Federated Hermes, Inc. reports first quarter 2021 earnings

Rhea-AI Summary

Federated Hermes reported Q1 2021 earnings per diluted share of $0.75, up from $0.63 in Q1 2020, driven by a net income of $74.5 million. Total managed assets rose to $625.0 billion, growing 3% year-over-year. Notably, equity assets reached a record $96.2 billion, and fixed-income assets also hit a record $86.5 billion. The board declared a $0.27 dividend per share and approved a new share repurchase plan allowing up to 4 million shares to be bought back. However, revenue fell 5% year-over-year due to increased fee waivers.

Positive

• Q1 2021 EPS increased to $0.75 from $0.63 in Q1 2020.
• Total managed assets grew to $625.0 billion, a 3% increase year-over-year.
• Record equity assets under management reached $96.2 billion, up 41% from the previous year.
• Fixed-income assets under management were $86.5 billion, up 34% year-over-year.
• Dividend declared at $0.27 per share, payable May 14, 2021.
• Board authorized a new share repurchase program for up to 4 million shares.

Negative

• Q1 2021 revenue decreased by $18.0 million, or 5% year-over-year, primarily due to increased voluntary fee waivers.
• Projected negative impact from minimum yield waivers on money market mutual funds may range from $35 million to $45 million in Q2 2021.
• Money market assets declined by 7% year-over-year, reflecting a decrease of $32.2 billion.

PITTSBURGH, April 29, 2021 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $0.75 for Q1 2021, compared to $0.63 for the same quarter last year, on net income of $74.5 million for Q1 2021, compared to $64.2 million for Q1 2020.

Federated Hermes' total managed assets were $625.0 billion at March 31, 2021, up $19.2 billion or 3% from $605.8 billion at March 31, 2020 and up $5.6 billion or 1% from $619.4 billion at Dec. 31, 2020. Total average managed assets for Q1 2021 were $618.1 billion, up $37.9 billion or 7% from $580.2 billion reported for Q1 2020 and up $7.6 billion or 1% from $610.5 billion reported for Q4 2020.

"Strong investment performance and client interest in a range of our actively managed strategies distributed in key regions around the world generated net positive fund sales in Q1 2021 and helped Federated Hermes reach a record $96.2 billion in equity assets under management," said J. Christopher Donahue, president and chief executive officer. "Fixed-income assets under management were a record $86.5 billion at the end of the first quarter, and we experienced net sales across a range of investment objectives—from short duration to short-intermediate to high-yield strategies."

Federated Hermes' board of directors declared a dividend of $0.27 per share. The dividend is payable on May 14, 2021 to shareholders of record as of May 7, 2021. During Q1 2021, Federated Hermes purchased 1,505,000 shares of Federated Hermes class B common stock for $45.0 million. The company's board of directors also authorized a new share repurchase program, which is the firm's 13th repurchase program and which allows Federated Hermes to repurchase up to 4 million additional shares of class B common stock in the open market with no expiration date. The repurchased stock is to be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities. The company's existing 3.5 million share repurchase program, approved in April 2020, has effectively been completed.

Equity assets were a record $96.2 billion at March 31, 2021, up $28.0 billion or 41% from $68.2 billion at March 31, 2020 and up $4.4 billion or 5% from $91.8 billion at Dec. 31, 2020. Top-selling equity funds during Q1 2021 on a net basis were Federated Hermes Global Emerging Markets Equity Fund, Federated Hermes Global Equity ESG Fund, Federated Hermes SDG Engagement Equity Fund (UCITS), Federated Hermes Asia ex-Japan Equity Fund and Federated Hermes Impact Opportunities Equity Fund.

Fixed-income assets were a record $86.5 billion at March 31, 2021, up $21.8 billion or 34% from $64.7 billion at March 31, 2020 and up $2.2 billion or 3% from $84.3 billion at Dec. 31, 2020. Top-selling fixed-income funds during Q1 2021 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes SDG Engagement High Yield Credit Fund (UCITS), Federated Hermes Total Return Bond Fund, Federated Hermes Short-Intermediate Total Return Bond Fund and Federated Hermes Short-Intermediate Municipal Fund.

Alternative/private market assets were a record $19.3 billion at March 31, 2021, up $1.2 billion or 7% from $18.1 billion at March 31, 2020 and up $0.2 billion or 1% from $19.1 billion at Dec. 31, 2020.

