Exhibit 99.1
Federated Hermes, Inc. Reports First Quarter 2020 Earnings
• | Q1 2020 EPS of $0.63 compared to $0.54 for Q1 2019 |
• | Managed assets reach a record $605.8 billion |
• | Board declares $0.27 per share quarterly dividend |
(PITTSBURGH, Pa., April 30, 2020) — Federated Hermes, Inc. (NYSE: FHI), a leading global investment manager, today reported earnings per diluted share (EPS) of $0.63 for Q1 2020, compared to $0.54 for the same quarter last year, on net income of $64.2 million for Q1 2020, compared to $54.5 million for Q1 2019.
Federated Hermes' total managed assets were a record $605.8 billion at March 31, 2020, up $120.9 billion or 25% from $484.9 billion at March 31, 2019 and up $29.9 billion or 5% from $575.9 billion at Dec. 31, 2019. Total average managed assets for Q1 2020 were $580.2 billion, up $104.8 billion or 22% from $475.4 billion reported for Q1 2019 and up $30.1 billion or 5% from $550.1 billion reported for Q4 2019.
"As the coronavirus challenges the world, we are inspired by the front-line health care workers and others who are leading the fight against it as well as the sacrifices made by many to help reduce the virus’ spread," said J. Christopher Donahue, president and chief executive officer. "We also are thankful for the resiliency of our employees, who have adapted company operations while more than 95% of them successfully work remotely. They are simultaneously managing a variety of complications, from the isolation of social distancing to challenges such as educating their children at home—all while continuing to meet our clients' needs and providing excellent customer service."
"In the first quarter, Federated Hermes saw interest in our Kaufmann growth strategies, which invest in companies seeking to capitalize on innovation," Donahue said. "Investors seeking haven from volatile markets turned to our liquidity strategies, while we also experienced net sales in various long-term strategies, including Hermes global equity and SDG engagement funds, the Federated Government Ultrashort Duration Fund and the Federated Prudent Bear Fund."
Federated Hermes' board of directors declared a quarterly dividend of $0.27 per share. The dividend is payable on May 15, 2020 to shareholders of record as of May 11, 2020. During Q1 2020, Federated Hermes purchased 714,251 shares of Federated Hermes class B common stock for $16.0 million.
Equity assets were $68.2 billion at March 31, 2020, down $12.0 billion or 15% from $80.2 billion at March 31, 2019 and down $20.8 billion or 23% from $89.0 billion at Dec. 31, 2019. The decreases largely resulted from declines in the market value of investments from the impact of the coronavirus. Top-selling equity funds during Q1 2020 on a net basis were Federated Kaufmann Small Cap Fund, Hermes Global Emerging Markets Fund, Hermes SDG Engagement Equity Fund, Hermes Global Equity ESG Fund and Federated Kaufmann Large Cap Fund.
Fixed-income assets were $64.7 billion at March 31, 2020, up $0.6 billion or 1% from $64.1 billion at March 31, 2019 and down $4.3 billion or 6% from $69.0 billion at Dec. 31, 2019. Top-selling fixed-income funds during Q1 2020 on a net basis were Federated Government Ultrashort Duration Fund, Capital Preservation Fund, Hermes SDG Engagement High Yield Credit Fund, Federated Short-Intermediate Total Return Bond Fund and Federated Total Return Government Bond Fund.
MEDIA: | MEDIA: | ANALYSTS: |
Ed Costello 412-288-7538 | Meghan McAndrew 412-288-8103 | Ray Hanley 412-288-1920 |
Federated Hermes Reports Q1 2020 Earnings | Page 2 of 10 | |
Money market assets were a record $451.3 billion at March 31, 2020, up $132.9 billion or 42% from $318.4 billion at March 31, 2019 and up $55.8 billion or 14% from $395.5 billion at Dec. 31, 2019. Money market fund assets were $336.1 billion at March 31, 2020, up $121.3 billion or 56% from $214.8 billion at March 31, 2019 and up $49.5 billion or 17% from $286.6 billion at Dec. 31, 2019.
