PITTSBURGH, April 29, 2021 /PRNewswire/ -- Federated Hermes,
Inc. (NYSE: FHI), a global leader in active, responsible investing,
today reported earnings per diluted share (EPS) of $0.75 for Q1 2021, compared to $0.63 for the same quarter last year, on net
income of $74.5 million for Q1 2021,
compared to $64.2 million for Q1
2020.
Federated Hermes' total managed assets were $625.0 billion at March 31, 2021, up
$19.2 billion or 3% from $605.8 billion at March 31, 2020 and up
$5.6 billion or 1% from $619.4 billion at Dec. 31, 2020. Total
average managed assets for Q1 2021 were $618.1 billion, up $37.9
billion or 7% from $580.2
billion reported for Q1 2020 and up $7.6 billion or 1% from $610.5 billion reported for Q4 2020.
"Strong investment performance and client interest in a range of
our actively managed strategies distributed in key regions around
the world generated net positive fund sales in Q1 2021 and helped
Federated Hermes reach a record $96.2
billion in equity assets under management," said J.
Christopher Donahue, president and
chief executive officer. "Fixed-income assets under management were
a record $86.5 billion at the end of
the first quarter, and we experienced net sales across a range of
investment objectives—from short duration to short-intermediate to
high-yield strategies."
Federated Hermes' board of directors declared a dividend of
$0.27 per share. The dividend is
payable on May 14, 2021 to shareholders of record as of
May 7, 2021. During Q1 2021, Federated Hermes purchased
1,505,000 shares of Federated Hermes class B common stock
for $45.0 million. The company's board of directors also
authorized a new share repurchase program, which is the firm's 13th
repurchase program and which allows Federated Hermes to repurchase
up to 4 million additional shares of 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 3.5 million share repurchase program, approved
in April 2020, has effectively been
completed.
Equity assets were a record $96.2
billion at March 31, 2021, up $28.0 billion or 41% from $68.2 billion at March 31, 2020 and up
$4.4 billion or 5% from $91.8 billion at Dec. 31, 2020.
Top-selling equity funds during Q1 2021 on a net basis were
Federated Hermes Global Emerging Markets Equity Fund, Federated
Hermes Global Equity ESG Fund, Federated Hermes SDG Engagement
Equity Fund (UCITS), Federated Hermes Asia ex-Japan Equity Fund and
Federated Hermes Impact Opportunities Equity Fund.
Fixed-income assets were a record $86.5
billion at March 31, 2021, up $21.8 billion or 34% from $64.7 billion at March 31, 2020 and up
$2.2 billion or 3% from $84.3 billion at Dec. 31, 2020.
Top-selling fixed-income funds during Q1 2021 on a net basis were
Federated Hermes Ultrashort Bond Fund, Federated Hermes SDG
Engagement High Yield Credit Fund (UCITS), Federated Hermes Total
Return Bond Fund, Federated Hermes Short-Intermediate Total Return
Bond Fund and Federated Hermes Short-Intermediate Municipal
Fund.
Alternative/private market assets were a record $19.3 billion at March 31, 2021, up
$1.2 billion or 7% from $18.1 billion at March 31, 2020 and up
$0.2 billion or 1% from $19.1 billion at Dec. 31, 2020.
Money market assets were $419.1
billion at March 31, 2021, down $32.2 billion or 7% from $451.3 billion at March 31, 2020 and
down $1.2 billion or less than 1%
from $420.3 billion at
Dec. 31, 2020. Money market fund assets were $297.2 billion at March 31, 2021, down
$38.9 billion or 12% from
$336.1 billion at
March 31, 2020 and down $4.7
billion or 2% from $301.9
billion at Dec. 31, 2020.
Financial Summary
Q1 2021 vs. Q1 2020
Revenue decreased $18.0 million or
5% percent primarily due to an increase in 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). For further information, see "Impact of voluntary
yield-related fee waivers" below. This decrease was partially
offset by an increase in revenue due to higher average equity and
fixed-income assets and an increase in revenue from
alternative/private markets assets primarily related to revenue of
a previously nonconsolidated entity being recorded in operating
revenue beginning March 2020.
During Q1 2021, Federated Hermes derived 75% of its revenue from
long-term assets (49% from equity, 16% from fixed-income and 10%
from alternative/private markets and multi-asset), 24% from money
market assets, and 1% from sources other than managed
assets.
Operating expenses decreased $22.7
million or 9% primarily due to decreased distribution
expenses predominantly resulting from higher voluntary
yield-related fee waivers, partially offset by increases in
compensation expense.
Nonoperating income (expenses), net increased $8.9 million or 127% primarily due to an increase
in the market value of investments since the negative impact of the
pandemic on the markets in Q1 2020. This increase was partially
offset by a gain recorded in March
2020 from a fair value adjustment to the equity investment
of a previously nonconsolidated entity.
Q1 2021 vs. Q4 2020
Revenue decreased $22.7 million or
6% primarily due to an increase in voluntary yield-related fee
waivers, two fewer days in Q1 2021 and a decrease in revenue from
lower average money market assets. These decreases were partially
offset by an increase in revenue due to higher average equity and
fixed-income assets.
Operating expenses decreased $5.4
million or 2% primarily due to decreased distribution
expenses predominantly resulting from higher voluntary
yield-related fee waivers.
Nonoperating income (expenses), net decreased $12.8 million or 87% primarily due to the
increase in the market value of investments in Q1 2021 being less
than the increase in Q4 2020.
Impact of voluntary yield-related fee waivers
During the three months ended March 31, 2021,
voluntary yield-related fee waivers totaled $83.1 million. These fee waivers were largely
offset by related reductions in distribution expenses of
$61.4 million, such that the net
negative pre-tax impact to Federated Hermes was $21.7 million.
Short-term interest rates reached historical lows during Q1 2021
as technical factors at the front end of the yield curve drove
yields on short-term government securities – including repurchase
agreements and Treasury bills – to near zero in mid- to late
February, which is where they remain currently.
As a result, the negative impact on pre-tax income from minimum
yield waivers on money market mutual funds and certain separate
accounts may range from $35 million
to $45 million during Q2 2021. This
range is based on gross yields on government money market
portfolios of 3 to 10 basis points. Federated Hermes projects that
the negative impact from minimum yield waivers for 2021 will peak
in Q2. The amount of minimum yield waivers can vary based on a
number of factors, including, among others, interest rates, yields,
asset levels, asset flows and the ability of distributors to share
in waivers. Any change in these factors can impact the amount and
impact of minimum yield waivers, including in a material way.
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 April 30,
2021. 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
April 30, 2021. To access the telephone replay, dial
877-481-4010 (domestic) or 919-882-2331 (international) and enter
access code 40761. The online replay will be available via
FederatedHermes.com for one year.
Federated Hermes, Inc. is a leading global investment manager
with $625.0 billion in assets under
management as of March 31, 2021. Guided by our conviction
that responsible investing is the best way to create wealth over
the long term, our investment solutions span equity, fixed-income,
alternative/private markets, multi-asset and liquidity management
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' nearly 2,000
employees include those in London,
New York, Boston and offices worldwide. For more
information, visit FederatedHermes.com.
Federated Hermes ranks in the top 7% of equity fund managers in
the industry, the top 9% of money market fund managers and the top
10% of fixed-income fund managers1. Federated Hermes
also ranks as the 9th-largest manager of model-delivered
SMAs2. For more information, including an analyst
presentation, visit FederatedHermes.com.
###
1) ISS Market Intelligence (SIMFUND),
March 31, 2021. Based on assets under management in
open-end funds.
2) Money Management Institute/Cerulli,
Q4 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 advisor in one or more of the U.S.,
U.K. or Ireland.
Certain statements in this press release, such as those related
to performance, investor preferences and demand, asset flows, asset
mix, interest rates, gross yields and fee waivers constitute or may
constitute forward-looking statements, which involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, levels of activity, performance or achievements of
the company, or industry results, to be materially different from
any future results, levels of activity, performance or achievements
expressed or implied by such forward-looking statements. 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, and 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, or updating, of such statements in the future.
Unaudited
Condensed Consolidated Statements of Income
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
Quarter
Ended
|
% Change
Q1 2020 to
Q1 2021
|
|
Quarter
Ended
|
% Change
Q4 2020 to
Q1 2021
|
|
March 31, 2021
|
March 31, 2020
|
|
Dec. 31, 2020
|
Revenue
|
|
|
|
|
|
|
Investment advisory
fees, net
|
$
|
247,689
|
|
$
|
240,660
|
|
3
|
%
|
|
$
|
265,593
|
|
(7)
|
%
|
Administrative service
fees, net—affiliates
|
74,302
|
|
72,199
|
|
3
|
|
|
79,192
|
|
(6)
|
|
Other service fees,
net
|
19,182
|
|
46,324
|
|
(59)
|
|
|
19,133
|
|
0
|
|
Total
Revenue
|
341,173
|
|
359,183
|
|
(5)
|
|
|
363,918
|
|
(6)
|
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and
related
|
143,620
|
|
115,335
|
|
25
|
|
|
138,296
|
|
4
|
|
Distribution
|
44,389
|
|
96,160
|
|
(54)
|
|
|
59,419
|
|
(25)
|
|
Systems and
communications
|
18,594
|
|
14,896
|
|
25
|
|
|
18,518
|
|
0
|
|
Professional service
fees
|
14,636
|
|
13,268
|
|
10
|
|
|
13,961
|
|
5
|
|
Office and
occupancy
|
11,240
|
|
11,771
|
|
(5)
|
|
|
6,436
|
|
75
|
|
Advertising and
promotional
|
2,824
|
|
4,995
|
|
(43)
|
|
|
4,853
|
|
(42)
|
|
Travel and
related
|
296
|
|
3,159
|
|
(91)
|
|
|
540
|
|
(45)
|
|
Other
|
8,096
|
|
6,855
|
|
18
|
|
|
7,120
|
|
14
|
|
Total Operating
Expenses
|
243,695
|
|
266,439
|
|
(9)
|
|
|
249,143
|
|
(2)
|
|
Operating
Income
|
97,478
|
|
92,744
|
|
5
|
|
|
114,775
|
|
(15)
|
|
|
|
|
|
|
|
|
Nonoperating
Income (Expenses)
|
|
|
|
|
|
|
Investment income
(loss), net
|
2,011
|
|
(14,451)
|
|
114
|
|
|
15,175
|
|
(87)
|
|
Debt
expense
|
(491)
|
|
(931)
|
|
(47)
|
|
|
(468)
|
|
5
|
|
Other, net
|
345
|
|
8,345
|
|
(96)
|
|
|
(27)
|
|
NM
|
|
Total Nonoperating
Income (Expenses), net
|
1,865
|
|
(7,037)
|
|
127
|
|
|
14,680
|
|
(87)
|
|
Income before income
taxes
|
99,343
|
|
85,707
|
|
16
|
|
|
129,455
|
|
(23)
|
|
Income tax
provision
|
24,997
|
|
22,442
|
|
11
|
|
|
28,183
|
|
(11)
|
|
Net income including
the noncontrolling interests in
subsidiaries
|
74,346
|
|
63,265
|
|
18
|
|
|
101,272
|
|
(27)
|
|
Less: Net income
(loss) attributable to the
noncontrolling interests in subsidiaries
|
(138)
|
|
(913)
|
|
85
|
|
|
6,104
|
|
(102)
|
|
Net Income
|
$
|
74,484
|
|
$
|
64,178
|
|
16
|
%
|
|
$
|
95,168
|
|
(22)
|
%
|
|
|
|
|
|
|
|
Amounts
Attributable to Federated Hermes, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic
|
$
|
0.75
|
|
$
|
0.63
|
|
19
|
%
|
|
$
|
0.94
|
|
(20)
|
%
|
Diluted
|
$
|
0.75
|
|
$
|
0.63
|
|
19
|
%
|
|
$
|
0.93
|
|
(19)
|
%
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
Basic and
Diluted
|
95,218
|
|
97,345
|
|
|
|
95,504
|
|
|
Dividends Declared
Per Share
|
$
|
0.27
|
|
$
|
0.27
|
|
|
|
$
|
1.27
|
|
|
|
|
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 $3.0 million, $2.4 million
and $5.0 million available to unvested restricted Federated Hermes
shareholders for the quarterly periods ended
March 31, 2021, March 31, 2020 and
Dec. 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 Balance Sheets
|
|
|
(in
thousands)
|
March 31, 2021
|
Dec. 31,
2020
|
Assets
|
|
|
Cash and other
investments
|
$
|
382,695
|
|
$
|
438,771
|
|
Other current
assets
|
137,617
|
|
136,572
|
|
Intangible
assets, net, including goodwill
|
1,283,036
|
|
1,282,020
|
|
Other long-term
assets
|
206,605
|
|
203,476
|
|
Total
Assets
|
$
|
2,009,953
|
|
$
|
2,060,839
|
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
Current
liabilities
|
$
|
199,300
|
|
$
|
265,446
|
|
Long-term
debt
|
70,000
|
|
75,000
|
|
Other long-term
liabilities
|
339,814
|
|
346,409
|
|
Redeemable
noncontrolling interests
|
245,717
|
|
236,987
|
|
Equity
excluding treasury stock
|
1,509,634
|
|
1,461,728
|
|
Treasury
stock
|
(354,512)
|
|
(324,731)
|
|
Total
Liabilities, Redeemable Noncontrolling Interests and
Equity
|
$
|
2,009,953
|
|
$
|
2,060,839
|
|
Unaudited
Changes in Long-Term Assets - By Asset Class
|
|
(in
millions)
|
Quarter
Ended
|
|
|
March 31, 2021
|
Dec. 31, 2020
|
March 31, 2020
|
|
Equity
|
|
|
|
|
Beginning
assets
|
$
|
91,788
|
|
$
|
80,405
|
|
$
|
89,011
|
|
|
Sales1
|
7,760
|
|
5,618
|
|
6,080
|
|
|
Redemptions1
|
(7,164)
|
|
(6,047)
|
|
(7,842)
|
|
|
Net sales
(redemptions)1
|
596
|
|
(429)
|
|
(1,762)
|
|
|
Net
exchanges
|
32
|
|
(8)
|
|
(37)
|
|
|
Acquisitions/(dispositions)
|
0
|
|
0
|
|
(71)
|
|
|
Impact of foreign
exchange2
|
(595)
|
|
946
|
|
(768)
|
|
|
Market gains and
(losses)3
|
4,349
|
|
10,874
|
|
(18,134)
|
|
|
Ending
assets
|
$
|
96,170
|
|
$
|
91,788
|
|
$
|
68,239
|
|
|
|
|
|
|
|
Fixed
Income
|
|
|
|
|
Beginning
assets
|
$
|
84,277
|
|
$
|
79,546
|
|
$
|
69,023
|
|
|
Sales1
|
11,187
|
|
9,046
|
|
7,687
|
|
|
Redemptions1
|
(8,284)
|
|
(6,046)
|
|
(9,788)
|
|
|
Net sales
(redemptions)1
|
2,903
|
|
3,000
|
|
(2,101)
|
|
|
Net
exchanges
|
(44)
|
|
(10)
|
|
(115)
|
|
|
Acquisitions/(dispositions)
|
0
|
|
0
|
|
(1)
|
|
|
Impact of foreign
exchange2
|
(60)
|
|
181
|
|
(155)
|
|
|
Market gains and
(losses)3
|
(612)
|
|
1,560
|
|
(1,936)
|
|
|
Ending
assets
|
$
|
86,464
|
|
$
|
84,277
|
|
$
|
64,715
|
|
|
|
|
|
|
|
Alternative/Private Markets
|
|
|
|
|
Beginning
assets
|
$
|
19,084
|
|
$
|
18,146
|
|
$
|
18,102
|
|
|
Sales1
|
478
|
|
574
|
|
888
|
|
|
Redemptions1
|
(631)
|
|
(661)
|
|
(582)
|
|
|
Net sales
(redemptions)1
|
(153)
|
|
(87)
|
|
306
|
|
|
Net
exchanges
|
(1)
|
|
(3)
|
|
2
|
|
|
Acquisitions/(dispositions)
|
0
|
|
0
|
|
452
|
|
|
Impact of foreign
exchange2
|
139
|
|
1,061
|
|
(1,121)
|
|
|
Market gains and
(losses)3
|
232
|
|
(33)
|
|
320
|
|
|
Ending
assets
|
$
|
19,301
|
|
$
|
19,084
|
|
$
|
18,061
|
|
|
|
|
|
|
|
Multi-asset
|
|
|
|
|
Beginning
assets
|
$
|
3,948
|
|
$
|
3,737
|
|
$
|
4,199
|
|
|
Sales1
|
67
|
|
50
|
|
98
|
|
|
Redemptions1
|
(170)
|
|
(166)
|
|
(235)
|
|
|
Net sales
(redemptions)1
|
(103)
|
|
(116)
|
|
(137)
|
|
|
Net
exchanges
|
5
|
|
3
|
|
(14)
|
|
|
Impact of foreign
exchange2
|
(1)
|
|
0
|
|
0
|
|
|
Market gains and
(losses)3
|
132
|
|
324
|
|
(554)
|
|
|
Ending
assets
|
$
|
3,981
|
|
$
|
3,948
|
|
$
|
3,494
|
|
|
|
|
|
|
|
Total Long-term
Assets
|
|
|
|
|
Beginning
assets
|
$
|
199,097
|
|
$
|
181,834
|
|
$
|
180,335
|
|
|
Sales1
|
19,492
|
|
15,288
|
|
14,753
|
|
|
Redemptions1
|
(16,249)
|
|
(12,920)
|
|
(18,447)
|
|
|
Net sales
(redemptions)1
|
3,243
|
|
2,368
|
|
(3,694)
|
|
|
Net
exchanges
|
(8)
|
|
(18)
|
|
(164)
|
|
|
Acquisitions/(dispositions)
|
0
|
|
0
|
|
380
|
|
|
Impact of foreign
exchange2
|
(517)
|
|
2,188
|
|
(2,044)
|
|
|
Market gains and
(losses)3
|
4,101
|
|
12,725
|
|
(20,304)
|
|
|
Ending
assets
|
$
|
205,916
|
|
$
|
199,097
|
|
$
|
154,509
|
|
|
|
|
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.
|
Unaudited
Changes in Long-Term Assets - By Asset Class and Product
Type
|
(in millions)
|
|
|
Quarter
Ended
|
|
March 31, 2021
|
|
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
|
$
|
54,312
|
|
$
|
37,476
|
|
$
|
53,557
|
|
$
|
30,720
|
|
$
|
12,100
|
|
$
|
6,984
|
|
$
|
3,744
|
|
$
|
204
|
|
$
|
123,713
|
|
$
|
75,384
|
|
Sales
|
5,649
|
|
2,111
|
|
9,235
|
|
1,952
|
|
304
|
|
174
|
|
65
|
|
2
|
|
15,253
|
|
4,239
|
|
Redemptions
|
(4,441)
|
|
(2,723)
|
|
(6,732)
|
|
(1,552)
|
|
(461)
|
|
(170)
|
|
(141)
|
|
(29)
|
|
(11,775)
|
|
(4,474)
|
|
Net sales
(redemptions)
|
1,208
|
|
(612)
|
|
2,503
|
|
400
|
|
(157)
|
|
4
|
|
(76)
|
|
(27)
|
|
3,478
|
|
(235)
|
|
Net
exchanges
|
(372)
|
|
404
|
|
(44)
|
|
0
|
|
(1)
|
|
0
|
|
5
|
|
0
|
|
(412)
|
|
404
|
|
Impact of foreign
exchange2
|
(261)
|
|
(334)
|
|
(38)
|
|
(22)
|
|
82
|
|
57
|
|
0
|
|
(1)
|
|
(217)
|
|
(300)
|
|
Market gains and
(losses)3
|
1,880
|
|
2,469
|
|
(397)
|
|
(215)
|
|
207
|
|
25
|
|
124
|
|
8
|
|
1,814
|
|
2,287
|
|
Ending
assets
|
$
|
56,767
|
|
$
|
39,403
|
|
$
|
55,581
|
|
$
|
30,883
|
|
$
|
12,231
|
|
$
|
7,070
|
|
$
|
3,797
|
|
$
|
184
|
|
$
|
128,376
|
|
$
|
77,540
|
|
|
|
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
|
|
|
March 31, 2021
|
Dec. 31, 2020
|
March 31, 2020
|
|
Total Fund
Assets
|
|
|
|
|
Beginning
assets
|
$
|
123,713
|
|
$
|
110,811
|
|
$
|
107,724
|
|
|
Sales
|
15,253
|
|
12,204
|
|
11,361
|
|
|
Redemptions
|
(11,775)
|
|
(9,020)
|
|
(13,604)
|
|
|
Net sales
(redemptions)
|
3,478
|
|
3,184
|
|
(2,243)
|
|
|
Net
exchanges
|
(412)
|
|
(18)
|
|
(158)
|
|
|
Impact of foreign
exchange1
|
(217)
|
|
1,258
|
|
(1,164)
|
|
|
Market gains and
(losses)2
|
1,814
|
|
8,478
|
|
(11,908)
|
|
|
Ending
assets
|
$
|
128,376
|
|
$
|
123,713
|
|
$
|
92,251
|
|
|
|
|
|
|
|
Total Separate
Account Assets3
|
|
|
|
|
Beginning
assets
|
$
|
75,384
|
|
$
|
71,023
|
|
$
|
72,611
|
|
|
Sales4
|
4,239
|
|
3,084
|
|
3,392
|
|
|
Redemptions4
|
(4,474)
|
|
(3,900)
|
|
(4,843)
|
|
|
Net sales
(redemptions)4
|
(235)
|
|
(816)
|
|
(1,451)
|
|
|
Net
exchanges
|
404
|
|
0
|
|
(6)
|
|
|
Acquisitions/(dispositions)
|
0
|
|
0
|
|
380
|
|
|
Impact of foreign
exchange1
|
(300)
|
|
930
|
|
(880)
|
|
|
Market gains and
(losses)2
|
2,287
|
|
4,247
|
|
(8,396)
|
|
|
Ending
assets
|
$
|
77,540
|
|
$
|
75,384
|
|
$
|
62,258
|
|
|
|
|
|
|
|
Total Long-term
Assets3
|
|
|
|
|
Beginning
assets
|
$
|
199,097
|
|
$
|
181,834
|
|
$
|
180,335
|
|
|
Sales4
|
19,492
|
|
15,288
|
|
14,753
|
|
|
Redemptions4
|
(16,249)
|
|
(12,920)
|
|
(18,447)
|
|
|
Net sales
(redemptions)4
|
3,243
|
|
2,368
|
|
(3,694)
|
|
|
Net
exchanges
|
(8)
|
|
(18)
|
|
(164)
|
|
|
Acquisitions/(dispositions)
|
0
|
|
0
|
|
380
|
|
|
Impact of foreign
exchange1
|
(517)
|
|
2,188
|
|
(2,044)
|
|
|
Market gains and
(losses)2
|
4,101
|
|
12,725
|
|
(20,304)
|
|
|
Ending
assets
|
$
|
205,916
|
|
$
|
199,097
|
|
$
|
154,509
|
|
|
|
|
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)
|
March 31, 2021
|
Dec. 31, 2020
|
Sept. 30, 2020
|
June 30, 2020
|
March 31, 2020
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
|
96,170
|
|
$
|
91,788
|
|
$
|
80,405
|
|
$
|
76,859
|
|
$
|
68,239
|
|
Fixed-income
|
86,464
|
|
84,277
|
|
79,546
|
|
73,143
|
|
64,715
|
|
Alternative / private
markets
|
19,301
|
|
19,084
|
|
18,146
|
|
17,485
|
|
18,061
|
|
Multi-asset
|
3,981
|
|
3,948
|
|
3,737
|
|
3,705
|
|
3,494
|
|
Total long-term
assets
|
205,916
|
|
199,097
|
|
181,834
|
|
171,192
|
|
154,509
|
|
Money
market
|
419,080
|
|
420,333
|
|
432,952
|
|
457,624
|
|
451,330
|
|
Total Managed
Assets
|
$
|
624,996
|
|
$
|
619,430
|
|
$
|
614,786
|
|
$
|
628,816
|
|
$
|
605,839
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
|
56,767
|
|
$
|
54,312
|
|
$
|
46,093
|
|
$
|
43,723
|
|
$
|
36,955
|
|
Fixed-income
|
55,581
|
|
53,557
|
|
49,779
|
|
46,046
|
|
40,601
|
|
Alternative / private
markets
|
12,231
|
|
12,100
|
|
11,393
|
|
11,037
|
|
11,365
|
|
Multi-asset
|
3,797
|
|
3,744
|
|
3,546
|
|
3,516
|
|
3,330
|
|
Total long-term
assets
|
128,376
|
|
123,713
|
|
110,811
|
|
104,322
|
|
92,251
|
|
Money
market
|
297,182
|
|
301,855
|
|
325,940
|
|
344,846
|
|
336,133
|
|
Total Fund
Assets
|
$
|
425,558
|
|
$
|
425,568
|
|
$
|
436,751
|
|
$
|
449,168
|
|
$
|
428,384
|
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
|
39,403
|
|
$
|
37,476
|
|
$
|
34,312
|
|
$
|
33,136
|
|
$
|
31,284
|
|
Fixed-income
|
30,883
|
|
30,720
|
|
29,767
|
|
27,097
|
|
24,114
|
|
Alternative / private
markets
|
7,070
|
|
6,984
|
|
6,753
|
|
6,448
|
|
6,696
|
|
Multi-asset
|
184
|
|
204
|
|
191
|
|
189
|
|
164
|
|
Total long-term
assets
|
77,540
|
|
75,384
|
|
71,023
|
|
66,870
|
|
62,258
|
|
Money
market
|
121,898
|
|
118,478
|
|
107,012
|
|
112,778
|
|
115,197
|
|
Total Separate
Account Assets
|
$
|
199,438
|
|
$
|
193,862
|
|
$
|
178,035
|
|
$
|
179,648
|
|
$
|
177,455
|
|
Total Managed
Assets
|
$
|
624,996
|
|
$
|
619,430
|
|
$
|
614,786
|
|
$
|
628,816
|
|
$
|
605,839
|
|
Unaudited
Average Managed Assets
|
Quarter
Ended
