- Q4 2022 earnings per diluted share of $0.63; full-year 2022 EPS of $2.65, each including a ($0.27) per diluted share non-cash intangible
asset impairment charge
- Total assets under management at record $668.9 billion
- Board declares $0.27 per share
quarterly dividend
PITTSBURGH, Jan. 26,
2023 /PRNewswire/ -- Federated Hermes, Inc. (NYSE:
FHI), a global leader in active, responsible investing, today
reported earnings per diluted share (EPS) for Q4 2022 of
$0.63, compared to $0.71 for the same quarter last year, on net
income of $56.5 million for Q4 2022,
compared to $68.6 million for Q4
2021. Full-year 2022 EPS was $2.65,
compared to $2.75 for 2021 on net
income of $239.5 million for 2022,
compared to $270.3 million for 2021.
Federated Hermes' results include a $31.5
million non-cash expense, or ($0.27) per diluted share, related to the
impairment of an intangible asset associated with the 2018
acquisition of Hermes Fund Managers Limited.
Federated Hermes' total managed assets were a record
$668.9 billion at Dec. 31, 2022, up $28
million from $668.9 billion at
Dec. 31, 2021 and up $44.5
billion or 7% from $624.4
billion at Sept. 30, 2022. Average managed assets for
Q4 2022 were $633.6 billion, down
$6.8 billion or 1% from $640.4 billion reported for Q4 2021 and up
$1.8 billion from $631.8 billion reported for Q3 2022.
"Federated Hermes' record assets at year-end 2022 were driven by
money market asset increases and investor interest in our flagship
Total Return Bond Fund and related separate accounts, as well as
continued demand for our popular dividend income equity
products," said J. Christopher
Donahue, president and chief executive officer. "In
addition, investors valued our investment perspective as they
sought haven from market volatility in a diverse range of Federated
Hermes products—from money market funds to low-duration
fixed-income options to market neutral and bear market alternative
strategies."
Federated Hermes' board of directors declared a quarterly
dividend of $0.27 per share. The
dividend is payable on Feb. 15, 2023
to shareholders of record as of Feb. 8,
2023. During Q4 2022, Federated Hermes purchased 327,132
shares of Federated Hermes class B common stock for $8.4 million, bringing the total shares of Class
B common stock purchased in 2022 to 6,456,625 shares for
$207.4 million.
Federated Hermes' equity assets were $81.5 billion at Dec. 31,
2022, down $15.2 billion or
16% from $96.7 billion at
Dec. 31, 2021 and up $6.8
billion or 9% from $74.7
billion at Sept. 30, 2022. Top-selling equity funds on
a net basis during Q4 2022 were Federated Hermes Strategic
Value Dividend Fund, Federated Hermes Asia Ex-Japan Fund, Federated
Hermes International Strategic Value Dividend Fund, Federated
Hermes MDT Large Cap Growth Fund and Federated Hermes SDG
Engagement Equity Fund.
Federated Hermes' fixed-income assets were $86.7 billion at Dec.
31, 2022, down $10.9
billion or 11% from $97.6
billion at Dec. 31, 2021 and up $1.3 billion from $85.4
billion at Sept. 30, 2022. Top-selling fixed-income
funds on a net basis during Q4 2022 were Federated Hermes Total
Return Bond Fund, Federated Hermes Conservative Municipal
Microshort Fund, Federated Hermes Institutional High Yield Bond
Fund, Federated Hermes Conservative Microshort Fund and Federated
Hermes Intermediate Corporate Bond Fund.
Federated Hermes' alternative/private markets assets were
$20.8 billion at Dec. 31, 2022, down $2.1
billion or 9% from $22.9
billion at Dec. 31, 2021 and up $0.6 billion or 3% from $20.2 billion at Sept. 30, 2022.
Federated Hermes' money market assets were a record $476.8 billion at Dec.
31, 2022, up $28.9
billion or 6% from $447.9
billion at Dec. 31, 2021 and up $35.5 billion or 8% from $441.3 billion at Sept. 30, 2022. Money
market mutual fund assets were $335.9
billion at Dec. 31, 2022, up
$23.1 billion or 7% from $312.8 billion at Dec. 31, 2021 and up
$26.0 billion or 8% from $309.9 billion at Sept. 30, 2022. Federated
Hermes' money market separate account assets were $140.9 billion at Dec. 31,
2022, up $5.8 billion or 4%
from $135.1 billion at Dec. 31,
2021 and up $9.5 billion or 7% from
$131.4 billion at Sept. 30,
2022.
Financial Summary
Q4 2022 non-cash intangible asset impairment
charge
Federated Hermes' Q4 2022 results include a $31.5 million non-cash expense, or ($0.27) per diluted share, related to the
impairment of an intangible asset associated with the 2018
acquisition of Hermes Fund Managers Limited, which was driven by
changes in projected cash flows and a higher discount rate as
compared to the prior quarter.
