Federated Hermes, Inc. reports record assets under management with second quarter 2024 earnings
- Total assets under management reach a record $782.7 billion
- Money market assets reach a record $586.6 billion
- Q2 2024 earnings per diluted share of $0.20, including a ($0.76) per diluted share non-cash intangible asset impairment charge
- Board declares $0.31 per share dividend
PITTSBURGH, July 25, 2024 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $0.20 for Q2 2024, compared to $0.81 for the same quarter last year, on net income of $21.0 million for Q2 2024, compared to $72.2 million for Q2 2023. Federated Hermes' Q2 2024 results include a $66.3 million non-cash expense, or ($0.76) per diluted share, related to the impairment of an indefinite-lived intangible asset.
Federated Hermes' total managed assets were a record $782.7 billion at June 30, 2024, up $78.7 billion or 11% from $704.0 billion at June 30, 2023 and up $4.0 billion or 1% from $778.7 billion at March 31, 2024. Total average managed assets for Q2 2024 were $779.6 billion, up $74.3 billion or 11% from $705.3 billion reported for Q2 2023 and up $3.1 billion or less than 1% from $776.5 billion for Q1 2024.
"Money market asset increases once again drove Federated Hermes to record total assets under management, as our liquidity products continued to offer excellent cash management services and attractive yields," said J. Christopher Donahue, president and chief executive officer. "In equities, our range of strong-performing Federated Hermes MDT quantitative products offered core and complementary strategies for portfolio diversification. We also saw interest in our Total Return Bond Fund and core plus strategies, which have the ability to dynamically shift sector, duration, yield curve and currency positioning in changing market conditions."
Federated Hermes' board of directors declared a dividend of $0.31 per share. The dividend is payable on Aug 15, 2024 to shareholders of record as of Aug 8, 2024. During Q2 2024, Federated Hermes purchased 1,559,200 shares of Federated Hermes class B common stock for $47.5 million.
Equity assets were $77.9 billion at June 30, 2024, down $5.1 billion or 6% from $83.0 billion at June 30, 2023 and down $2.3 billion or 3% from $80.2 billion at March 31, 2024. Top-selling equity funds during Q2 2024 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT All Cap Core Fund, Federated Hermes U.S. SMID Equity Fund and Federated Hermes International Leaders Fund.
Fixed-income assets were $95.3 billion at June 30, 2024, up $7.9 billion or 9% from $87.4 billion at June 30, 2023 and down $1.0 billion or 1% from $96.3 billion at March 31, 2024. Top-selling fixed-income funds during Q2 2024 on a net basis were Federated Hermes Total Return Bond Fund, Federated Hermes Institutional Fixed Income Fund, Federated Hermes Government Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF and Federated Hermes Conservative Microshort Fund.
Alternative/private markets assets were $20.1 billion at June 30, 2024, down $1.5 billion or 7% from $21.6 billion at June 30, 2023 and down $0.4 billion or 2% from $20.5 billion at March 31, 2024.
Money market assets were a record $586.6 billion at June 30, 2024, up $77.6 billion or 15% from $509.0 billion at June 30, 2023 and up $7.8 billion or 1% from $578.8 billion at March 31, 2024. Money market fund assets were a record $425.6 billion at June 30, 2024, up $61.6 billion or 17% from $364.0 billion at June 30, 2023 and up $8.5 billion or 2% from $417.1 billion at March 31, 2024.
Financial Summary
Q2 2024 non-cash intangible asset impairment charge
Federated Hermes' Q2 2024 results include a $66.3 million non-cash expense, or ($0.76) per diluted share, related to the impairment of an indefinite-lived intangible asset associated with the 2018 acquisition of Federated Hermes Limited, which was driven by changes in projected cash flows.
Q2 2024 vs. Q2 2023
Revenue decreased $30.6 million or 7% primarily due to a decrease in carried interest of $36.1 million, including a decrease of $23.5 million of carried interest from consolidated carried interest vehicles, which is largely offset in compensation expense, and a decrease in revenue due to lower average equity assets. These decreases were partially offset by an increase in revenue from higher average money market assets.
