FHI - Federated Hermes Inc. reports second quarter 2022 earnings

July, 28 2022 04:17 PM Federated Hermes Inc.

PR Newswire

Q2 2022 earnings per diluted share of $0.64
Board declares $0.27 per share quarterly dividend

PITTSBURGH , July 28, 2022 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $0.64 for Q2 2022, compared to $0.56 for the same quarter last year, on net income of $57.7 million for Q2 2022, compared to $55.9 million for Q2 2021. Federated Hermes reported YTD 2022 EPS of $1.24 , compared to $1.31 for the same period in 2021, on YTD 2022 net income of $113.5 million , compared to $130.4 million for the same period in 2021. The results for Q2 2022 and YTD 2022 include net realized and unrealized losses on investments of $20.9 million ( $0.10 per diluted share) and $32.6 million ( $0.19 per diluted share), respectively, as a result of the reduction in the market value of equity and fixed-income investments.

Federated Hermes' total managed assets were $631.9 billion at June 30, 2022, down $13.9 billion or 2% from $645.8 billion at June 30, 2021 and up $0.8 billion or less than 1% from $631.1 billion at March 31, 2022. Total average managed assets for Q2 2022 were $617.9 billion , down $21.8 billion or 3% from $639.7 billion reported for Q2 2021 and down $29.3 billion or 5% from $647.2 billion for Q1 2022.

"In the first half of 2022, Federated Hermes saw strong sales in dividend-income equity strategies, led by Federated Hermes Strategic Value Dividend Fund," said J. Christopher Donahue , president and chief executive officer. "As investors negotiated high inflation, rising interest rates and volatile markets across asset classes, they also sought haven in Federated Hermes' liquidity products."

Federated Hermes' board of directors declared a dividend of $0.27 per share. The dividend is payable on Aug. 15, 2022 to shareholders of record as of Aug. 8, 2022 . During Q2 2022, Federated Hermes purchased 2,877,691 shares of Federated Hermes class B common stock for $89.5 million.

Equity assets were $81.0 billion at June 30, 2022, down $19.5 billion or 19% from $100.5 billion at June 30, 2021 and down $10.7 billion or 12% from $91.7 billion at March 31, 2022. Top-selling equity funds during Q2 2022 on a net basis were Federated Hermes Strategic Value Dividend Fund, Federated Hermes International Strategic Value Dividend Fund, Federated Hermes Asia ex-Japan Equity Fund, Federated Hermes International Equity Fund and Federated Hermes SDG Engagement Equity Fund (UCITS).

Fixed-income assets were $86.3 billion at June 30, 2022, down $4.5 billion or 5% from $90.8 billion at June 30, 2021 and down $5.8 billion or 6% from $92.1 billion at March 31, 2022. Top-selling fixed-income funds during Q2 2022 on a net basis were Federated Hermes Capital Preservation Fund, Federated Hermes Adjustable Rate Fund, Federated Hermes Conservative Municipal Microshort Fund, Federated Hermes Climate Change High Yield Credit Fund and Federated Hermes Intermediate Municipal Fund.

Alternative/private markets assets were $21.8 billion at June 30, 2022, up $0.8 billion or 4% from $21.0 billion at June 30, 2021 and down $1.3 billion or 6% from $23.1 billion at March 31, 2022.

Money market assets were $439.7 billion at June 30, 2022, up $9.9 billion or 2% from $429.8 billion at June 30, 2021 and up $19.1 billion or 5% from $420.6 billion at March 31, 2022. Money market fund assets were $298.0 billion at June 30, 2022, down $4.0 billion or 1% from $302.0 billion at June 30, 2021 and up $18.5 billion or 7% from $279.5 billion at March 31, 2022.

Financial Summary

Q2 2022 vs. Q2 2021

Revenue increased $55.0 million or 18% primarily due to a decrease in voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers). For further information on the waivers, see "Impact of voluntary yield-related fee waivers" below. This increase was partially offset by a decrease in revenue due to lower average equity and money market assets, as well as a change in the mix of average fixed-income assets.

