Federated Hermes : reports third quarter 2023 earnings

Federated Hermes, Inc. reports third quarter 2023 earnings

• Q3 2023 earnings per diluted share of $0.86
• Total assets under management reach a record high of $715.2 billion
• Money market assets reach a record $525.1 billion
• Board declares $0.28 per share dividend; authorizes new share repurchase program

(PITTSBURGH, Pa., Oct. 26, 2023) - Federated Hermes, Inc. (NYSE: FHI), a global leader in active, responsible investing, today reported earnings per diluted share (EPS) of $0.86 for Q3 2023, compared to $0.78 for the same quarter last year, on net income of $75.0 million for Q3 2023, compared to $69.5 million for Q3 2022. Federated Hermes reported YTD 2023 EPS of $2.44, compared to $2.02 for the same period in 2022, on YTD 2023 net income of $216.8 million, compared to $183.0 million for the same period in 2022.

Federated Hermes' total managed assets were a record $715.2 billion at Sept. 30, 2023, up $90.8 billion or 15% from $624.4 billion at Sept. 30, 2022 and up $11.2 billion or 2% from $704.0 billion at June 30, 2023. Total average managed assets for Q3 2023 were $711.2 billion, up $79.4 billion or 13% from $631.8 billion reported for Q3 2022 and up $5.9 billion or 1% from $705.3 billion for Q2 2023.

"Record assets under management at the end of the third quarter were again driven by money market asset increases, particularly investor demand for our prime money market offerings in the current interest rate environment, where general market volatility made the improved yields of our cash offerings an appealing haven for investors," said J. Christopher Donahue, president and chief executive officer. "Net sales of fixed-income products were led by multi-sectorfixed-income separate accounts and net sales of our flagship core-plus offering, Federated Hermes Total Return Bond Fund. In equities, we saw demand for Federated Hermes' international equity products and our MDT strategies, which take a quantitative approach to stock selection with proprietary research and technology."

Federated Hermes' board of directors declared a dividend of $0.28 per share. The dividend is payable on Nov. 15, 2023 to shareholders of record as of Nov. 8, 2023. During Q3 2023, Federated Hermes purchased 2,046,790 shares of Federated Hermes class B common stock for $68.9 million. The board of directors also authorized an additional share repurchase program, which is the firm's 16th, allowing the buyback of up to an additional 5 million shares of Federated Hermes class B common stock in the open market with no expiration date. The repurchased stock is to be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities. The company's existing 5 million share repurchase program, approved in June 2022, has approximately 1.4 million shares remaining.

Equity assets were $77.3 billion at Sept. 30, 2023, up $2.6 billion or 4% from $74.7 billion at Sept. 30, 2022 and down $5.7 billion or 7% from $83.0 billion at June 30, 2023. Top-selling equity funds during Q3 2023 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes International Leaders Fund, Federated Hermes U.S. SMID Equity Fund, Federated Hermes International Small-Mid Company Fund and Federated Hermes MDT All Cap Core Fund.

Fixed-income assets were $89.8 billion at Sept. 30, 2023, up $4.4 billion or 5% from $85.4 billion at Sept. 30, 2022 and up $2.4 billion or 3% from $87.4 billion at June 30, 2023. Top-sellingfixed-income funds during Q3 2023 on a net basis were Federated

MEDIA:	MEDIA:	ANALYSTS:
Ed Costello 412-288-7538	Meghan McAndrew 412-288-8103	Ray Hanley 412-288-1920

Federated Hermes reports Q3 2023 earnings

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Hermes Total Return Bond Fund, Federated Hermes Intermediate Corporate Bond Fund, Federated Hermes Sterling Cash Plus Fund, Federated Hermes Total Return Bond Collective Investment Fund and Federated Hermes SDG Engagement High Yield Credit Fund.

Alternative/private markets assets were $20.3 billion at Sept. 30, 2023, up $0.1 billion or less than 1% from $20.2 billion at Sept. 30, 2022 and down $1.3 billion or 6% from $21.6 billion at June 30, 2023.

