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Mar 31, 2021
Federated Hermes Q1 2021 Earnings Report
Reported earnings for the first quarter of 2021, showing increased EPS and net income compared to Q1 2020, with record long-term assets.
Key Takeaways
Federated Hermes reported a strong first quarter in 2021, with earnings per diluted share increasing to $0.75 from $0.63 in the same quarter last year. Net income also rose to $74.5 million from $64.2 million year-over-year. The company's total managed assets reached $625.0 billion, driven by strong investment performance and client interest.
Earnings per diluted share (EPS) increased to $0.75 for Q1 2021, compared to $0.63 for Q1 2020.
Net income for Q1 2021 was $74.5 million, up from $64.2 million for Q1 2020.
Total managed assets reached $625.0 billion at the end of Q1 2021, a 3% increase year-over-year.
Equity assets under management hit a record $96.2 billion, and fixed-income assets reached a record $86.5 billion.
Federated Hermes
Federated Hermes
Forward Guidance
Federated Hermes anticipates a negative impact from minimum yield waivers during Q2 2021, projecting a pre-tax impact ranging from $35 million to $45 million.
Challenges Ahead
- The negative impact on pre-tax income from minimum yield waivers on money market mutual funds and certain separate accounts may range from $35 million to $45 million during Q2 2021.
- This range is based on gross yields on government money market portfolios of 3 to 10 basis points.
- The amount of minimum yield waivers can vary based on a number of factors, including, among others, interest rates, yields, asset levels, asset flows and the ability of distributors to share in waivers.
- Any change in these factors can impact the amount and impact of minimum yield waivers, including in a material way.
- Federated Hermes' level of business activity and financial results are dependent upon many factors, including market conditions, investment performance and investor behavior.