EX-99.1 2 a991-2023q4earningspressre.htm EX-99.1 Document
Exhibit 99.1

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Federated Hermes, Inc. reports fourth quarter and full-year 2023 earnings
•Q4 2023 earnings per diluted share of $0.96; full-year 2023 EPS of $3.40
•Total assets under management at record $757.6 billion
•Board declares $0.28 per share quarterly dividend
(PITTSBURGH, Pa., Jan. 25, 2024) — Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) for Q4 2023 of $0.96, compared to $0.63 for the same quarter last year, on net income of $82.2 million for Q4 2023, compared to $56.5 million for Q4 2022. Full-year 2023 EPS was $3.40, compared to $2.65 for 2022 on net income of $299.0 million for 2023, compared to $239.5 million for 2022.
Federated Hermes' total managed assets were a record $757.6 billion at Dec. 31, 2023, up $88.7 billion or 13% from $668.9 billion at Dec. 31, 2022 and up $42.4 billion or 6% from $715.2 billion at Sept. 30, 2023. Average managed assets for Q4 2023 were $728.0 billion, up $94.4 billion or 15% from $633.6 billion reported for Q4 2022 and up $16.8 billion or 2% from $711.2 billion reported for Q3 2023.
"Federated Hermes' record assets at year-end were driven by another quarter of money market asset increases, as our liquidity products continued to provide a vital cash management resource for clients," said J. Christopher Donahue, president and chief executive officer. "In addition, as they navigated market volatility, investors turned to a diverse range of our active management strategies—from our fundamentally based MDT equity strategies to high-yield fixed-income to unconstrained credit alternatives."
Federated Hermes' board of directors declared a quarterly dividend of $0.28 per share. The dividend is payable on Feb. 15, 2024 to shareholders of record as of Feb. 8, 2024. During Q4 2023, Federated Hermes purchased 1,902,861 shares of Federated Hermes class B common stock for $61.0 million, bringing the total shares of Class B common stock purchased in 2023 to 5,318,442 shares for $178.0 million.
Federated Hermes' equity assets were $79.3 billion at Dec. 31, 2023, down $2.2 billion or 3% from $81.5 billion at Dec. 31, 2022 and up $2.0 billion or 3% from $77.3 billion at Sept. 30, 2023. Top-selling equity funds on a net basis during Q4 2023 were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes International Small-Mid Company Fund, Federated Hermes U.S. SMID Equity Fund and Federated Hermes MDT Small Cap Core Fund.
Federated Hermes' fixed-income assets were $94.9 billion at Dec. 31, 2023, up $8.2 billion or 9% from $86.7 billion at Dec. 31, 2022 and up $5.1 billion or 6% from $89.8 billion at Sept. 30, 2023. Top-selling fixed-income funds on a net basis during Q4 2023 were Federated Hermes High Yield Bond Collective Investment Fund, Federated Hermes Sterling Cash Plus Fund, Federated Hermes Intermediate Municipal Fund, Federated Hermes Total Return Bond Collective Investment Fund and Federated Hermes Conservative Municipal Microshort Fund.
Federated Hermes' alternative/private markets assets were $20.6 billion at Dec. 31, 2023, down $0.2 billion or 1% from $20.8 billion at Dec. 31, 2022 and up $0.3 billion or 1% from $20.3 billion at Sept. 30, 2023.
MEDIA:MEDIA:ANALYSTS:
Ed Costello 412-288-7538Meghan McAndrew 412-288-8103Ray Hanley 412-288-1920
Federated Hermes reports Q4 and full year 2023 earnings
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Federated Hermes' money market assets were a record $560.0 billion at Dec. 31, 2023, up $83.2 billion or 17% from $476.8 billion at Dec. 31, 2022 and up $34.9 billion or 7% from $525.1 billion at Sept. 30, 2023. Money market mutual fund assets were a record $406.2 billion at Dec. 31, 2023, up $70.3 billion or 21% from $335.9 billion at Dec. 31, 2022 and up $21.3 billion or 6% from $384.9 billion at Sept. 30, 2023. Federated Hermes' money market separate account assets were a record $153.8 billion at Dec. 31, 2023, up $12.9 billion or 9% from $140.9 billion at Dec. 31, 2022 and up $13.6 billion or 10% from $140.2 billion at Sept. 30, 2023.