Money market assets were $419.1 billion at March 31, 2021, down $32.2 billion or 7% from $451.3 billion at March 31, 2020 and down $1.2 billion or less than 1% from $420.3 billion at Dec. 31, 2020. Money market fund assets were $297.2 billion at March 31, 2021, down $38.9 billion or 12% from $336.1 billion at March 31, 2020 and down $4.7 billion or 2% from $301.9 billion at Dec. 31, 2020.

Financial Summary

Q1 2021 vs. Q1 2020

Revenue decreased $18.0 million or 5% percent primarily due to an increase 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, see "Impact of voluntary yield-related fee waivers" below. This decrease was partially offset by an increase in revenue due to higher average equity and fixed-income assets and an increase in revenue from alternative/private markets assets primarily related to revenue of a previously nonconsolidated entity being recorded in operating revenue beginning March 2020.

During Q1 2021, Federated Hermes derived 75% of its revenue from long-term assets (49% from equity, 16% from fixed-income and 10% from alternative/private markets and multi-asset), 24% from money market assets, and 1% from sources other than managed assets. 

Operating expenses decreased $22.7 million or 9% primarily due to decreased distribution expenses predominantly resulting from higher voluntary yield-related fee waivers, partially offset by increases in compensation expense.

Nonoperating income (expenses), net increased $8.9 million or 127% primarily due to an increase in the market value of investments since the negative impact of the pandemic on the markets in Q1 2020. This increase was partially offset by a gain recorded in March 2020 from a fair value adjustment to the equity investment of a previously nonconsolidated entity.

Q1 2021 vs. Q4 2020

Revenue decreased $22.7 million or 6% primarily due to an increase in voluntary yield-related fee waivers, two fewer days in Q1 2021 and a decrease in revenue from lower average money market assets. These decreases were partially offset by an increase in revenue due to higher average equity and fixed-income assets.

Operating expenses decreased $5.4 million or 2% primarily due to decreased distribution expenses predominantly resulting from higher voluntary yield-related fee waivers.

Nonoperating income (expenses), net decreased $12.8 million or 87% primarily due to the increase in the market value of investments in Q1 2021 being less than the increase in Q4 2020.

Impact of voluntary yield-related fee waivers

During the three months ended March 31, 2021, voluntary yield-related fee waivers totaled $83.1 million. These fee waivers were largely offset by related reductions in distribution expenses of $61.4 million, such that the net negative pre-tax impact to Federated Hermes was $21.7 million.

Short-term interest rates reached historical lows during Q1 2021 as technical factors at the front end of the yield curve drove yields on short-term government securities – including repurchase agreements and Treasury bills – to near zero in mid- to late February, which is where they remain currently.

As a result, the negative impact on pre-tax income from minimum yield waivers on money market mutual funds and certain separate accounts may range from $35 million to $45 million during Q2 2021. This range is based on gross yields on government money market portfolios of 3 to 10 basis points. Federated Hermes projects that the negative impact from minimum yield waivers for 2021 will peak in Q2. The amount of minimum yield 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 impact of minimum yield 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 April 30, 2021. 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 April 30, 2021. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 40761. The online replay will be available via FederatedHermes.com for one year.

Federated Hermes, Inc. is a leading global investment manager with $625.0 billion in assets under management as of March 31, 2021. Guided by our conviction that responsible investing is the best way to create wealth over the long term, our investment solutions span equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies. Providing world-class active investment management and engagement services 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' nearly 2,000 employees include those in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com.

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 10% of fixed-income fund managers¹. Federated Hermes also ranks as the 9th-largest manager of model-delivered SMAs². For more information, including an analyst presentation, visit FederatedHermes.com.

###

1) ISS Market Intelligence (SIMFUND), March 31, 2021. Based on assets under management in open-end funds.
2) Money Management Institute/Cerulli, Q4 2020.