During Q2 2024, Federated Hermes derived 47% of its revenue from long-term assets (29% from equity, 12% from fixed-income, and 6% from alternative/private markets and multi-asset), 52% from money market assets, and 1% from sources other than managed assets.
Operating expenses increased $27.0 million or 8% primarily due to increased intangible asset related expense due to the impairment charge, offset by decreases in compensation expense primarily resulting from the lower carried interest from consolidated carried interest vehicles of $23.4 million and a decrease in other expense related to fund reorganization costs.
Nonoperating income (expenses), net was flat.
Q2 2024 vs. Q1 2024
Revenue increased $6.2 million or 2% primarily due to an increase in carried interest of $3.4 million, including an increase of $2.4 million of carried interest from consolidated carried interest vehicles, which is largely offset in compensation expense, and an increase in revenue from higher average money market assets. These increases were partially offset by a decrease in revenue due to lower average long-term assets.
Operating expenses increased $64.1 million or 22% primarily due to increased intangible asset related expense due to the impairment charge.
Nonoperating income (expenses), net decreased $3.5 million or 64% primarily due to a decrease in the market value of investments in Q2 2024 compared to an increase in the market value of investments in Q1 2024.
YTD 2024 vs. YTD 2023
Revenue decreased $16.5 million or 2% primarily due to a decrease in carried interest of $36.2 million, including a decrease of $23.6 million of carried interest from consolidated carried interest vehicles, which is largely offset in compensation expense, and a decrease in revenue due to lower average equity assets. These decreases were partially offset by an increase in revenue from higher average money market assets.
For the first half of 2024, Federated Hermes derived 47% of its revenue from long-term assets (29% from equity, 12% from fixed-income and 6% from alternative/private markets and multi-asset), 52% from money market assets, and 1% from sources other than managed assets.
Operating expenses increased $27.8 million or 4% primarily due to increased intangible asset related expense due to the impairment charge offset by a decrease in compensation expense primarily resulting from the lower carried interest from consolidated carried interest vehicles of $23.4 million and a decrease in other expense related to fund reorganization costs.
Nonoperating income (expenses), net decreased $2.1 million or 22% primarily due to a smaller increase in the market value of investments in the first six months of 2024 compared to the increase in the market value of investments for the same period in 2023. This decrease was partially offset by an increase in investment yields due to higher interest rates.
Earnings call information
Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, July 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, go to the About section of 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 July 26, 2024. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 50846. The online replay will be available via FederatedHermes.com/us for one year.
About Federated Hermes
