0001056288false00010562882024-10-242024-10-24

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Form 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 24, 2024


FEDERATED HERMES, INC.
(Exact name of registrant as specified in its charter)
Pennsylvania001-1481825-1111467
  (State or other jurisdiction(Commission File Number)(I.R.S. Employer
of incorporation)Identification No.)

1001 Liberty Avenue
Pittsburgh, Pennsylvania 15222-3779
(Address of principal executive offices, including zip code)


(412) 288-1900
(Registrant's telephone number, including area code)


Not Applicable
(Former name or former address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Class B common stock, no par valueFHINew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.    ☐



ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 24, 2024, Federated Hermes, Inc. (Federated Hermes) issued the earnings press release attached hereto as Exhibit 99.1 to report third quarter 2024 results.
    

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits:
Earnings press release issued by Federated Hermes, Inc. dated October 24, 2024
Exhibit 104Cover Page Interactive Data File (embedded within the Inline XBRL document)




SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
                                    
FEDERATED HERMES, INC.
(REGISTRANT)
DateOctober 24, 2024By:/s/ Thomas R. Donahue
Thomas R. Donahue
Chief Financial Officer




Exhibit 99.1

fhipressreleaseimageq12020.gif
Federated Hermes, Inc. reports record assets under management with third quarter 2024 earnings
•Total assets under management reach a record $800.5 billion
•Money market assets at record $593.0 billion; fixed income assets at record $100.2 billion
•Q3 2024 earnings per diluted share of $1.06
•Board declares $0.31 per share dividend; authorizes new share repurchase program
(PITTSBURGH, Pa., Oct. 24, 2024) — Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $1.06 for Q3 2024, compared to $0.86 for the same quarter last year, on net income of $87.5 million for Q3 2024, compared to $75.0 million for Q3 2023.
Federated Hermes' total managed assets were a record $800.5 billion at Sept. 30, 2024, up $85.3 billion or 12% from $715.2 billion at Sept. 30, 2023 and up $17.8 billion or 2% from $782.7 billion at June 30, 2024. Total average managed assets for Q3 2024 were $793.5 billion, up $82.3 billion or 12% from $711.2 billion reported for Q3 2023 and up $13.9 billion or 2% from $779.6 billion for Q2 2024.
"Federated Hermes reached record assets under management for the eighth consecutive quarter on the strength of flows into money market and fixed-income products, along with market appreciation of equity and fixed-income assets. This continued after the Fed's mid-September rate cut, as money market products historically offer a yield advantage when compared to bank deposit accounts and some securities in the direct market," said J. Christopher Donahue, president and chief executive officer. "We also saw interest in our Total Return Bond Fund and core plus strategies—in mutual fund, ETF and collective investment fund offerings—as those products are well positioned to meet changing market conditions. In equities, we saw positive net flows in nine of our strong-performing Federated Hermes MDT quantitative mutual funds and ETFs."
Federated Hermes' board of directors declared a dividend of $0.31 per share. The dividend is payable on Nov 15, 2024 to shareholders of record as of Nov 8, 2024. During Q3 2024, Federated Hermes purchased 818,164 shares of Federated Hermes class B common stock for $26.9 million. The board of directors also authorized an additional share repurchase program, which is the firm's 17th, allowing the buyback of up to an additional 5 million shares of Federated Hermes class B common stock in the open market with no expiration date. The repurchased stock is to be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities. The company's existing 5 million share repurchase program, approved in October 2023, has approximately 1.2 million shares remaining.
Equity assets were $83.6 billion at Sept. 30, 2024, up $6.3 billion or 8% from $77.3 billion at Sept. 30, 2023 and up $5.7 billion or 7% from $77.9 billion at June 30, 2024. Top-selling equity funds during Q3 2024 on a net basis were Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT All Cap Core Fund, Federated Hermes U.S. SMID Equity Fund and Federated Hermes U.S. Strategic Dividend ETF.
Fixed-income assets were a record $100.2 billion at Sept. 30, 2024, up $10.4 billion or 12% from $89.8 billion at Sept. 30, 2023 and up $4.9 billion or 5% from $95.3 billion at June 30, 2024. Top-selling fixed-income funds during Q3 2024 on a net basis
MEDIA:ANALYSTS:
Ed Costello 412-288-7538Ray Hanley 412-288-1920
    