Q4 2022 vs. Q4 2021
Revenue increased $52.3 million or
16% primarily due to a decrease 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 on the waivers, see "Impact of
voluntary yield-related fee waivers" below. This increase was
partially offset by a decrease in revenue due to lower average
long-term assets.
During Q4 2022, Federated Hermes derived 53% of its revenue from
long-term assets (33% from equity assets, 13% from fixed-income
assets and 7% from alternative/private markets and multi-asset),
46% from money market assets, and 1% from sources other than
managed assets.
Operating expenses increased $77.1
million or 33% primarily due to increased distribution
expenses resulting mainly from lower voluntary yield-related fee
waivers partially offset by a decrease due to lower average managed
long-term fund assets and the mix of average money market fund
assets. Additionally, other expenses increased due to the
intangible asset impairment.
Nonoperating income (expenses), net increased $8.4 million primarily due to a larger increase
in the market value of investments in Q4 2022 compared to Q4 2021,
partially offset by an increase in debt expense in Q4 2022 compared
to Q4 2021.
Q4 2022 vs. Q3 2022
Revenue decreased $7.2 million
or 2% primarily due to a decrease in revenue from lower
average equity assets and a change in the mix of average
fixed-income assets. These decreases were partially offset by an
increase in revenue from higher average money market assets.
Operating expenses increased by $25.8
million or 9% primarily due to an increase in other expenses
due to the intangible asset impairment.
Nonoperating income (expenses), net increased $19.0 million primarily due to an increase in the
market value of investments in Q4 2022 compared to the decrease in
the market value of investments in Q3 2022.
2022 vs. 2021
Revenue increased $145.4
million or 11% primarily due to a decrease in voluntary
yield-related fee waivers. This increase was partially offset by a
decrease in revenue due to lower average equity assets, a decrease
in revenue due to a change in the mix of average fixed-income
assets, and a decrease in performance fees and carried
interest.
During 2022, Federated Hermes derived 59% of its revenue from
long-term assets (36% from equity assets, 14% from fixed-income
assets and 9% from alternative/private markets and multi-asset),
40% from money market assets, and 1% from sources other than
managed assets.
Operating expenses increased by $174.8 million or 19% primarily due to increased
distribution expenses resulting primarily from lower voluntary
yield-related fee waivers partially offset by a decrease due to
lower average managed long-term fund assets and the mix of average
money market fund assets. The current year also includes an
increase in other expenses due to the intangible asset impairment.
These increases were offset by a decrease in compensation and
related primarily due to exchange rate fluctuations.
Nonoperating income (expenses), net decreased $40.6 million primarily due to a decrease in the
market value of investments in 2022 compared to an increase in the
market value of investments in 2021, as well as an increase in debt
expense in 2022.
Impact of voluntary yield-related fee waivers
There were no voluntary yield-related fee waivers during the
quarter that ended Dec. 31, 2022. For
the year that ended Dec. 31, 2022,
voluntary yield-related fee waivers totaled $85.3 million.
These fee waivers were largely offset by related reductions in
distribution expenses of $66.5
million, such that the net negative pre-tax impact to
Federated Hermes was $18.8 million
for the 12 months ended Dec. 31,
2022. During the three and 12 months ended Dec. 31, 2021, voluntary yield-related fee
waivers totaled $110.1 million and
$420.3 million, respectively. These
fee waivers were largely offset by related reductions in
distribution expenses of $72.3
million and $277.1 million,
respectively, such that the net negative pre-tax impact to
Federated Hermes was $37.8 million
and $143.2 million for the three and
12 months ended Dec. 31, 2021,
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 Jan. 27, 2023. 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, visit
FederatedInvestors.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 Jan. 27, 2023. To access the telephone replay,
dial 877-481-4010 (domestic) or 919-882-2331 (international) and
enter access code 47392. The online replay will be available via
FederatedInvestors.com for one year.
Federated Hermes, Inc. is a global leader in active, responsible
investment management, with $668.9
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 11,000 institutions and intermediaries worldwide. Our clients
include corporations, government entities, insurance companies,
foundations and endowments, banks and broker/dealers. At Federated
Hermes, responsibility is central to our client relationships, our
long-term perspective and our fiduciary mindset. It's part of our
heritage and the foundation of our future.
Headquartered in Pittsburgh,
Federated Hermes has nearly 2,000 employees in London, New
York, Boston and offices
worldwide. Federated Hermes ranks in the top 7% of equity fund
managers in the industry, the top 10% of money market fund managers
and the top 11% of fixed-income fund managers2.