Federated Hermes, Inc. is a global leader in active, responsible investment management, with $782.7 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 8% of money market fund managers and the top 10% of fixed-income fund managers2. Federated Hermes also ranks as the 9th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.
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1) As of June 30, 2024.
2) Morningstar, June 30, 2024. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli,Q1 2024.
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.
Cautionary statements
Certain statements in this press release, such as those related to performance, investment strategies and uses, 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 | Quarter Ended | % Change | |||
June 30, 2024 | June 30, 2023 | March 31, 2024 | ||||
Revenue | ||||||
Investment advisory fees, net | $ 270,622 | $ 310,337 | (13) % | $ 264,294 | 2 % | |
Administrative service fees, net—affiliates | 95,346 | 85,199 | 12 | 94,786 | 1 | |
Other service fees, net | 36,615 | 37,696 | (3) | 37,291 | (2) | |
Total Revenue | 402,583 | 433,232 | (7) | 396,371 | 2 | |
Operating Expenses | ||||||
Compensation and related | 130,748 | 159,883 | (18) | 136,546 | (4) | |
Distribution | 93,503 | 97,086 | (4) | 94,894 | (1) | |
Intangible asset related | 69,392 | 3,418 | NM | 3,235 | NM | |
Systems and communications | 23,194 | 22,074 | 5 | 21,823 | 6 | |
Professional service fees | 19,845 | 19,099 | 4 | 18,352 | 8 | |
Office and occupancy | 9,765 | 11,404 | (14) | 9,969 | (2) | |
Advertising and promotional | 6,621 | 5,109 | 30 | 4,306 | 54 | |
Travel and related | 3,847 | 3,835 | 0 | 3,273 | 18 | |
Other | 4,951 | 12,935 | (62) | 5,392 | (8) | |
Total Operating Expenses | 361,866 | 334,843 | 8 | 297,790 | 22 | |
Operating Income | 40,717 | 98,389 | (59) | 98,581 | (59) | |
Nonoperating Income (Expenses) | ||||||
Investment income (loss), net | 5,132 | 5,289 | (3) | 8,483 | (40) | |
Debt expense | (3,159) | (3,118) | 1 | (3,149) | 0 | |
Other, net | (34) | (15) | (127) | 103 | (133) | |
Total Nonoperating Income (Expenses), net | 1,939 | 2,156 | (10) | 5,437 | (64) | |
Income before income taxes | 42,656 | 100,545 | (58) | 104,018 | (59) | |
Income tax provision | 23,431 | 27,543 | (15) | 29,008 | (19) | |
Net income including the noncontrolling interests in subsidiaries | 19,225 | 73,002 | (74) | 75,010 | (74) | |
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries | (1,802) | 827 | (318) | (23) | NM | |
Net Income | $ 21,027 | $ 72,175 | (71) % | $ 75,033 | (72) % | |
Amounts Attributable to Federated Hermes, Inc. | ||||||
Earnings Per Share1 | ||||||
Basic and diluted | $ 0.20 | $ 0.81 | (75) % | $ 0.89 | (78) % | |
Weighted-Average Shares Outstanding | ||||||
Basic | 80,026 | 84,930 | 80,709 | |||
Diluted | 80,026 | 84,939 | 80,710 | |||
Dividends Declared Per Share | $ 1.31 | $ 0.28 | $ 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 $4.7 million, $3.5 million and $3.4 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended June 30, 2024, June 30, 2023 and March 31, 2024, respectively, was excluded from the computation of earnings per share. |
Unaudited Condensed Consolidated Statements of Income | |||
(in thousands, except per share data) | |||
Six Months Ended | |||
June 30, 2024 | June 30, 2023 | % Change | |
Revenue | |||
Investment advisory fees, net | $ 534,916 | $ 574,318 | (7) % |
Administrative service fees, net—affiliates | 190,132 | 164,378 | 16 |
