- Q4 2023 earnings per diluted share of $0.96; full-year 2023 EPS of $3.40
- Total assets under management at record $757.6 billion
- Board declares $0.28 per share
quarterly dividend
PITTSBURGH, Jan. 25,
2024 /PRNewswire/ -- Federated Hermes, Inc. (NYSE:
FHI), a global leader in active, responsible investing, today
reported earnings per diluted share (EPS) for Q4 2023 of
$0.96, compared to $0.63 for the same quarter last year, on net
income of $82.2 million for Q4 2023,
compared to $56.5 million for Q4
2022. Full-year 2023 EPS was $3.40,
compared to $2.65 for 2022 on net
income of $299.0 million for 2023,
compared to $239.5 million for
2022.
Federated Hermes' total managed assets were a record
$757.6 billion at Dec. 31, 2023, up $88.7
billion or 13% from $668.9
billion at Dec. 31, 2022 and up $42.4 billion or 6% from $715.2 billion at Sept. 30, 2023. Average
managed assets for Q4 2023 were $728.0
billion, up $94.4 billion or
15% from $633.6 billion reported for
Q4 2022 and up $16.8 billion or 2%
from $711.2 billion reported for Q3
2023.
"Federated Hermes' record assets at year-end were driven by
another quarter of money market asset increases, as our liquidity
products continued to provide a vital cash management resource for
clients," said J. Christopher
Donahue, president and chief executive officer. "In
addition, as they navigated market volatility, investors turned to
a diverse range of our active management strategies—from our
fundamentally based MDT equity strategies to high-yield
fixed-income to unconstrained credit alternatives."
Federated Hermes' board of directors declared a quarterly
dividend of $0.28 per share. The
dividend is payable on Feb. 15, 2024
to shareholders of record as of Feb. 8,
2024. During Q4 2023, Federated Hermes purchased 1,902,861
shares of Federated Hermes class B common stock for $61.0 million, bringing the total shares of Class
B common stock purchased in 2023 to 5,318,442 shares for
$178.0 million.
Federated Hermes' equity assets were $79.3 billion at Dec. 31,
2023, down $2.2 billion or 3%
from $81.5 billion at Dec. 31,
2022 and up $2.0 billion or 3% from
$77.3 billion at Sept. 30, 2023.
Top-selling equity funds on a net basis during Q4 2023 were
Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT
Mid Cap Growth Fund, Federated Hermes International Small-Mid
Company Fund, Federated Hermes U.S. SMID Equity Fund and Federated
Hermes MDT Small Cap Core Fund.
Federated Hermes' fixed-income assets were $94.9 billion at Dec. 31,
2023, up $8.2 billion or 9%
from $86.7 billion at Dec. 31,
2022 and up $5.1 billion or 6% from
$89.8 billion at Sept. 30, 2023.
Top-selling fixed-income funds on a net basis during Q4 2023 were
Federated Hermes High Yield Bond Collective Investment Fund,
Federated Hermes Sterling Cash Plus Fund, Federated Hermes
Intermediate Municipal Fund, Federated Hermes Total Return Bond
Collective Investment Fund and Federated Hermes Conservative
Municipal Microshort Fund.
Federated Hermes' alternative/private markets assets were
$20.6 billion at Dec. 31, 2023, down $0.2 billion or 1% from $20.8 billion at Dec. 31, 2022 and up
$0.3 billion or 1% from $20.3 billion at Sept. 30, 2023.
Federated Hermes' money market assets were a record $560.0 billion at Dec. 31,
2023, up $83.2 billion or 17%
from $476.8 billion at Dec. 31,
2022 and up $34.9 billion or 7%
from $525.1 billion at Sept. 30,
2023. Money market mutual fund assets were a record $406.2 billion at Dec. 31,
2023, up $70.3 billion or 21%
from $335.9 billion at Dec. 31,
2022 and up $21.3 billion or 6% from
$384.9 billion at Sept. 30,
2023. Federated Hermes' money market separate account assets were a
record $153.8 billion at Dec. 31, 2023, up $12.9
billion or 9% from $140.9
billion at Dec. 31, 2022 and up $13.6 billion or 10% from $140.2 billion at Sept. 30, 2023.
Financial Summary
Q4 2023 vs. Q4 2022
Revenue increased $17.6 million or
5% primarily due to an increase in revenue from higher average
money market assets and an increase in total carried interest and
performance fees of $6.4
million, including an increase of $2.5 million of carried interest from
consolidated carried interest vehicles, which is offset in
compensation expense. These increases were partially offset by a
decrease in revenue from lower average equity assets.
During Q4 2023, Federated Hermes derived 50% of its revenue from
money market assets, 49% from long-term assets (29% from equity
assets, 12% from fixed-income assets and 8% from
alternative/private markets and multi-asset) and 1% from sources
other than managed assets.