Money market assets were a record $525.1 billion at Sept. 30, 2023, up $83.8 billion or 19% from $441.3 billion at Sept. 30, 2022 and up $16.1 billion or 3% from $509.0 billion at June 30, 2023. Money market fund assets were a record

$384.9 billion at Sept. 30, 2023, up $75.0 billion or 24% from $309.9 billion at Sept. 30, 2022 and up $20.9 billion or 6% from $364.0 billion at June 30, 2023.

Financial Summary

Q3 2023 vs. Q3 2022

Revenue increased $21.5 million or 6% primarily due to an increase in revenue from money market assets and an increase in carried interest and performance fees of $10.8 million, including $7.5 million of carried interest from consolidated carried interest vehicles and is offset in compensation expense. These increases were partially offset by a decrease in revenue related to changes in the mix of average equity and fixed-income assets.

During Q3 2023, Federated Hermes derived 53% of its revenue from long-term assets (31% from equity, 12% from fixed- income, and 10% from alternative/private markets and multi-asset), 46% from money market assets, and 1% from sources other than managed assets.

Operating expenses increased $16.9 million or 6% primarily due to increased compensation expenses resulting from consolidated carried interest vehicles of $7.6 million.

Nonoperating income (expenses), net increased $7.1 million primarily due to an increase in investment yields due to rising interest rates and a larger decrease in the market value of investments in Q3 2022 compared to the decrease in Q3 2023.

Q3 2023 vs. Q2 2023

Revenue decreased $30.6 million or 7% primarily due to a decrease in carried interest and performance fees of $24.5 million, including $15.5 million of carried interest from consolidated carried interest vehicles and is offset in compensation expense. Revenue from money market assets decreased by $9.0 million, offset by an $8.2 million decrease in related distribution expense due to changes in asset levels, asset mix and product structures. These decreases were partially offset by an increase in revenue due to one additional day in Q3 2023.

Operating expenses decreased $33.6 million or 10% primarily due to decreased compensation expenses resulting from consolidated carried interest vehicles of $15.9 million and the decrease in distribution expense from money market assets mentioned above.

Nonoperating income (expenses), net decreased $2.6 million primarily due to a decrease in the market value of investments in Q3 2023 compared to Q2 2023.

YTD 2023 vs. YTD 2022

Revenue increased $146.2 million or 14% primarily due to the elimination of voluntary fee waivers related to certain money market funds in order for those funds to maintain positive or zero net yields (voluntary yield-related fee waivers), an increase in

Federated Hermes reports Q3 2023 earnings

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revenue from money market assets and an increase in carried interest and performance fees of $49.0 million, including $31.9 million of carried interest from consolidated carried interest vehicles and is offset in compensation expense. For further information on the waivers, see "Impact of voluntary yield-related fee waivers" below. These increases were partially offset by a decrease in revenue due to lower average long-term assets.

For the first nine months of 2023, Federated Hermes derived 53% of its revenue from long-term assets (30% from equity, 12% from fixed-income and 11% from alternative/private markets and multi-asset), 46% from money market assets, and 1% from sources other than managed assets.

Operating expenses increased $134.2 million or 17% primarily due to an increase in distribution expense mainly due to the elimination of voluntary yield-related fee waivers, increased compensation expenses resulting from consolidated carried interest vehicles of $32.8 million, and an increase in professional service fees.

Nonoperating income (expenses), net increased $51.0 million primarily due to an increase in the market value of investments in the first nine months of 2023 compared to a decrease in the market value of investments for the same period in 2022 and an increase in investment yields due to rising interest rates.

Impact of voluntary yield-related fee waivers

There were no voluntary yield-related fee waivers during the three and nine months ended Sept. 30, 2023, and no material voluntary yield-related fee waivers for the three months ended Sept. 30, 2022. During the nine months ended Sept. 30, 2022, voluntary yield-related fee waivers totaled $85.3 million. These fee waivers were partially offset by related reductions in Distribution expense of $66.5 million, such that the net negative pre-tax impact to Federated Hermes was $18.8 million for the nine months ended Sept. 30, 2022.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Oct. 27, 2023. Investors are invited to listen to the earnings teleconference by calling 888-506-0062 (domestic) or 973-528-0011 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us at least 15 minutes prior to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on Oct. 27, 2023. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 49196. The online replay will be available via FederatedHermes.com/us for one year.