Other service fees, net | 73,906 | 76,725 | (4) |
Total Revenue | 798,954 | 815,421 | (2) |
Operating Expenses | |||
Compensation and related | 267,294 | 296,761 | (10) |
Distribution | 188,398 | 190,420 | (1) |
Intangible asset related | 72,627 | 6,743 | NM |
Systems and communications | 45,017 | 42,046 | 7 |
Professional service fees | 38,197 | 35,320 | 8 |
Office and occupancy | 19,734 | 24,278 | (19) |
Advertising and promotional | 10,927 | 9,451 | 16 |
Travel and related | 7,119 | 7,066 | 1 |
Other | 10,343 | 19,781 | (48) |
Total Operating Expenses | 659,656 | 631,866 | 4 |
Operating Income | 139,298 | 183,555 | (24) |
Nonoperating Income (Expenses) | |||
Investment income (loss), net | 13,615 | 15,601 | (13) |
Debt expense | (6,308) | (6,243) | 1 |
Other, net | 69 | 107 | (36) |
Total Nonoperating Income (Expenses), net | 7,376 | 9,465 | (22) |
Income before income taxes | 146,674 | 193,020 | (24) |
Income tax provision | 52,439 | 48,552 | 8 |
Net income including the noncontrolling interests in subsidiaries | 94,235 | 144,468 | (35) |
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries | (1,825) | 2,692 | (168) |
Net Income | $ 96,060 | $ 141,776 | (32) % |
Amounts Attributable to Federated Hermes, Inc. | |||
Earnings Per Share1 | |||
Basic and diluted | $ 1.12 | $ 1.59 | (30) % |
Weighted-Average Shares Outstanding | |||
Basic | 80,367 | 84,902 | |
Diluted | 80,368 | 84,907 | |
Dividends Declared Per Share | $ 1.59 | $ 0.55 | |
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 $5.8 million and $7.0 million available to unvested restricted Federated Hermes shareholders for the six months ended June 30, 2024 and June 30, 2023, respectively, was excluded from the computation of earnings per share. |
Unaudited Condensed Consolidated Balance Sheets | ||
(in thousands)
| June 30, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and other investments | $ 452,879 | $ 560,675 |
Other current assets | 160,422 | 160,054 |
Intangible assets, net, including goodwill | 1,141,623 | 1,216,605 |
Other long-term assets | 156,583 | 164,510 |
Total Assets | $ 1,911,507 | $ 2,101,844 |
Liabilities, Redeemable Noncontrolling Interests and Equity | ||
Current liabilities | $ 223,380 | $ 287,343 |
Long-term debt | 347,974 | 347,843 |
Other long-term liabilities | 292,637 | 312,561 |
Redeemable noncontrolling interests | 30,491 | 25,845 |
Equity excluding treasury stock | 1,612,617 | 1,649,655 |
Treasury stock | (595,592) | (521,403) |
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ 1,911,507 | $ 2,101,844 |
Unaudited Changes in Long-Term Assets - By Asset Class | ||||||
(in millions)
| Quarter Ended | Six Months Ended | ||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||
Equity | ||||||
Beginning assets | $ 80,157 | $ 79,291 | $ 83,629 | $ 79,291 | $ 81,523 | |
Sales1 | 3,811 | 3,915 | 4,869 | 7,726 | 10,500 | |
Redemptions1 | (7,071) | (7,351) | (5,697) | (14,422) | (10,433) | |
Net sales (redemptions)1 | (3,260) | (3,436) | (828) | (6,696) | 67 | |
Net exchanges | 9 | 5 | 5 | 14 | 108 | |
Impact of foreign exchange2 | 12 | (567) | 71 | (555) | 179 | |
Market gains and (losses)3 | 933 | 4,864 | 115 | 5,797 | 1,115 | |
Ending assets | $ 77,851 | $ 80,157 | $ 82,992 | $ 77,851 | $ 82,992 | |
Fixed Income | ||||||
Beginning assets | $ 96,325 | $ 94,920 | $ 87,461 | $ 94,920 | $ 86,743 | |
Sales1 | 5,262 | 6,583 | 4,891 | 11,845 | 10,938 | |
Redemptions1 | (6,699) | (5,395) | (4,963) | (12,094) | (12,090) | |
Net sales (redemptions)1 | (1,437) | 1,188 | (72) | (249) | (1,152) | |
Net exchanges | (179) | (7) | 6 | (186) | (95) | |
Impact of foreign exchange2 | (8) | (71) | 43 | (79) | 81 | |
Market gains and (losses)3 | 593 | 295 | (13) | 888 | 1,848 | |
Ending assets | $ 95,294 | $ 96,325 | $ 87,425 | $ 95,294 | $ 87,425 | |
Alternative/Private Markets | ||||||
Beginning assets | $ 20,465 | $ 20,551 | $ 21,174 | $ 20,551 | $ 20,802 | |
Sales1 | 647 | 761 | 643 | 1,408 | 1,908 | |
Redemptions1 | (1,177) | (740) | (745) | (1,917) | (1,537) | |
Net sales (redemptions)1 | (530) | 21 | (102) | (509) | 371 | |
Net exchanges | 174 | 2 | (4) | 176 | (3) | |
Impact of foreign exchange2 | 21 | (226) | 539 | (205) | 907 | |
Market gains and (losses)3 | (69) | 117 | (5) | 48 | (475) | |
Ending assets | $ 20,061 | $ 20,465 | $ 21,602 | $ 20,061 | $ 21,602 | |
Multi-asset | ||||||
Beginning assets | $ 2,928 | $ 2,867 | $ 2,973 | $ 2,867 | $ 2,989 | |
Sales1 | 42 | 44 | 33 | 86 | 80 | |
Redemptions1 | (113) | (112) | (143) | (225) | (287) | |
Net sales (redemptions)1 | (71) | (68) | (110) | (139) | (207) | |
Net exchanges | 1 | 0 | 1 | 1 | 3 | |
Market gains and (losses)3 | 18 | 129 | 58 | 147 | 137 | |
Ending assets | $ 2,876 | $ 2,928 | $ 2,922 | $ 2,876 | $ 2,922 | |
Total Long-term Assets | ||||||
Beginning assets | $ 199,875 | $ 197,629 | $ 195,237 | $ 197,629 | $ 192,057 | |
Sales1 | 9,762 | 11,303 | 10,436 | 21,065 | 23,426 | |
Redemptions1 | (15,060) | (13,598) | (11,548) | (28,658) | (24,347) | |
Net sales (redemptions)1 | (5,298) | (2,295) | (1,112) | (7,593) | (921) | |
Net exchanges | 5 | 0 | 8 | 5 | 13 | |
Impact of foreign exchange2 | 25 | (864) | 653 | (839) | 1,167 | |
Market gains and (losses)3 | 1,475 | 5,405 | 155 | 6,880 | 2,625 | |
Ending assets | $ 196,082 | $ 199,875 | $ 194,941 | $ 196,082 | $ 194,941 | |
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 | ||||||||||
June 30, 2024 | ||||||||||
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 | $ 43,415 | $ 36,742 | $ 44,481 | $ 51,844 | $ 12,458 | $ 8,007 | $ 2,789 | $ 139 | $ 103,143 | $ 96,732 |
Sales | 2,413 | 1,398 | 3,326 | 1,936 | 537 | 110 | 42 | 0 | 6,318 | 3,444 |
Redemptions | (3,594) | (3,477) | (3,957) | (2,742) | (1,098) | (79) | (108) | (5) | (8,757) | (6,303) |
Net sales (redemptions) | (1,181) | (2,079) | (631) | (806) | (561) | 31 | (66) | (5) | (2,439) | (2,859) |
Net exchanges | 9 | 0 | (178) | (1) | 174 | 0 | 1 | 0 | 6 | (1) |
Impact of foreign exchange2 | (11) | 23 | (1) | (7) | 7 | 14 | 0 | 0 | (5) | 30 |
Market gains and (losses)3 | 172 | 761 | 171 | 422 | 180 | (249) | 19 | (1) | 542 | 933 |
Ending assets | $ 42,404 | $ 35,447 | $ 43,842 | $ 51,452 | $ 12,258 | $ 7,803 | $ 2,743 | $ 133 | $ 101,247 | $ 94,835 |
Six Months Ended | ||||||||||
June 30, 2024 | ||||||||||
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 | $ 42,513 | $ 36,778 | $ 43,908 | $ 51,012 | $ 12,379 | $ 8,172 | $ 2,730 | $ 137 | $ 101,530 | $ 96,099 |
Sales | 4,832 | 2,894 | 7,375 | 4,470 | 1,191 | 217 | 86 | 0 | 13,484 | 7,581 |
Redemptions | (7,663) | (6,759) | (7,441) | (4,653) | (1,667) | (250) | (216) | (9) | (16,987) | (11,671) |
Net sales (redemptions) | (2,831) | (3,865) | (66) | (183) | (476) | (33) | (130) | (9) | (3,503) | (4,090) |
Net exchanges | 14 | 0 | (183) | (3) | 176 | 0 | 1 | 0 | 8 | (3) |
Impact of foreign exchange2 | (246) | (309) | (47) | (32) | (132) | (73) | 0 | 0 | (425) | (414) |
Market gains and (losses)3 | 2,954 | 2,843 | 230 | 658 | 311 | (263) | 142 | 5 | 3,637 | 3,243 |
Ending assets | $ 42,404 | $ 35,447 | $ 43,842 | $ 51,452 | $ 12,258 | $ 7,803 | $ 2,743 | $ 133 | $ 101,247 | $ 94,835 |
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 | Six Months Ended | ||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | ||
Total Fund Assets | ||||||
Beginning assets | $ 103,143 | $ 101,530 | $ 104,220 | $ 101,530 | $ 102,423 | |
Sales | 6,318 | 7,166 | 6,462 | 13,484 | 14,779 | |
Redemptions | (8,757) | (8,230) | (7,916) | (16,987) | (16,407) | |
Net sales (redemptions) | (2,439) | (1,064) | (1,454) | (3,503) | (1,628) | |
Net exchanges | 6 | 2 | (5) | 8 | 10 | |
Impact of foreign exchange1 | (5) | (420) | 487 | (425) | 821 | |
Market gains and (losses)2 | 542 | 3,095 | 1,139 | 3,637 | 2,761 | |
Ending assets | $ 101,247 | $ 103,143 | $ 104,387 | $ 101,247 | $ 104,387 | |
Total Separate Account Assets3 | ||||||
Beginning assets | $ 96,732 | $ 96,099 | $ 91,017 | $ 96,099 | $ 89,634 | |
Sales4 | 3,444 | 4,137 | 3,974 | 7,581 | 8,647 | |
Redemptions4 | (6,303) | (5,368) | (3,632) | (11,671) | (7,940) | |
Net sales (redemptions)4 | (2,859) | (1,231) | 342 | (4,090) | 707 | |
Net exchanges | (1) | (2) | 13 | (3) | 3 | |
Impact of foreign exchange1 | 30 | (444) | 166 | (414) | 346 | |
Market gains and (losses)2 | 933 | 2,310 | (984) | 3,243 | (136) | |
Ending assets | $ 94,835 | $ 96,732 | $ 90,554 | $ 94,835 | $ 90,554 | |
Total Long-term Assets3 | ||||||
Beginning assets | $ 199,875 | $ 197,629 | $ 195,237 | $ 197,629 | $ 192,057 | |
Sales4 | 9,762 | 11,303 | 10,436 | 21,065 | 23,426 | |
Redemptions4 | (15,060) | (13,598) | (11,548) | (28,658) | (24,347) | |
Net sales (redemptions)4 | (5,298) | (2,295) | (1,112) | (7,593) | (921) | |
Net exchanges | 5 | 0 | 8 | 5 | 13 | |
Impact of foreign exchange1 | 25 | (864) | 653 | (839) | 1,167 | |
Market gains and (losses)2 | 1,475 | 5,405 | 155 | 6,880 | 2,625 | |
Ending assets | $ 196,082 | $ 199,875 | $ 194,941 | $ 196,082 | $ 194,941 | |
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) | June 30, 2024 | March 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 |
By Asset Class | |||||
Equity | $ 77,851 | $ 80,157 | $ 79,291 | $ 77,315 | $ 82,992 |
Fixed-income | 95,294 | 96,325 | 94,920 | 89,765 | 87,425 |
Alternative / private markets | 20,061 | 20,465 | 20,551 | 20,337 | 21,602 |
Multi-asset | 2,876 | 2,928 | 2,867 | 2,728 | 2,922 |
Total long-term assets | 196,082 | 199,875 | 197,629 | 190,145 | 194,941 |
Money market | 586,647 | 578,811 | 559,993 | 525,085 | 509,017 |
Total Managed Assets | $ 782,729 | $ 778,686 | $ 757,622 | $ 715,230 | $ 703,958 |
By Product Type | |||||
Funds: | |||||
Equity | $ 42,404 | $ 43,415 | $ 42,513 | $ 40,801 | $ 44,383 |
Fixed-income | 43,842 | 44,481 | 43,908 | 42,569 | 43,884 |
Alternative / private markets | 12,258 | 12,458 | 12,379 | 12,409 | 13,338 |
Multi-asset | 2,743 | 2,789 | 2,730 | 2,599 | 2,782 |
Total long-term assets | 101,247 | 103,143 | 101,530 | 98,378 | 104,387 |
Money market | 425,627 | 417,102 | 406,166 | 384,896 | 364,014 |
Total Fund Assets | $ 526,874 | $ 520,245 | $ 507,696 | $ 483,274 | $ 468,401 |
Separate Accounts: | |||||
Equity | $ 35,447 | $ 36,742 | $ 36,778 | $ 36,514 | $ 38,609 |
Fixed-income | 51,452 | 51,844 | 51,012 | 47,196 | 43,541 |