Operating expenses decreased $21.2
million or 7% primarily due to an intangible asset
impairment in Q4 2022.
Nonoperating income (expenses), net increased $3.3 million primarily due to an increase in
investment yields due to rising interest rates.
Q4 2023 vs. Q3 2023
Revenue decreased $11.2 million or
3% primarily due to a decrease in revenue from lower average
equity assets and a decrease in total carried interest and
performance fees of $5.2 million,
including a decrease of $5.5 million
of carried interest from consolidated carried interest vehicles,
which is offset in compensation expense. These decreases were
partially offset by an increase in revenue from higher average
money market assets.
Operating expenses decreased $12.3
million or 4% primarily due to decreased compensation
expense from consolidated carried interest vehicles of $5.5 million and decreased incentive
compensation.
Nonoperating income (expenses), net increased $15.2 million primarily due to an increase in the
market value of investments in Q4 2023 compared to a decrease in Q3
2023.
2023 vs. 2022
Revenue increased $163.8 million
or 11% primarily due to an increase in revenue from higher average
money market assets, the elimination of 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 an increase in total carried interest and performance
fees of $55.4 million,
including $34.4 million of carried interest from consolidated
carried interest vehicles, which is offset in compensation expense.
For further information on the waivers, see "Impact of voluntary
yield-related fee waivers" below. These increases were partially
offset by a decrease in revenue due to lower average long-term
assets.
During 2023, Federated Hermes derived 52% of its revenue from
long-term assets (30% from equity assets, 12% from fixed-income
assets and 10% from alternative/private markets and multi-asset),
47% from money market assets and 1% from sources other than managed
assets.
Operating expenses increased by $113.0
million or 10% primarily due to increased distribution
expenses predominantly from lower voluntary yield-related fee
waivers, an increase in compensation expense primarily due to
consolidated carried interest vehicles of $34.2 million and an increase in other expense
due to fund reorganization costs. These increases were partially
offset by a decrease in expense due to an intangible asset
impairment in the prior year.
Nonoperating income (expenses), net increased $54.4 million primarily due to an increase in
the market value of investments in 2023 compared to a decrease
in the market value of investments in 2022 and an increase in
investment yields due to rising interest rates.
Impact of voluntary yield-related fee waivers
There were no voluntary yield-related fee waivers during 2023.
During 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 2022.
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. 26, 2024. Investors are invited to listen to
the earnings teleconference by calling 888-506-0062 (domestic) or
973-528-0011 (international) prior to the 9
a.m. start time. To listen online, visit
FederatedHermes.com/us at least 15 minutes prior to register and
join the call. A replay will be available at approximately
12:30 p.m. Eastern on Jan. 26, 2024. To access the telephone replay,
dial 877-481-4010 (domestic) or 919-882-2331 (international) and
enter access code 49692. The online replay will be available via
FederatedHermes.com/us for one year.
Federated Hermes, Inc. is a global leader in active, responsible
investment management, with $757.6
billion in assets under management1. We deliver
investment solutions that help investors target a broad range of
outcomes and provide equity, fixed-income, alternative/private
markets, multi-asset and liquidity management strategies to more
than 10,000 institutions and intermediaries worldwide. Our clients
include corporations, government entities, insurance companies,
foundations and endowments, banks and broker/dealers. Headquartered
in Pittsburgh, Federated Hermes
has more than 2,000 employees in London, New
York, Boston and offices
worldwide.
Federated Hermes ranks in the top 7% of equity fund managers in
the industry, the top 9% of money market fund managers and the
top 11% of fixed-income fund managers2. Federated
Hermes also ranks as the 8th-largest manager of model-delivered
separately managed accounts3. For more information,
including an analyst presentation, visit
FederatedHermes.com/us.
###
1) As of Dec. 31,
2023.
2) Morningstar, Dec.
31, 2023. Based on U.S. fund flows rankings.
3)
Money Management Institute/Cerulli Associates, Q3 2023.
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 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, and Federated Hermes' level of
business activity and financial results, are inherently subject to
significant business, market, economic, competitive, regulatory and
other risks and uncertainties, many of which are difficult to
predict and beyond Federated Hermes' control. Other risks and
uncertainties include the ability of the company to predict the
level of fee waivers and expenses in future quarters, predict
whether performance fees or carried interest will be earned and
retained, the ability of the company to sustain product demand, the
timing and level of product sales and redemptions, market
appreciation or depreciation, revenues, and asset levels, flows and
mix, which could vary significantly depending on various factors,
such as market conditions, investment performance and investor
behavior. Other risks and uncertainties include the risk factors
discussed in the company's annual and quarterly reports as filed
with the Securities and Exchange Commission. As a result, no
assurance can be given as to future results, levels of activity,
performance or achievements, and neither the company nor any other
person assumes responsibility for the accuracy and completeness, or
updating, of such statements in the future.