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were Federated Hermes Total Return Bond Fund, Federated Hermes Government Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Total Return Bond Collective Investment Fund and Federated Hermes Short-Term Income Fund.
Alternative/private markets assets were $20.7 billion at Sept. 30, 2024, up $0.4 billion or 2% from $20.3 billion at Sept. 30, 2023 and up $0.6 billion or 3% from $20.1 billion at June 30, 2024.
Money market assets were a record $593.0 billion at Sept. 30, 2024, up $67.9 billion or 13% from $525.1 billion at Sept. 30, 2023 and up $6.4 billion or 1% from $586.6 billion at June 30, 2024. Money market fund assets were a record $440.4 billion at Sept. 30, 2024, up $55.5 billion or 14% from $384.9 billion at Sept. 30, 2023 and up $14.8 billion or 3% from $425.6 billion at June 30, 2024.
Financial Summary
Q3 2024 vs. Q3 2023
Revenue increased $5.8 million or 1% primarily due to an increase in revenue from higher average money market assets. This increase was partially offset by a decrease in carried interest of $10.7 million, including a decrease of $7.2 million of carried interest from consolidated carried interest vehicles which is offset in compensation expense, and a decrease in revenue due to lower average equity assets.
During Q3 2024, Federated Hermes derived 48% of its revenue from long-term assets (29% from equity, 12% from fixed-income, and 7% from alternative/private markets and multi-asset), 51% from money market assets, and 1% from sources other than managed assets.
Operating expenses decreased $4.5 million or 1% primarily due to a $13.2 million decrease in Other expense resulting primarily from fluctuations in foreign currency exchange rates, partially offset by a $6.0 million increase in distribution expenses resulting primarily from higher average managed money market fund assets.
Nonoperating income (expenses), net increased $11.3 million primarily due to an increase in the market value of investments in Q3 2024 compared to a decrease in the market value of investments in Q3 2023.
Q3 2024 vs. Q2 2024
Revenue increased $5.9 million or 1% primarily due to an increase in revenue from higher average managed assets of all asset classes.
Operating expenses decreased $65.2 million or 18% primarily due to the $66.3 million impairment of an intangible asset associated with the 2018 acquisition of Federated Hermes Limited in Q2 2024.
Nonoperating income (expenses), net increased $8.9 million primarily due to an increase in the market value of investments in Q3 2024 compared to a decrease in the market value of investments in Q2 2024.
YTD 2024 vs. YTD 2023
Revenue decreased $10.7 million or 1% primarily due to a decrease in carried interest of $47.0 million, including a decrease of $30.8 million of carried interest from consolidated carried interest vehicles which is 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 and fixed-income assets.

    
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For the first nine months of 2024, Federated Hermes derived 48% of its revenue from long-term assets (29% from equity, 12% from fixed-income and 7% from alternative/private markets and multi-asset), 51% from money market assets, and 1% from sources other than managed assets.
Operating expenses increased $23.3 million or 2% primarily due to increased intangible asset expense resulting from the impairment charge offset by a decrease in compensation expense primarily resulting from the lower carried interest from consolidated carried interest vehicles and a decrease in other expense primarily due to fluctuations in foreign currency exchange rates and fund reorganization costs in 2023.
Nonoperating income (expenses), net increased $9.2 million primarily due to a larger increase in the market value of investments in the first nine months of 2024 compared to the increase in the market value of investments for the same period in 2023 and, to a lesser extent, an increase in investment yields resulting primarily from higher average interest rates in 2024.
Earnings call information
Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, Oct. 25, 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 Oct. 25, 2024. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 51374. 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 $800.5 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, the top 8% of money market fund managers and the top 10% of fixed-income fund managers2 in the industry. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.
###
1) As of Sept. 30, 2024.
2) Morningstar, Sept. 30, 2024. Based on U.S. fund flows rankings.
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 uses of repurchased class B common stock 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

    
Federated Hermes reports Q3 2024 earnings
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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.