During Q2 2022, Federated Hermes derived 59% of its revenue from long-term assets (36% from equity, 14% from fixed-income and 9% from alternative/private markets and multi-asset), 40% from money market assets, and 1% from sources other than managed assets.

Operating expenses increased $44.5 million or 19% due to increased distribution expenses resulting primarily from lower voluntary yield-related fee waivers. This increase was partially offset by a decrease in distribution expense due to lower average managed fund assets.

Nonoperating income (expenses), net decreased $29.5 million primarily due to a decrease in the market value of investments in Q2 2022 compared to an increase in the market value of investments in Q2 2021.

Income tax provision decreased $16.3 million primarily due to legislation enacted in the U.K. in Q2 2021, increasing the U.K. corporate income tax rate from 19% to 25% effective April 1, 2023 , resulting in the revaluation of certain net deferred tax liabilities in Q2 2021 (2021 U.K. Tax Legislation).

Q2 2022 vs. Q1 2022

Revenue increased $41.2 million or 13% primarily due to a decrease in voluntary yield-related fee waivers. This increase was partially offset by a decrease in revenue due to lower average long-term and money market assets.

Operating expenses increased $32.9 million or 14% primarily due to increased distribution expenses predominantly resulting from lower voluntary yield-related fee waivers partially offset by decreased distribution expenses due to lower average managed fund assets.

Nonoperating income (expenses), net decreased $10.9 million or 93% primarily due to a decrease in the market value of investments.

YTD 2022 vs. YTD 2021

Revenue increased $38.6 million or 6% primarily due to a decrease in voluntary yield-related fee waivers. This increase was partially offset by a decrease in revenue due to lower average equity assets, a decrease in carried interest and performance fees, and a decrease in revenue due to a change in the mix of average money market and fixed-income assets.

For the first half of 2022, Federated Hermes derived 65% of its revenue from long-term assets (40% from equity, 16% from fixed-income and 9% from alternative/private markets and multi-asset), 34% from money market assets and 1% from sources other than managed assets.

Operating expenses increased $41.6 million or 9% primarily due to increased distribution expenses predominantly resulting from lower voluntary yield-related fee waivers partially offset by lower average managed fund assets and a decrease in compensation and related expense.

Nonoperating income (expenses), net decreased $43.1 million primarily due to a decrease in the market value of investments in the first six months of 2022 compared to an increase in the market value of investments for the same period in 2021.

Income tax provision decreased $23.7 million primarily due to the 2021 U.K. Tax Legislation and lower income before income taxes.

Impact of voluntary yield-related fee waivers

During the three and six months ended June 30, 2022, voluntary yield-related fee waivers totaled $9.5 million and $85.3 million , respectively. These fee waivers were partially offset by related reductions in distribution expenses of $9.0 million and $66.5 million , respectively, such that the net negative pre-tax impact to Federated Hermes was $0.5 million and $18.8 million for the three and six months ended June 30, 2022, respectively. During the three and six months ended June 30, 2021, voluntary yield-related fee waivers totaled $117.8 million and $200.9 million , respectively. These fee waivers were partially offset by related reductions in distribution expenses of $71.0 million and $132.5 million , respectively, such that the net negative pre-tax impact to Federated Hermes was $46.8 million and $68.4 million for the three and six months ended June 30, 2021, respectively.

Due to recent increases in the yields of securities held by money market portfolios, the net negative pre-tax impact of the voluntary yield-related fee waivers has been nearly eliminated. The amount of voluntary yield-related fee waivers can vary based on a number of factors, including, among others, interest rates, yields, asset levels, asset flows and the ability of distributors to share in waivers. Any change in these factors can impact the amount and level of voluntary yield-related fee waivers, including in a material way.

Federated Hermes' level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior. These factors and others, including asset levels and mix, product sales and redemptions, market appreciation or depreciation, revenues, fee waivers, expenses and regulatory changes, can significantly impact Federated Hermes' business activity levels and financial results. Risk factors and uncertainties that can influence Federated Hermes' financial results are discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission (SEC).