Unaudited
Condensed Consolidated Statements of Income
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
Quarter
Ended
|
% Change
Q4 2022 to
Q4 2023
|
Quarter
Ended
|
% Change Q3
2023 to
Q4 2023
|
|
Dec. 31,
2023
|
Dec. 31,
2022
|
Sept. 30,
2023
|
Revenue
|
|
|
|
|
|
Investment advisory
fees, net
|
$
264,693
|
$
256,949
|
3 %
|
$
276,771
|
(4) %
|
Administrative service
fees, net
|
90,930
|
75,847
|
20
|
88,023
|
3
|
Other service fees,
net
|
35,874
|
41,103
|
(13)
|
37,862
|
(5)
|
Total
Revenue
|
391,497
|
373,899
|
5
|
402,656
|
(3)
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
Compensation and
related
|
127,504
|
123,994
|
3
|
139,123
|
(8)
|
Distribution
|
90,940
|
90,718
|
0
|
89,838
|
1
|
Systems and
communications
|
20,944
|
20,549
|
2
|
21,213
|
(1)
|
Professional service
fees
|
16,632
|
16,100
|
3
|
17,561
|
(5)
|
Office and
occupancy
|
10,159
|
10,905
|
(7)
|
10,632
|
(4)
|
Advertising and
promotional
|
9,684
|
6,967
|
39
|
3,857
|
151
|
Travel and
related
|
4,308
|
3,913
|
10
|
4,034
|
7
|
Intangible asset
related
|
3,676
|
34,746
|
(89)
|
3,451
|
7
|
Other
|
5,080
|
2,258
|
125
|
11,523
|
(56)
|
Total
Operating Expenses
|
288,927
|
310,150
|
(7)
|
301,232
|
(4)
|
Operating
Income
|
102,570
|
63,749
|
61
|
101,424
|
1
|
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
|
Investment income
(loss), net
|
17,418
|
14,413
|
21
|
2,722
|
NM
|
Debt
expense
|
(3,142)
|
(3,200)
|
(2)
|
(3,133)
|
0
|
Other, net
|
461
|
191
|
141
|
(8)
|
NM
|
Total
Nonoperating Income (Expenses), net
|
14,737
|
11,404
|
29
|
(419)
|
NM
|
Income before income
taxes
|
117,307
|
75,153
|
56
|
101,005
|
16
|
Income tax
provision
|
31,260
|
13,518
|
131
|
26,739
|
17
|
Net income including
the noncontrolling interests in subsidiaries
|
86,047
|
61,635
|
40
|
74,266
|
16
|
Less: Net income
attributable to the noncontrolling interests in
subsidiaries
|
3,869
|
5,138
|
(25)
|
(760)
|
NM
|
Net Income
|
$
82,178
|
$
56,497
|
45 %
|
$
75,026
|
10 %
|
|
|
|
|
|
|
Amounts Attributable
to Federated Hermes, Inc.
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
Basic and
diluted
|
$
0.96
|
$
0.63
|
52 %
|
$
0.86
|
12 %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
Basic
|
81,961
|
84,731
|
|
83,710
|
|
Diluted
|
81,973
|
84,743
|
|
83,710
|
|
Dividends Declared
Per Share
|
$
0.28
|
$
0.27
|
|
$
0.28
|
|
|
|
1)
|
Unvested share-based
awards that receive non-forfeitable dividend rights are deemed
participating securities and are required to be considered in the
computation of earnings per share under the "two-class method." As
such, total net income of $3.6 million, $2.8 million and $3.3
million available to unvested restricted Federated Hermes
shareholders for the quarterly periods ended Dec. 31, 2023, Dec.
31, 2022 and Sept. 30, 2023, respectively, was excluded from the
computation of earnings per share.
