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Federated Hermes Q1 2025 Earnings Report
Federated Hermes reported record assets under management and increased earnings per diluted share for the first quarter of 2025.
Key Takeaways
Federated Hermes, Inc. announced record assets under management of $839.8 billion and record money market assets of $637.1 billion for Q1 2025. The company reported earnings per diluted share of $1.25, a significant increase from the prior year, driven by strong inflows into money market funds and a VAT refund.
Total assets under management reached a record $839.8 billion.
Money market assets reached a record $637.1 billion.
Earnings per diluted share for Q1 2025 were $1.25, up from $0.89 in Q1 2024.
The quarterly dividend was increased by 9.7% to $0.34 per share.
Federated Hermes
Federated Hermes
Federated Hermes Revenue by Segment
Revenue by Segment
Investment advisory fees, net Revenue
CapyFin.comAdministrative service fees, net Revenue
CapyFin.comOther service fees, net Revenue
CapyFin.com Forward Guidance
The company anticipates continued strong demand for money market products due to their yield advantage and for MDT products due to their systematic investment process.
Positive Outlook
- Continued strong inflows into money market funds due to yield advantage over bank deposits.
- Strong demand for MDT products, including the MDT Market Neutral Fund.
- MDT strategies historically offering outperformance due to systematic process.
- Record assets under management achieved for the 10th consecutive quarter.
- Increased quarterly dividend reflects confidence in future performance.
Challenges Ahead
- Potential market volatility could impact asset flows.
- Fluctuations in foreign currency exchange rates may affect operating expenses.
- Ability to predict fee waivers and expenses in future quarters remains a risk.
- Uncertainty regarding performance fees or carried interest being earned and retained.
- Market appreciation or depreciation could significantly impact revenues and asset levels.