Financial Summary
Q1 2020 vs. Q1 2019
Revenue increased $52.1 million or 17% primarily due to higher average money market and equity assets.
During Q1 2020, Federated Hermes derived 56% of its revenue from long-term assets (38% from equity assets, 13% from fixed-income assets and 5% from alternative/private markets and multi-asset), 43% from money market assets, and 1% from sources other than managed assets.
Operating expenses increased $30.3 million or 13% primarily due to an increase in distribution expenses associated with higher average money market fund assets.
Nonoperating income (expenses), net decreased $8.7 million due to a decrease in the market value of investments, which declined primarily due to the coronavirus' impact on the markets. This decrease was partially offset by a gain from a fair value adjustment to the equity investment of a previously nonconsolidated entity.
Q1 2020 vs. Q4 2019
Revenue increased $1.2 million primarily due to higher average money market assets.
Operating expenses increased $11.2 million or 4% primarily due to an increase in compensation and related expenses as well as distribution expenses associated with higher average money market fund assets.
Nonoperating income (expenses), net decreased $15.9 million due to a decrease in the market value of investments, which declined primarily due to the coronavirus' impact on the markets. This decrease was partially offset by a gain from a fair value adjustment to the equity investment of a previously nonconsolidated entity.
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 May 1, 2020. Investors are invited to listen to the earnings teleconference by calling 877-407-0782 (domestic) or 201-689-8567 (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 May 1, 2020. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 33971. The online replay will be available via FederatedHermes.com for one year.
Federated Hermes, Inc. is a leading global investment manager with $605.8 billion in assets under management as of March 31, 2020. Our investment solutions span 163 equity, fixed-income, alternative/private markets, multi-asset and liquidity management
Federated Hermes Reports Q1 2020 Earnings | Page 3 of 10 | |
strategies, and a range of separately managed account strategies. Providing comprehensive investment management to more than 11,000 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes' more than 1,900 employees include those in New York, Boston, London and several other offices worldwide.
Federated Hermes ranks in the top 6% of equity fund managers in the industry, the top 7% of money market fund managers and the top 11% of fixed-income fund managers1. Federated Hermes also ranks as the 13th-largest SMA manager2. Information regarding Hermes is available at Hermes-Investment.com. An analyst presentation that includes information about Hermes also is available. For more information, visit FederatedHermes.com.
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1) Strategic Insight, March 30, 2020. Based on assets under management in open-end funds.
2) Money Management Institute/Cerulli, Q4 2019.
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, each a registered investment adviser.
Certain statements in this press release, such as those related to performance, investor preferences and demand, asset flows and mix, and the coronavirus and efforts to combat it, 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, 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 of such statements in the future.