|
Unaudited
Condensed Consolidated Statements of Income
|
(in thousands,
except per share data)
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
|
Dec. 31,
2023
|
|
Dec. 31,
2022
|
|
%
Change
|
Revenue
|
|
|
|
|
|
|
Investment advisory
fees, net
|
|
$
1,115,783
|
|
$
1,011,631
|
|
10 %
|
Administrative service
fees, net—affiliates
|
|
343,332
|
|
294,557
|
|
17
|
Other service fees,
net
|
|
150,459
|
|
139,626
|
|
8
|
Total
Revenue
|
|
1,609,574
|
|
1,445,814
|
|
11
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Compensation and
related
|
|
563,388
|
|
512,713
|
|
10
|
Distribution
|
|
371,198
|
|
314,554
|
|
18
|
Systems and
communications
|
|
84,203
|
|
77,783
|
|
8
|
Professional service
fees
|
|
69,514
|
|
57,747
|
|
20
|
Office and
occupancy
|
|
45,069
|
|
43,361
|
|
4
|
Advertising and
promotional
|
|
22,992
|
|
20,931
|
|
10
|
Travel and
related
|
|
15,409
|
|
12,456
|
|
24
|
Intangible asset
related
|
|
13,870
|
|
44,066
|
|
(69)
|
Other
|
|
36,382
|
|
25,407
|
|
43
|
Total Operating
Expenses
|
|
1,222,025
|
|
1,109,018
|
|
10
|
Operating
Income
|
|
387,549
|
|
336,796
|
|
15
|
|
|
|
|
|
|
|
Nonoperating Income
(Expenses)
|
|
|
|
|
|
|
Investment income
(loss), net
|
|
35,740
|
|
(19,723)
|
|
281
|
Debt
expense
|
|
(12,519)
|
|
(11,073)
|
|
13
|
Other, net
|
|
562
|
|
222
|
|
153
|
Total Nonoperating Income
(Expenses), net
|
|
23,783
|
|
(30,574)
|
|
178
|
Income before income
taxes
|
|
411,332
|
|
306,222
|
|
34
|
Income tax
provision
|
|
106,551
|
|
71,658
|
|
49
|
Net income including
the noncontrolling interests in subsidiaries
|
|
304,781
|
|
234,564
|
|
30
|
Less: Net income
attributable to the noncontrolling
interests in
subsidiaries
|
|
5,801
|
|
(4,932)
|
|
218
|
Net Income
|
|
$
298,980
|
|
$
239,496
|
|
25 %
|
|
|
|
|
|
|
|
Amounts Attributable
to Federated Hermes, Inc.
|
|
|
|
|
|
|
Earnings Per
Share1
|
|
|
|
|
|
|
Basic and
diluted
|
|
$
3.40
|
|
$
2.65
|
|
28 %
|
Weighted-Average
Shares Outstanding
|
|
|
|
|
|
|
Basic
|
|
83,858
|
|
85,762
|
|
|
Diluted
|
|
83,863
|
|
85,766
|
|
|
Dividends Declared
Per Share
|
|
$
1.11
|
|
$
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 $14.0 million and $11.8 million
available to unvested restricted Federated Hermes shareholders for
the years ended Dec. 31, 2023 and Dec. 31, 2022, respectively,
was excluded from the computation of earnings per
share.
|
Unaudited
Condensed Consolidated Balance Sheets
|
|
|
(in
thousands)
|
Dec. 31,
2023
|
Dec. 31,
2022
|
Assets
|
|
|
Cash and other
investments
|
$
560,675
|
$
521,754
|
Other current
assets
|
160,054
|
129,277
|
Intangible
assets, net, including goodwill
|
1,216,605
|
1,209,574
|
Other long-term
assets
|
164,510
|
159,874
|
Total Assets
|
$
2,101,844
|
$
2,020,479
|
|
|
|
Liabilities,
Redeemable Noncontrolling Interests and Equity
|
|
|
Current
liabilities
|
$
287,343
|
$
257,413
|
Long-term
debt
|
347,843
|
347,581
|
Other long-term
liabilities
|
312,561
|
307,972
|
Redeemable
noncontrolling interests
|
25,845
|
61,821
|
Equity excluding
treasury stock
|
1,649,655
|
1,411,055
|
Treasury
stock
|
(521,403)
|
(365,363)
|
Total Liabilities, Redeemable Noncontrolling Interests and
Equity
|
$
2,101,844
|
$
2,020,479
|
Unaudited Changes
in Long-Term Assets - By Asset Class
|
(in
millions)
|
Quarter
Ended
|
|
Year
Ended
|
|
Dec. 31,
2023
|
Sept. 30,
2023
|
Dec. 31,
2022
|
