Federated Hermes Overview and Key Information

Federated Hermes is a global investment manager with a rich history dating back to 1947. The company was formed by the merger of Federated Investors and Hermes Investment Management in 2021.

Federated Hermes has approximately $744 billion in assets under management, making it a significant player in the investment management industry. This scale allows the company to offer a wide range of investment products and services.

The company is headquartered in Pittsburgh, Pennsylvania, and has a global presence with offices in the UK, Europe, and Asia.

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Federated Hermes is a global investment manager that has been around for over 100 years, with a rich history of serving institutional and individual investors.

The company has a significant presence in the US, with over $7 trillion in assets under management, making it one of the largest investment managers in the country.

Federated Hermes has a unique approach to investing, combining the expertise of its research teams with the insights of its portfolio managers to deliver consistent returns to its clients.

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Its investment strategies are focused on providing long-term value to its clients, rather than short-term gains.

Federated Hermes has a strong commitment to ESG investing, with a dedicated team that works to integrate environmental, social, and governance considerations into its investment decisions.

This approach has helped the company to attract a diverse range of clients, including pension funds, endowments, and individual investors.

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Federated Hermes offers a wide range of investment products and services to clients around the world.

Their products include mutual funds, which allow individuals to pool their money together to invest in a variety of assets.

Annuities are also offered, providing a guaranteed income stream for a set period of time or for life.

Institutional separate accounts are available for larger clients, offering customized investment solutions tailored to their specific needs.

Federated Hermes also provides investment advisory services, helping clients make informed investment decisions.

Here are some of the key products and services offered by Federated Hermes:

When evaluating investment options, it's essential to understand the default criteria for funds.

Federated Hermes Funds have specific default list criteria.

This list shows only funds that are open to new purchases or limited.

Funds that are closed to new investments are not included in the default list.

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Federated Hermes Inc. offers a wide range of investment products and services to clients around the world.

Their investment products include mutual funds, which provide a diversified portfolio of stocks and bonds to help clients achieve their financial goals.

Annuities are also available, offering a guaranteed income stream for a set period or for life.

Institutional separate accounts provide customized investment solutions for large organizations and institutions.

Investment advisory services are offered to help clients make informed investment decisions and create a tailored investment plan.

Here are some of the key products and services offered by Federated Hermes Inc.:

Federated Hermes' leadership and management approach is built on a strong foundation of experience and expertise. The company's leadership team has an average tenure of over 20 years, ensuring a consistent and stable approach to investment management.

Federated Hermes' portfolio managers have a deep understanding of the markets and economies they invest in, with many having worked together for over a decade. This collective experience enables them to make informed investment decisions that are not influenced by short-term market fluctuations.

The company's management structure is designed to foster collaboration and open communication among team members, allowing for a coordinated and effective approach to investment management.

Leadership and management are two distinct yet interconnected concepts.

Effective leaders prioritize building trust with their team members, which is why they focus on creating a positive work environment. This can be achieved by recognizing and rewarding employees' contributions.

Good communication is a key aspect of leadership. A study found that employees who feel heard and valued are 30% more likely to be engaged in their work.

Leadership styles can vary, but one thing is certain: a leader's behavior sets the tone for the entire organization. A transformational leader, for instance, inspires and motivates their team to achieve a shared vision.

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Managers, on the other hand, focus on day-to-day operations and goal achievement. They set clear expectations and provide feedback to help employees improve their performance.

Leadership and management are not mutually exclusive; in fact, they complement each other. A good leader can also be a skilled manager, and vice versa.

Federated Hermes Inc. has a rich history that spans over six decades. In 1955, John F. Donahue and Richard B. Fisher, former high school classmates, built what was then known as Federated.

Federated was known for several firsts, including the first SEC-registered fund and the first institutional-only money market fund. This innovative approach helped the company establish a strong foundation.

In 1982, Federated was sold to Aetna Life & Casualty Co., but the company managed to buy itself back in 1989. This bold move marked a turning point in Federated's history.

The company's expansion continued with the establishment of offices in Ireland and New York. This strategic move helped Federated tap into new markets and grow its global presence.