Federated Hermes also ranks as the 4th-largest manager of
model-delivered SMAs3. For more information, including
an analyst presentation, visit FederatedHermes.com.
1) As of Dec. 31,
2022
2) ISS Market Intelligence (SIMFUND),
Dec. 31, 2022. Based on assets under
management in U.S. open-end funds.
3) Money Management
Institute/Cerulli Associates, Q3 2022.
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, impairment 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. 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
is inherently subject to significant business, 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, 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
Q4 2021 to
Q4 2022
|
Quarter
Ended
|
% Change
Q3 2022 to
Q4 2022
|
|
|
Dec. 31,
2022
|
Dec. 31,
2021
|
Sept. 30,
2022
|
Revenue
|
|
|
|
|
|
|
Investment advisory
fees, net
|
|
$
256,949
|
$
223,796
|
15 %
|
$
263,644
|
(3) %
|
Administrative service
fees, net
|
|
75,847
|
77,734
|
(2)
|
75,021
|
1
|
Other service fees,
net
|
|
41,103
|
20,115
|
104
|
42,478
|
(3)
|
Total
Revenue
|
|
373,899
|
321,645
|
16
|
381,143
|
(2)
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and
related
|
|
123,994
|
124,107
|
0
|
126,668
|
(2)
|
Distribution
|
|
90,718
|
39,894
|
127
|
91,032
|
(0)
|
Systems and
communications
|
|
20,549
|
19,343
|
6
|
19,294
|
7
|
Professional service
fees
|
|
16,100
|
16,279
|
(1)
|
14,203
|
13
|
Office and
occupancy
|
|
10,905
|
11,215
|
(3)
|
10,622
|
3
|
Advertising and
promotional
|
|
6,967
|
9,493
|
(27)
|
6,496
|
7
|
Travel and
related
|
|
3,913
|
2,499
|
57
|
3,421
|
14
|
Other
|
|
37,004
|
10,232
|
262
|
12,627
|
193
|
Total Operating
Expenses
|
|
310,150
|
233,062
|
33
|
284,363
|
9
|
Operating
Income
|
|
63,749
|
88,583
|
(28)
|
96,780
|
(34)
|
|
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
|
|
Investment income
(loss), net
|
|
14,413
|
3,257
|
343
|
(4,226)
|
441
|
Debt
expense
|
|
(3,200)
|
(472)
|
NM
|
(3,302)
|
(3)
|
Other, net
|
|
191
|
258
|
(26)
|
(38)
|
NM
|
Total Nonoperating
Income (Expenses), net
|
|
11,404
|
3,043
|
275
|
(7,566)
|
251
|
Income before income
taxes
|
|
75,153
|
91,626
|
(18)
|
89,214
|
(16)
|
Income tax
provision
|
|
13,518
|
20,629
|
(34)
|
21,640
|
(38)
|
Net income including
the noncontrolling interests in subsidiaries
|
|
61,635
|
70,997
|
(13)
|
67,574
|
(9)
|
Less income/(expense):
Net income attributable to the
noncontrolling interests in subsidiaries
|
|
5,138
|
2,434
|
111
|
(1,905)
|
370
|
Net Income
|
|
$
56,497
|
$
68,563
|
(18) %
|
$
69,479
|
(19) %
|
|
|
|
|
|
|
|
Amounts Attributable
to Federated Hermes, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
0.63
|
$
0.71
|
(11) %
|
$
0.78
|
(19) %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
Basic
|
|
84,731
|
92,141
|
|
84,531
|
|
Diluted
|
|
84,743
|
92,141
|
|
84,536
|
|
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 earnings per share under the "two-class method." As
such, total net income of $2.8 million, $2.8 million and $3.6
million available to unvested restricted Federated Hermes
shareholders for the quarterly periods ended Dec. 31, 2022,
Dec. 31, 2021 and Sept. 30, 2022, 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 for the
quarterly period ended Dec. 31, 2021 excludes net income available
to unvested shareholders of a nonpublic consolidated
subsidiary.