|
Dec. 31,
2023
|
Dec. 31,
2022
|
Equity
|
|
|
|
|
|
|
Beginning
assets
|
$
77,315
|
$
82,992
|
$
74,684
|
|
$
81,523
|
$
96,716
|
Sales1
|
3,335
|
3,897
|
5,265
|
|
17,732
|
23,985
|
Redemptions1
|
(8,005)
|
(6,304)
|
(6,015)
|
|
(24,742)
|
(25,600)
|
Net sales
(redemptions)1
|
(4,670)
|
(2,407)
|
(750)
|
|
(7,010)
|
(1,615)
|
Net
exchanges
|
(6)
|
18
|
86
|
|
120
|
(59)
|
Impact of foreign
exchange2
|
891
|
(532)
|
1,219
|
|
538
|
(1,621)
|
Market gains and
(losses)3
|
5,761
|
(2,756)
|
6,284
|
|
4,120
|
(11,898)
|
Ending
assets
|
$
79,291
|
$
77,315
|
$
81,523
|
|
$
79,291
|
$
81,523
|
|
|
|
|
|
|
|
Fixed
Income
|
|
|
|
|
|
|
Beginning
assets
|
$
89,765
|
$
87,425
|
$
85,365
|
|
$
86,743
|
$
97,550
|
Sales1
|
7,594
|
8,277
|
5,920
|
|
26,809
|
28,016
|
Redemptions1
|
(6,669)
|
(5,133)
|
(9,755)
|
|
(23,892)
|
(34,726)
|
Net sales
(redemptions)1
|
925
|
3,144
|
(3,835)
|
|
2,917
|
(6,710)
|
Net
exchanges
|
7
|
(25)
|
(142)
|
|
(113)
|
(64)
|
Acquisitions/(dispositions)
|
0
|
0
|
3,524
|
|
0
|
3,524
|
Impact of foreign
exchange2
|
143
|
(96)
|
239
|
|
128
|
(321)
|
Market gains and
(losses)3
|
4,080
|
(683)
|
1,592
|
|
5,245
|
(7,236)
|
Ending
assets
|
$
94,920
|
$
89,765
|
$
86,743
|
|
$
94,920
|
$
86,743
|
|
|
|
|
|
|
|
Alternative /
Private Markets
|
|
|
|
|
|
|
Beginning
assets
|
$
20,337
|
$
21,602
|
$
20,182
|
|
$
20,802
|
$
22,920
|
Sales1
|
700
|
660
|
1,127
|
|
3,268
|
3,833
|
Redemptions1
|
(755)
|
(866)
|
(1,190)
|
|
(3,158)
|
(3,715)
|
Net sales
(redemptions)1
|
(55)
|
(206)
|
(63)
|
|
110
|
118
|
Net
exchanges
|
(3)
|
(3)
|
(6)
|
|
(9)
|
1
|
Impact of foreign
exchange2
|
836
|
(762)
|
1,513
|
|
981
|
(2,317)
|
Market gains and
(losses)3
|
(564)
|
(294)
|
(824)
|
|
(1,333)
|
80
|
Ending
assets
|
$
20,551
|
$
20,337
|
$
20,802
|
|
$
20,551
|
$
20,802
|
|
|
|
|
|
|
|
Multi-asset
|
|
|
|
|
|
|
Beginning
assets
|
$
2,728
|
$
2,922
|
$
2,902
|
|
$
2,989
|
$
3,780
|
Sales1
|
34
|
30
|
72
|
|
144
|
243
|
Redemptions1
|
(142)
|
(119)
|
(165)
|
|
(548)
|
(572)
|
Net sales
(redemptions)1
|
(108)
|
(89)
|
(93)
|
|
(404)
|
(329)
|
Net
exchanges
|
8
|
0
|
2
|
|
11
|
8
|
Market gains and
(losses)3
|
239
|
(105)
|
178
|
|
271
|
(470)
|
Ending
assets
|
$
2,867
|
$
2,728
|
$
2,989
|
|
$
2,867
|
$
2,989
|
|
|
|
|
|
|
|
Total Long-term
Assets
|
|
|
|
|
|
|
Beginning
assets
|
$
190,145
|
$
194,941
|
$
183,133
|
|
$
192,057
|
$
220,966
|
Sales1
|
11,663
|
12,864
|
12,384
|
|
47,953
|
56,077
|
Redemptions1
|
(15,571)
|
(12,422)
|
(17,125)
|
|
(52,340)
|
(64,613)
|
Net sales
(redemptions)1
|
(3,908)
|
442
|
(4,741)
|
|
(4,387)
|
(8,536)
|
Net
exchanges
|
6
|
(10)
|
(60)
|
|
9
|
(114)
|
Acquisitions/(dispositions)
|
0
|
0
|
3,524
|
|
0
|
3,524
|
Impact of foreign
exchange2
|
1,870
|
(1,390)
|
2,971
|
|
1,647
|
(4,259)
|
Market gains and
(losses)3
|
9,516
|
(3,838)
|
7,230
|
|
8,303
|
(19,524)
|
Ending
assets
|
$
197,629
|
$
190,145
|
$
192,057
|
|
$
197,629
|
$
192,057
|
1)
|
For certain accounts,
including separately managed accounts, institutional accounts,
certain sub-advised funds and other managed products, Sales and
Redemptions are calculated as the remaining difference between
beginning and ending assets after the calculation of total
investment return.
|
2)
|
Reflects the impact of
translating non-U.S. dollar denominated assets under management
(AUM) into U.S. dollars for reporting purposes.
