PITTSBURGH, April 30, 2020
/PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a leading
global investment manager, today reported earnings per diluted
share (EPS) of $0.63 for Q1 2020,
compared to $0.54 for the same
quarter last year, on net income of $64.2
million for Q1 2020, compared to $54.5 million for Q1 2019.
Federated Hermes' total managed assets were a record
$605.8 billion at March 31,
2020, up $120.9 billion or 25% from
$484.9 billion at March 31, 2019
and up $29.9 billion or 5% from
$575.9 billion at Dec. 31, 2019. Total average managed assets for
Q1 2020 were $580.2 billion, up
$104.8 billion or 22% from
$475.4 billion reported for Q1 2019
and up $30.1 billion or 5% from
$550.1 billion reported for Q4
2019.
"As the coronavirus challenges the world, we are inspired by the
front-line health care workers and others who are leading the fight
against it as well as the sacrifices made by many to help reduce
the virus' spread," said J. Christopher Donahue, president and
chief executive officer. "We also are thankful for the resiliency
of our employees, who have adapted company operations while more
than 95% of them successfully work remotely. They are
simultaneously managing a variety of complications, from the
isolation of social distancing to challenges such as educating
their children at home—all while continuing to meet our clients'
needs and providing excellent customer service."
"In the first quarter, Federated Hermes saw interest in our
Kaufmann growth strategies, which invest in companies seeking to
capitalize on innovation," Donahue said. "Investors seeking haven
from volatile markets turned to our liquidity strategies, while we
also experienced net sales in various long-term strategies,
including Hermes global equity and SDG engagement funds, the
Federated Government Ultrashort Duration Fund and the Federated
Prudent Bear Fund."
Federated Hermes' board of directors declared a quarterly
dividend of $0.27 per share. The
dividend is payable on May 15, 2020 to shareholders of record
as of May 11, 2020. During Q1 2020, Federated Hermes purchased
714,251 shares of Federated Hermes class B common stock
for $16.0 million.
Equity assets were $68.2 billion
at March 31, 2020, down $12.0
billion or 15% from $80.2
billion at March 31, 2019 and down $20.8 billion or 23% from $89.0 billion at Dec. 31,
2019. The decreases largely resulted from declines in the
market value of investments from the impact of the coronavirus.
Top-selling equity funds during Q1 2020 on a net basis were
Federated Kaufmann Small Cap Fund, Hermes Global Emerging Markets
Fund, Hermes SDG Engagement Equity Fund, Hermes Global Equity ESG
Fund and Federated Kaufmann Large Cap Fund.
Fixed-income assets were $64.7
billion at March 31, 2020, up $0.6 billion or 1% from $64.1 billion at March 31, 2019 and down
$4.3 billion or 6% from $69.0 billion at Dec. 31,
2019. Top-selling fixed-income funds during Q1 2020 on a net
basis were Federated Government Ultrashort Duration Fund, Capital
Preservation Fund, Hermes SDG Engagement High Yield Credit Fund,
Federated Short-Intermediate Total Return Bond Fund and Federated
Total Return Government Bond Fund.
Money market assets were a record $451.3
billion at March 31, 2020, up $132.9 billion or 42% from $318.4 billion at March 31, 2019 and up
$55.8 billion or 14% from
$395.5 billion at Dec. 31, 2019. Money market fund assets were
$336.1 billion at March 31,
2020, up $121.3 billion or 56% from
$214.8 billion at March 31, 2019
and up $49.5 billion or 17% from
$286.6 billion at Dec. 31, 2019.
Financial Summary
Q1 2020 vs. Q1 2019
Revenue increased $52.1 million or
17% primarily due to higher average money market and equity
assets.
During Q1 2020, Federated Hermes derived 56% of its revenue from
long-term assets (38% from equity assets, 13% from fixed-income
assets and 5% from alternative/private markets and multi-asset),
43% from money market assets, and 1% from sources other than
managed assets.
Operating expenses increased $30.3
million or 13% primarily due to an increase in distribution
expenses associated with higher average money market fund
assets.
