Federated Hermes total managed assets $911.6B, +7.8% y/y

Federated Hermes, Inc. (NYSE: FHI) reported a significant increase in total managed assets, reaching $911.6 billion as of the most recent reporting period, representing a 7.8% year-over-year growth. This growth reflects continued investor confidence in the firm’s diversified range of investment products, including equity, fixed-income, alternative/private markets, and money market offerings.

The firm’s money market assets remain a key driver of growth, with record inflows and strong performance amid evolving market conditions. Federated Hermes has also seen positive net flows into a range of money market products, including government and prime funds, as investors seek high credit quality, liquidity, and market yields. Additionally, the firm’s Total Return Bond Fund attracted more than $1 billion in net inflows during the quarter, highlighting demand for fixed-income strategies that adapt to shifting market environments.

Equity assets totaled $83.6 billion at the end of the first quarter of 2023, with performance in global emerging markets and international equity strategies. Fixed-income assets stood at $87.5 billion, with continued inflows into diversified bond strategies. Alternative and private markets assets were $21.2 billion, showing modest growth compared to the previous quarter.

Federated Hermes’ financial performance also reflected this growth, with diluted share earnings rising to $0.78 for Q1 2023, up from $0.61 in the same period the previous year. The firm’s board declared a 4% increase in the quarterly dividend, raising it to $0.28 per share.

The firm’s ability to maintain and grow assets under management is attributed to its active investment strategies, diversified product offerings, and responsiveness to market dynamics. As interest rates continue to evolve and investor preferences shift, Federated Hermes remains positioned to capitalize on opportunities across its asset classes.