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Federated Hermes, Inc. Reports Record Assets Under Management for Q4 and Full-Year 2024

On January 30, 2025, Federated Hermes, Inc. (NYSE: FHI), a premier name in active investing, announced strong financial results, marking a significant quarter and year in terms of asset management and earnings. For the fourth quarter of 2024, the company reported earnings per diluted share (EPS) of $1.04, an increase from $0.96 in the same quarter of the previous year. The net income for Q4 2024 was $84.7 million compared to $82.2 million for Q4 2023.

Over the entire year, Federated Hermes saw an EPS of $3.23, a slight decline from $3.40 in 2023, largely due to a $66.3 million non-cash expense related to the impairment of an indefinite-lived intangible asset recorded in Q2 2024. However, the total assets under management reached an unprecedented $829.6 billion, representing a 10% increase from $757.6 billion at the end of 2023.

Highlights of the Q4 2024 Report

• - Assets Under Management: Total assets surpassed industry expectations, with money market assets alone hitting a record $630.3 billion. This was up 13% from $560.0 billion at the end of Q4 2023.
• - Growth in Average Managed Assets: Average managed assets increased to $804.4 billion, a 10% rise compared to $728.0 billion reported in the previous year.
• - Dividend Declared: The Board of Directors announced a quarterly dividend of $0.31 per share, set to be distributed to shareholders on February 14, 2025, based on a record date of February 7, 2025.

Business Drivers and Outlook

J. Christopher Donahue, CEO and President of Federated Hermes, shed light on the factors driving this growth, stating, "The record assets at year-end were primarily fueled by a continued increase in money market products, which provided clients with exceptional cash management strategies and attractive returns." The positive market sentiment translated into significant investor interest across various asset classes, including fixed-income strategies and quantitative equity products.

The breakdown of asset classes reveals that equity assets amounted to $79.4 billion, showing resilience from $79.3 billion in the previous year, while fixed-income assets were up to $98.1 billion from $94.9 billion. Notably, the alternative/private markets segment saw a decrease, falling to $18.9 billion, down 8% from $20.6 billion at the end of 2023.

Forward-Looking Statements

As Federated Hermes prepares for the upcoming earnings conference call on January 31, 2025, analysts and investors alike are keen to hear insights on future market strategies and global economic conditions impacting their performance. The conference can be accessed by dialing provided numbers or through their online platform.

With the growing emphasis on responsible and active investment management, Federated Hermes remains committed to delivering tailored solutions for its clients, supporting a diverse range of investment strategies across various sectors worldwide. As it continues to rank highly among asset managers, the company’s strategic moves and performance will be critical to watch in the coming quarters.

For further updates on their comprehensive investment strategies and market insights, check out Federated Hermes.