Nonoperating income (expenses), net decreased $8.7 million due to a decrease in the market
value of investments, which declined primarily due to the
coronavirus' impact on the markets. This decrease was partially
offset by a gain from a fair value adjustment to the equity
investment of a previously nonconsolidated entity.
Q1 2020 vs. Q4 2019
Revenue increased $1.2 million
primarily due to higher average money market assets.
Operating expenses increased $11.2
million or 4% primarily due to an increase in compensation
and related expenses as well as distribution expenses associated
with higher average money market fund assets.
Nonoperating income (expenses), net decreased $15.9 million due to a decrease in the market
value of investments, which declined primarily due to the
coronavirus' impact on the markets. This decrease was partially
offset by a gain from a fair value adjustment to the equity
investment of a previously nonconsolidated entity.
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 May 1, 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 May 1, 2020. To access
the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331
(international) and enter access code 33971. The online replay will
be available via FederatedHermes.com for one year.
Federated Hermes, Inc. is a leading global investment manager
with $605.8 billion in assets under
management as of March 31, 2020. Our
investment solutions span 163 equity, fixed-income,
alternative/private markets, multi-asset and liquidity management
strategies, and a range of separately managed account strategies.
Providing comprehensive investment management 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 New
York, Boston, London and several other offices
worldwide.
Federated Hermes ranks in the top 6% of equity fund managers in
the industry, the top 7% of money market fund managers and the top
11% of fixed-income fund managers1. Federated Hermes
also ranks as the 13th-largest SMA manager2. Information
regarding Hermes is available at Hermes-Investment.com. An
analyst presentation that includes information about Hermes also is
available. For more information, visit
FederatedHermes.com.
###
1) Strategic Insight, March 30,
2020. Based on assets under management in open-end
funds.
2) Money Management Institute/Cerulli, Q4
2019.
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, 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, 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 Q1 2019
to Q1 2020
|
|
Quarter
Ended
|
% Change Q4 2019
to Q1 2020
|
|
March 31,
2020
|
March 31,
2019
|
|
Dec. 31,
2019
|
Revenue
|
|
|
|
|
|
|
Investment advisory
fees, net
|
$
|
240,660
|
|
$
|
211,199
|
|
14
|
%
|
|
$
|
243,631
|
|
(1)
|
%
|
Administrative
service fees, net—affiliates
|
72,199
|
|
54,135
|
|
33
|
|
|
69,568
|
|
4
|
|
Other service fees,
net
|
46,324
|
|
41,716
|
|
11
|
|
|
44,826
|
|
3
|
|
Total
Revenue
|
359,183
|
|
307,050
|
|
17
|
|
|
358,025
|
|
0
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and