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Federated Hermes Reports Q1 2020 Earnings | Page 4 of 10 | |
Unaudited Condensed Consolidated Statements of Income | ||||||||||||||
(in thousands, except per share data) | ||||||||||||||
Quarter Ended | % Change Q1 2019 to Q1 2020 | Quarter Ended | % Change Q4 2019 to Q1 2020 | |||||||||||
March 31, 2020 | March 31, 2019 | Dec. 31, 2019 | ||||||||||||
Revenue | ||||||||||||||
Investment advisory fees, net | $ | 240,660 | $ | 211,199 | 14 | % | $ | 243,631 | (1) | % | ||||
Administrative service fees, net—affiliates | 72,199 | 54,135 | 33 | 69,568 | 4 | |||||||||
Other service fees, net | 46,324 | 41,716 | 11 | 44,826 | 3 | |||||||||
Total Revenue | 359,183 | 307,050 | 17 | 358,025 | 0 | |||||||||
Operating Expenses | ||||||||||||||
Compensation and related | 115,335 | 111,216 | 4 | 111,436 | 3 | |||||||||
Distribution | 96,160 | 77,632 | 24 | 92,950 | 3 | |||||||||
Systems and communications | 14,896 | 12,794 | 16 | 14,731 | 1 | |||||||||
Professional service fees | 13,268 | 10,486 | 27 | 12,269 | 8 | |||||||||
Office and occupancy | 11,771 | 11,362 | 4 | 11,643 | 1 | |||||||||
Advertising and promotional | 4,995 | 4,190 | 19 | 4,785 | 4 | |||||||||
Travel and related | 3,159 | 3,848 | (18 | ) | 4,180 | (24 | ) | |||||||
Other | 6,855 | 4,633 | 48 | 3,240 | 112 | |||||||||
Total Operating Expenses | 266,439 | 236,161 | 13 | 255,234 | 4 | |||||||||
Operating Income | 92,744 | 70,889 | 31 | 102,791 | (10 | ) | ||||||||
Nonoperating Income (Expenses) | ||||||||||||||
Investment income (loss), net | (14,451 | ) | 2,709 | NM | 4,737 | (405 | ) | |||||||
Debt expense | (931 | ) | (1,400 | ) | (34 | ) | (1,066 | ) | (13 | ) | ||||
Other, net | 8,345 | 324 | NM | 5,209 | 60 | |||||||||
Total Nonoperating Income (Expenses), net | (7,037 | ) | 1,633 | NM | 8,880 | (179 | ) | |||||||
Income before income taxes | 85,707 | 72,522 | 18 | 111,671 | (23 | ) | ||||||||
Income tax provision | 22,442 | 17,911 | 25 | 26,582 | (16 | ) | ||||||||
Net income including the noncontrolling interests in subsidiaries | 63,265 | 54,611 | 16 | 85,089 | (26 | ) | ||||||||
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries | (913 | ) | 65 | NM | 2,982 | (131 | ) | |||||||
Net Income | $ | 64,178 | $ | 54,546 | 18 | % | $ | 82,107 | (22) | % | ||||
Amounts Attributable to Federated Hermes, Inc. | ||||||||||||||
Earnings Per Share1 | ||||||||||||||
Basic and diluted | $ | 0.63 | $ | 0.54 | 17 | % | $ | 0.81 | (22) | % | ||||
Weighted-Average Shares Outstanding | ||||||||||||||
Basic | 97,345 | 96,994 | 97,403 | |||||||||||
Diluted | 97,345 | 96,995 | 97,403 | |||||||||||
Dividends Declared Per Share | $ | 0.27 | $ | 0.27 | $ | 0.27 | ||||||||
1) Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of basic earnings per share under the "two-class method." As such, total net income of $2.4 million, $2.1 million and $2.9 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended March 31, 2020, March 31, 2019 and Dec. 31, 2019, 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.
Federated Hermes Reports Q1 2020 Earnings | Page 5 of 10 | |
Unaudited Condensed Consolidated Balance Sheets | ||||||
(in thousands) | March 31, 2020 | Dec. 31, 2019 | ||||
Assets | ||||||
Cash and other investments | $ | 381,010 | $ | 340,635 | ||
Other current assets | 123,103 | 120,649 | ||||
Intangible assets, net, including goodwill | 1,248,553 | 1,220,762 | ||||
Other long-term assets | 173,243 | 198,085 | ||||