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, gross yields 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 Q1 2020 to Q1 2021			Quarter Ended			% Change Q4 2020 to Q1 2021
	March 31, 2021			March 31, 2020						Dec. 31, 2020
Revenue
Investment advisory fees, net	$	247,689		$	240,660		3	%		$	265,593		(7)	%
Administrative service fees, net—affiliates	74,302			72,199			3			79,192			(6)
Other service fees, net	19,182			46,324			(59)			19,133			0
Total Revenue	341,173			359,183			(5)			363,918			(6)
Operating Expenses
Compensation and related	143,620			115,335			25			138,296			4
Distribution	44,389			96,160			(54)			59,419			(25)
Systems and communications	18,594			14,896			25			18,518			0
Professional service fees	14,636			13,268			10			13,961			5
Office and occupancy	11,240			11,771			(5)			6,436			75
Advertising and promotional	2,824			4,995			(43)			4,853			(42)
Travel and related	296			3,159			(91)			540			(45)
Other	8,096			6,855			18			7,120			14
Total Operating Expenses	243,695			266,439			(9)			249,143			(2)
Operating Income	97,478			92,744			5			114,775			(15)
Nonoperating Income (Expenses)
Investment income (loss), net	2,011			(14,451)			114			15,175			(87)
Debt expense	(491)			(931)			(47)			(468)			5
Other, net	345			8,345			(96)			(27)			NM
Total Nonoperating Income (Expenses), net	1,865			(7,037)			127			14,680			(87)
Income before income taxes	99,343			85,707			16			129,455			(23)
Income tax provision	24,997			22,442			11			28,183			(11)
Net income including the noncontrolling interests in subsidiaries	74,346			63,265			18			101,272			(27)
Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries	(138)			(913)			85			6,104			(102)
Net Income	$	74,484		$	64,178		16	%		$	95,168		(22)	%
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic	$	0.75		$	0.63		19	%		$	0.94		(20)	%
Diluted	$	0.75		$	0.63		19	%		$	0.93		(19)	%
Weighted-Average Shares Outstanding
Basic and Diluted	95,218			97,345						95,504
Dividends Declared Per Share	$	0.27		$	0.27					$	1.27

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 $3.0 million, $2.4 million and $5.0 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended March 31, 2021, March 31, 2020 and Dec. 31, 2020, 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.

 

Unaudited Condensed Consolidated Balance Sheets
(in thousands)	March 31, 2021			Dec. 31, 2020
Assets
Cash and other investments	$	382,695		$	438,771
Other current assets	137,617			136,572
Intangible assets, net, including goodwill	1,283,036			1,282,020
Other long-term assets	206,605			203,476
Total Assets	$	2,009,953		$	2,060,839
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities	$	199,300		$	265,446
Long-term debt	70,000			75,000
Other long-term liabilities	339,814			346,409
Redeemable noncontrolling interests	245,717			236,987
Equity excluding treasury stock	1,509,634			1,461,728
Treasury stock	(354,512)			(324,731)
Total Liabilities, Redeemable Noncontrolling Interests and Equity	$	2,009,953		$	2,060,839

 

Unaudited Changes in Long-Term Assets - By Asset Class
(in millions)	Quarter Ended
	March 31, 2021			Dec. 31, 2020			March 31, 2020
Equity
Beginning assets	$	91,788		$	80,405		$	89,011
Sales1	7,760			5,618			6,080
Redemptions1	(7,164)			(6,047)			(7,842)
Net sales (redemptions)1	596			(429)			(1,762)
Net exchanges	32			(8)			(37)
Acquisitions/(dispositions)	0			0			(71)
Impact of foreign exchange2	(595)			946			(768)
Market gains and (losses)3	4,349			10,874			(18,134)
Ending assets	$	96,170		$	91,788		$	68,239
Fixed Income
Beginning assets	$	84,277		$	79,546		$	69,023
Sales1	11,187			9,046			7,687
Redemptions1	(8,284)			(6,046)			(9,788)
Net sales (redemptions)1	2,903			3,000			(2,101)
Net exchanges	(44)			(10)			(115)
Acquisitions/(dispositions)	0			0			(1)
Impact of foreign exchange2	(60)			181			(155)
Market gains and (losses)3	(612)			1,560			(1,936)
Ending assets	$	86,464		$	84,277		$	64,715
Alternative/Private Markets
Beginning assets	$	19,084		$	18,146		$	18,102
Sales1	478			574			888
Redemptions1	(631)			(661)			(582)
Net sales (redemptions)1	(153)			(87)			306
Net exchanges	(1)			(3)			2
Acquisitions/(dispositions)	0			0			452
Impact of foreign exchange2	139			1,061			(1,121)
Market gains and (losses)3	232			(33)			320
Ending assets	$	19,301		$	19,084		$	18,061
Multi-asset
Beginning assets	$	3,948		$	3,737		$	4,199
Sales1	67			50			98
Redemptions1	(170)			(166)			(235)
Net sales (redemptions)1	(103)			(116)			(137)
Net exchanges	5			3			(14)
Impact of foreign exchange2	(1)			0			0
Market gains and (losses)3	132			324			(554)
Ending assets	$	3,981		$	3,948		$	3,494
Total Long-term Assets
Beginning assets	$	199,097		$	181,834		$	180,335
Sales1	19,492			15,288			14,753
Redemptions1	(16,249)			(12,920)			(18,447)
Net sales (redemptions)1	3,243			2,368			(3,694)
Net exchanges	(8)			(18)			(164)
Acquisitions/(dispositions)	0			0			380
Impact of foreign exchange2	(517)			2,188			(2,044)
Market gains and (losses)3	4,101			12,725			(20,304)
Ending assets	$	205,916		$	199,097		$	154,509