related
|
115,335
|
|
111,216
|
|
4
|
|
|
111,436
|
|
3
|
|
Distribution
|
96,160
|
|
77,632
|
|
24
|
|
|
92,950
|
|
3
|
|
Systems and
communications
|
14,896
|
|
12,794
|
|
16
|
|
|
14,731
|
|
1
|
|
Professional service
fees
|
13,268
|
|
10,486
|
|
27
|
|
|
12,269
|
|
8
|
|
Office and
occupancy
|
11,771
|
|
11,362
|
|
4
|
|
|
11,643
|
|
1
|
|
Advertising and
promotional
|
4,995
|
|
4,190
|
|
19
|
|
|
4,785
|
|
4
|
|
Travel and
related
|
3,159
|
|
3,848
|
|
(18)
|
|
|
4,180
|
|
(24)
|
|
Other
|
6,855
|
|
4,633
|
|
48
|
|
|
3,240
|
|
112
|
|
Total Operating
Expenses
|
266,439
|
|
236,161
|
|
13
|
|
|
255,234
|
|
4
|
|
Operating
Income
|
92,744
|
|
70,889
|
|
31
|
|
|
102,791
|
|
(10)
|
|
|
|
|
|
|
|
|
Nonoperating
Income (Expenses)
|
|
|
|
|
|
|
Investment income
(loss), net
|
(14,451)
|
|
2,709
|
|
NM
|
|
|
4,737
|
|
(405)
|
|
Debt
expense
|
(931)
|
|
(1,400)
|
|
(34)
|
|
|
(1,066)
|
|
(13)
|
|
Other, net
|
8,345
|
|
324
|
|
NM
|
|
|
5,209
|
|
60
|
|
Total Nonoperating
Income (Expenses), net
|
(7,037)
|
|
1,633
|
|
NM
|
|
|
8,880
|
|
(179)
|
|
Income before income
taxes
|
85,707
|
|
72,522
|
|
18
|
|
|
111,671
|
|
(23)
|
|
Income tax
provision
|
22,442
|
|
17,911
|
|
25
|
|
|
26,582
|
|
(16)
|
|
Net income including
the noncontrolling interests in subsidiaries
|
63,265
|
|
54,611
|
|
16
|
|
|
85,089
|
|
(26)
|
|
Less: Net income
(loss) attributable to the noncontrolling interests in
subsidiaries
|
(913)
|
|
65
|
|
NM
|
|
|
2,982
|
|
(131)
|
|
Net Income
|
$
|
64,178
|
|
$
|
54,546
|
|
18
|
%
|
|
$
|
82,107
|
|
(22)
|
%
|
|
|
|
|
|
|
|
Amounts
Attributable to Federated Hermes, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic and
diluted
|
$
|
0.63
|
|
$
|
0.54
|
|
17
|
%
|
|
$
|
0.81
|
|
(22)
|
%
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
Basic
|
97,345
|
|
96,994
|
|
|
|
97,403
|
|
|
Diluted
|
97,345
|
|
96,995
|
|
|
|
97,403
|
|
|
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 $2.4 million, $2.1 million
and $2.9 million available to unvested restricted Federated Hermes
shareholders for the quarterly periods ended March 31, 2020,
March 31, 2019 and Dec. 31, 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)
|
March 31,
2020
|
Dec. 31,
2019
|
Assets
|
|
|
Cash and other
investments
|
$
|
381,010
|
|
$
|
340,635
|
|
Other current
assets
|
123,103
|
|
120,649
|
|
Intangible
assets, net, including goodwill
|
1,248,553
|
|
1,220,762
|
|
Other
long-term assets
|
173,243
|
|
198,085
|
|
Total
Assets
|
$
|
1,925,909
|
|
$
|
1,880,131
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
Current
liabilities
|
$
|
187,226
|
|
$
|
230,713
|
|
Long-term
debt
|
195,000
|
|
100,000
|
|
Other
long-term liabilities
|
301,489
|
|
296,052
|
|
Redeemable
noncontrolling interests
|
199,261
|
|
212,086
|
|
Equity
excluding treasury stock
|
1,323,778
|
|
1,322,312
|
|
Treasury
stock
|
(280,845)
|
|
(281,032)
|
|
Total
Liabilities, Redeemable Noncontrolling Interests and
Equity
|
$
|
1,925,909
|
|
$
|
1,880,131