Total Assets | $ | 1,925,909 | $ | 1,880,131 | ||
Liabilities, Redeemable Noncontrolling Interests and Equity | ||||||
Current liabilities | $ | 187,226 | $ | 230,713 | ||
Long-term debt | 195,000 | 100,000 | ||||
Other long-term liabilities | 301,489 | 296,052 | ||||
Redeemable noncontrolling interests | 199,261 | 212,086 | ||||
Equity excluding treasury stock | 1,323,778 | 1,322,312 | ||||
Treasury stock | (280,845 | ) | (281,032 | ) | ||
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ | 1,925,909 | $ | 1,880,131 | ||
Federated Hermes Reports Q1 2020 Earnings | Page 6 of 10 | |
Unaudited Changes in Long-Term Assets - By Asset Class | |||||||||
(in millions) | Quarter Ended | ||||||||
March 31, 2020 | Dec. 31, 2019 | March 31, 2019 | |||||||
Equity | |||||||||
Beginning assets | $ | 89,011 | $ | 80,750 | $ | 72,497 | |||
Sales1 | 6,080 | 5,092 | 5,136 | ||||||
Redemptions1 | (7,842 | ) | (5,080 | ) | (5,926 | ) | |||
Net sales (redemptions)1 | (1,762 | ) | 12 | (790 | ) | ||||
Net exchanges | (37 | ) | (12 | ) | 13 | ||||
Acquisitions/(dispositions) | (71 | ) | 2,244 | 0 | |||||
Impact of foreign exchange2 | (768 | ) | 667 | (122 | ) | ||||
Market gains and (losses)3 | (18,134 | ) | 5,350 | 8,647 | |||||
Ending assets | $ | 68,239 | $ | 89,011 | $ | 80,245 | |||
Fixed Income | |||||||||
Beginning assets | $ | 69,023 | $ | 65,824 | $ | 63,158 | |||
Sales1 | 7,687 | 6,010 | 5,416 | ||||||
Redemptions1 | (9,398 | ) | (4,603 | ) | (6,341 | ) | |||
Net sales (redemptions)1 | (1,711 | ) | 1,407 | (925 | ) | ||||
Net exchanges | (115 | ) | 6 | (33 | ) | ||||
Acquisitions/(dispositions) | (1 | ) | 450 | 0 | |||||
Impact of foreign exchange2 | (155 | ) | 184 | 8 | |||||
Market gains and (losses)3 | (2,326 | ) | 1,152 | 1,899 | |||||
Ending assets | $ | 64,715 | $ | 69,023 | $ | 64,107 | |||
Alternative/Private Markets4 | |||||||||
Beginning assets | $ | 18,102 | $ | 17,156 | $ | 18,318 | |||
Sales1 | 888 | 426 | 313 | ||||||
Redemptions1 | (582 | ) | (486 | ) | (858 | ) | |||
Net sales (redemptions)1 | 306 | (60 | ) | (545 | ) | ||||
Net exchanges | 2 | (1 | ) | (2 | ) | ||||
Acquisitions/(dispositions) | 452 | 0 | 0 | ||||||
Impact of foreign exchange2 | (1,121 | ) | 1,302 | 387 | |||||
Market gains and (losses)3 | 320 | (295 | ) | (304 | ) | ||||
Ending assets | $ | 18,061 | $ | 18,102 | $ | 17,854 | |||
Multi-asset | |||||||||
Beginning assets | $ | 4,199 | $ | 4,140 | $ | 4,093 | |||
Sales1 | 98 | 85 | 104 | ||||||
Redemptions1 | (235 | ) | (206 | ) | (241 | ) | |||
Net sales (redemptions)1 | (137 | ) | (121 | ) | (137 | ) | |||
Net exchanges | (14 | ) | (4 | ) | 2 | ||||
Acquisitions/(dispositions) | 0 | 11 | 0 | ||||||
Market gains and (losses)3 | (554 | ) | 173 | 301 | |||||
Ending assets | $ | 3,494 | $ | 4,199 | $ | 4,259 | |||
Total Long-term Assets4 | |||||||||
Beginning assets | $ | 180,335 | $ | 167,870 | $ | 158,066 | |||
Sales1 | 14,753 | 11,613 | 10,969 | ||||||
Redemptions1 | (18,057 | ) | (10,375 | ) | (13,366 | ) | |||
Net sales (redemptions)1 | (3,304 | ) | 1,238 | (2,397 | ) | ||||
Net exchanges | (164 | ) | (11 | ) | (20 | ) | |||
Acquisitions/(dispositions) | 380 | 2,705 | 0 | ||||||
Impact of foreign exchange2 | (2,044 | ) | 2,153 | 273 | |||||
Market gains and (losses)3 | (20,694 | ) | 6,380 | 10,543 | |||||
Ending assets | $ | 154,509 | $ | 180,335 | $ | 166,465 | |||
1) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
2) Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
3) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.