|
3)
|
Reflects the
approximate changes in the fair value of the securities held by the
portfolios and, to a lesser extent, reinvested dividends,
distributions and net investment income.
|
Unaudited Changes
in Long-Term Assets - By Asset Class and Product
Type
|
(in
millions)
|
|
|
Quarter
Ended
|
|
Dec. 31,
2023
|
|
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
|
$ 40,801
|
$
36,514
|
$
42,569
|
$
47,196
|
$
12,409
|
$ 7,928
|
$ 2,599
|
$
129
|
$
98,378
|
$
91,767
|
Sales
|
1,979
|
1,356
|
3,538
|
4,056
|
448
|
252
|
34
|
0
|
5,999
|
5,664
|
Redemptions
|
(4,189)
|
(3,816)
|
(4,526)
|
(2,143)
|
(724)
|
(31)
|
(139)
|
(3)
|
(9,578)
|
(5,993)
|
Net sales
(redemptions)
|
(2,210)
|
(2,460)
|
(988)
|
1,913
|
(276)
|
221
|
(105)
|
(3)
|
(3,579)
|
(329)
|
Net
exchanges
|
(16)
|
10
|
4
|
3
|
(3)
|
0
|
8
|
0
|
(7)
|
13
|
Impact of foreign
exchange2
|
414
|
477
|
99
|
44
|
489
|
347
|
0
|
0
|
1,002
|
868
|
Market gains and
(losses)3
|
3,524
|
2,237
|
2,224
|
1,856
|
(240)
|
(324)
|
228
|
11
|
5,736
|
3,780
|
Ending
assets
|
$ 42,513
|
$
36,778
|
$
43,908
|
$
51,012
|
$
12,379
|
$ 8,172
|
$ 2,730
|
$
137
|
$ 101,530
|
$
96,099
|
|
|
|
|
|
|
|
|
|
|
|
|
Year
Ended
|
|
Dec. 31,
2023
|
|
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
|
$ 43,342
|
$
38,181
|
$
43,180
|
$
43,563
|
$
13,050
|
$ 7,752
|
$ 2,851
|
$
138
|
$ 102,423
|
$
89,634
|
Sales
|
9,038
|
8,694
|
14,739
|
12,070
|
2,272
|
996
|
142
|
2
|
26,191
|
21,762
|
Redemptions
|
(13,987)
|
(10,755)
|
(16,608)
|
(7,284)
|
(2,878)
|
(280)
|
(530)
|
(18)
|
(34,003)
|
(18,337)
|
Net sales
(redemptions)
|
(4,949)
|
(2,061)
|
(1,869)
|
4,786
|
(606)
|
716
|
(388)
|
(16)
|
(7,812)
|
3,425
|
Net
exchanges
|
69
|
51
|
(91)
|
(22)
|
14
|
(23)
|
11
|
0
|
3
|
6
|
Impact of foreign
exchange2
|
345
|
193
|
95
|
33
|
585
|
396
|
0
|
0
|
1,025
|
622
|
Market gains and
(losses)3
|
3,706
|
414
|
2,593
|
2,652
|
(664)
|
(669)
|
256
|
15
|
5,891
|
2,412
|
Ending
assets
|
$ 42,513
|
$
36,778
|
$
43,908
|
$
51,012
|
$
12,379
|
$ 8,172
|
$ 2,730
|
$
137
|
$ 101,530
|
$
96,099
|
|
|
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
|
|
Year
Ended
|
|
Dec. 31,
2023
|
Sept. 30,
2023
|
Dec. 31,
2022
|
|
Dec. 31,
2023
|
Dec. 31,
2022
|
|
|
|
|
|
|
|
Total Fund
Assets
|
|
|
|
|
|
|
Beginning
assets
|
$
98,378
|
$
104,387
|
$
100,993
|
|
$
102,423
|
$
135,294
|
Sales
|
5,999
|
5,413
|
8,274
|
|
26,191
|
34,002
|
Redemptions
|
(9,578)
|
(8,018)
|
(12,559)
|
|
(34,003)
|
(48,712)
|
Net sales
(redemptions)
|
(3,579)
|
(2,605)
|
(4,285)
|
|
(7,812)
|
(14,710)
|
Net
exchanges
|
(7)
|
0
|
(32)
|
|
3
|
(85)
|
Impact of foreign
exchange1
|
1,002
|
(798)
|
1,810
|
|
1,025
|
(2,624)
|
Market gains and
(losses)2
|
5,736
|
(2,606)
|
3,937
|
|
5,891
|
(15,452)
|
Ending
assets
|
$
101,530
|
$
98,378
|
$
102,423
|
|
$
101,530
|
$
102,423
|
|
|
|
|
|
|
|
Total Separate
Accounts Assets3
|
|
|
|
|
|
|
Beginning
assets
|
$
91,767
|
$
90,554
|
$
82,140
|
|
$
89,634
|
$
85,672
|
Sales4
|
5,664
|
7,451
|
4,110
|
|
21,762
|
22,075
|
Redemptions4