    
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Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Quarter Ended% Change Q3 2023 to Q3 2024Quarter Ended% Change Q2 2024 to Q3 2024
Sept. 30, 2024Sept.  30, 2023June 30, 2024
Revenue
Investment advisory fees, net$274,621 $276,771 (1)%$270,622 1 %
Administrative service fees, net—affiliates97,687 88,023 11 95,346 2 
Other service fees, net36,148 37,862 (5)36,615 (1)
Total Revenue408,456 402,656 1 402,583 1 
Operating Expenses
Compensation and related136,027 139,123 (2)130,748 4 
Distribution95,859 89,838 7 93,503 3 
Systems and communications23,656 21,213 12 23,194 2 
Professional service fees19,849 17,561 13 19,845 — 
Office and occupancy9,884 10,632 (7)9,765 1 
Advertising and promotional5,378 3,857 39 6,621 (19)
Travel and related4,221 4,034 5 3,847 10 
Intangible asset related3,504 3,451 2 69,392 (95)
Other(1,664)11,523 (114)4,951 (134)
Total Operating Expenses296,714 301,232 (1)361,866 (18)
Operating Income111,742 101,424 10 40,717 174 
Nonoperating Income (Expenses)
Investment income (loss), net14,015 2,722 415 5,132 173 
Debt expense(3,170)(3,133)1 (3,159)— 
Other, net16 (8)300 (34)147 
Total Nonoperating Income (Expenses), net10,861 (419)NM1,939 460 
Income before income taxes122,603 101,005 21 42,656 187 
Income tax provision32,262 26,739 21 23,431 38 
Net income including the noncontrolling interests in subsidiaries90,341 74,266 22 19,225 370 
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries2,803 (760)469 (1,802)256 
Net Income$87,538 $75,026 17 %$21,027 316  %
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted$1.06 $0.86 23 %$0.20 430  %
Weighted-Average Shares Outstanding
Basic78,690 83,710 80,026 
Diluted78,706 83,710 80,026 
Dividends Declared Per Share$0.31 $0.28 $1.31 
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 $3.7 million, $3.3 million and $4.7 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Sept. 30, 2024, Sept. 30, 2023 and June 30, 2024, respectively, was excluded from the computation of earnings per share.

    
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Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Nine Months Ended
Sept. 30, 2024Sept. 30, 2023% Change
Revenue
Investment advisory fees, net$809,537 $851,089 (5)%
Administrative service fees, net—affiliates287,819 252,402 14 
Other service fees, net110,054 114,586 (4)
Total Revenue1,207,410 1,218,077 (1)
Operating Expenses
Compensation and related403,321 435,884 (7)
Distribution284,257 280,258 1 
Intangible asset related76,131 10,194 NM
Systems and communications68,672 63,259 9 
Professional service fees58,046 52,881 10 
Office and occupancy29,617 34,910 (15)
Advertising and promotional16,306 13,308 23 
Travel and related11,341 11,101 2 
Other8,679 31,303 (72)
Total Operating Expenses956,370 933,098 2 
Operating Income251,040 284,979 (12)
Nonoperating Income (Expenses)
Investment income (loss), net27,630 18,322 51 
Debt expense(9,478)(9,377)1 
Other, net85 101 (16)
Total Nonoperating Income (Expenses), net18,237 9,046 102 
Income before income taxes269,277 294,025 (8)
Income tax provision84,701 75,291 12 
Net income including the noncontrolling interests in subsidiaries184,576 218,734 (16)
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries978 1,932 (49)
Net Income$183,598 $216,802 (15)%
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted$2.20 $2.44 (10)%
Weighted-Average Shares Outstanding
Basic79,804 84,499 
Diluted79,809 84,502 
Dividends Declared Per Share$1.90 $0.83 
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 $8.0 million and $10.3 million available to unvested restricted Federated Hermes shareholders for the nine months ended Sept. 30, 2024 and Sept. 30, 2023, respectively, was excluded from the computation of earnings per share.




    
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Unaudited Condensed Consolidated Balance Sheets
(in thousands)Sept. 30, 2024Dec. 31, 2023
Assets
  Cash and other investments$565,028 $560,675 
  Other current assets158,158 160,054 
  Intangible assets, net, including goodwill1,156,135 1,216,605 
  Other long-term assets158,230 164,510 
  Total Assets$2,037,551 $2,101,844 
Liabilities, Redeemable Noncontrolling Interests and Equity
  Current liabilities$263,138 $287,343 
  Long-term debt348,040 347,843 
  Other long-term liabilities289,449 312,561 
  Redeemable noncontrolling interests53,408 25,845 
Equity excluding treasury stock1,706,212 1,649,655 
Treasury stock(622,696)(521,403)
  Total Liabilities, Redeemable Noncontrolling Interests and Equity$2,037,551 $2,101,844 