Financial Summary
Q4 2023 vs. Q4 2022
Revenue increased $17.6 million or 5% primarily due to an increase in revenue from higher average money market assets and an increase in total carried interest and performance fees of $6.4 million, including an increase of $2.5 million of carried interest from consolidated carried interest vehicles, which is offset in compensation expense. These increases were partially offset by a decrease in revenue from lower average equity assets.
During Q4 2023, Federated Hermes derived 50% of its revenue from money market assets, 49% from long-term assets (29% from equity assets, 12% from fixed-income assets and 8% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.
Operating expenses decreased $21.2 million or 7% primarily due to an intangible asset impairment in Q4 2022.
Nonoperating income (expenses), net increased $3.3 million primarily due to an increase in investment yields due to rising interest rates.
Q4 2023 vs. Q3 2023
Revenue decreased $11.2 million or 3% primarily due to a decrease in revenue from lower average equity assets and a decrease in total carried interest and performance fees of $5.2 million, including a decrease of $5.5 million of carried interest from consolidated carried interest vehicles, which is offset in compensation expense. These decreases were partially offset by an increase in revenue from higher average money market assets.
Operating expenses decreased $12.3 million or 4% primarily due to decreased compensation expense from consolidated carried interest vehicles of $5.5 million and decreased incentive compensation.
Nonoperating income (expenses), net increased $15.2 million primarily due to an increase in the market value of investments in Q4 2023 compared to a decrease in Q3 2023.
2023 vs. 2022
Revenue increased $163.8 million or 11% primarily due to an increase in revenue from higher average money market assets, the elimination of 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), and an increase in total carried interest and performance fees of $55.4 million, including $34.4 million of carried interest from consolidated carried interest vehicles, which is offset in compensation expense. For further information on the waivers, see “Impact of voluntary yield-related fee waivers” below. These increases were partially offset by a decrease in revenue due to lower average long-term assets.
During 2023, Federated Hermes derived 52% of its revenue from long-term assets (30% from equity assets, 12% from fixed-income assets and 10% from alternative/private markets and multi-asset), 47% from money market assets and 1% from sources other than managed assets.

Federated Hermes reports Q4 and full-year 2023 earnings
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Operating expenses increased by $113.0 million or 10% primarily due to increased distribution expenses predominantly from lower voluntary yield-related fee waivers, an increase in compensation expense primarily due to consolidated carried interest vehicles of $34.2 million and an increase in other expense due to fund reorganization costs. These increases were partially offset by a decrease in expense due to an intangible asset impairment in the prior year.
Nonoperating income (expenses), net increased $54.4 million primarily due to an increase in the market value of investments in 2023 compared to a decrease in the market value of investments in 2022 and an increase in investment yields due to rising interest rates.
Impact of voluntary yield-related fee waivers
There were no voluntary yield-related fee waivers during 2023. During 2022, voluntary yield-related fee waivers totaled $85.3 million. These fee waivers were largely offset by related reductions in distribution expenses of $66.5 million, such that the net negative pre-tax impact to Federated Hermes was $18.8 million for 2022.
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 Jan. 26, 2024. Investors are invited to listen to the earnings teleconference by calling 888-506-0062 (domestic) or 973-528-0011 (international) prior to the 9 a.m. start time. To listen online, visit 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 Jan. 26, 2024. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 49692. The online replay will be available via FederatedHermes.com/us for one year.
Federated Hermes, Inc. is a global leader in active, responsible investment management, with $757.6 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 10,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide.
Federated Hermes ranks in the top 7% of equity fund managers in the industry, the top 9% of money market fund managers and the top 11% of fixed-income fund managers2. Federated Hermes also ranks as the 8th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, visit FederatedHermes.com/us.
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1) As of Dec. 31, 2023.
2) Morningstar, Dec. 31, 2023. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli Associates, Q3 2023.
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.

Federated Hermes reports Q4 and full year 2023 earnings
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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. Forward-looking statements can include statements
that do not relate strictly to historical or current facts and are typically identified by words or phrases such as “trend,”
“forecast,” “project,” “predict,” “potential,” “approximate,” “opportunity,” “believe,” “expect,” “anticipate,” “current,”
“intention,” “estimate,” “position,” “projection,” “plan,” “assume,” “continue,” “remain,” “maintain,” “sustain,” “seek,”
“achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “can,” “may” and
similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are
inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of
which are difficult to predict and beyond Federated Hermes’ control. Other risks and uncertainties include the ability of the
company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest
will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and
redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly
depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and
uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and
Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or
achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or
updating, of such statements in the future.