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In 2018, Federated acquired a majority interest in Hermes Investment Management. This acquisition added significant assets and expertise to the company.

The merger between Federated and Hermes in 2020 created a global company with $668.9 billion in assets under management. Today, Federated Hermes is one of the largest asset managers in the world.

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J. Christopher Donahue has been the president and CEO of Federated Hermes since 1998, a position he's held for over two decades.

He first joined the company in 1972 as a law clerk, showing his dedication to the organization from a relatively early start.

Donahue is an alumnus of Princeton University and the University of Pittsburg School of Law, highlighting the importance of education in his career path.

As a seasoned leader, he's held key positions within the company, including being president and COO from 1993 to 1998, demonstrating his ability to take on various roles and responsibilities.

His leadership has been instrumental in shaping the company's success, and it's clear that he's made a lasting impact on Federated Hermes.

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Federated Hermes has achieved a positive revenue trend, with a 4.71% growth rate as of 31 December, 2023, showcasing a substantial increase in top-line earnings.

The company's net margin is below industry benchmarks, standing at 20.05%, which may indicate potential difficulties in achieving strong profitability.

Federated Hermes's Return on Equity (ROE) and Return on Assets (ROA) stand out, surpassing industry averages with impressive ROE and ROA rates of 7.05% and 3.75% respectively.

The company adopts a prudent financial strategy, with a below-average debt-to-equity ratio of 0.41, indicating a balanced approach to debt management.

Here's a comparison of Federated Hermes's key financial metrics with its peers:

Let's dive into the valuation metrics of these companies. FHI has a Price/Earnings (Normalized) ratio of 9.81, which is significantly higher than AMG's 7.99 and BEN's 8.66.

FHI's Price/Book Value ratio is 2.89, indicating that investors are willing to pay nearly three times the book value of the company. This is a relatively high multiple.

The Price/Sales ratio for FHI is 1.89, which is lower than AMG's 3.02 but higher than BEN's 1.20. This suggests that FHI's stock is relatively undervalued compared to its sales.

Here's a comparison of the valuation metrics:

FHI's Price/Cash Flow ratio is 9.36, which is higher than AMG's 6.24 but lower than BEN's 8.14. This suggests that investors are willing to pay a premium for FHI's cash flow.

As we delve into the financial story of Federated Hermes, one thing becomes clear: revenue growth is a key area of focus. The company achieved a noteworthy revenue growth rate of 4.71% as of 31 December, 2023, showcasing a substantial increase in top-line earnings.

However, Federated Hermes faces challenges in achieving strong profitability, with a net margin of 20.05% that's below industry benchmarks. This suggests potential difficulties in effective cost control.

On the other hand, the company's Return on Equity (ROE) stands out, surpassing industry averages with an impressive 7.05%. This demonstrates effective use of equity capital and strong financial performance.

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Federated Hermes also excels in Return on Assets (ROA), with a remarkable 3.75% that surpasses industry averages. This indicates effective utilization of assets and strong financial performance.

In terms of debt management, Federated Hermes adopts a prudent financial strategy, with a below-average debt-to-equity ratio of 0.41. This suggests a balanced approach to debt management.

Here's a summary of Federated Hermes's key financial metrics:

In comparison to its peers, Federated Hermes's financial performance is notable, with a Price/Earnings (Normalized) ratio of 9.81, a Price/Book Value ratio of 2.89, and a Price/Sales ratio of 1.89. These ratios provide a snapshot of the company's valuation relative to its industry peers.

Federated Hermes's market position can be understood by looking at analyst evaluations and financial indicators. Analysts adapt their recommendations in response to changing market conditions and company performance.

Analysts assign qualitative values, such as 'Outperform' or 'Underperform', to predict the relative performance of Federated Hermes compared to the broader market. These ratings convey expectations for the company's future performance.

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Analysts provide estimates for the future value of Federated Hermes's stock, known as price targets. This comparison reveals trends in analysts' expectations over time.

Here's a summary of the types of ratings analysts assign: