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Overview of Federated Hermes Inc.
Federated Hermes Inc. (FHI) is a globally recognized provider of asset management and investment solutions. With a strong commitment to responsible investing and active stewardship, the company delivers a wide spectrum of services that include equity, fixed income, alternative/private markets, multi-asset strategies, as well as liquidity and cash management solutions. The company leverages sophisticated quantitative research and an experienced management team to help investors achieve better risk-adjusted returns while promoting long-term wealth creation.
Core Business Areas
At its core, Federated Hermes is dedicated to managing a diverse range of investment products. Its main business areas include:
- Equity and Fixed Income Solutions: Offering innovative strategies designed to capture opportunities in both growth and income markets.
- Alternative and Multi-Asset Investments: Delivering specialized products that incorporate alternative investments, structured solutions, and diversified multi-asset strategies to enhance portfolio performance.
- Liquidity and Cash Management: Providing advanced money market and liquidity solutions that support investors in managing short-term cash needs and optimizing returns.
Investment Philosophy and Responsible Investing
Federated Hermes is guided by the belief that responsible investing is the pathway to sustainable long-term gains. The company actively engages with the companies in which it invests, addressing strategic and sustainability concerns that foster responsible corporate governance and long-term performance. This approach not only aligns with its fiduciary duty to protect and award investor interests, but it also contributes to positive outcomes beyond traditional financial metrics.
Market Position and Distribution Channels
Federated Hermes stands out in the competitive landscape of asset management due to its diversified product offerings and a robust network of global distribution channels. Its investment solutions are delivered through:
- Institutional Investors: Serving corporations, government entities, insurance companies, foundations, endowments, banks, and broker/dealers.
- Retail and Intermediary Channels: Through trust banks, wealth managers, and retail broker/dealers, the firm reaches individual investors looking for well-managed retirement solutions and other investment opportunities.
Expertise and Operational Excellence
With decades of experience across various market cycles, Federated Hermes employs a systematic, research-driven approach to managing its funds. The use of advanced data analytics, quantitative models, and a disciplined stock-selection process underpins its equity and fixed-income strategies. This method not only reinforces the company’s reputation as a reliable asset manager but also ensures that each strategy is robust, testable, and repeatable. Investors benefit from products designed to respond dynamically to changing market conditions while minimizing subjective risk.
Key Strategic Features
The company’s operational blueprint is characterized by:
- Diversified Investment Expertise: Managing a broad mix of assets ranging from money market funds to long-term investments, thereby ensuring a balanced risk-return profile.
- Global Outreach: With active involvement in markets around the world, Federated Hermes effectively caters to diverse investor needs, further strengthening its market presence.
- Commitment to Stewardship: Using its influential stewardship services, the firm engages with portfolio companies to drive better management practices and sustainability, promoting enhanced long-term performance and governance.
- Innovative Liquidity Solutions: Its cash-management strategies are designed to optimize yield and meet the liquidity demands of modern portfolios.
Comprehensive Investment Solutions
The company’s extensive suite of products is aimed at delivering tailored investment outcomes for a wide array of investors. On one hand, its equity and fixed-income strategies provide avenues for capital appreciation and income generation. On the other hand, its alternative and multi-asset solutions are crafted to meet the unique needs of institutional investors looking for diversification beyond traditional asset classes. Overall, Federated Hermes’ offerings are underpinned by a disciplined, analytical approach that seeks to blend performance with prudent risk management.
Conclusion
Federated Hermes Inc. remains dedicated to delivering superior asset management services by combining experienced market insights, innovative research methodologies, and a strong commitment to responsible investing. Through its comprehensive investment solutions and dynamic approach to portfolio management, the company continues to offer investors an opportunity to achieve balanced, long-term financial outcomes while maintaining a high standard of fiduciary responsibility.
Federated Hermes, a leader in active investing, announced that President and CEO J. Christopher Donahue will participate in a virtual discussion at the 2021 RBC Capital Markets Global Financials Conference on March 9, 2021, from 2 to 2:30 p.m. Eastern. Investors can access a live webcast through FederatedHermes.com starting 15 minutes prior to the presentation. As of December 31, 2020, the firm managed $619.4 billion in assets, offering a range of investment strategies to over 11,000 clients globally.
Federated Hermes, Inc. (NYSE: FHI), a leader in active, responsible investing, filed its annual report on Form 10-K with the U.S. SEC for the fiscal year ending Dec. 31, 2020. The firm reported $619.4 billion in assets under management, reflecting its commitment to long-term wealth creation through responsible investing. Federated Hermes offers a diverse range of investment solutions including equity, fixed-income, and alternative strategies, serving over 11,000 institutions globally. The company's operations span various major cities, including Pittsburgh, London, New York, and Boston.
Federated Hermes, a leader in active investing, announced that President and CEO J. Christopher Donahue will engage in a virtual discussion at the Credit Suisse Virtual Financial Services Forum on February 24, 2021, from 9:40 to 10:20 a.m. Eastern. Investors can access a live webcast of the event via FederatedHermes.com. With $619.4 billion in assets under management as of December 31, 2020, Federated Hermes offers diverse investment solutions across various strategies and serves over 11,000 clients globally.
Federated Hermes, Inc. (NYSE: FHI) launched the Conservative Microshort Fund and Conservative Municipal Microshort Fund to enhance liquidity management and yield potential. These actively managed funds target higher yields than typical money market strategies while aiming for lower net asset value volatility. The Conservative Microshort Fund focuses on capital preservation and current income, while the Conservative Municipal variant emphasizes tax-exempt income. Both funds will be managed by experienced teams with significant industry expertise, utilizing rigorous analysis and proprietary ESG insights.
Federated Hermes (NYSE: FHI) reported Q4 2020 earnings per diluted share (EPS) of $0.93, up from $0.81 in Q4 2019, with net income rising to $95.2 million from $82.1 million. For full-year 2020, EPS increased to $3.23 from $2.69, and net income climbed to $326.4 million versus $272.3 million in 2019. Total managed assets reached a record $619.4 billion, growing by 8% year-over-year. The board declared a quarterly dividend of $0.27 per share. Fixed-income assets surged by 22%, while equity and alternative market assets also hit records. Voluntary yield-related fee waivers amounted to $56.1 million in Q4.
Federated Hermes, Inc. (NYSE: FHI) will report its financial results for Q4 and the full year ending December 31, 2020, on January 28, 2021. A conference call for investors and analysts is scheduled for January 29, 2021, at 9 a.m. Eastern. The call will feature President and CEO J. Christopher Donahue and CFO Thomas R. Donahue. Investors can participate by phone or via the company's website. Federated Hermes manages $614.8 billion in assets, focusing on responsible investing across various strategies. For more information, visit FederatedHermes.com.
Federated Hermes, Inc. announced that the Federated Hermes Kaufmann Small Cap Fund will close to new investors starting March 1, 2021. Current investors and employer-sponsored retirement plans will still be able to invest. The fund's assets reached $10.1 billion as of December 24, 2020, a significant growth from $888 million in 2017. The fund is rated 5 stars by Morningstar in the Small Growth category. This decision aligns with Federated Hermes' commitment to responsible investing and fund capacity management.
Federated Hermes Premier Municipal Income Fund (FMN) has declared a dividend of $0.054 per share, marking no change from the previous month. The record date for this dividend is set for Dec. 23, 2020, with an ex-dividend date of Dec. 22, 2020, and a payable date on Jan. 4, 2021. This dividend is exempt from regular federal income tax and alternative minimum tax, making it attractive for investors seeking tax-free income.