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Concentration Risk

9 Months Ended

Sep. 30, 2024

Risks and Uncertainties [Abstract]

Concentration Risk

Concentration Risk

(a) Revenue Concentration by Asset Class

The following table presents Federated Hermes’ significant revenue concentration by asset class:

						Nine Months Ended
						September 30,
						2024						2023
Money Market Assets						51		%				46		%
Equity Assets						29		%				30		%
Fixed-Income Assets						12		%				12		%

(b) Revenue Concentration by Investment Fund

The following table presents Federated Hermes’ revenue concentration by investment fund strategy:

			Three Months Ended												Nine Months Ended
			September 30,												September 30,
			2024						2023						2024						2023
Federated Hermes Government Obligations Fund			16		%				14		%				15		%				14		%
Federated Hermes Prime Cash Obligations Fund			10		%				7		%				9		%				6		%

A significant and prolonged decline in the AUM in these funds could have a material adverse effect on Federated Hermes’ future revenues and, to a lesser extent, net income, due to a related reduction in distribution expenses associated with these funds.

(c) Revenue Concentration by Intermediary

Approximately 10% of Federated Hermes’ total revenue for both the three- and nine-month periods ended September 30, 2024, and 11% for both the three- and nine-month periods ended September 30, 2023, was derived from services provided to one intermediary, The Bank of New York Corporation, including its Pershing subsidiary. Significant negative changes in Federated Hermes’ relationship with this intermediary could have a material adverse effect on Federated Hermes’ future revenues and, to a lesser extent, net income due to a related reduction in distribution expenses associated with this intermediary.

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- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Topic 275
-Name Accounting Standards Codification
-Publisher FASB
-URI https://asc.fasb.org/275/tableOfContent

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- References

No definition available.

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