    
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Unaudited Changes in Long-Term Assets - By Asset Class
(in millions)Quarter EndedNine Months Ended
Sept. 30, 2024June 30, 2024Sept. 30, 2023Sept. 30, 2024Sept. 30, 2023
Equity
Beginning assets$77,851 $80,157 $82,992 $79,291 $81,523 
Sales1
3,607 3,811 3,897 11,333 14,397 
Redemptions1
(5,046)(7,071)(6,304)(19,468)(16,737)
Net sales (redemptions)1
(1,439)(3,260)(2,407)(8,135)(2,340)
Net exchanges(4)9 18 10 126 
Impact of foreign exchange2
725 12 (532)170 (353)
Market gains and (losses)3
6,476 933 (2,756)12,273 (1,641)
Ending assets$83,609 $77,851 $77,315 $83,609 $77,315 
Fixed Income
Beginning assets$95,294 $96,325 $87,425 $94,920 $86,743 
Sales1
7,345 5,262 8,277 19,190 19,215 
Redemptions1
(5,942)(6,699)(5,133)(18,036)(17,223)
Net sales (redemptions)1
1,403 (1,437)3,144 1,154 1,992 
Net exchanges(12)(179)(25)(198)(120)
Impact of foreign exchange2
98 (8)(96)19 (15)
Market gains and (losses)3
3,388 593 (683)4,276 1,165 
Ending assets$100,171 $95,294 $89,765 $100,171 $89,765 
Alternative/Private Markets
Beginning assets$20,061 $20,465 $21,602 $20,551 $20,802 
Sales1
558 647 660 1,966 2,568 
Redemptions1
(881)(1,177)(866)(2,798)(2,403)
Net sales (redemptions)1
(323)(530)(206)(832)165 
Net exchanges12 174 (3)188 (6)
Impact of foreign exchange2
1,017 21 (762)812 145 
Market gains and (losses)3
(84)(69)(294)(36)(769)
Ending assets$20,683 $20,061 $20,337 $20,683 $20,337 
Multi-asset
Beginning assets$2,876 $2,928 $2,922 $2,867 $2,989 
Sales1
38 42 30 124 110 
Redemptions1
(94)(113)(119)(319)(406)
Net sales (redemptions)1
(56)(71)(89)(195)(296)
Net exchanges4 1 0 5 3 
Market gains and (losses)3
134 18 (105)281 32 
Ending assets$2,958 $2,876 $2,728 $2,958 $2,728 
Total Long-term Assets
Beginning assets$196,082 $199,875 $194,941 $197,629 $192,057 
Sales1
11,548 9,762 12,864 32,613 36,290 
Redemptions1
(11,963)(15,060)(12,422)(40,621)(36,769)
Net sales (redemptions)1
(415)(5,298)442 (8,008)(479)
Net exchanges0 5 (10)5 3 
Impact of foreign exchange2
1,840 25 (1,390)1,001 (223)
Market gains and (losses)3
9,914 1,475 (3,838)16,794 (1,213)
Ending assets$207,421 $196,082 $190,145 $207,421 $190,145 
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.




    
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Unaudited Changes in Long-Term Assets - By Asset Class and Product Type
(in millions)
Quarter Ended
Sept. 30, 2024
EquityFixed IncomeAlternative / Private MarketsMulti-assetTotal
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds.
Separate Accounts1
Beginning assets$42,404 $35,447 $43,842 $51,452 $12,258 $7,803 $2,743 $133 $101,247 $94,835 
Sales2,261 1,346 3,876 3,469 476 82 33 5 6,646 4,902 
Redemptions(2,874)(2,172)(3,571)(2,371)(699)(182)(90)(4)(7,234)(4,729)
Net sales (redemptions)(613)(826)305 1,098 (223)(100)(57)1 (588)173 
Net exchanges(4)0 2 (14)12 0 4 0 14 (14)
Impact of foreign exchange2
397 328 75 23 588 429 0 0 1,060 780 
Market gains and (losses)3
3,207 3,269 1,803 1,585 (77)(7)133 1 5,066 4,848 
Ending assets$45,391 $38,218 $46,027 $54,144 $12,558 $8,125 $2,823 $135 $106,799 $100,622 
Nine Months Ended
Sept. 30, 2024
EquityFixed IncomeAlternative / Private MarketsMulti-assetTotal
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 
Sales7,093 4,240 11,251 7,939 1,667 299 119 5 20,130 12,483 
Redemptions(10,537)(8,931)(11,012)(7,024)(2,366)(432)(306)(13)(24,221)(16,400)
Net sales (redemptions) (3,444)(4,691)239 915 (699)(133)(187)(8)(4,091)(3,917)
Net exchanges10 0 (181)(17)188 0 5 0 22 (17)
Impact of foreign exchange2
151 19 28 (9)456 356 0 0 635 366 
Market gains and (losses)3
6,161 6,112 2,033 2,243 234 (270)275 6 8,703 8,091 
Ending assets$45,391 $38,218 $46,027 $54,144 $12,558 $8,125 $2,823 $135 $106,799 $100,622 
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.









