40,899


$

38,175


$

38,556


Fixed-income

27,097


24,114


24,800


23,495


22,968


Alternative / private markets

6,448


6,696


6,713


6,330


6,517


Multi-asset

189


164


199


188


194


  Total long-term assets

66,870


62,258


72,611


68,188


68,235


Money market

112,778


115,197


108,927


98,077


101,745


Total Separate Account Assets

$

179,648


$

177,455


$

181,538


$

166,265


$

169,980


Total Managed Assets

$

628,816


$

605,839


$

575,874


$

527,162


$

502,247




1)

Includes $8.2 billion, $8.0 billion and $8.4 billion at Dec. 31, 2019, Sept. 30, 2019 and June 30, 2019, respectively, of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Federated Hermes held an equity method investment. As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP.

Unaudited Average Managed Assets

Quarter Ended

(in millions)

June 30, 2020

March 31, 2020

Dec. 31, 2019

Sept. 30, 2019

June 30, 2019

By Asset Class






Equity

$

73,620


$

82,767


$

84,448


$

82,027


$

80,819


Fixed-income

69,603


69,068


67,602


65,074


64,913


Alternative / private markets1

18,022


17,983


17,838


17,407


17,772


Multi-asset

3,630


4,006


4,149


4,167


4,225


  Total long-term assets

164,875


173,824


174,037


168,675


167,729


Money market

471,984


406,365


376,029


349,313


325,527


Total Avg. Managed Assets

$

636,859


$

580,189


$

550,066


$

517,988


$

493,256








By Product Type






Funds:






Equity

$

41,301


$

44,996


$

44,984


$

43,077


$

42,571


Fixed-income

43,229


44,017


43,304


41,958


41,652


Alternative / private markets1

11,345


11,143


11,283


11,035


11,146


Multi-asset

3,453


3,814


3,956


3,978


4,034


  Total long-term assets

99,328


103,970


103,527


100,048


99,403


Money market

356,736


290,641


274,116


249,846


222,282


Total Avg. Fund Assets

$

456,064


$

394,611


$

377,643


$

349,894


$

321,685


Separate Accounts:






Equity

$

32,319


$

37,771


$

39,464


$

38,950


$

38,248


Fixed-income

26,374


25,051


24,298


23,116


23,261


Alternative / private markets

6,677


6,840


6,555


6,372


6,626


Multi-asset

177


192


193


189


191


  Total long-term assets

65,547


69,854


70,510


68,627


68,326


Money market

115,248


115,724


101,913


99,467


103,245


Total Avg. Separate Account Assets

$

180,795


$

185,578


$

172,423


$

168,094


$

171,571


Total Avg. Managed Assets

$

636,859


$

580,189


$

550,066


$

517,988


$

493,256




1)

The average balance includes $8.3 billion, $8.1 billion and $8.1 billion for the quarters ended Dec. 31, 2019, Sept. 30, 2019 and June 30, 2019, respectively, of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Federated Hermes held an equity method investment.  As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP.

Unaudited Average Managed Assets


Six Months Ended

(in millions)


June 30, 2020


June 30, 2019

By Asset Class





Equity


$

78,194



$

79,187


Fixed-income


69,336



64,540


Alternative / private markets1


18,002



18,041


Multi-asset


3,818



4,225


  Total long-term assets


169,350



165,993


Money market


439,174



318,339


Total Avg. Managed Assets


$

608,524



$

484,332







By Product Type





Funds:





Equity


$

43,149



$

41,394


Fixed-income


43,623



41,373


Alternative / private markets1


11,244



11,346


Multi-asset


3,633



4,038


  Total long-term assets


101,649



98,151


Money market


323,688



215,771


Total Avg. Fund Assets


$

425,337



$

313,922


Separate Accounts:





Equity


$

35,045



$

37,793


Fixed-income


25,713



23,167


Alternative / private markets


6,758



6,695


Multi-asset


185



187


  Total long-term assets


67,701



67,842


Money market


115,486



102,568


Total Avg. Separate Account Assets


$

183,187



$

170,410


Total Avg. Managed Assets


$

608,524



$

484,332




1)

The average balance for the six months ended June 30, 2019 includes $8.3 billion of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Federated Hermes held an equity method investment. As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP.

SOURCE Federated Hermes, Inc.

Related Links

http://FederatedInvestors.com

This story has been sourced from a third party syndicated feed, agencies. News Galiyara accepts no responsibility or liability for its dependability, trustworthiness, reliability, and data of the text. DigitalGaliyara (OPC) Private Limited management reserves the sole right to alter, delete or remove (without notice). If you have any concerns with the Content, then please write to us at the mail@digitalgaliyara.com Source – PRNewsWire

Follow us on Social Media and on Google News, FacebookInstagram, and Twitter.
For Videos Content and Stories subscribe to our YouTube Channel.
News Galiyara is now on Telegram.  (@newsgaliyara) follow us and stay updated with the latest news
https://www.youtube.com/watch?v=0uZeM7M5r4k

Related posts

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More