|
Unaudited
Condensed Consolidated Statements of Income
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
Dec. 31,
2022
|
|
Dec. 31,
2021
|
|
%
Change
|
Revenue
|
|
|
|
|
|
|
Investment advisory
fees, net
|
|
$
1,011,631
|
|
$
915,984
|
|
10 %
|
Administrative service
fees, net—affiliates
|
|
294,557
|
|
306,639
|
|
(4)
|
Other service fees,
net
|
|
139,626
|
|
77,824
|
|
79
|
Total
Revenue
|
|
1,445,814
|
|
1,300,447
|
|
11
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and
related
|
|
512,713
|
|
532,492
|
|
(4)
|
Distribution
|
|
314,554
|
|
160,884
|
|
96
|
Systems and
communications
|
|
77,783
|
|
75,429
|
|
3
|
Professional service
fees
|
|
57,747
|
|
60,331
|
|
(4)
|
Office and
occupancy
|
|
43,361
|
|
44,573
|
|
(3)
|
Advertising and
promotional
|
|
20,931
|
|
21,600
|
|
(3)
|
Travel and
related
|
|
12,456
|
|
5,337
|
|
133
|
Other
|
|
69,473
|
|
33,529
|
|
107
|
Total Operating
Expenses
|
|
1,109,018
|
|
934,175
|
|
19
|
Operating
Income
|
|
336,796
|
|
366,272
|
|
(8)
|
|
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
|
|
Investment income
(loss), net
|
|
(19,723)
|
|
12,703
|
|
(255)
|
Debt
expense
|
|
(11,073)
|
|
(1,785)
|
|
NM
|
Other, net
|
|
222
|
|
(900)
|
|
125
|
Total Nonoperating Income
(Expenses), net
|
|
(30,574)
|
|
10,018
|
|
(405)
|
Income before income
taxes
|
|
306,222
|
|
376,290
|
|
(19)
|
Income tax
provision
|
|
71,658
|
|
103,982
|
|
(31)
|
Net income including
the noncontrolling interests in subsidiaries
|
|
234,564
|
|
272,308
|
|
(14)
|
Less: Net income
attributable to the noncontrolling
interests in
subsidiaries
|
|
(4,932)
|
|
2,015
|
|
(345)
|
Net Income
|
|
$
239,496
|
|
$
270,293
|
|
(11) %
|
|
|
|
|
|
|
|
Amounts Attributable
to Federated Hermes, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic
|
|
$
2.65
|
|
$
2.77
|
|
(4) %
|
Diluted
|
|
$
2.65
|
|
$
2.75
|
|
(4) %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
Basic
|
|
85,762
|
|
93,754
|
|
|
Diluted
|
|
85,766
|
|
93,771
|
|
|
Dividends Declared
Per Share
|
|
$
1.08
|
|
$
1.08
|
|
|
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 $11.8 million and $10.9 million
available to unvested restricted Federated Hermes shareholders for
the years ended Dec. 31, 2022 and Dec. 31, 2021, 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 for the
year ended Dec. 31, 2021 excludes net income available to unvested
shareholders of a nonpublic consolidated subsidiary.
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
(in
thousands)
|
Dec. 31,
2022
|
Dec. 31,
2021
|
Assets
|
|
|
Cash and other
investments
|
$
521,754
|
$
426,674
|
Other current
assets
|
129,277
|
132,773
|
Intangible
assets, net, including goodwill
|
1,209,574
|
1,270,080
|
Other long-term
assets
|
159,874
|
188,660
|
Total Assets
|
$
2,020,479
|
$
2,018,187
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
Current
liabilities
|
$
257,413
|
$
270,707
|
Long-term
debt
|
347,581
|
223,350
|
Other long-term
liabilities
|
307,972
|
346,911
|
Redeemable
noncontrolling interests
|
61,821
|
63,202
|
Equity excluding
treasury stock1
|
1,411,055
|
1,652,481
|
Treasury
stock1
|
(365,363)
|
(538,464)
|
Total Liabilities, Redeemable Noncontrolling Interests and
Equity
|
$
2,020,479
|
$
2,018,187
|
1)
|
During the third
quarter 2022, the board of directors authorized the retirement of
10 million treasury shares, which restored them to authorized but
unissued status. There was no impact to total equity as a result of
this transaction.