4) | Ending assets includes $8.2 billion and $8.1 billion at Dec. 31, 2019 and March 31, 2019, respectively, of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Hermes held an equity method investment. As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP that are not held by Hermes Fund Managers Limited. |
Federated Hermes Reports Q1 2020 Earnings | Page 7 of 10 | |
Unaudited Changes in Long-Term Assets - By Asset Class and Product Type | ||||||||||||||||||||||||||||||
(in millions) | ||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||
March 31, 2020 | ||||||||||||||||||||||||||||||
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 | $ | 48,112 | $ | 40,899 | $ | 44,223 | $ | 24,800 | $ | 11,389 | $ | 6,713 | $ | 4,000 | $ | 199 | $ | 107,724 | $ | 72,611 | ||||||||||
Sales | 4,392 | 1,688 | 6,272 | 1,415 | 624 | 264 | 73 | 25 | 11,361 | 3,392 | ||||||||||||||||||||
Redemptions | (4,802 | ) | (3,040 | ) | (8,132 | ) | (1,266 | ) | (441 | ) | (141 | ) | (229 | ) | (6 | ) | (13,604 | ) | (4,453 | ) | ||||||||||
Net sales (redemptions) | (410 | ) | (1,352 | ) | (1,860 | ) | 149 | 183 | 123 | (156 | ) | 19 | (2,243 | ) | (1,061 | ) | ||||||||||||||
Net exchanges | (31 | ) | (6 | ) | (115 | ) | 0 | 2 | 0 | (14 | ) | 0 | (158 | ) | (6 | ) | ||||||||||||||
Acquisitions/(dispositions) | 0 | (71 | ) | 0 | (1 | ) | 0 | 452 | 0 | 0 | 0 | 380 | ||||||||||||||||||
Impact of foreign exchange2 | (344 | ) | (424 | ) | (141 | ) | (14 | ) | (679 | ) | (442 | ) | 0 | 0 | (1,164 | ) | (880 | ) | ||||||||||||
Market gains and (losses)3 | (10,372 | ) | (7,762 | ) | (1,506 | ) | (820 | ) | 470 | (150 | ) | (500 | ) | (54 | ) | (11,908 | ) | (8,786 | ) | |||||||||||
Ending assets | $ | 36,955 | $ | 31,284 | $ | 40,601 | $ | 24,114 | $ | 11,365 | $ | 6,696 | $ | 3,330 | $ | 164 | $ | 92,251 | $ | 62,258 | ||||||||||
1) | Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return. |
2) Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
3) | Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. |
Federated Hermes Reports Q1 2020 Earnings | Page 8 of 10 | |
Unaudited Changes in Long-Term Assets - By Product Type | |||||||||
(in millions) | Quarter Ended | ||||||||
March 31, 2020 | Dec. 31, 2019 | March 31, 2019 | |||||||
Total Fund Assets1 | |||||||||
Beginning assets | $ | 107,724 | $ | 99,682 | $ | 92,359 | |||
Sales | 11,361 | 8,165 | 7,922 | ||||||
Redemptions | (13,604 | ) | (7,296 | ) | (8,351 | ) | |||
Net sales (redemptions) | (2,243 | ) | 869 | (429 | ) | ||||
Net exchanges | (158 | ) | 69 | 5 | |||||
Acquisitions/(dispositions) | 0 | 2,652 | 0 | ||||||
Impact of foreign exchange2 | (1,164 | ) | 1,364 | 248 | |||||
Market gains and (losses)3 | (11,908 | ) | 3,088 | 6,299 | |||||
Ending assets | $ | 92,251 | $ | 107,724 | $ | 98,482 | |||
Total Separate Account Assets4 | |||||||||
Beginning assets | $ | 72,611 | $ | 68,188 | $ | 65,707 | |||
Sales5 | 3,392 | 3,448 | 3,047 | ||||||
Redemptions5 | (4,453 | ) | (3,079 | ) | (5,015 | ) | |||
Net sales (redemptions)5 | (1,061 | ) | 369 | (1,968 | ) | ||||
Net exchanges | (6 | ) | (80 | ) | (25 | ) | |||
Acquisitions/(dispositions) | 380 | 53 | 0 | ||||||
Impact of foreign exchange2 | (880 | ) | 789 | 25 | |||||
Market gains and (losses)3 | (8,786 | ) | 3,292 | 4,244 | |||||
Ending assets | $ | 62,258 | $ | 72,611 | $ | 67,983 | |||
Total Long-term Assets1,4 | |||||||||