Alternative / private markets | 7,803 | 8,007 | 8,172 | 7,928 | 8,264 |
Multi-asset | 133 | 139 | 137 | 129 | 140 |
Total long-term assets | 94,835 | 96,732 | 96,099 | 91,767 | 90,554 |
Money market | 161,020 | 161,709 | 153,827 | 140,189 | 145,003 |
Total Separate Account Assets | $ 255,855 | $ 258,441 | $ 249,926 | $ 231,956 | $ 235,557 |
Total Managed Assets | $ 782,729 | $ 778,686 | $ 757,622 | $ 715,230 | $ 703,958 |
Unaudited Average Managed Assets | Quarter Ended | ||||
(in millions) | June 30, 2024 | March 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 |
By Asset Class | |||||
Equity | $ 78,137 | $ 78,969 | $ 76,009 | $ 82,203 | $ 83,025 |
Fixed-income | 95,484 | 95,791 | 91,927 | 88,677 | 87,504 |
Alternative / private markets | 20,306 | 20,485 | 20,623 | 21,413 | 21,411 |
Multi-asset | 2,889 | 2,874 | 2,744 | 2,861 | 2,929 |
Total long-term assets | 196,816 | 198,119 | 191,303 | 195,154 | 194,869 |
Money market | 582,758 | 578,383 | 536,727 | 516,046 | 510,418 |
Total Avg. Managed Assets | $ 779,574 | $ 776,502 | $ 728,030 | $ 711,200 | $ 705,287 |
By Product Type | |||||
Funds: | |||||
Equity | $ 42,274 | $ 42,355 | $ 40,296 | $ 43,687 | $ 44,218 |
Fixed-income | 43,910 | 43,857 | 42,705 | 43,437 | 43,827 |
Alternative / private markets | 12,331 | 12,377 | 12,571 | 13,184 | 13,181 |
Multi-asset | 2,737 | 2,739 | 2,615 | 2,724 | 2,787 |
Total long-term assets | 101,252 | 101,328 | 98,187 | 103,032 | 104,013 |
Money market | 419,999 | 414,902 | 392,946 | 373,088 | 362,608 |
Total Avg. Fund Assets | $ 521,251 | $ 516,230 | $ 491,133 | $ 476,120 | $ 466,621 |
Separate Accounts: | |||||
Equity | $ 35,863 | $ 36,614 | $ 35,713 | $ 38,516 | $ 38,807 |
Fixed-income | 51,574 | 51,934 | 49,222 | 45,240 | 43,677 |
Alternative / private markets | 7,975 | 8,108 | 8,052 | 8,229 | 8,230 |
Multi-asset | 152 | 135 | 129 | 137 | 142 |
Total long-term assets | 95,564 | 96,791 | 93,116 | 92,122 | 90,856 |
Money market | 162,759 | 163,481 | 143,781 | 142,958 | 147,810 |
Total Avg. Separate Account Assets | $ 258,323 | $ 260,272 | $ 236,897 | $ 235,080 | $ 238,666 |
Total Avg. Managed Assets | $ 779,574 | $ 776,502 | $ 728,030 | $ 711,200 | $ 705,287 |
Unaudited Average Managed Assets | Six Months Ended | |||
(in millions) | June 30, 2024 | June 30, 2023 | ||
By Asset Class | ||||
Equity | $ 78,553 | $ 83,590 | ||
Fixed-income | 95,638 | 87,856 | ||
Alternative / private markets | 20,395 | 21,174 | ||
Multi-asset | 2,882 | 2,971 | ||
Total long-term assets | 197,468 | 195,591 | ||
Money market | 580,570 | 496,751 | ||
Total Avg. Managed Assets | $ 778,038 | $ 692,342 | ||
By Product Type | ||||
Funds: | ||||
Equity | $ 42,315 | $ 44,637 | ||
Fixed-income | 43,884 | 43,893 | ||
Alternative / private markets | 12,354 | 13,121 | ||
Multi-asset | 2,738 | 2,828 | ||
Total long-term assets | 101,291 | 104,479 | ||
Money market | 417,450 | 347,983 | ||
Total Avg. Fund Assets | $ 518,741 | $ 452,462 | ||
Separate Accounts: | ||||
Equity | $ 36,238 | $ 38,953 | ||
Fixed-income | 51,754 | 43,963 | ||
Alternative / private markets | 8,041 | 8,053 | ||
Multi-asset | 144 | 143 | ||
Total long-term assets | 96,177 | 91,112 | ||
Money market | 163,120 | 148,768 | ||
Total Avg. Separate Account Assets | $ 259,297 | $ 239,880 | ||
Total Avg. Managed Assets | $ 778,038 | $ 692,342 | ||
SOURCE Federated Hermes, Inc.
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