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on July 29, 2022. Investors are invited to listen to the earnings teleconference by calling 877-545-0523 (domestic) or 973-528-0016 (international) prior to the 9 a.m. start time. To listen online, go to the Investor Relations section and the Analyst Information tab of FederatedHermes.com at least 15 minutes prior to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on July 29, 2022. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 45935. The online replay will be available via FederatedHermes.com for one year.

Federated Hermes, Inc. is a global leader in active, responsible investment management, with $631.9 billion in assets under management ¹ . We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh , Federated Hermes has nearly 2,000 employees in London , New York and offices worldwide.

Federated Hermes ranks in the top 7% of equity fund managers in the industry, the top 10% of fixed-income fund managers and the top 11% of money market fund managers ² . Federated Hermes also ranks as the 9th-largest manager of model-delivered SMAs ³ . For more information, including an analyst presentation, visit FederatedHermes.com .

###

1) As of June 30, 2022.
2) ISS Market Intelligence (SIMFUND), June 30, 2022. Based on assets under management in open-end funds.
3) Money Management Institute/Cerulli,Q1 2022.

Federated Securities Corp. is distributor of the Federated Hermes funds.

Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, and Hermes GPE LLP, each a registered investment advisor in one or more of the U.S., U.K. or Ireland .

Certain statements in this press release, such as those related to performance, investor preferences and demand, asset flows, asset mix, 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. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, and sustain product demand, asset flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the SEC. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.

*Unaudited Condensed Consolidated Statements of Income*
(in thousands, except per share data)







Quarter Ended
% Change Q2 2021 to Q2 2022

Quarter Ended
% Change Q1 2022 to Q2 2022

June 30, 2022
June 30, 2021

March 31, 2022
Revenue






Investment advisory fees, net
258,043
214,289
20 %

232,994
11 %
Administrative service fees, net—affiliates
70,182
77,750
(10)

73,507
(5)
Other service fees, net
37,783
19,001
99

18,263
107
Total Revenue
366,008
311,040
18

324,764
13







Operating Expenses






Compensation and related
128,086
132,769
(4)

133,965
(4)
Distribution
84,243
38,115
121

48,562
73
Systems and communications
18,446
18,954
(3)

19,494
(5)
Professional service fees
13,976
15,122
(8)

13,468
4
Office and occupancy
10,512
11,082
(5)

11,322
(7)
Advertising and promotional
4,736
4,623
2

2,732
73
Travel and related
3,328
898
271

1,795
85
Other
10,363
7,668
35

9,477
9
Total Operating Expenses
273,690
229,231
19

240,815
14
Operating Income
92,318
81,809
13

83,949
10







Nonoperating Income (Expenses)






Investment income (loss), net
(19,308)
7,393
(361)

(10,602)
(82)
Debt expense
(3,350)
(346)
NM

(1,222)
174
Other, net
(13)
(184)
93

83
(116)
Total Nonoperating Income (Expenses), net
(22,671)
6,863
(430)

(11,741)
(93)
Income before income taxes
69,647
88,672
(21)

72,208
(4)
Income tax provision
18,889
35,193
(46)

17,611
7
Net income including the noncontrolling interests in subsidiaries
50,758
53,479
(5)

54,597
(7)
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries
(6,899)
(2,405)
(187)

(1,266)
(445)
Net Income
57,657
55,884
3 %

55,863
3 %







Amounts Attributable to Federated Hermes, Inc.






Earnings Per Share ¹






Basic
0.64
0.57
12 %

0.61
5 %
Diluted
0.64
0.56
14 %

0.61
5 %
Weighted-Average Shares Outstanding






Basic and Diluted
85,373
93,964


88,050

Dividends Declared Per Share
0.27
0.27


0.27

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of basic earnings per share under the "two-class method." As such, total net income of $3.2 million, $2.4 million and $2.6 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended June 30, 2022, June 30, 2021 and March 31, 2022, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share for the quarterly period ended June 30, 2021 excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary.