|
|
Unaudited
Changes in Long-Term Assets - By Asset Class
|
|
|
|
(in
millions)
|
Quarter
Ended
|
|
March 31,
2020
|
Dec. 31,
2019
|
March 31,
2019
|
Equity
|
|
|
|
Beginning
assets
|
$
|
89,011
|
|
$
|
80,750
|
|
$
|
72,497
|
|
Sales1
|
6,080
|
|
5,092
|
|
5,136
|
|
Redemptions1
|
(7,842)
|
|
(5,080)
|
|
(5,926)
|
|
Net sales
(redemptions)1
|
(1,762)
|
|
12
|
|
(790)
|
|
Net
exchanges
|
(37)
|
|
(12)
|
|
13
|
|
Acquisitions/(dispositions)
|
(71)
|
|
2,244
|
|
0
|
|
Impact of foreign
exchange2
|
(768)
|
|
667
|
|
(122)
|
|
Market gains and
(losses)3
|
(18,134)
|
|
5,350
|
|
8,647
|
|
Ending
assets
|
$
|
68,239
|
|
$
|
89,011
|
|
$
|
80,245
|
|
|
|
|
|
Fixed
Income
|
|
|
|
Beginning
assets
|
$
|
69,023
|
|
$
|
65,824
|
|
$
|
63,158
|
|
Sales1
|
7,687
|
|
6,010
|
|
5,416
|
|
Redemptions1
|
(9,398)
|
|
(4,603)
|
|
(6,341)
|
|
Net sales
(redemptions)1
|
(1,711)
|
|
1,407
|
|
(925)
|
|
Net
exchanges
|
(115)
|
|
6
|
|
(33)
|
|
Acquisitions/(dispositions)
|
(1)
|
|
450
|
|
0
|
|
Impact of foreign
exchange2
|
(155)
|
|
184
|
|
8
|
|
Market gains and
(losses)3
|
(2,326)
|
|
1,152
|
|
1,899
|
|
Ending
assets
|
$
|
64,715
|
|
$
|
69,023
|
|
$
|
64,107
|
|
|
|
|
|
Alternative/Private
Markets4
|
|
|
|
Beginning
assets
|
$
|
18,102
|
|
$
|
17,156
|
|
$
|
18,318
|
|
Sales1
|
888
|
|
426
|
|
313
|
|
Redemptions1
|
(582)
|
|
(486)
|
|
(858)
|
|
Net sales
(redemptions)1
|
306
|
|
(60)
|
|
(545)
|
|
Net
exchanges
|
2
|
|
(1)
|
|
(2)
|
|
Acquisitions/(dispositions)
|
452
|
|
0
|
|
0
|
|
Impact of foreign
exchange2
|
(1,121)
|
|
1,302
|
|
387
|
|
Market gains and
(losses)3
|
320
|
|
(295)
|
|
(304)
|
|
Ending
assets
|
$
|
18,061
|
|
$
|
18,102
|
|
$
|
17,854
|
|
|
|
|
|
Multi-asset
|
|
|
|
Beginning
assets
|
$
|
4,199
|
|
$
|
4,140
|
|
$
|
4,093
|
|
Sales1
|
98
|
|
85
|
|
104
|
|
Redemptions1
|
(235)
|
|
(206)
|
|
(241)
|
|
Net sales
(redemptions)1
|
(137)
|
|
(121)
|
|
(137)
|
|
Net
exchanges
|
(14)
|
|
(4)
|
|
2
|
|
Acquisitions/(dispositions)
|
0
|
|
11
|
|
0
|
|
Market gains and
(losses)3
|
(554)
|
|
173
|
|
301
|
|
Ending
assets
|
$
|
3,494
|
|
$
|
4,199
|
|
$
|
4,259
|
|
|
|
|
|
Total Long-term
Assets4
|
|
|
|
Beginning
assets
|
$
|
180,335
|
|
$
|
167,870
|
|
$
|
158,066
|
|
Sales1
|
14,753
|
|
11,613
|
|
10,969
|
|
Redemptions1
|
(18,057)
|
|
(10,375)
|
|
(13,366)
|
|
Net sales
(redemptions)1
|
(3,304)
|
|
1,238
|
|
(2,397)
|
|
Net
exchanges
|
(164)
|
|
(11)
|
|
(20)
|
|
Acquisitions/(dispositions)
|
380
|
|
2,705
|
|
0
|
|
Impact of foreign
exchange2
|
(2,044)
|
|
2,153
|
|
273
|
|
Market gains and
(losses)3
|
(20,694)
|
|
6,380
|
|
10,543
|
|
Ending
assets
|
$
|
154,509
|
|
$
|
180,335
|
|
$
|
166,465
|
|
|
|
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)
|
Ending assets
includes $8.2 billion and $8.1 billion at Dec. 31, 2019 and
March 31, 2019, respectively, of assets managed by a
previously nonconsolidated entity, Hermes GPE LLP, in which 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
that are not held by Hermes Fund Managers Limited.
