Skip to Content

Federated Hermes Inc Class B FHI

Rating as of

Morningstar’s Analysis

Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price


5-Star Price


Economic Moat


Capital Allocation


Positive Flows and Market Gains Lift Federated Hermes' AUM to Record Levels in Q2; No Change to FVE

Greggory Warren, CFA Sector Strategist

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).

Read Full Analysis

Company Profile

Business Description

Federated provides asset management services for institutional and individual investors. We estimate that the company will have $633 billion in managed assets at the end of June 2021, composed of equity (16%), multiasset (1%), fixed-income (14%), alternative (3%), and money market (66%) funds. That said, the firm's cash-management operations are expected to generate around a quarter of Federated's revenue this year, compared with 50%, 15%, and 10%, respectively, for the firm's equity, fixed-income and alternatives/multi-asset operations. From a channel perspective, the company's products are distributed via trust banks, wealth managers and retail broker/dealers (62% of AUM), institutional investors (25%), and international clients (13%).

1001 Liberty Avenue
Pittsburgh, PA, 15222-3779
T +1 412 288-1900
Sector Financial Services
Industry Asset Management
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type High Yield
Employees 1,986


Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.