Analyst Note| Greggory Warren, CFA |
There was nothing in no-moat-rated Federated Hermes second-quarter results that would alter our long-term view of the firm. We are leaving our $31 per share fair value estimate in place. Federated closed out the June quarter with a record $645.8 billion in managed assets, up 3.3% sequentially but only 2.72% on a year-over-year basis. Net long-term inflows of $2.1 billion during the second quarter were driven primarily by the company's fixed-income operations, which reported $3.2 billion in inflows, some of which we believe has been due to rotation out of the firm's money market funds (which are not offering much in the way of yield these days).