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.

 

Unaudited Changes in Long-Term Assets - By Asset Class and Product Type
(in millions)
	Quarter Ended
	March 31, 2021
	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	$	54,312		$	37,476		$	53,557		$	30,720		$	12,100		$	6,984		$	3,744		$	204		$	123,713		$	75,384
Sales	5,649			2,111			9,235			1,952			304			174			65			2			15,253			4,239
Redemptions	(4,441)			(2,723)			(6,732)			(1,552)			(461)			(170)			(141)			(29)			(11,775)			(4,474)
Net sales (redemptions)	1,208			(612)			2,503			400			(157)			4			(76)			(27)			3,478			(235)
Net exchanges	(372)			404			(44)			0			(1)			0			5			0			(412)			404
Impact of foreign exchange2	(261)			(334)			(38)			(22)			82			57			0			(1)			(217)			(300)
Market gains and (losses)3	1,880			2,469			(397)			(215)			207			25			124			8			1,814			2,287
Ending assets	$	56,767		$	39,403		$	55,581		$	30,883		$	12,231		$	7,070		$	3,797		$	184		$	128,376		$	77,540

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.

 

Unaudited Changes in Long-Term Assets - By Product Type
(in millions)	Quarter Ended
	March 31, 2021			Dec. 31, 2020			March 31, 2020
Total Fund Assets
Beginning assets	$	123,713		$	110,811		$	107,724
Sales	15,253			12,204			11,361
Redemptions	(11,775)			(9,020)			(13,604)
Net sales (redemptions)	3,478			3,184			(2,243)
Net exchanges	(412)			(18)			(158)
Impact of foreign exchange1	(217)			1,258			(1,164)
Market gains and (losses)2	1,814			8,478			(11,908)
Ending assets	$	128,376		$	123,713		$	92,251
Total Separate Account Assets3
Beginning assets	$	75,384		$	71,023		$	72,611
Sales4	4,239			3,084			3,392
Redemptions4	(4,474)			(3,900)			(4,843)
Net sales (redemptions)4	(235)			(816)			(1,451)
Net exchanges	404			0			(6)
Acquisitions/(dispositions)	0			0			380
Impact of foreign exchange1	(300)			930			(880)
Market gains and (losses)2	2,287			4,247			(8,396)
Ending assets	$	77,540		$	75,384		$	62,258
Total Long-term Assets3
Beginning assets	$	199,097		$	181,834		$	180,335
Sales4	19,492			15,288			14,753
Redemptions4	(16,249)			(12,920)			(18,447)
Net sales (redemptions)4	3,243			2,368			(3,694)
Net exchanges	(8)			(18)			(164)
Acquisitions/(dispositions)	0			0			380
Impact of foreign exchange1	(517)			2,188			(2,044)
Market gains and (losses)2	4,101			12,725			(20,304)
Ending assets	$	205,916		$	199,097		$	154,509

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.