    
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Unaudited Changes in Long-Term Assets - By Product Type
(in millions)
Quarter EndedNine Months Ended
Sept. 30, 2024June 30, 2024Sept. 30, 2023Sept. 30, 2024Sept. 30, 2023
Total Fund Assets
Beginning assets$101,247 $103,143 $104,387 $101,530 $102,423 
Sales6,646 6,318 5,413 20,130 20,192 
Redemptions(7,234)(8,757)(8,018)(24,221)(24,425)
Net sales (redemptions)(588)(2,439)(2,605)(4,091)(4,233)
Net exchanges14 6 0 22 10 
Impact of foreign exchange1
1,060 (5)(798)635 23 
Market gains and (losses)2
5,066 542 (2,606)8,703 155 
Ending assets$106,799 $101,247 $98,378 $106,799 $98,378 
Total Separate Account Assets3
Beginning assets$94,835 $96,732 $90,554 $96,099 $89,634 
Sales4
4,902 3,444 7,451 12,483 16,098 
Redemptions4
(4,729)(6,303)(4,404)(16,400)(12,344)
Net sales (redemptions)4
173 (2,859)3,047 (3,917)3,754 
Net exchanges(14)(1)(10)(17)(7)
Impact of foreign exchange1
780 30 (592)366 (246)
Market gains and (losses)2
4,848 933 (1,232)8,091 (1,368)
Ending assets$100,622 $94,835 $91,767 $100,622 $91,767 
Total Long-term Assets3
Beginning assets$196,082 $199,875 $194,941 $197,629 $192,057 
Sales4
11,548 9,762 12,864 32,613 36,290 
Redemptions4
(11,963)(15,060)(12,422)(40,621)(36,769)
Net sales (redemptions)4
(415)(5,298)442 (8,008)(479)
Net exchanges0 5 (10)5 3 
Impact of foreign exchange1
1,840 25 (1,390)1,001 (223)
Market gains and (losses)2
9,914 1,475 (3,838)16,794 (1,213)
Ending assets$207,421 $196,082 $190,145 $207,421 $190,145 
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.




















    
Federated Hermes reports Q3 2024 earnings
Page 11 of 13
Unaudited Managed Assets

(in millions)
Sept. 30, 2024June 30, 2024March 31, 2024Dec. 31, 2023Sept. 30, 2023
By Asset Class
Equity$83,609 $77,851 $80,157 $79,291 $77,315 
Fixed-income100,171 95,294 96,325 94,920 89,765 
Alternative / private markets20,683 20,061 20,465 20,551 20,337 
Multi-asset2,958 2,876 2,928 2,867 2,728 
Total long-term assets207,421 196,082 199,875 197,629 190,145 
Money market593,030 586,647 578,811 559,993 525,085 
Total Managed Assets$800,451 $782,729 $778,686 $757,622 $715,230 
By Product Type
Funds:
Equity$45,391 $42,404 $43,415 $42,513 $40,801 
Fixed-income46,027 43,842 44,481 43,908 42,569 
Alternative / private markets12,558 12,258 12,458 12,379 12,409 
Multi-asset2,823 2,743 2,789 2,730 2,599 
Total long-term assets106,799 101,247 103,143 101,530 98,378 
Money market440,397 425,627 417,102 406,166 384,896 
Total Fund Assets$547,196 $526,874 $520,245 $507,696 $483,274 
Separate Accounts:
Equity$38,218 $35,447 $36,742 $36,778 $36,514 
Fixed-income54,144 51,452 51,844 51,012 47,196 
Alternative / private markets8,125 7,803 8,007 8,172 7,928 
Multi-asset135 133 139 137 129 
Total long-term assets100,622 94,835 96,732 96,099 91,767 
Money market152,633 161,020 161,709 153,827 140,189 
Total Separate Account Assets$253,255 $255,855 $258,441 $249,926 $231,956 
Total Managed Assets$800,451 $782,729 $778,686 $757,622 $715,230 