|
(5,993)
|
(4,404)
|
(4,566)
|
|
(18,337)
|
(15,901)
|
Net sales
(redemptions)4
|
(329)
|
3,047
|
(456)
|
|
3,425
|
6,174
|
Net
exchanges
|
13
|
(10)
|
(28)
|
|
6
|
(29)
|
Acquisitions/(dispositions)
|
0
|
0
|
3,524
|
|
0
|
3,524
|
Impact of foreign
exchange1
|
868
|
(592)
|
1,161
|
|
622
|
(1,635)
|
Market gains and
(losses)2
|
3,780
|
(1,232)
|
3,293
|
|
2,412
|
(4,072)
|
Ending
assets
|
$
96,099
|
$
91,767
|
$
89,634
|
|
$
96,099
|
$
89,634
|
|
|
|
|
|
|
|
Total Long-term
Assets3
|
|
|
|
|
|
|
Beginning
assets
|
$
190,145
|
$
194,941
|
$
183,133
|
|
$
192,057
|
$
220,966
|
Sales4
|
11,663
|
12,864
|
12,384
|
|
47,953
|
56,077
|
Redemptions4
|
(15,571)
|
(12,422)
|
(17,125)
|
|
(52,340)
|
(64,613)
|
Net sales
(redemptions)4
|
(3,908)
|
442
|
(4,741)
|
|
(4,387)
|
(8,536)
|
Net
exchanges
|
6
|
(10)
|
(60)
|
|
9
|
(114)
|
Acquisitions/(dispositions)
|
0
|
0
|
3,524
|
|
0
|
3,524
|
Impact of foreign
exchange1
|
1,870
|
(1,390)
|
2,971
|
|
1,647
|
(4,259)
|
Market gains and
(losses)2
|
9,516
|
(3,838)
|
7,230
|
|
8,303
|
(19,524)
|
Ending
assets
|
$
197,629
|
$
190,145
|
$
192,057
|
|
$
197,629
|
$
192,057
|
|
|
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,
2023
|
Sept. 30,
2023
|
June 30,
2023
|
March 31,
2023
|
Dec. 31,
2022
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
79,291
|
$
77,315
|
$
82,992
|
$
83,629
|
$
81,523
|
Fixed-income
|
94,920
|
89,765
|
87,425
|
87,461
|
86,743
|
Alternative / private
markets
|
20,551
|
20,337
|
21,602
|
21,174
|
20,802
|
Multi-asset
|
2,867
|
2,728
|
2,922
|
2,973
|
2,989
|
Total long-term
assets
|
197,629
|
190,145
|
194,941
|
195,237
|
192,057
|
Money
market
|
559,993
|
525,085
|
509,017
|
505,800
|
476,844
|
Total Managed
Assets
|
$
757,622
|
$
715,230
|
$
703,958
|
$
701,037
|
$
668,901
|
|
|
|
|
|
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
42,513
|
$
40,801
|
$
44,383
|
$
44,732
|
$
43,342
|
Fixed-income
|
43,908
|
42,569
|
43,884
|
43,616
|
43,180
|
Alternative / private
markets
|
12,379
|
12,409
|
13,338
|
13,040
|
13,050
|
Multi-asset
|
2,730
|
2,599
|
2,782
|
2,832
|
2,851
|
Total long-term
assets
|
101,530
|
98,378
|
104,387
|
104,220
|
102,423
|
Money
market
|
406,166
|
384,896
|
364,014
|
357,346
|
335,937
|
Total Fund
Assets
|
$
507,696
|
$
483,274
|
$
468,401
|
$
461,566
|
$
438,360
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
36,778
|
$
36,514
|
$
38,609
|
$
38,897
|
$
38,181
|
Fixed-income
|
51,012
|
47,196
|
43,541
|
43,845
|
43,563
|
Alternative / private
markets
|
8,172
|
7,928
|
8,264
|
8,134
|
7,752
|
Multi-asset
|
137
|
129
|
140
|
141
|
138
|
Total long-term
assets
|
96,099
|
91,767
|
90,554
|
91,017
|
89,634
|
Money
market
|
153,827
|
140,189
|
145,003
|
148,454
|
140,907
|
Total Separate
Account Assets
|
$
249,926
|
$
231,956
|
$
235,557
|
$
239,471
|
$
230,541
|
Total Managed
Assets
|
$
757,622
|
$
715,230
|
$
703,958
|
$
701,037
|
$
668,901
|
Unaudited Average
Managed Assets
|
Quarter
Ended
|
(in
millions)
|
Dec. 31,
2023
|
Sept. 30,
2023
|