Beginning assets | $ | 180,335 | $ | 167,870 | $ | 158,066 | |||
Sales5 | 14,753 | 11,613 | 10,969 | ||||||
Redemptions5 | (18,057 | ) | (10,375 | ) | (13,366 | ) | |||
Net sales (redemptions)5 | (3,304 | ) | 1,238 | (2,397 | ) | ||||
Net exchanges | (164 | ) | (11 | ) | (20 | ) | |||
Acquisitions/(dispositions) | 380 | 2,705 | 0 | ||||||
Impact of foreign exchange2 | (2,044 | ) | 2,153 | 273 | |||||
Market gains and (losses)3 | (20,694 | ) | 6,380 | 10,543 | |||||
Ending assets | $ | 154,509 | $ | 180,335 | $ | 166,465 | |||
1) | Includes $8.2 billion and $8.1 billion at Dec. 31, 2019 and March 31, 2019, respectively, of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Hermes held an equity method investment. As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP that are not held by Hermes Fund Managers Limited. |
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.
4) Includes separately managed accounts, institutional accounts, sub-advised funds and other managed products.
5) | 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 Q1 2020 Earnings | Page 9 of 10 | |
Unaudited Managed Assets (in millions) | March 31, 2020 | Dec. 31, 2019 | Sept. 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 68,239 | $ | 89,011 | $ | 80,750 | $ | 81,999 | $ | 80,245 | |||||
Fixed-income | 64,715 | 69,023 | 65,824 | 65,052 | 64,107 | ||||||||||
Alternative / private markets1 | 18,061 | 18,102 | 17,156 | 17,917 | 17,854 | ||||||||||
Multi-asset | 3,494 | 4,199 | 4,140 | 4,213 | 4,259 | ||||||||||
Total long-term assets | 154,509 | 180,335 | 167,870 | 169,181 | 166,465 | ||||||||||
Money market | 451,330 | 395,539 | 359,292 | 333,066 | 318,413 | ||||||||||
Total Managed Assets | $ | 605,839 | $ | 575,874 | $ | 527,162 | $ | 502,247 | $ | 484,878 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 36,955 | $ | 48,112 | $ | 42,575 | $ | 43,443 | $ | 42,057 | |||||
Fixed-income | 40,601 | 44,223 | 42,329 | 42,084 | 41,189 | ||||||||||
Alternative / private markets1 | 11,365 | 11,389 | 10,826 | 11,400 | 11,164 | ||||||||||
Multi-asset | 3,330 | 4,000 | 3,952 | 4,019 | 4,072 | ||||||||||
Total long-term assets | 92,251 | 107,724 | 99,682 | 100,946 | 98,482 | ||||||||||
Money market | 336,133 | 286,612 | 261,215 | 231,321 | 214,764 | ||||||||||
Total Fund Assets | $ | 428,384 | $ | 394,336 | $ | 360,897 | $ | 332,267 | $ | 313,246 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 31,284 | $ | 40,899 | $ | 38,175 | $ | 38,556 | $ | 38,188 | |||||
Fixed-income | 24,114 | 24,800 | 23,495 | 22,968 | 22,918 | ||||||||||
Alternative / private markets | 6,696 | 6,713 | 6,330 | 6,517 | 6,690 | ||||||||||
Multi-asset | 164 | 199 | 188 | 194 | 187 | ||||||||||
Total long-term assets | 62,258 | 72,611 | 68,188 | 68,235 | 67,983 | ||||||||||
Money market | 115,197 | 108,927 | 98,077 | 101,745 | 103,649 | ||||||||||
Total Separate Account Assets | $ | 177,455 | $ | 181,538 | $ | 166,265 | $ | 169,980 | $ | 171,632 | |||||
Total Managed Assets | $ | 605,839 | $ | 575,874 | $ | 527,162 | $ | 502,247 | $ | 484,878 | |||||
1) Includes $8.2 billion, $8.0 billion, $8.4 billion and $8.1 billion at Dec. 31, 2019, Sept. 30, 2019, June 30, 2019 and March 31, 2019, respectively, of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Hermes held an equity method investment. As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP that are not held by Hermes Fund Managers Limited.