|
Unaudited
Changes in Long-Term Assets - By Asset Class and Product
Type
|
(in
millions)
|
|
|
Quarter
Ended
|
|
March 31,
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
|
$
|
48,112
|
|
$
|
40,899
|
|
$
|
44,223
|
|
$
|
24,800
|
|
$
|
11,389
|
|
$
|
6,713
|
|
$
|
4,000
|
|
$
|
199
|
|
$
|
107,724
|
|
$
|
72,611
|
|
Sales
|
4,392
|
|
1,688
|
|
6,272
|
|
1,415
|
|
624
|
|
264
|
|
73
|
|
25
|
|
11,361
|
|
3,392
|
|
Redemptions
|
(4,802)
|
|
(3,040)
|
|
(8,132)
|
|
(1,266)
|
|
(441)
|
|
(141)
|
|
(229)
|
|
(6)
|
|
(13,604)
|
|
(4,453)
|
|
Net sales
(redemptions)
|
(410)
|
|
(1,352)
|
|
(1,860)
|
|
149
|
|
183
|
|
123
|
|
(156)
|
|
19
|
|
(2,243)
|
|
(1,061)
|
|
Net
exchanges
|
(31)
|
|
(6)
|
|
(115)
|
|
0
|
|
2
|
|
0
|
|
(14)
|
|
0
|
|
(158)
|
|
(6)
|
|
Acquisitions/(dispositions)
|
0
|
|
(71)
|
|
0
|
|
(1)
|
|
0
|
|
452
|
|
0
|
|
0
|
|
0
|
|
380
|
|
Impact of foreign
exchange2
|
(344)
|
|
(424)
|
|
(141)
|
|
(14)
|
|
(679)
|
|
(442)
|
|
0
|
|
0
|
|
(1,164)
|
|
(880)
|
|
Market gains and
(losses)3
|
(10,372)
|
|
(7,762)
|
|
(1,506)
|
|
(820)
|
|
470
|
|
(150)
|
|
(500)
|
|
(54)
|
|
(11,908)
|
|
(8,786)
|
|
Ending
assets
|
$
|
36,955
|
|
$
|
31,284
|
|
$
|
40,601
|
|
$
|
24,114
|
|
$
|
11,365
|
|
$
|
6,696
|
|
$
|
3,330
|
|
$
|
164
|
|
$
|
92,251
|
|
$
|
62,258
|
|
|
|
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
|
|
March 31,
2020
|
Dec. 31,
2019
|
March 31,
2019
|
Total Fund
Assets1
|
|
|
|
Beginning
assets
|
$
|
107,724
|
|
$
|
99,682
|
|
$
|
92,359
|
|
Sales
|
11,361
|
|
8,165
|
|
7,922
|
|
Redemptions
|
(13,604)
|
|
(7,296)
|
|
(8,351)
|
|
Net sales
(redemptions)
|
(2,243)
|
|
869
|
|
(429)
|
|
Net
exchanges
|
(158)
|
|
69
|
|
5
|
|
Acquisitions/(dispositions)
|
0
|
|
2,652
|
|
0
|
|
Impact of foreign
exchange2
|
(1,164)
|
|
1,364
|
|
248
|
|
Market gains and
(losses)3
|
(11,908)
|
|
3,088
|
|
6,299
|
|
Ending
assets
|
$
|
92,251
|
|
$
|
107,724
|
|
$
|
98,482
|
|
|
|
|
|
Total Separate
Account Assets4
|
|
|
|
Beginning
assets
|
$
|
72,611
|
|
$
|
68,188
|
|
$
|
65,707
|
|
Sales5
|
3,392
|
|
3,448
|
|
3,047
|
|
Redemptions5
|
(4,453)
|
|
(3,079)
|
|
(5,015)
|
|
Net sales
(redemptions)5
|
(1,061)
|
|
369
|
|
(1,968)
|
|
Net
exchanges
|
(6)
|
|
(80)
|
|
(25)
|
|
Acquisitions/(dispositions)
|
380
|
|
53
|
|
0
|
|
Impact of foreign
exchange2
|
(880)
|
|
789
|
|
25
|
|
Market gains and
(losses)3
|
(8,786)
|
|
3,292
|
|
4,244
|
|
Ending
assets
|
$
|
62,258
|
|
$
|
72,611
|
|
$
|
67,983
|
|
|
|
|
|
Total Long-term
Assets1,4
|
|
|
|
Beginning
assets
|
$
|
180,335
|
|
$
|
167,870
|
|
$
|
158,066
|
|
Sales5
|
14,753
|
|
11,613
|
|
10,969
|
|
Redemptions5
|
(18,057)
|
|
(10,375)
|
|
(13,366)
|
|
Net sales
(redemptions)5
|
(3,304)
|
|
1,238
|
|
(2,397)
|
|
Net
exchanges
|
(164)
|
|
(11)
|
|
(20)
|
|
Acquisitions/(dispositions)
|
380
|
|
2,705
|
|
0
|
|
Impact of foreign
exchange2
|
(2,044)
|
|
2,153
|
|
273
|
|
Market gains and
(losses)3
|
(20,694)
|
|
6,380
|
|
10,543
|
|
Ending
assets
|
$
|
154,509
|
|
$
|
180,335
|
|
$
|
166,465
|
|
|
|
1)
|
Includes $8.2
billion and $8.1 billion at Dec. 31, 2019 and March 31, 2019,
respectively, of assets managed by a previously nonconsolidated
entity, Hermes GPE LLP, in which 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
that are not held by Hermes Fund Managers Limited.