    
Federated Hermes reports Q3 2024 earnings
Page 12 of 13
Unaudited Average Managed AssetsQuarter Ended
(in millions)
Sept. 30, 2024June 30, 2024March 31, 2024Dec. 31, 2023Sept. 30, 2023
By Asset Class
Equity$80,220 $78,137 $78,969 $76,009 $82,203 
Fixed-income97,563 95,484 95,791 91,927 88,677 
Alternative / private markets20,455 20,306 20,485 20,623 21,413 
Multi-asset2,910 2,889 2,874 2,744 2,861 
Total long-term assets201,148 196,816 198,119 191,303 195,154 
Money market592,304 582,758 578,383 536,727 516,046 
Total Avg. Managed Assets$793,452 $779,574 $776,502 $728,030 $711,200 
By Product Type
Funds:
Equity$43,632 $42,274 $42,355 $40,296 $43,687 
Fixed-income44,977 43,910 43,857 42,705 43,437 
Alternative / private markets12,451 12,331 12,377 12,571 13,184 
Multi-asset2,775 2,737 2,739 2,615 2,724 
Total long-term assets103,835 101,252 101,328 98,187 103,032 
Money market436,418 419,999 414,902 392,946 373,088 
Total Avg. Fund Assets$540,253 $521,251 $516,230 $491,133 $476,120 
Separate Accounts:
Equity$36,588 $35,863 $36,614 $35,713 $38,516 
Fixed-income52,586 51,574 51,934 49,222 45,240 
Alternative / private markets8,004 7,975 8,108 8,052 8,229 
Multi-asset135 152 135 129 137 
Total long-term assets97,313 95,564 96,791 93,116 92,122 
Money market155,886 162,759 163,481 143,781 142,958 
Total Avg. Separate Account Assets$253,199 $258,323 $260,272 $236,897 $235,080 
Total Avg. Managed Assets$793,452 $779,574 $776,502 $728,030 $711,200 


    
Federated Hermes reports Q3 2024 earnings
Page 13 of 13
Unaudited Average Managed AssetsNine Months Ended
(in millions)Sept. 30, 2024Sept. 30, 2023
By Asset Class
Equity$79,108 $83,128 
Fixed-income96,280 88,130 
Alternative / private markets20,415 21,254 
Multi-asset2,891 2,934 
Total long-term assets198,694 195,446 
Money market584,482 503,182 
Total Avg. Managed Assets$783,176 $698,628 
By Product Type
Funds:
Equity$42,754 $44,320 
Fixed-income44,248 43,741 
Alternative / private markets12,386 13,143 
Multi-asset2,751 2,794 
Total long-term assets102,139 103,998 
Money market423,773 356,351 
Total Avg. Fund Assets$525,912 $460,349 
Separate Accounts:
Equity$36,354 $38,808 
Fixed-income52,032 44,389 
Alternative / private markets8,029 8,111 
Multi-asset140 140 
Total long-term assets96,555 91,448 
Money market160,709 146,831 
Total Avg. Separate Account Assets$257,264 $238,279 
Total Avg. Managed Assets$783,176 $698,628 


v3.24.3
Cover Page
Oct. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 2024
Entity Registrant Name FEDERATED HERMES, INC.
Entity Incorporation, State or Country Code PA
Entity File Number 001-14818
Entity Tax Identification Number 25-1111467
Entity Address, Address Line One 1001 Liberty Avenue
Entity Address, City or Town Pittsburgh
Entity Address, State or Province PA
Entity Address, Postal Zip Code 15222-3779
City Area Code 412
Local Phone Number 288-1900
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Class B common stock, no par value
Trading Symbol FHI
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001056288
Amendment Flag false
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