Federated Hermes reports Q4 and full-year 2023 earnings
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Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Quarter Ended% Change Q4 2022 to Q4 2023Quarter Ended% Change Q3 2023 to Q4 2023
Dec. 31, 2023Dec. 31, 2022Sept. 30, 2023
Revenue
Investment advisory fees, net$264,693 $256,949 3 %$276,771 (4)%
Administrative service fees, net90,930 75,847 20 88,023 3 
Other service fees, net35,874 41,103 (13)37,862 (5)
Total Revenue391,497 373,899 5 402,656 (3)
Operating Expenses
Compensation and related127,504 123,994 3 139,123 (8)
Distribution90,940 90,718 0 89,838 1 
Systems and communications20,944 20,549 2 21,213 (1)
Professional service fees16,632 16,100 3 17,561 (5)
Office and occupancy10,159 10,905 (7)10,632 (4)
Advertising and promotional9,684 6,967 39 3,857 151 
Travel and related4,308 3,913 10 4,034 7 
Intangible asset related3,676 34,746 (89)3,451 7 
Other5,080 2,258 125 11,523 (56)
Total Operating Expenses288,927 310,150 (7)301,232 (4)
Operating Income102,570 63,749 61 101,424 1 
Nonoperating Income (Expenses)
Investment income (loss), net17,418 14,413 21 2,722 NM
Debt expense(3,142)(3,200)(2)(3,133)0 
Other, net461 191 141 (8)NM
Total Nonoperating Income (Expenses), net14,737 11,404 29 (419)NM
Income before income taxes117,307 75,153 56 101,005 16 
Income tax provision31,260 13,518 131 26,739 17 
Net income including the noncontrolling interests in subsidiaries86,047 61,635 40 74,266 16 
Less: Net income attributable to the noncontrolling interests in subsidiaries3,869 5,138 (25)(760)NM
Net Income$82,178 $56,497 45 %$75,026 10 %
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted$0.96 $0.63 52 %$0.86 12 %
Weighted-Average Shares Outstanding
Basic81,961 84,731 83,710 
Diluted81,973 84,743 83,710 
Dividends Declared Per Share$0.28 $0.27 $0.28 
1)     Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the “two-class method.” As such, total net income of $3.6 million, $2.8 million and $3.3 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Dec. 31, 2023, Dec. 31, 2022 and Sept. 30, 2023, respectively, was excluded from the computation of earnings per share.
    


Federated Hermes reports Q4 and full year 2023 earnings
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Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
Year Ended
Dec. 31, 2023Dec. 31, 2022% Change
Revenue
Investment advisory fees, net$1,115,783 $1,011,631 10 %
Administrative service fees, net—affiliates343,332 294,557 17 
Other service fees, net150,459 139,626 8 
     Total Revenue1,609,574 1,445,814 11 
Operating Expenses
Compensation and related563,388 512,713 10 
Distribution371,198 314,554 18 
Systems and communications84,203 77,783 8 
Professional service fees69,514 57,747 20 
Office and occupancy45,069 43,361 4 
Advertising and promotional22,992 20,931 10 
Travel and related15,409 12,456 24 
Intangible asset related13,870 44,066 (69)
Other36,382 25,407 43 
     Total Operating Expenses1,222,025 1,109,018 10 
Operating Income387,549 336,796 15 
Nonoperating Income (Expenses)
Investment income (loss), net35,740 (19,723)281 
Debt expense(12,519)(11,073)13 
Other, net562 222 153 
     Total Nonoperating Income (Expenses), net23,783 (30,574)178 
Income before income taxes411,332 306,222 34 
Income tax provision106,551 71,658 49 
Net income including the noncontrolling interests in subsidiaries304,781 234,564 30 
Less: Net income attributable to the noncontrolling
interests in subsidiaries		5,801 (4,932)218 
Net Income$298,980 $239,496 25 %
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted$3.40 $2.65 28 %
Weighted-Average Shares Outstanding
    Basic83,858 85,762 
    Diluted83,863 85,766 
Dividends Declared Per Share$1.11 $1.08 
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 $14.0 million and $11.8 million available to unvested restricted Federated Hermes shareholders for the years ended Dec. 31, 2023 and Dec. 31, 2022, respectively, was excluded from the computation of earnings per share.