*Unaudited Condensed Consolidated Statements of Income*



(in thousands, except per share data)




Six Months Ended

June 30, 2022
June 30, 2021
% Change
Revenue



Investment advisory fees, net
491,037
461,978
6 %
Administrative service fees, net—affiliates
143,689
152,051
(5)
Other service fees, net
56,046
38,184
47
Total Revenue
690,772
652,213
6




Operating Expenses



Compensation and related
262,051
276,389
(5)
Distribution
132,804
82,504
61
Systems and communications
37,940
37,549
1
Professional service fees
27,444
29,759
(8)
Office and occupancy
21,835
22,322
(2)
Advertising and promotional
7,468
7,447
0
Travel and related
5,123
1,195
329
Other
19,840
15,761
26
Total Operating Expenses
514,505
472,926
9
Operating Income
176,267
179,287
(2)




Nonoperating Income (Expenses)



Investment income (loss), net
(29,909)
9,404
(418)
Debt expense
(4,571)
(837)
446
Other, net
68
161
(58)
Total Nonoperating Income (Expenses), net
(34,412)
8,728
(494)
Income before income taxes
141,855
188,015
(25)
Income tax provision
36,500
60,190
(39)
Net income including the noncontrolling interests in subsidiaries
105,355
127,825
(18)
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries
(8,165)
(2,543)
(221)
Net Income
113,520
130,368
(13) %




Amounts Attributable to Federated Hermes, Inc.



Earnings Per Share ¹



Basic
1.24
1.32
(6) %
Diluted
1.24
1.31
(5) %
Weighted-Average Shares Outstanding



Basic and Diluted
86,706
94,588

Dividends Declared Per Share
0.54
0.54

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of basic earnings per share under the "two-class method." As such, total net income of $5.8 million and $5.4 million available to unvested restricted Federated Hermes shareholders for the six months ended June 30, 2022 and June 30, 2021, respectively, was excluded from the computation of basic earnings per share. In addition to the amounts excluded from the basic earnings per share calculation, the computation of diluted earnings per share excludes net income available to unvested shareholders of a nonpublic consolidated subsidiary for the six months ended June 30, 2021.

*Unaudited Condensed Consolidated Balance Sheets*


(in thousands)
June 30, 2022
Dec. 31, 2021
Assets


Cash and other investments
429,767
426,674
Other current assets
131,636
132,773
Intangible assets, net, including goodwill
1,217,991
1,270,080
Other long-term assets
172,523
188,660
Total Assets
1,951,917
2,018,187



Liabilities, Redeemable Noncontrolling Interests and Equity


Current liabilities
207,147
270,707
Long-term debt
397,448
223,350
Other long-term liabilities
324,698
346,911
Redeemable noncontrolling interests
54,731
63,202
Equity excluding treasury stock
1,652,179
1,652,481
Treasury stock
(684,286)
(538,464)
Total Liabilities, Redeemable Noncontrolling Interests and Equity
1,951,917
2,018,187

*Unaudited Changes in Long-Term Assets - By Asset Class*



(in millions)
Quarter Ended

Six Months Ended

June 30, 2022
March 31, 2022
June 30, 2021

June 30, 2022
June 30, 2021
Equity






Beginning assets
91,676
96,716
96,170

96,716
91,788
Sales ¹
6,595
6,992
5,366

13,587
13,126
Redemptions ¹
(7,564)
(7,070)
(6,784)

(14,634)
(13,948)
Net sales (redemptions) ¹
(969)
(78)
(1,418)

(1,047)
(822)
Net exchanges
20
(174)
8

(154)
40
Impact of foreign exchange ²
(1,199)
(454)
171

(1,653)
(424)
Market gains and (losses) ³
(8,540)
(4,334)
5,575

(12,874)
9,924
Ending assets
80,988
91,676
100,506

80,988
100,506







Fixed Income






Beginning assets
92,146
97,550
86,464

97,550
84,277
Sales ¹
6,991
7,424
10,584

14,415
21,771
Redemptions ¹
(8,950)
(9,437)
(7,418)