About Federated Hermes

Federated Hermes, Inc. is a global leader in active, responsible investment management, with $715.2 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed- income, alternative/private markets, multi-asset and liquidity management strategies to more than 10,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide.

Federated Hermes ranks in the top 7% of equity fund managers in the industry, the top 9% of money market fund managers and the top 11% of fixed-income fund managers2. Federated Hermes also ranks as the 8th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.

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###

1. As of Sept. 30, 2023.
2. Morningstar, Sept. 30, 2023. Based on U.S. fund flows rankings.
3. Money Management Institute/Cerulli,Q2 2023.

Federated Securities Corp. is distributor of the Federated Hermes funds.

Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, and Hermes GPE LLP, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.

Cautionary statements

Certain statements in this press release, such as those related to performance, investor preferences and demand, asset flows, asset mix, interest rates and fee waivers constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may" and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes' control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.

	Federated Hermes reports Q3 2023 earnings								Page 5 of 13
	Unaudited Condensed Consolidated Statements of Income
	(in thousands, except per share data)
			Quarter Ended	% Change	Quarter Ended	% Change
		Sept. 30, 2023	Sept. 30, 2022	Q3 2022 to	June 30, 2023	Q2 2023 to
		Q3 2023	Q3 2023
	Revenue
	Investment advisory fees, net	$	276,771	$	263,644	5 %	$	310,337	(11) %
	Administrative service fees, net-affiliates		88,023		75,021	17		85,199	3
	Other service fees, net		37,862		42,478	(11)		37,696	0
	Total Revenue		402,656		381,143	6		433,232	(7)
	Operating Expenses
	Compensation and related		139,123		126,668	10		159,883	(13)
	Distribution		89,838		91,032	(1)		97,086	(7)
	Systems and communications		21,213		19,294	10		22,074	(4)
	Professional service fees		17,561		14,203	24		19,099	(8)
	Office and occupancy		10,632		10,622	0		11,404	(7)
	Advertising and promotional		3,857		6,496	(41)		5,109	(25)
	Travel and related		4,034		3,421	18		3,835	5
	Intangible asset related		3,451		2,894	19		3,418	1
	Other		11,523		9,733	18		12,935	(11)
	Total Operating Expenses		301,232		284,363	6		334,843	(10)
	Operating Income		101,424		96,780	5		98,389	3
	Nonoperating Income (Expenses)
	Investment income (loss), net		2,722		(4,226)	164		5,289	(49)
	Debt expense		(3,133)		(3,302)	(5)		(3,118)	0
	Other, net		(8)		(38)	79		(15)	47
	Total Nonoperating Income (Expenses), net		(419)		(7,566)	94		2,156	(119)
	Income before income taxes		101,005		89,214	13		100,545	0
	Income tax provision		26,739		21,640	24		27,543	(3)
	Net income including the noncontrolling interests		74,266		67,574	10		73,002	2
	in subsidiaries
	Less: Net income (loss) attributable to the		(760)		(1,905)	60		827	(192)
	noncontrolling interests in subsidiaries
	Net Income	$	75,026	$	69,479	8 %	$	72,175	4	%
	Amounts Attributable to Federated Hermes, Inc.
	Earnings Per Share1
	Basic and diluted	$	0.86	$	0.78	10 %	$	0.81	6	%
	Weighted-Average Shares Outstanding
	Basic		83,710		84,531			84,930
	Diluted		83,710		84,536			84,939
	Dividends Declared Per Share	$	0.28	$	0.27		$	0.28

1. Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $3.3 million, $3.6 million and $3.5 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Sept. 30, 2023, Sept. 30, 2022 and June 30, 2023, respectively, was excluded from the computation of earnings per share.