June 30,
2023
|
March 31,
2023
|
Dec. 31,
2022
|
By Asset
Class
|
|
|
|
|
|
Equity
|
$
76,009
|
$
82,203
|
$
83,025
|
$
84,155
|
$
79,544
|
Fixed-income
|
91,927
|
88,677
|
87,504
|
88,209
|
87,849
|
Alternative / private
markets
|
20,623
|
21,413
|
21,411
|
20,938
|
20,926
|
Multi-asset
|
2,744
|
2,861
|
2,929
|
3,012
|
2,988
|
Total long-term
assets
|
191,303
|
195,154
|
194,869
|
196,314
|
191,307
|
Money
market
|
536,727
|
516,046
|
510,418
|
483,083
|
442,334
|
Total Avg. Managed
Assets
|
$
728,030
|
$
711,200
|
$
705,287
|
$
679,397
|
$
633,641
|
By Product
Type
|
|
|
|
|
|
Funds:
|
|
|
|
|
|
Equity
|
$
40,296
|
$
43,687
|
$
44,218
|
$
45,055
|
$
43,131
|
Fixed-income
|
42,705
|
43,437
|
43,827
|
43,961
|
44,099
|
Alternative / private
markets
|
12,571
|
13,184
|
13,181
|
13,062
|
13,140
|
Multi-asset
|
2,615
|
2,724
|
2,787
|
2,869
|
2,855
|
Total long-term
assets
|
98,187
|
103,032
|
104,013
|
104,947
|
103,225
|
Money
market
|
392,946
|
373,088
|
362,608
|
333,358
|
309,232
|
Total Avg. Fund
Assets
|
$
491,133
|
$
476,120
|
$
466,621
|
$
438,305
|
$
412,457
|
Separate
Accounts:
|
|
|
|
|
|
Equity
|
$
35,713
|
$
38,516
|
$
38,807
|
$
39,100
|
$
36,413
|
Fixed-income
|
49,222
|
45,240
|
43,677
|
44,248
|
43,750
|
Alternative / private
markets
|
8,052
|
8,229
|
8,230
|
7,876
|
7,786
|
Multi-asset
|
129
|
137
|
142
|
143
|
133
|
Total long-term
assets
|
93,116
|
92,122
|
90,856
|
91,367
|
88,082
|
Money
market
|
143,781
|
142,958
|
147,810
|
149,725
|
133,102
|
Total Avg. Separate
Account Assets
|
$
236,897
|
$
235,080
|
$
238,666
|
$
241,092
|
$
221,184
|
Total Avg. Managed
Assets
|
$
728,030
|
$
711,200
|
$
705,287
|
$
679,397
|
$
633,641
|
Unaudited Average
Managed Assets
|
|
Year
Ended
|
(in
millions)
|
|
Dec. 31,
2023
|
|
Dec. 31,
2022
|
By Asset
Class
|
|
|
|
|
Equity
|
|
$
81,348
|
|
$
84,793
|
Fixed-income
|
|
89,079
|
|
89,776
|
Alternative / private
markets
|
|
21,096
|
|
21,799
|
Multi-asset
|
|
2,887
|
|
3,273
|
Total long-term
assets
|
|
194,410
|
|
199,641
|
Money
market
|
|
511,568
|
|
432,992
|
Total Avg. Managed
Assets
|
|
$
705,978
|
|
$
632,633
|
By Product
Type
|
|
|
|
|
Funds:
|
|
|
|
|
Equity
|
|
$
43,314
|
|
$
47,047
|
Fixed-income
|
|
43,482
|
|
50,043
|
Alternative / private
markets
|
|
12,999
|
|
13,903
|
Multi-asset
|
|
2,749
|
|
3,130
|
Total long-term
assets
|
|
102,544
|
|
114,123
|
Money
market
|
|
365,500
|
|
294,490
|
Total Avg. Fund
Assets
|
|
$
468,044
|
|
$
408,613
|
Separate
Accounts:
|
|
|
|
|
Equity
|
|
$
38,034
|
|
$
37,746
|
Fixed-income
|
|
45,597
|
|
39,733
|
Alternative / private
markets
|
|
8,097
|
|
7,896
|
Multi-asset
|
|
138
|
|
143
|
Total long-term
assets
|
|
91,866
|
|
85,518
|
Money
market
|
|
146,068
|
|
138,502
|
Total Avg. Separate
Account Assets
|
|
$
237,934
|
|
$
224,020
|
Total Avg. Managed
Assets
|
|
$
705,978
|
|
$
632,633
|
View original
content:https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-fourth-quarter-and-full-year-2023-earnings-302045162.html
SOURCE Federated Hermes, Inc.