|
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)
|
March 31,
2020
|
Dec. 31,
2019
|
Sept. 30,
2019
|
June 30,
2019
|
March 31,
2019
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
|
68,239
|
|
$
|
89,011
|
|
$
|
80,750
|
|
$
|
81,999
|
|
$
|
80,245
|
|
Fixed-income
|
64,715
|
|
69,023
|
|
65,824
|
|
65,052
|
|
64,107
|
|
Alternative / private
markets1
|
18,061
|
|
18,102
|
|
17,156
|
|
17,917
|
|
17,854
|
|
Multi-asset
|
3,494
|
|
4,199
|
|
4,140
|
|
4,213
|
|
4,259
|
|
Total long-term
assets
|
154,509
|
|
180,335
|
|
167,870
|
|
169,181
|
|
166,465
|
|
Money
market
|
451,330
|
|
395,539
|
|
359,292
|
|
333,066
|
|
318,413
|
|
Total Managed
Assets
|
$
|
605,839
|
|
$
|
575,874
|
|
$
|
527,162
|
|
$
|
502,247
|
|
$
|
484,878
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
|
36,955
|
|
$
|
48,112
|
|
$
|
42,575
|
|
$
|
43,443
|
|
$
|
42,057
|
|
Fixed-income
|
40,601
|
|
44,223
|
|
42,329
|
|
42,084
|
|
41,189
|
|
Alternative / private
markets1
|
11,365
|
|
11,389
|
|
10,826
|
|
11,400
|
|
11,164
|
|
Multi-asset
|
3,330
|
|
4,000
|
|
3,952
|
|
4,019
|
|
4,072
|
|
Total long-term
assets
|
92,251
|
|
107,724
|
|
99,682
|
|
100,946
|
|
98,482
|
|
Money
market
|
336,133
|
|
286,612
|
|
261,215
|
|
231,321
|
|
214,764
|
|
Total Fund
Assets
|
$
|
428,384
|
|
$
|
394,336
|
|
$
|
360,897
|
|
$
|
332,267
|
|
$
|
313,246
|
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
|
31,284
|
|
$
|
40,899
|
|
$
|
38,175
|
|
$
|
38,556
|
|
$
|
38,188
|
|
Fixed-income
|
24,114
|
|
24,800
|
|
23,495
|
|
22,968
|
|
22,918
|
|
Alternative / private
markets
|
6,696
|
|
6,713
|
|
6,330
|
|
6,517
|
|
6,690
|
|
Multi-asset
|
164
|
|
199
|
|
188
|
|
194
|
|
187
|
|
Total long-term
assets
|
62,258
|
|
72,611
|
|
68,188
|
|
68,235
|
|
67,983
|
|
Money
market
|
115,197
|
|
108,927
|
|
98,077
|
|
101,745
|
|
103,649
|
|
Total Separate
Account Assets
|
$
|
177,455
|
|
$
|
181,538
|
|
$
|
166,265
|
|
$
|
169,980
|
|
$
|
171,632
|
|
Total Managed
Assets
|
$
|
605,839
|
|
$
|
575,874
|
|
$
|
527,162
|
|
$
|
502,247
|
|
$
|
484,878
|
|
|
|
1)
|
Includes $8.2
billion, $8.0 billion, $8.4 billion and $8.1 billion at Dec. 31,
2019, Sept. 30, 2019, June 30, 2019 and March 31,
2019, respectively, of assets managed by a previously
nonconsolidated entity, Hermes GPE LLP, in which 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
that are not held by Hermes Fund Managers Limited.
|
Unaudited
Average Managed Assets
|
Quarter
Ended
|
(in
millions)
|
March 31,
2020
|
Dec. 31,
2019
|
Sept. 30,
2019
|
June 30,
2019
|
March 31,
2019
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
|
82,767
|
|
$
|
84,448
|
|
$
|
82,027
|
|
$
|
80,819
|
|
$
|
77,554
|
|
Fixed-income
|
69,068
|
|
67,602
|
|
65,074
|
|
64,913
|
|
64,167
|
|
Alternative / private
markets1
|
17,983
|
|
17,838
|
|
17,407
|
|
17,772
|
|
18,311
|
|
Multi-asset
|
4,006
|
|
4,149
|
|
4,167
|
|
4,225
|
|
4,225
|
|
Total long-term
assets
|
173,824
|
|
174,037
|
|
168,675
|
|
167,729
|
|
164,257
|
|
Money
market
|
406,365
|
|
376,029
|
|
349,313
|
|
325,527
|
|
311,150
|
|
Total Avg. Managed
Assets
|
$
|
580,189
|
|
$
|
550,066
|
|
$
|
517,988
|
|
$
|
493,256
|
|
$
|
475,407
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
|
44,996
|
|
$
|
44,984
|
|
$
|
43,077
|
|
$
|
42,571
|
|
$
|
40,217
|
|
Fixed-income
|
44,017
|
|
43,304
|
|
41,958
|
|
41,652
|
|
41,095
|
|
Alternative / private
markets1
|
11,143
|
|
11,283
|
|
11,035
|
|
11,146
|
|
11,545
|
|
Multi-asset
|
3,814
|
|
3,956
|
|
3,978
|
|
4,034
|
|
4,042
|
|
Total long-term
assets
|
103,970
|
|
103,527
|
|
100,048
|
|
99,403
|
|
96,899
|
|
Money
market
|
290,641
|
|
274,116
|
|
249,846
|
|
222,282
|
|
209,260
|
|
Total Avg. Fund
Assets
|
$
|
394,611
|
|
$
|
377,643
|
|
$
|
349,894
|
|
$
|
321,685
|
|
$
|
306,159
|
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
|
37,771
|
|
$
|
39,464
|
|
$
|
38,950
|
|
$
|
38,248
|
|
$
|
37,337
|
|
Fixed-income
|
25,051
|
|
24,298
|
|
23,116
|
|
23,261
|
|
23,072
|
|
Alternative / private
markets
|
6,840
|
|
6,555
|
|
6,372
|
|
6,626
|
|
6,766
|
|
Multi-asset
|
192
|
|
193
|
|
189
|
|
191
|
|
183
|
|
Total long-term
assets
|
69,854
|
|
70,510
|
|
68,627
|
|
68,326
|
|
67,358
|
|
Money
market
|
115,724
|
|
101,913
|
|
99,467
|
|
103,245
|
|
101,890
|
|
Total Avg.
Separate Account Assets
|
$
|
185,578
|
|
$
|
172,423
|
|
$
|
168,094
|
|
$
|
171,571
|
|
$
|
169,248
|
|
Total Avg. Managed
Assets
|
$
|
580,189
|
|
$
|
550,066
|
|
$
|
517,988
|
|
$
|
493,256
|
|
$
|
475,407
|
|
|
|
1)
|
The average
balance includes $8.3 billion, $8.1 billion, $8.1 billion and $8.4
billion for the quarters ended Dec. 31, 2019, Sept. 30, 2019,
June 30, 2019 and March 31, 2019 respectively, of assets
managed by a previously nonconsolidated entity, Hermes GPE LLP, in
which 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 that are not held by Hermes Fund Managers
Limited.
|
View original
content:http://www.prnewswire.com/news-releases/federated-hermes-inc-reports-first-quarter-2020-earnings-301050574.html
SOURCE Federated Hermes, Inc.