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Unaudited Condensed Consolidated Balance Sheets
(in thousands)Dec. 31, 2023Dec. 31, 2022
Assets
  Cash and other investments$560,675 $521,754 
  Other current assets160,054 129,277 
  Intangible assets, net, including goodwill1,216,605 1,209,574 
  Other long-term assets164,510 159,874 
    Total Assets$2,101,844 $2,020,479 
Liabilities, Redeemable Noncontrolling Interests and Equity
  Current liabilities$287,343 $257,413 
  Long-term debt347,843 347,581 
  Other long-term liabilities312,561 307,972 
  Redeemable noncontrolling interests25,845 61,821 
Equity excluding treasury stock1,649,655 1,411,055 
Treasury stock(521,403)(365,363)
    Total Liabilities, Redeemable Noncontrolling Interests and Equity$2,101,844 $2,020,479 


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Unaudited Changes in Long-Term Assets - By Asset Class
(in millions)Quarter EndedYear Ended
Dec. 31, 2023Sept. 30, 2023Dec. 31, 2022Dec. 31, 2023Dec. 31, 2022
Equity
Beginning assets$77,315 $82,992 $74,684 $81,523 $96,716 
Sales1
3,335 3,897 5,265 17,732 23,985 
Redemptions1
(8,005)(6,304)(6,015)(24,742)(25,600)
Net sales (redemptions)1
(4,670)(2,407)(750)(7,010)(1,615)
Net exchanges(6)18 86 120 (59)
Impact of foreign exchange2
891 (532)1,219 538 (1,621)
Market gains and (losses)3
5,761 (2,756)6,284 4,120 (11,898)
Ending assets$79,291 $77,315 $81,523 $79,291 $81,523 
Fixed Income
Beginning assets$89,765 $87,425 $85,365 $86,743 $97,550 
Sales1
7,594 8,277 5,920 26,809 28,016 
Redemptions1
(6,669)(5,133)(9,755)(23,892)(34,726)
Net sales (redemptions)1
925 3,144 (3,835)2,917 (6,710)
Net exchanges7 (25)(142)(113)(64)
Acquisitions/(dispositions)0 0 3,524 0 3,524 
Impact of foreign exchange2
143 (96)239 128 (321)
Market gains and (losses)3
4,080 (683)1,592 5,245 (7,236)
Ending assets$94,920 $89,765 $86,743 $94,920 $86,743 
Alternative / Private Markets
Beginning assets$20,337 $21,602 $20,182 $20,802 $22,920 
Sales1
700 660 1,127 3,268 3,833 
Redemptions1
(755)(866)(1,190)(3,158)(3,715)
Net sales (redemptions)1
(55)(206)(63)110 118 
Net exchanges(3)(3)(6)(9)1 
Impact of foreign exchange2
836 (762)1,513 981 (2,317)
Market gains and (losses)3
(564)(294)(824)(1,333)80 
Ending assets$20,551 $20,337 $20,802 $20,551 $20,802 
Multi-asset
Beginning assets$2,728 $2,922 $2,902 $2,989 $3,780 
Sales1
34 30 72 144 243 
Redemptions1
(142)(119)(165)(548)(572)
Net sales (redemptions)1
(108)(89)(93)(404)(329)
Net exchanges8 0 2 11 8 
Market gains and (losses)3
239 (105)178 271 (470)
Ending assets$2,867 $2,728 $2,989 $2,867 $2,989 
Total Long-term Assets
Beginning assets$190,145 $194,941 $183,133 $192,057 $220,966 
Sales1
11,663 12,864 12,384 47,953 56,077 
Redemptions1
(15,571)(12,422)(17,125)(52,340)(64,613)
Net sales (redemptions)1
(3,908)442 (4,741)(4,387)(8,536)
Net exchanges6 (10)(60)9 (114)
Acquisitions/(dispositions)0 0 3,524 0 3,524 
Impact of foreign exchange2
1,870 (1,390)2,971 1,647 (4,259)
Market gains and (losses)3
9,516 (3,838)7,230 8,303 (19,524)
Ending assets$197,629 $190,145 $192,057 $197,629 $192,057 
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
Dec. 31, 2023
EquityFixed IncomeAlternative / Private MarketsMulti-assetTotal
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Beginning assets$40,801 $36,514 $42,569 $47,196 $12,409 $7,928 $2,599 $129 $98,378 $91,767 