|
Unaudited Changes
in Long-Term Assets - By Asset Class
|
(in
millions)
|
Quarter
Ended
|
|
Year
Ended
|
|
Dec. 31,
2022
|
Sept. 30,
2022
|
Dec. 31,
2021
|
|
Dec. 31,
2022
|
Dec. 31,
2021
|
Equity
|
|
|
|
|
|
|
Beginning
assets
|
$
74,684
|
$
80,988
|
$
97,425
|
|
$
96,716
|
$
91,788
|
Sales1
|
5,265
|
5,133
|
4,371
|
|
23,985
|
21,829
|
Redemptions1
|
(6,015)
|
(4,951)
|
(7,106)
|
|
(25,600)
|
(26,761)
|
Net sales
(redemptions)1
|
(750)
|
182
|
(2,735)
|
|
(1,615)
|
(4,932)
|
Net
exchanges
|
86
|
9
|
(2)
|
|
(59)
|
41
|
Acquisitions/(dispositions)
|
0
|
0
|
0
|
|
0
|
408
|
Impact of foreign
exchange2
|
1,219
|
(1,187)
|
(162)
|
|
(1,621)
|
(1,096)
|
Market gains and
(losses)3
|
6,284
|
(5,308)
|
2,190
|
|
(11,898)
|
10,507
|
Ending
assets
|
$
81,523
|
$
74,684
|
$
96,716
|
|
$
81,523
|
$
96,716
|
|
|
|
|
|
|
|
Fixed
Income
|
|
|
|
|
|
|
Beginning
assets
|
$
85,365
|
$
86,253
|
$
97,226
|
|
$
97,550
|
$
84,277
|
Sales1
|
5,920
|
7,681
|
7,920
|
|
28,016
|
42,626
|
Redemptions1
|
(9,755)
|
(6,584)
|
(7,438)
|
|
(34,726)
|
(29,744)
|
Net sales
(redemptions)1
|
(3,835)
|
1,097
|
482
|
|
(6,710)
|
12,882
|
Net
exchanges
|
(142)
|
(17)
|
(23)
|
|
(64)
|
(81)
|
Acquisitions/(dispositions)
|
3,524
|
0
|
0
|
|
3,524
|
17
|
Impact of foreign
exchange2
|
239
|
(231)
|
(9)
|
|
(321)
|
(133)
|
Market gains and
(losses)3
|
1,592
|
(1,737)
|
(126)
|
|
(7,236)
|
588
|
Ending
assets
|
$
86,743
|
$
85,365
|
$
97,550
|
|
$
86,743
|
$
97,550
|
|
|
|
|
|
|
|
Alternative /
Private Markets
|
|
|
|
|
|
|
Beginning
assets
|
$
20,182
|
$
21,785
|
$
22,064
|
|
$
22,920
|
$
19,084
|
Sales1
|
1,127
|
946
|
1,696
|
|
3,833
|
4,823
|
Redemptions1
|
(1,190)
|
(929)
|
(1,460)
|
|
(3,715)
|
(3,170)
|
Net sales
(redemptions)1
|
(63)
|
17
|
236
|
|
118
|
1,653
|
Net
exchanges
|
(6)
|
3
|
0
|
|
1
|
(2)
|
Acquisitions/(dispositions)
|
0
|
0
|
0
|
|
0
|
81
|
Impact of foreign
exchange2
|
1,513
|
(1,638)
|
107
|
|
(2,317)
|
(254)
|
Market gains and
(losses)3
|
(824)
|
15
|
513
|
|
80
|
2,358
|
Ending
assets
|
$
20,802
|
$
20,182
|
$
22,920
|
|
$
20,802
|
$
22,920
|
|
|
|
|
|
|
|
Multi-asset
|
|
|
|
|
|
|
Beginning
assets
|
$
2,902
|
$
3,135
|
$
3,692
|
|
$
3,780
|
$
3,948
|
Sales1
|
72
|
54
|
75
|
|
243
|
301
|
Redemptions1
|
(165)
|
(132)
|
(119)
|
|
(572)
|
(936)
|
Net sales
(redemptions)1
|
(93)
|
(78)
|
(44)
|
|
(329)
|
(635)
|
Net
exchanges
|
2
|
0
|
14
|
|
8
|
42
|
Acquisitions/(dispositions)
|
0
|
0
|
0
|
|
0
|
54
|
Impact of foreign
exchange2
|
0
|
0
|
0
|
|
0
|
(1)
|
Market gains and
(losses)3
|
178
|
(155)
|
118
|
|
(470)
|
372
|
Ending
assets
|
$
2,989
|
$
2,902
|
$
3,780
|
|
$
2,989
|
$
3,780
|
|
|
|
|
|
|
|
Total Long-term
Assets
|
|
|
|
|
|
|
Beginning
assets
|
$
183,133
|
$
192,161
|
$
220,407
|
|
$
220,966
|
$
199,097
|
Sales1
|
12,384
|
13,814
|
14,062
|
|
56,077
|
69,579
|
Redemptions1
|
(17,125)
|
(12,596)
|
(16,123)
|
|
(64,613)
|
(60,611)
|
Net sales
(redemptions)1
|
(4,741)
|
1,218
|
(2,061)
|
|
(8,536)
|
8,968
|
Net
exchanges
|
(60)
|
(5)
|
(11)
|
|
(114)
|
0
|
Acquisitions/(dispositions)
|
3,524
|
0
|
0
|
|
3,524
|
560
|
Impact of foreign
exchange2
|
2,971
|
(3,056)
|
(64)
|
|
(4,259)
|
(1,484)
|
Market gains and
(losses)3
|
7,230
|
(7,185)
|
2,695
|
|
(19,524)
|
13,825
|
Ending
assets
|
$
192,057
|
$
183,133
|
$
220,966
|
|
$
192,057
|
$
220,966
|
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
|
|
Dec. 31,
2022
|
|
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
|
$ 40,633
|
$
34,051
|
$
44,896
|
$
40,469
|
$
12,680
|
$ 7,502
|
$ 2,784
|
$
118
|
$ 100,993
|
$
82,140
|
Sales
|
2,586
|
2,679
|
4,692
|
1,228
|
925
|
202
|
71
|
1
|
8,274
|
4,110
|
Redemptions
|
(4,012)
|
(2,003)
|
(7,255)
|
(2,500)
|
(1,130)
|
(60)
|
(162)
|
(3)
|
(12,559)
|
(4,566)
|
Net sales
(redemptions)
|
(1,426)
|
676
|
(2,563)
|
(1,272)
|
(205)
|
142
|
(91)
|
(2)
|
(4,285)
|
(456)
|
Net
exchanges
|
114
|
(28)
|
(142)
|
0
|
(6)
|
0
|
2
|
0
|
(32)
|
(28)
|
Acquisitions/(dispositions)
|
0
|
0
|
0
|
3,524
|
0
|
0
|
0
|
0
|
0
|
3,524
|
Impact of foreign
exchange2
|
727
|
492
|
156
|
83
|
927
|
586
|
0
|
0
|
1,810
|
1,161
|
Market gains and
(losses)3
|
3,294
|
2,990
|
833
|
759
|
(346)
|
(478)
|
156
|
22
|
3,937
|
3,293
|
Ending
assets
|
$ 43,342
|
$
38,181
|
$
43,180
|
$
43,563
|
$
13,050
|
$ 7,752
|
$ 2,851
|
$
138
|
$ 102,423
|
$
89,634
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Dec. 31,
2022
|
|
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
|
$ 57,036
|
$
39,680
|
$
59,862
|
$
37,688
|
$
14,788
|
$ 8,132
|
$ 3,608
|
$
172
|
$ 135,294
|
$
85,672
|
Sales
|
12,796
|
11,189
|
18,403
|
9,613
|
2,562
|
1,271
|
241
|
2
|
34,002
|
22,075
|
Redemptions
|
(15,134)
|
(10,466)
|
(29,869)
|
(4,857)
|
(3,150)
|
(565)
|
(559)
|
(13)
|
(48,712)
|
(15,901)
|
Net sales
(redemptions)
|
(2,338)
|
723
|
(11,466)
|
4,756
|
(588)
|
706
|
(318)
|
(11)
|
(14,710)
|
6,174
|
Net
exchanges
|
(31)
|
(28)
|
(63)
|
(1)
|
1
|
0
|
8
|
0
|
(85)
|
(29)
|
Acquisitions/(dispositions)
|
0
|
0
|
0
|
3,524
|
0
|
0
|
0
|
0
|
0
|
3,524
|
Impact of foreign
exchange2
|
(908)
|
(713)
|
(253)
|
(68)
|
(1,463)
|
(854)
|
0
|
0
|
(2,624)
|
(1,635)
|
Market gains and
(losses)3
|
(10,417)
|
(1,481)
|
(4,900)
|
(2,336)
|
312
|
(232)
|
(447)
|
(23)
|
(15,452)
|
(4,072)
|
Ending
assets
|
$ 43,342
|
$
38,181
|
$
43,180
|
$
43,563
|
$
13,050
|
$ 7,752
|
$ 2,851
|
$
138
|
$ 102,423
|
$
89,634
|
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
|
|
Year
Ended
|
|
Dec. 31,
2022
|
Sept. 30,
2022
|
Dec. 31,
2021
|
|
Dec. 31,
2022
|
Dec. 31,
2021
|
|
|
|
|
|
|
|
Total Fund
Assets
|
|
|
|
|
|
|
Beginning
assets
|
$
100,993
|
$
109,334
|
$
136,297
|
|
$
135,294
|
$
123,713
|
Sales
|
8,274
|
7,128
|
10,094
|
|
34,002
|
49,125
|
Redemptions
|
(12,559)
|
(10,056)
|
(11,955)
|
|
(48,712)
|
(44,368)
|
Net sales
(redemptions)
|
(4,285)
|
(2,928)
|
(1,861)
|
|
(14,710)
|
4,757
|
Net
exchanges
|
(32)
|
(5)
|
(11)
|
|
(85)
|
(356)
|
Acquisitions/(dispositions)
|
0
|
0
|
0
|
|
0
|
560
|
Impact of foreign
exchange1
|
1,810
|
(1,841)
|
4
|
|
(2,624)
|
(774)
|
Market gains and
(losses)2
|
3,937
|
(3,567)
|
865
|
|
(15,452)
|
7,394
|
Ending
assets
|
$
102,423
|
$
100,993
|
$
135,294
|
|
$
102,423
|
$
135,294
|
|
|
|
|
|
|
|
Total Separate
Accounts Assets3