|
(in
millions)
|
March 31, 2021
|
Dec. 31, 2020
|
Sept. 30, 2020
|
June 30, 2020
|
March 31, 2020
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
|
95,167
|
|
$
|
85,572
|
|
$
|
80,403
|
|
$
|
73,620
|
|
$
|
82,767
|
|
Fixed-income
|
86,939
|
|
82,144
|
|
76,798
|
|
69,603
|
|
69,068
|
|
Alternative / private
markets1
|
19,278
|
|
18,549
|
|
18,270
|
|
18,022
|
|
17,983
|
|
Multi-asset
|
3,974
|
|
3,831
|
|
3,786
|
|
3,630
|
|
4,006
|
|
Total long-term
assets
|
205,358
|
|
190,096
|
|
179,257
|
|
164,875
|
|
173,824
|
|
Money
market
|
412,720
|
|
420,436
|
|
448,795
|
|
471,984
|
|
406,365
|
|
Total Avg. Managed
Assets
|
$
|
618,078
|
|
$
|
610,532
|
|
$
|
628,052
|
|
$
|
636,859
|
|
$
|
580,189
|
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
|
56,832
|
|
$
|
50,022
|
|
$
|
46,020
|
|
$
|
41,301
|
|
$
|
44,996
|
|
Fixed-income
|
55,416
|
|
51,934
|
|
48,418
|
|
43,229
|
|
44,017
|
|
Alternative / private
markets1
|
12,239
|
|
11,670
|
|
11,539
|
|
11,345
|
|
11,143
|
|
Multi-asset
|
3,783
|
|
3,634
|
|
3,590
|
|
3,453
|
|
3,814
|
|
Total long-term
assets
|
128,270
|
|
117,260
|
|
109,567
|
|
99,328
|
|
103,970
|
|
Money
market
|
288,403
|
|
311,769
|
|
338,814
|
|
356,736
|
|
290,641
|
|
Total Avg. Fund
Assets
|
$
|
416,673
|
|
$
|
429,029
|
|
$
|
448,381
|
|
$
|
456,064
|
|
$
|
394,611
|
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
|
38,335
|
|
$
|
35,550
|
|
$
|
34,383
|
|
$
|
32,319
|
|
$
|
37,771
|
|
Fixed-income
|
31,523
|
|
30,210
|
|
28,380
|
|
26,374
|
|
25,051
|
|
Alternative / private
markets
|
7,039
|
|
6,879
|
|
6,731
|
|
6,677
|
|
6,840
|
|
Multi-asset
|
191
|
|
197
|
|
196
|
|
177
|
|
192
|
|
Total long-term
assets
|
77,088
|
|
72,836
|
|
69,690
|
|
65,547
|
|
69,854
|
|
Money
market
|
124,317
|
|
108,667
|
|
109,981
|
|
115,248
|
|
115,724
|
|
Total Avg. Separate
Account Assets
|
$
|
201,405
|
|
$
|
181,503
|
|
$
|
179,671
|
|
$
|
180,795
|
|
$
|
185,578
|
|
Total Avg. Managed
Assets
|
$
|
618,078
|
|
$
|
610,532
|
|
$
|
628,052
|
|
$
|
636,859
|
|
$
|
580,189
|
|
|
|
1)
|
The average
balance for the quarter ended March 31, 2020 includes $8.0 billion
of assets managed by a previously non-consolidated entity, Hermes
GPE LLP (HGPE), in which Federated Hermes held an equity method
investment. Effective March 1, 2020, HGPE became a
consolidated subsidiary.
|
View original
content:http://www.prnewswire.com/news-releases/federated-hermes-inc-reports-first-quarter-2021-earnings-301280704.html
SOURCE Federated Hermes, Inc.