Federated Hermes Reports Q1 2020 Earnings | Page 10 of 10 | |
Unaudited Average Managed Assets | Quarter Ended | ||||||||||||||
(in millions) | March 31, 2020 | Dec. 31, 2019 | Sept. 30, 2019 | June 30, 2019 | March 31, 2019 | ||||||||||
By Asset Class | |||||||||||||||
Equity | $ | 82,767 | $ | 84,448 | $ | 82,027 | $ | 80,819 | $ | 77,554 | |||||
Fixed-income | 69,068 | 67,602 | 65,074 | 64,913 | 64,167 | ||||||||||
Alternative / private markets1 | 17,983 | 17,838 | 17,407 | 17,772 | 18,311 | ||||||||||
Multi-asset | 4,006 | 4,149 | 4,167 | 4,225 | 4,225 | ||||||||||
Total long-term assets | 173,824 | 174,037 | 168,675 | 167,729 | 164,257 | ||||||||||
Money market | 406,365 | 376,029 | 349,313 | 325,527 | 311,150 | ||||||||||
Total Avg. Managed Assets | $ | 580,189 | $ | 550,066 | $ | 517,988 | $ | 493,256 | $ | 475,407 | |||||
By Product Type | |||||||||||||||
Funds: | |||||||||||||||
Equity | $ | 44,996 | $ | 44,984 | $ | 43,077 | $ | 42,571 | $ | 40,217 | |||||
Fixed-income | 44,017 | 43,304 | 41,958 | 41,652 | 41,095 | ||||||||||
Alternative / private markets1 | 11,143 | 11,283 | 11,035 | 11,146 | 11,545 | ||||||||||
Multi-asset | 3,814 | 3,956 | 3,978 | 4,034 | 4,042 | ||||||||||
Total long-term assets | 103,970 | 103,527 | 100,048 | 99,403 | 96,899 | ||||||||||
Money market | 290,641 | 274,116 | 249,846 | 222,282 | 209,260 | ||||||||||
Total Avg. Fund Assets | $ | 394,611 | $ | 377,643 | $ | 349,894 | $ | 321,685 | $ | 306,159 | |||||
Separate Accounts: | |||||||||||||||
Equity | $ | 37,771 | $ | 39,464 | $ | 38,950 | $ | 38,248 | $ | 37,337 | |||||
Fixed-income | 25,051 | 24,298 | 23,116 | 23,261 | 23,072 | ||||||||||
Alternative / private markets | 6,840 | 6,555 | 6,372 | 6,626 | 6,766 | ||||||||||
Multi-asset | 192 | 193 | 189 | 191 | 183 | ||||||||||
Total long-term assets | 69,854 | 70,510 | 68,627 | 68,326 | 67,358 | ||||||||||
Money market | 115,724 | 101,913 | 99,467 | 103,245 | 101,890 | ||||||||||
Total Avg. Separate Account Assets | $ | 185,578 | $ | 172,423 | $ | 168,094 | $ | 171,571 | $ | 169,248 | |||||
Total Avg. Managed Assets | $ | 580,189 | $ | 550,066 | $ | 517,988 | $ | 493,256 | $ | 475,407 | |||||
1) The average balance includes $8.3 billion, $8.1 billion, $8.1 billion and $8.4 billion for the quarters ended Dec. 31, 2019, Sept. 30, 2019, June 30, 2019 and March 31, 2019 respectively, of assets managed by a previously nonconsolidated entity, Hermes GPE LLP, in which Hermes held an equity method investment. As of March 1, 2020, Hermes GPE LLP is a consolidated subsidiary as a result of Federated Hermes’ acquisition of the remaining equity interests in Hermes GPE LLP that are not held by Hermes Fund Managers Limited.