|
|
|
|
|
|
|
Beginning
assets
|
$
82,140
|
$
82,827
|
$
84,110
|
|
$
85,672
|
$
75,384
|
Sales4
|
4,110
|
6,686
|
3,968
|
|
22,075
|
20,454
|
Redemptions4
|
(4,566)
|
(2,540)
|
(4,168)
|
|
(15,901)
|
(16,243)
|
Net sales
(redemptions)4
|
(456)
|
4,146
|
(200)
|
|
6,174
|
4,211
|
Net
exchanges
|
(28)
|
0
|
0
|
|
(29)
|
356
|
Acquisitions/(dispositions)
|
3,524
|
0
|
0
|
|
3,524
|
0
|
Impact of foreign
exchange1
|
1,161
|
(1,215)
|
(68)
|
|
(1,635)
|
(710)
|
Market gains and
(losses)2
|
3,293
|
(3,618)
|
1,830
|
|
(4,072)
|
6,431
|
Ending
assets
|
$
89,634
|
$
82,140
|
$
85,672
|
|
$
89,634
|
$
85,672
|
|
|
|
|
|
|
|
Total Long-term
Assets3
|
|
|
|
|
|
|
Beginning
assets
|
$
183,133
|
$
192,161
|
$
220,407
|
|
$
220,966
|
$
199,097
|
Sales4
|
12,384
|
13,814
|
14,062
|
|
56,077
|
69,579
|
Redemptions4
|
(17,125)
|
(12,596)
|
(16,123)
|
|
(64,613)
|
(60,611)
|
Net sales
(redemptions)4
|
(4,741)
|
1,218
|
(2,061)
|
|
(8,536)
|
8,968
|
Net
exchanges
|
(60)
|
(5)
|
(11)
|
|
(114)
|
0
|
Acquisitions/(dispositions)
|
3,524
|
0
|
0
|
|
3,524
|
560
|
Impact of foreign
exchange1
|
2,971
|
(3,056)
|
(64)
|
|
(4,259)
|
(1,484)
|
Market gains and
(losses)2
|
7,230
|
(7,185)
|
2,695
|
|
(19,524)
|
13,825
|
Ending
assets
|
$
192,057
|
$
183,133
|
$
220,966
|
|
$
192,057
|
$
220,966
|
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)
|
Dec. 31,
2022
|
Sept. 30,
2022
|
June 30,
2022
|
March 31,
2022
|
Dec. 31,
2021
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
81,523
|
$
74,684
|
$
80,988
|
$
91,676
|
$
96,716
|
Fixed-income
|
86,743
|
85,365
|
86,253
|
92,146
|
97,550
|
Alternative / private
markets
|
20,802
|
20,182
|
21,785
|
23,109
|
22,920
|
Multi-asset
|
2,989
|
2,902
|
3,135
|
3,555
|
3,780
|
Total long-term
assets
|
192,057
|
183,133
|
192,161
|
210,486
|
220,966
|
Money
market
|
476,844
|
441,294
|
439,697
|
420,596
|
447,907
|
Total Managed
Assets
|
$
668,901
|
$
624,427
|
$
631,858
|
$
631,082
|
$
668,873
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
43,342
|
$
40,633
|
$
44,207
|
$
51,890
|
$
57,036
|
Fixed-income
|
43,180
|
44,896
|
48,215
|
54,830
|
59,862
|
Alternative / private
markets
|
13,050
|
12,680
|
13,911
|
14,847
|
14,788
|
Multi-asset
|
2,851
|
2,784
|
3,001
|
3,401
|
3,608
|
Total long-term
assets
|
102,423
|
100,993
|
109,334
|
124,968
|
135,294
|
Money
market
|
335,937
|
309,859
|
298,031
|
279,514
|
312,834
|
Total Fund
Assets
|
$
438,360
|
$
410,852
|
$
407,365
|
$
404,482
|
$
448,128
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
38,181
|
$
34,051
|
$
36,781
|
$
39,786
|
$
39,680
|
Fixed-income
|
43,563
|
40,469
|
38,038
|
37,316
|
37,688
|
Alternative / private
markets
|
7,752
|
7,502
|
7,874
|
8,262
|
8,132
|
Multi-asset
|
138
|
118
|
134
|
154
|
172
|
Total long-term
assets
|
89,634
|
82,140
|
82,827
|
85,518
|
85,672
|
Money
market
|
140,907
|
131,435
|
141,666
|
141,082
|
135,073
|
Total Separate
Account Assets
|
$
230,541
|
$
213,575
|
$
224,493
|
$
226,600
|
$
220,745
|
Total Managed
Assets
|
$
668,901
|
$
624,427
|
$
631,858
|
$
631,082
|
$
668,873
|
Unaudited Average
Managed Assets
|