Sales1,979 1,356 3,538 4,056 448 252 34 0 5,999 5,664 
Redemptions(4,189)(3,816)(4,526)(2,143)(724)(31)(139)(3)(9,578)(5,993)
Net sales (redemptions)(2,210)(2,460)(988)1,913 (276)221 (105)(3)(3,579)(329)
Net exchanges(16)10 4 3 (3)0 8 0 (7)13 
Impact of foreign exchange2
414 477 99 44 489 347 0 0 1,002 868 
Market gains and (losses)3
3,524 2,237 2,224 1,856 (240)(324)228 11 5,736 3,780 
Ending assets$42,513 $36,778 $43,908 $51,012 $12,379 $8,172 $2,730 $137 $101,530 $96,099 
Year Ended
Dec. 31, 2023
EquityFixed IncomeAlternative / Private MarketsMulti-assetTotal
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Funds
Separate Accounts1
Beginning assets$43,342 $38,181 $43,180 $43,563 $13,050 $7,752 $2,851 $138 $102,423 $89,634 
Sales9,038 8,694 14,739 12,070 2,272 996 142 2 26,191 21,762 
Redemptions(13,987)(10,755)(16,608)(7,284)(2,878)(280)(530)(18)(34,003)(18,337)
Net sales (redemptions)(4,949)(2,061)(1,869)4,786 (606)716 (388)(16)(7,812)3,425 
Net exchanges69 51 (91)(22)14 (23)11 0 3 6 
Impact of foreign exchange2
345 193 95 33 585 396 0 0 1,025 622 
Market gains and (losses)3
3,706 414 2,593 2,652 (664)(669)256 15 5,891 2,412 
Ending assets$42,513 $36,778 $43,908 $51,012 $12,379 $8,172 $2,730 $137 $101,530 $96,099 
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 EndedYear Ended
Dec. 31, 2023Sept. 30, 2023Dec. 31, 2022Dec. 31, 2023Dec. 31, 2022
Total Fund Assets
Beginning assets$98,378 $104,387 $100,993 $102,423 $135,294 
Sales5,999 5,413 8,274 26,191 34,002 
Redemptions(9,578)(8,018)(12,559)(34,003)(48,712)
Net sales (redemptions)(3,579)(2,605)(4,285)(7,812)(14,710)
Net exchanges(7)0 (32)3 (85)
Impact of foreign exchange1
1,002 (798)1,810 1,025 (2,624)
Market gains and (losses)2
5,736 (2,606)3,937 5,891 (15,452)
Ending assets$101,530 $98,378 $102,423 $101,530 $102,423 
Total Separate Accounts Assets3
Beginning assets$91,767 $90,554 $82,140 $89,634 $85,672 
Sales4
5,664 7,451 4,110 21,762 22,075 
Redemptions4
(5,993)(4,404)(4,566)(18,337)(15,901)
Net sales (redemptions)4
(329)3,047 (456)3,425 6,174 
Net exchanges13 (10)(28)6 (29)
Acquisitions/(dispositions)0 0 3,524 0 3,524 
Impact of foreign exchange1
868 (592)1,161 622 (1,635)
Market gains and (losses)2
3,780 (1,232)3,293 2,412 (4,072)
Ending assets$96,099 $91,767 $89,634 $96,099 $89,634 
Total Long-term Assets3
Beginning assets$190,145 $194,941 $183,133 $192,057 $220,966 
Sales4
11,663 12,864 12,384 47,953 56,077 
Redemptions4
(15,571)(12,422)(17,125)(52,340)(64,613)
Net sales (redemptions)4
(3,908)442 (4,741)(4,387)(8,536)
Net exchanges6 (10)(60)9 (114)
Acquisitions/(dispositions)0 0 3,524 0 3,524 
Impact of foreign exchange1
1,870 (1,390)2,971 1,647 (4,259)
Market gains and (losses)2
9,516 (3,838)7,230 8,303 (19,524)
Ending assets$197,629 $190,145 $192,057 $197,629 $192,057 
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 Q4 and full-year 2023 earnings
Page 11 of 13
Unaudited Managed Assets
(in millions)
Dec. 31, 2023Sept. 30, 2023June 30, 2023March 31, 2023Dec. 31, 2022
By Asset Class
Equity$79,291 $77,315 $82,992 $83,629 $81,523 
Fixed-income94,920 89,765 87,425 87,461 86,743 
Alternative / private markets20,551 20,337 21,602 21,174 20,802 
Multi-asset2,867 2,728 2,922 2,973 2,989 
Total long-term assets197,629 190,145 194,941 195,237 192,057 
 Money market559,993 525,085 509,017 505,800 476,844 