(18,387)
(15,702)
Net sales (redemptions) ¹
(1,959)
(2,013)
3,166

(3,972)
6,069
Net exchanges
(51)
146
(7)

95
(51)
Impact of foreign exchange ²
(225)
(104)
25

(329)
(35)
Market gains and (losses) ³
(3,658)
(3,433)
1,153

(7,091)
541
Ending assets
86,253
92,146
90,801

86,253
90,801







Alternative/Private Markets






Beginning assets
23,109
22,920
19,301

22,920
19,084
Sales ¹
1,116
644
1,330

1,760
1,808
Redemptions ¹
(1,091)
(505)
(546)

(1,596)
(1,177)
Net sales (redemptions) ¹
25
139
784

164
631
Net exchanges
4
0
(1)

4
(2)
Impact of foreign exchange ²
(1,555)
(637)
54

(2,192)
193
Market gains and (losses) ³
202
687
824

889
1,056
Ending assets
21,785
23,109
20,962

21,785
20,962







Multi-asset






Beginning assets
3,555
3,780
3,981

3,780
3,948
Sales ¹
43
74
88

117
155
Redemptions ¹
(143)
(132)
(544)

(275)
(714)
Net sales (redemptions) ¹
(100)
(58)
(456)

(158)
(559)
Net exchanges
1
5
14

6
19
Impact of foreign exchange ²
0
0
0

0
(1)
Market gains and (losses) ³
(321)
(172)
160

(493)
292
Ending assets
3,135
3,555
3,699

3,135
3,699







Total Long-term Assets






Beginning assets
210,486
220,966
205,916

220,966
199,097
Sales ¹
14,745
15,134
17,368

29,879
36,860
Redemptions ¹
(17,748)
(17,144)
(15,292)

(34,892)
(31,541)
Net sales (redemptions) ¹
(3,003)
(2,010)
2,076

(5,013)
5,319
Net exchanges
(26)
(23)
14

(49)
6
Impact of foreign exchange ²
(2,979)
(1,195)
250

(4,174)
(267)
Market gains and (losses) ³
(12,317)
(7,252)
7,712

(19,569)
11,813
Ending assets
192,161
210,486
215,968

192,161
215,968

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

Reflects the approximate changes in the fair value of the securities held by 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, 2022

Equity
Fixed Income
Alternative / Private Markets
Multi-asset
Total

Funds
Separate Accounts ¹
Funds
Separate Accounts ¹
Funds
Separate Accounts ¹
Funds
Separate Accounts ¹
Funds ^.
Separate Accounts ¹
Beginning assets
51,890
39,786
54,830
37,316
14,847
8,262
3,401
154
$ 124,968
85,518
Sales
3,669
2,926
4,326
2,665
705
411
43
0
8,743
6,002
Redemptions
(3,971)
(3,593)
(8,134)
(816)
(749)
(342)
(139)
(4)
(12,993)
(4,755)
Net sales (redemptions)
(302)
(667)
(3,808)
1,849
(44)
69
(96)
(4)
(4,250)
1,247
Net exchanges
20
0
(52)
1
4
0
1
0
(27)
1
Impact of foreign exchange ²
(678)
(521)
(169)
(56)
(980)
(575)
0
0
(1,827)
(1,152)
Market gains and (losses) ³
(6,723)
(1,817)
(2,586)
(1,072)
84
118
(305)
(16)
(9,530)
(2,787)
Ending assets
44,207
36,781
48,215
38,038
13,911
7,874
3,001
134
$ 109,334
82,827