Quarter
Ended
|
(in
millions)
|
Dec. 31,
2022
|
Sept. 30,
2022
|
June 30,
2022
|
March 31,
2022
|
Dec. 31,
2021
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
79,544
|
$
81,809
|
$
85,785
|
$
92,034
|
$
97,751
|
Fixed-income
|
87,849
|
87,042
|
88,740
|
95,475
|
97,229
|
Alternative / private
markets
|
20,926
|
21,193
|
22,230
|
22,848
|
22,243
|
Multi-asset
|
2,988
|
3,144
|
3,337
|
3,621
|
3,763
|
Total long-term
assets
|
191,307
|
193,188
|
200,092
|
213,978
|
220,986
|
Money
market
|
442,334
|
438,601
|
417,778
|
433,254
|
419,392
|
Total Avg. Managed
Assets
|
$
633,641
|
$
631,789
|
$
617,870
|
$
647,232
|
$
640,378
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
43,131
|
$
45,135
|
$
47,504
|
$
52,419
|
$
58,290
|
Fixed-income
|
44,099
|
47,489
|
51,173
|
57,413
|
60,339
|
Alternative / private
markets
|
13,140
|
13,432
|
14,297
|
14,746
|
14,419
|
Multi-asset
|
2,855
|
3,012
|
3,193
|
3,460
|
3,590
|
Total long-term
assets
|
103,225
|
109,068
|
116,167
|
128,038
|
136,638
|
Money
market
|
309,232
|
301,940
|
275,631
|
291,157
|
294,618
|
Total Avg. Fund
Assets
|
$
412,457
|
$
411,008
|
$
391,798
|
$
419,195
|
$
431,256
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
36,413
|
$
36,674
|
$
38,281
|
$
39,615
|
$
39,461
|
Fixed-income
|
43,750
|
39,553
|
37,567
|
38,062
|
36,890
|
Alternative / private
markets
|
7,786
|
7,761
|
7,933
|
8,102
|
7,824
|
Multi-asset
|
133
|
132
|
144
|
161
|
173
|
Total long-term
assets
|
88,082
|
84,120
|
83,925
|
85,940
|
84,348
|
Money
market
|
133,102
|
136,661
|
142,147
|
142,097
|
124,774
|
Total Avg. Separate
Account Assets
|
$
221,184
|
$
220,781
|
$
226,072
|
$
228,037
|
$
209,122
|
Total Avg. Managed
Assets
|
$
633,641
|
$
631,789
|
$
617,870
|
$
647,232
|
$
640,378
|
Unaudited Average
Managed Assets
|
|
Year
Ended
|
(in
millions)
|
|
Dec. 31,
2022
|
|
Dec. 31,
2021
|
By Asset
Class
|
|
|
|
|
Equity
|
|
$
84,793
|
|
$
98,040
|
Fixed-income
|
|
89,776
|
|
91,564
|
Alternative / private
markets
|
|
21,799
|
|
20,754
|
Multi-asset
|
|
3,273
|
|
3,879
|
Total long-term
assets
|
|
199,641
|
|
214,237
|
Money
market
|
|
432,992
|
|
418,562
|
Total Avg. Managed
Assets
|
|
$
632,633
|
|
$
632,799
|
By Product
Type
|
|
|
|
|
Funds:
|
|
|
|
|
Equity
|
|
$
47,047
|
|
$
58,426
|
Fixed-income
|
|
50,043
|
|
58,095
|
Alternative / private
markets
|
|
13,903
|
|
13,266
|
Multi-asset
|
|
3,130
|
|
3,696
|
Total long-term
assets
|
|
114,123
|
|
133,483
|
Money
market
|
|
294,490
|
|
293,644
|
Total Avg. Fund
Assets
|
|
$
408,613
|
|
$
427,127
|
Separate
Accounts:
|
|
|
|
|
Equity
|
|
$
37,746
|
|
$
39,614
|
Fixed-income
|
|
39,733
|
|
33,469
|
Alternative / private
markets
|
|
7,896
|
|
7,488
|
Multi-asset
|
|
143
|
|
183
|
Total long-term
assets
|
|
85,518
|
|
80,754
|
Money
market
|
|
138,502
|
|
124,918
|
Total Avg. Separate
Account Assets
|
|
$
224,020
|
|
$
205,672
|
Total Avg. Managed
Assets
|
|
$
632,633
|
|
$
632,799
|
View original
content:https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-fourth-quarter-and-full-year-2022-earnings-301731991.html
SOURCE Federated Hermes, Inc.