 

Unaudited Managed Assets
(in millions)	March 31, 2021			Dec. 31, 2020			Sept. 30, 2020			June 30, 2020			March 31, 2020
By Asset Class
Equity	$	96,170		$	91,788		$	80,405		$	76,859		$	68,239
Fixed-income	86,464			84,277			79,546			73,143			64,715
Alternative / private markets	19,301			19,084			18,146			17,485			18,061
Multi-asset	3,981			3,948			3,737			3,705			3,494
Total long-term assets	205,916			199,097			181,834			171,192			154,509
Money market	419,080			420,333			432,952			457,624			451,330
Total Managed Assets	$	624,996		$	619,430		$	614,786		$	628,816		$	605,839
By Product Type
Funds:
Equity	$	56,767		$	54,312		$	46,093		$	43,723		$	36,955
Fixed-income	55,581			53,557			49,779			46,046			40,601
Alternative / private markets	12,231			12,100			11,393			11,037			11,365
Multi-asset	3,797			3,744			3,546			3,516			3,330
Total long-term assets	128,376			123,713			110,811			104,322			92,251
Money market	297,182			301,855			325,940			344,846			336,133
Total Fund Assets	$	425,558		$	425,568		$	436,751		$	449,168		$	428,384
Separate Accounts:
Equity	$	39,403		$	37,476		$	34,312		$	33,136		$	31,284
Fixed-income	30,883			30,720			29,767			27,097			24,114
Alternative / private markets	7,070			6,984			6,753			6,448			6,696
Multi-asset	184			204			191			189			164
Total long-term assets	77,540			75,384			71,023			66,870			62,258
Money market	121,898			118,478			107,012			112,778			115,197
Total Separate Account Assets	$	199,438		$	193,862		$	178,035		$	179,648		$	177,455
Total Managed Assets	$	624,996		$	619,430		$	614,786		$	628,816		$	605,839

 

Unaudited Average Managed Assets	Quarter Ended
(in millions)	March 31, 2021			Dec. 31, 2020			Sept. 30, 2020			June 30, 2020			March 31, 2020
By Asset Class
Equity	$	95,167		$	85,572		$	80,403		$	73,620		$	82,767
Fixed-income	86,939			82,144			76,798			69,603			69,068
Alternative / private markets1	19,278			18,549			18,270			18,022			17,983
Multi-asset	3,974			3,831			3,786			3,630			4,006
Total long-term assets	205,358			190,096			179,257			164,875			173,824
Money market	412,720			420,436			448,795			471,984			406,365
Total Avg. Managed Assets	$	618,078		$	610,532		$	628,052		$	636,859		$	580,189
By Product Type
Funds:
Equity	$	56,832		$	50,022		$	46,020		$	41,301		$	44,996
Fixed-income	55,416			51,934			48,418			43,229			44,017
Alternative / private markets1	12,239			11,670			11,539			11,345			11,143
Multi-asset	3,783			3,634			3,590			3,453			3,814
Total long-term assets	128,270			117,260			109,567			99,328			103,970
Money market	288,403			311,769			338,814			356,736			290,641
Total Avg. Fund Assets	$	416,673		$	429,029		$	448,381		$	456,064		$	394,611
Separate Accounts:
Equity	$	38,335		$	35,550		$	34,383		$	32,319		$	37,771
Fixed-income	31,523			30,210			28,380			26,374			25,051
Alternative / private markets	7,039			6,879			6,731			6,677			6,840
Multi-asset	191			197			196			177			192
Total long-term assets	77,088			72,836			69,690			65,547			69,854
Money market	124,317			108,667			109,981			115,248			115,724
Total Avg. Separate Account Assets	$	201,405		$	181,503		$	179,671		$	180,795		$	185,578
Total Avg. Managed Assets	$	618,078		$	610,532		$	628,052		$	636,859		$	580,189

1)	The average balance for the quarter ended March 31, 2020 includes $8.0 billion of assets managed by a previously non-consolidated entity, Hermes GPE LLP (HGPE), in which Federated Hermes held an equity method investment. Effective March 1, 2020, HGPE became a consolidated subsidiary.

 

View original content:http://www.prnewswire.com/news-releases/federated-hermes-inc-reports-first-quarter-2021-earnings-301280704.html

SOURCE Federated Hermes, Inc.

FAQ

What were Federated Hermes' earnings for Q1 2021?

Federated Hermes reported earnings per diluted share of $0.75 for Q1 2021.

How much were total managed assets for Federated Hermes as of March 31, 2021?

Total managed assets were $625.0 billion as of March 31, 2021.

What is the dividend declared by Federated Hermes for Q1 2021?

The dividend declared is $0.27 per share, payable on May 14, 2021.

Did Federated Hermes experience any revenue growth in Q1 2021?

No, Federated Hermes experienced a revenue decline of $18.0 million, or 5%, in Q1 2021.

What impact did fee waivers have on Federated Hermes' revenue?

Voluntary yield-related fee waivers negatively impacted revenue by $18.0 million in Q1 2021.