Federated Hermes reports Q3 2023 earnings					Page 6 of 13
Unaudited Condensed Consolidated Statements of Income
(in thousands, except per share data)
		Nine Months Ended
	Sept. 30, 2023		Sept. 30, 2022	% Change
Revenue
Investment advisory fees, net	$	851,089	$	754,681	13 %
Administrative service fees, net-affiliates		252,402		218,710	15
Other service fees, net		114,586		98,524	16
Total Revenue		1,218,077		1,071,915	14
Operating Expenses
Compensation and related		435,884		388,719	12
Distribution		280,258		223,837	25
Systems and communications		63,259		57,234	11
Professional service fees		52,881		41,647	27
Office and occupancy		34,910		32,457	8
Advertising and promotional		13,308		13,965	(5)
Travel and related		11,101		8,543	30
Intangible asset related		10,194		9,319	9
Other		31,303		23,147	35
Total Operating Expenses		933,098		798,868	17
Operating Income		284,979		273,047	4
Nonoperating Income (Expenses)
Investment income (loss), net		18,322		(34,136)	154
Debt expense		(9,377)		(7,873)	19
Other, net		101		31	226
Total Nonoperating Income (Expenses), net		9,046		(41,978)	122
Income before income taxes		294,025		231,069	27
Income tax provision		75,291		58,140	29
Net income including the noncontrolling interests in subsidiaries		218,734		172,929	26
Less: Net income (loss) attributable to the noncontrolling interests in		1,932		(10,070)	119
subsidiaries
Net Income	$	216,802	$	182,999	18 %
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Share1
Basic and diluted	$	2.44	$	2.02	21 %
Weighted-Average Shares Outstanding
Basic		84,499		86,109
Diluted		84,502		86,111
Dividends Declared Per Share	$	0.83	$	0.81

1. Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $10.3 million and $9.1 million available to unvested restricted Federated Hermes shareholders for the nine months ended Sept. 30, 2023 and Sept. 30, 2022, respectively, was excluded from the computation of earnings per share.

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	Unaudited Condensed Consolidated Balance Sheets
	(in thousands)		Sept. 30, 2023		Dec. 31, 2022
	Assets
	Cash and other investments	$	554,433	$	521,754
	Other current assets		157,227		129,277
	Intangible assets, net, including goodwill		1,203,527		1,209,574
	Other long-term assets		165,153		159,874
	Total Assets	$	2,080,340	$	2,020,479
	Liabilities, Redeemable Noncontrolling Interests and Equity
	Current liabilities	$	255,587	$	257,413
	Long-term debt		347,777		347,581
	Other long-term liabilities		306,307		307,972
	Redeemable noncontrolling interests		70,631		61,821
	Equity excluding treasury stock		1,573,370		1,411,055
	Treasury stock		(473,332)		(365,363)
	Total Liabilities, Redeemable Noncontrolling Interests and Equity	$	2,080,340	$	2,020,479