Six Months Ended

June 30, 2022

Equity
Fixed Income
Alternative / Private Markets
Multi-asset
Total

Funds
Separate Accounts ¹
Funds
Separate Accounts ¹
Funds
Separate Accounts ¹
Funds
Separate Accounts ¹
Funds
Separate Accounts ¹
Beginning assets
57,036
39,680
59,862
37,688
14,788
8,132
3,608
172
$ 135,294
85,672
Sales
7,629
5,958
9,755
4,660
1,100
660
116
1
18,600
11,279
Redemptions
(8,089)
(6,545)
(16,556)
(1,831)
(1,185)
(411)
(267)
(8)
(26,097)
(8,795)
Net sales (redemptions)
(460)
(587)
(6,801)
2,829
(85)
249
(151)
(7)
(7,497)
2,484
Net exchanges
(154)
0
96
(1)
4
0
6
0
(48)
(1)
Impact of foreign exchange ²
(968)
(685)
(248)
(81)
(1,377)
(815)
0
0
(2,593)
(1,581)
Market gains and (losses) ³
(11,247)
(1,627)
(4,694)
(2,397)
581
308
(462)
(31)
(15,822)
(3,747)
Ending assets
44,207
36,781
48,215
38,038
13,911
7,874
3,001
134
$ 109,334
82,827

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.

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

Reflects the approximate changes in the fair value of the securities held by 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, 2022
March 31, 2022
June 30, 2021

June 30, 2022
June 30, 2021
Total Fund Assets






Beginning assets
124,968
135,294
128,376

135,294
123,713
Sales
8,743
9,857
12,639

18,600
27,892
Redemptions
(12,993)
(13,104)
(10,936)

(26,097)
(22,711)
Net sales (redemptions)
(4,250)
(3,247)
1,703

(7,497)
5,181
Net exchanges
(27)
(21)
12

(48)
(400)
Impact of foreign exchange ¹
(1,827)
(766)
138

(2,593)
(79)
Market gains and (losses) ²
(9,530)
(6,292)
4,932

(15,822)
6,746
Ending assets
109,334
124,968
135,161

109,334
135,161







Total Separate Account Assets ³






Beginning assets
85,518
85,672
77,540

85,672
75,384
Sales ⁴
6,002
5,277
4,729

11,279
8,968
Redemptions ⁴
(4,755)
(4,040)
(4,356)

(8,795)
(8,830)
Net sales (redemptions) ⁴
1,247
1,237
373

2,484
138
Net exchanges
1
(2)
2

(1)
406
Impact of foreign exchange ¹
(1,152)
(429)
112

(1,581)
(188)
Market gains and (losses) ²
(2,787)
(960)
2,780

(3,747)
5,067
Ending assets
82,827
85,518
80,807

82,827
80,807







Total Long-term Assets ³






Beginning assets
210,486
220,966
205,916

220,966
199,097
Sales ⁴
14,745
15,134
17,368

29,879
36,860
Redemptions ⁴
(17,748)
(17,144)
(15,292)

(34,892)
(31,541)
Net sales (redemptions) ⁴
(3,003)
(2,010)
2,076

(5,013)
5,319
Net exchanges
(26)
(23)
14

(49)
6
Impact of foreign exchange ¹
(2,979)
(1,195)
250

(4,174)
(267)
Market gains and (losses) ²
(12,317)
(7,252)
7,712

(19,569)
11,813
Ending assets
192,161
210,486
215,968

192,161
215,968

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 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, 2022
March 31, 2022
Dec. 31, 2021
Sept. 30, 2021
June 30, 2021
By Asset Class





Equity
80,988
91,676
96,716
97,425
100,506
Fixed-income
86,253
92,146
97,550
97,226
90,801
Alternative / private markets
21,785
23,109
22,920
22,064
20,962
Multi-asset
3,135
3,555
3,780
3,692
3,699
Total long-term assets
192,161
210,486
220,966
220,407
215,968
Money market
439,697
420,596
447,907
413,713
429,804
Total Managed Assets
631,858
631,082
668,873
634,120
645,772






By Product Type





Funds:





Equity
44,207
51,890
57,036
58,218
59,933
Fixed-income
48,215
54,830
59,862
60,262
58,486
Alternative / private markets
13,911
14,847
14,788
14,299
13,225
Multi-asset
3,001
3,401
3,608
3,518
3,517
Total long-term assets
109,334
124,968
135,294
136,297
135,161
Money market
298,031
279,514
312,834
292,311
301,971
Total Fund Assets
407,365
404,482
448,128
428,608
437,132
Separate Accounts:





Equity
36,781
39,786
39,680
39,207
40,573
Fixed-income
38,038
37,316
37,688
36,964
32,315
Alternative / private markets
7,874
8,262
8,132
7,765
7,737
Multi-asset
134
154
172
174
182
Total long-term assets
82,827
85,518
85,672
84,110
80,807
Money market
141,666
141,082
135,073
121,402
127,833
Total Separate Account Assets
224,493
226,600
220,745
205,512
208,640
Total Managed Assets
631,858
631,082
668,873
634,120
645,772

*Unaudited Average Managed Assets*
Quarter Ended
( in millions)
June 30, 2022
March 31, 2022
Dec. 31, 2021
Sept. 30, 2021
June 30, 2021
By Asset Class





Equity
85,785
92,034
97,751
100,076
99,165
Fixed-income
88,740
95,475
97,229
93,685
88,405
Alternative / private markets
22,230
22,848
22,243
21,446
20,047
Multi-asset
3,337
3,621
3,763
3,713
4,067
Total long-term assets
200,092
213,978
220,986
218,920
211,684
Money market
417,778
433,254
419,392
414,141
427,993
Total Avg. Managed Assets
617,870
647,232
640,378
633,061
639,677






By Product Type





Funds:





Equity
47,504
52,419
58,290
59,918
58,662
Fixed-income
51,173
57,413
60,339
59,618
57,006
Alternative / private markets
14,297
14,746
14,419
13,704
12,703
Multi-asset
3,193
3,460
3,590
3,533
3,880
Total long-term assets
116,167
128,038
136,638
136,773
132,251
Money market
275,631
291,157
294,618
289,566
301,990
Total Avg. Fund Assets
391,798
419,195
431,256
426,339
434,241
Separate Accounts:





Equity
38,281
39,615
39,461
40,158
40,503
Fixed-income
37,567
38,062
36,890
34,067
31,399
Alternative / private markets
7,933
8,102
7,824
7,742
7,344
Multi-asset
144
161
173
180
187
Total long-term assets
83,925
85,940
84,348
82,147
79,433
Money market
142,147
142,097
124,774
124,575
126,003
Total Avg. Separate Account Assets
226,072
228,037
209,122
206,722
205,436
Total Avg. Managed Assets
617,870
647,232
640,378
633,061
639,677

*Unaudited Average Managed Assets*

Six Months Ended
(in millions)

June 30, 2022

June 30, 2021
By Asset Class




Equity

88,910

97,166
Fixed-income

92,108

87,671
Alternative / private markets

22,539

19,663
Multi-asset

3,479

4,021
Total long-term assets

207,036

208,521
Money market

425,516

420,357
Total Avg. Managed Assets

632,552

628,878





By Product Type




Funds:




Equity

49,962

57,747
Fixed-income

54,293

56,210
Alternative / private markets

14,521

12,471
Multi-asset

3,326

3,832
Total long-term assets

122,102

130,260
Money market

283,394

295,197
Total Avg. Fund Assets

405,496

425,457
Separate Accounts:




Equity

38,948

39,419
Fixed-income

37,815

31,461
Alternative / private markets

8,018

7,192
Multi-asset

153

189
Total long-term assets

84,934

78,261
Money market

142,122

125,160
Total Avg. Separate Account Assets

227,056

203,421
Total Avg. Managed Assets

632,552

628,878

SOURCE Federated Hermes, Inc.

Company Name:	Federated Hermes Inc.
Stock Symbol:	FHI
Market:	NYSE
Website:	federatedhermes.com

Twitter