Total Managed Assets$757,622 $715,230 $703,958 $701,037 $668,901 
By Product Type
Funds:
Equity$42,513 $40,801 $44,383 $44,732 $43,342 
Fixed-income43,908 42,569 43,884 43,616 43,180 
Alternative / private markets12,379 12,409 13,338 13,040 13,050 
Multi-asset2,730 2,599 2,782 2,832 2,851 
Total long-term assets
101,530 98,378 104,387 104,220 102,423 
Money market406,166 384,896 364,014 357,346 335,937 
Total Fund Assets$507,696 $483,274 $468,401 $461,566 $438,360 
Separate Accounts:
Equity$36,778 $36,514 $38,609 $38,897 $38,181 
Fixed-income51,012 47,196 43,541 43,845 43,563 
Alternative / private markets8,172 7,928 8,264 8,134 7,752 
Multi-asset137 129 140 141 138 
Total long-term assets
96,099 91,767 90,554 91,017 89,634 
Money market153,827 140,189 145,003 148,454 140,907 
Total Separate Account Assets$249,926 $231,956 $235,557 $239,471 $230,541 
Total Managed Assets$757,622 $715,230 $703,958 $701,037 $668,901 



Federated Hermes reports Q4 and full year 2023 earnings
Page 12 of 13
Unaudited Average Managed AssetsQuarter Ended
(in millions)
Dec. 31, 2023Sept. 30, 2023June 30, 2023March 31, 2023Dec. 31, 2022
By Asset Class
Equity$76,009 $82,203 $83,025 $84,155 $79,544 
Fixed-income91,927 88,677 87,504 88,209 87,849 
Alternative / private markets20,623 21,413 21,411 20,938 20,926 
Multi-asset2,744 2,861 2,929 3,012 2,988 
Total long-term assets191,303 195,154 194,869 196,314 191,307 
 Money market536,727 516,046 510,418 483,083 442,334 
Total Avg. Managed Assets$728,030 $711,200 $705,287 $679,397 $633,641 
By Product Type
Funds:
Equity$40,296 $43,687 $44,218 $45,055 $43,131 
Fixed-income42,705 43,437 43,827 43,961 44,099 
Alternative / private markets12,571 13,184 13,181 13,062 13,140 
Multi-asset2,615 2,724 2,787 2,869 2,855 
Total long-term assets
98,187 103,032 104,013 104,947 103,225 
Money market392,946 373,088 362,608 333,358 309,232 
Total Avg. Fund Assets$491,133 $476,120 $466,621 $438,305 $412,457 
Separate Accounts:
Equity$35,713 $38,516 $38,807 $39,100 $36,413 
Fixed-income49,222 45,240 43,677 44,248 43,750 
Alternative / private markets8,052 8,229 8,230 7,876 7,786 
Multi-asset129 137 142 143 133 
Total long-term assets
93,116 92,122 90,856 91,367 88,082 
Money market143,781 142,958 147,810 149,725 133,102 
Total Avg. Separate Account Assets$236,897 $235,080 $238,666 $241,092 $221,184 
Total Avg. Managed Assets$728,030 $711,200 $705,287 $679,397 $633,641 




Federated Hermes reports Q4 and full-year 2023 earnings
Page 13 of 13
Unaudited Average Managed AssetsYear Ended
(in millions)
Dec. 31, 2023Dec. 31, 2022
By Asset Class
Equity$81,348 $84,793 
Fixed-income89,079 89,776 
Alternative / private markets21,096 21,799 
Multi-asset2,887 3,273 
Total long-term assets194,410 199,641 
Money market511,568 432,992 
Total Avg. Managed Assets
$705,978 $632,633 
By Product Type
Funds:
Equity$43,314 $47,047 
Fixed-income43,482 50,043 
Alternative / private markets12,999 13,903 
Multi-asset2,749 3,130 
Total long-term assets102,544 114,123 
Money market365,500 294,490 
Total Avg. Fund Assets
$468,044 $408,613 
Separate Accounts:
Equity$38,034 $37,746 
Fixed-income45,597 39,733 
Alternative / private markets8,097 7,896 
Multi-asset138 143 
Total long-term assets91,866 85,518 
Money market146,068 138,502 
Total Avg. Separate Account Assets
$237,934 $224,020 
Total Avg. Managed Assets
$705,978 $632,633