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Unaudited Changes in Long-Term Assets - By Asset Class
(in millions)			Quarter Ended					Nine Months Ended
		Sept. 30, 2023	June 30, 2023	Sept. 30, 2022		Sept. 30, 2023	Sept. 30, 2022
Equity
	Beginning assets	$	82,992	$	83,629	$	80,988	$	81,523	$	96,716
	Sales1		3,897		4,869		5,133			14,397		18,720
	Redemptions1		(6,304)		(5,697)		(4,951)			(16,737)		(19,585)
	Net sales (redemptions)1		(2,407)		(828)		182			(2,340)		(865)
	Net exchanges		18		5		9			126		(145)
	Impact of foreign exchange2		(532)		71		(1,187)			(353)		(2,840)
	Market gains and (losses)3		(2,756)		115		(5,308)			(1,641)		(18,182)
	Ending assets	$	77,315	$	82,992	$	74,684	$	77,315	$	74,684
Fixed Income
	Beginning assets	$	87,425	$	87,461	$	86,253	$	86,743	$	97,550
	Sales1		8,277		4,891		7,681			19,215		22,096
	Redemptions1		(5,133)		(4,963)		(6,584)			(17,223)		(24,971)
	Net sales (redemptions)1		3,144		(72)		1,097			1,992		(2,875)
	Net exchanges		(25)		6		(17)			(120)		78
	Impact of foreign exchange2		(96)		43		(231)			(15)		(560)
	Market gains and (losses)3		(683)		(13)		(1,737)			1,165		(8,828)
	Ending assets	$	89,765	$	87,425	$	85,365	$	89,765	$	85,365
Alternative/Private Markets
	Beginning assets	$	21,602	$	21,174	$	21,785	$	20,802	$	22,920
	Sales1		660		643		946			2,568		2,706
	Redemptions1		(866)		(745)		(929)			(2,403)		(2,525)
	Net sales (redemptions)1		(206)		(102)		17			165		181
	Net exchanges		(3)		(4)		3			(6)		7
	Impact of foreign exchange2		(762)		539		(1,638)			145		(3,830)
	Market gains and (losses)3		(294)		(5)		15			(769)		904
	Ending assets	$	20,337	$	21,602	$	20,182	$	20,337	$	20,182
Multi-asset
	Beginning assets	$	2,922	$	2,973	$	3,135	$	2,989	$	3,780
	Sales1		30		33		54			110		171
	Redemptions1		(119)		(143)		(132)			(406)		(407)
	Net sales (redemptions)1		(89)		(110)		(78)			(296)		(236)
	Net exchanges		0		1		0			3		6
	Market gains and (losses)3		(105)		58		(155)			32		(648)
	Ending assets	$	2,728	$	2,922	$	2,902	$	2,728	$	2,902
Total Long-term Assets
	Beginning assets	$	194,941	$	195,237	$	192,161	$	192,057	$	220,966
	Sales1		12,864		10,436		13,814			36,290		43,693
	Redemptions1		(12,422)		(11,548)		(12,596)			(36,769)		(47,488)
	Net sales (redemptions)1		442		(1,112)		1,218			(479)		(3,795)
	Net exchanges		(10)		8		(5)			3		(54)
	Impact of foreign exchange2		(1,390)		653		(3,056)			(223)		(7,230)
	Market gains and (losses)3		(3,838)		155		(7,185)			(1,213)		(26,754)
	Ending assets	$	190,145	$	194,941	$	183,133		$	190,145	$	183,133

1. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
2. Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.
3. Reflects the approximate changes in the fair value of the securities held by portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

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Unaudited Changes in Long-Term Assets - By Asset Class and Product Type
(in millions)
											Quarter Ended
											Sept. 30, 2023
			Equity		Fixed Income	Alternative / Private		Multi-asset				Total
					Markets
			Funds		Separate1		Funds		Separate1		Funds	Separate1		Funds	Separate1		Funds	.		Separate1
			Accounts		Accounts		Accounts		Accounts			Accounts
Beginning assets	$	44,383	$	38,609	$	43,884	$	43,541	$	13,338	$	8,264	$	2,782	$	140	$	104,387	$	90,554
	Sales		1,733		2,164		3,110		5,167		541		119		29		1		5,413		7,451
	Redemptions		(3,254)		(3,050)		(3,794)		(1,339)		(856)		(10)		(114)		(5)		(8,018)		(4,404)
	Net sales (redemptions)		(1,521)		(886)		(684)		3,828		(315)		109		(85)		(4)		(2,605)		3,047
	Net exchanges		3		15		0		(25)		(3)		0		0		0			0		(10)
	Impact of foreign exchange2		(285)		(247)		(63)		(33)		(450)		(312)		0		0		(798)		(592)
	Market gains and (losses)3		(1,779)		(977)		(568)		(115)		(161)		(133)		(98)		(7)		(2,606)		(1,232)
Ending assets	$	40,801	$	36,514	$	42,569	$	47,196	$	12,409	$	7,928	$	2,599	$	129	$	98,378	$	91,767
										Nine Months Ended
											Sept. 30, 2023
			Equity		Fixed Income	Alternative / Private		Multi-asset				Total
					Markets
			Funds		Separate1		Funds		Separate1		Funds	Separate1		Funds	Separate1		Funds		Separate1
			Accounts		Accounts		Accounts		Accounts		Accounts
Beginning assets	$	43,342	$	38,181	$	43,180	$	43,563	$	13,050	$	7,752	$	2,851	$	138	$	102,423	$	89,634
	Sales		7,059		7,338		11,201		8,014		1,824		744		108		2		20,192		16,098
	Redemptions		(9,798)		(6,939)		(12,082)		(5,141)		(2,154)		(249)		(391)		(15)		(24,425)		(12,344)
	Net sales (redemptions)		(2,739)		399		(881)		2,873		(330)		495		(283)		(13)		(4,233)		3,754
	Net exchanges		85		41		(95)		(25)		17		(23)		3		0		10		(7)
	Impact of foreign exchange2		(69)		(284)		(4)		(11)		96		49		0		0		23		(246)
	Market gains and (losses)3		182		(1,823)		369		796		(424)		(345)		28		4		155		(1,368)
Ending assets	$	40,801	$	36,514	$	42,569	$	47,196	$	12,409	$	7,928	$	2,599	$	129	$	98,378	$	91,767

1. Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed products. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
2. Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
3. Reflects the approximate changes in the fair value of the securities held by portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

	Federated Hermes reports Q3 2023 earnings									Page 10 of 13
Unaudited Changes in Long-Term Assets - By Product Type
(in millions)			Quarter Ended					Nine Months Ended
		Sept. 30, 2023	June 30, 2023	Sept. 30, 2022		Sept. 30, 2023	Sept. 30, 2022
Total Fund Assets
	Beginning assets	$	104,387	$	104,220	$	109,334	$	102,423	$	135,294
	Sales		5,413		6,462		7,128			20,192		25,728
	Redemptions		(8,018)		(7,916)		(10,056)			(24,425)		(36,153)
	Net sales (redemptions)		(2,605)		(1,454)		(2,928)			(4,233)		(10,425)
	Net exchanges		0		(5)		(5)			10		(53)
	Impact of foreign exchange1		(798)		487		(1,841)			23		(4,434)
	Market gains and (losses)2		(2,606)		1,139		(3,567)			155		(19,389)
	Ending assets	$	98,378	$	104,387	$	100,993	$	98,378	$	100,993
Total Separate Account Assets3
	Beginning assets	$	90,554	$	91,017	$	82,827	$	89,634	$	85,672
	Sales4		7,451		3,974		6,686			16,098		17,965
	Redemptions4		(4,404)		(3,632)		(2,540)			(12,344)		(11,335)
	Net sales (redemptions)4		3,047		342		4,146			3,754		6,630
	Net exchanges		(10)		13		0			(7)		(1)
	Impact of foreign exchange1		(592)		166		(1,215)			(246)		(2,796)
	Market gains and (losses)2		(1,232)		(984)		(3,618)			(1,368)		(7,365)
	Ending assets	$	91,767	$	90,554	$	82,140	$	91,767	$	82,140
Total Long-term Assets3
	Beginning assets	$	194,941	$	195,237	$	192,161	$	192,057	$	220,966
	Sales4		12,864		10,436		13,814			36,290		43,693
	Redemptions4		(12,422)		(11,548)		(12,596)			(36,769)		(47,488)
	Net sales (redemptions)4		442		(1,112)		1,218			(479)		(3,795)
	Net exchanges		(10)		8		(5)			3		(54)
	Impact of foreign exchange1		(1,390)		653		(3,056)			(223)		(7,230)
	Market gains and (losses)2		(3,838)		155		(7,185)			(1,213)		(26,754)
	Ending assets	$	190,145	$	194,941	$	183,133		$	190,145	$	183,133

1. Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.
2. Reflects the approximate changes in the fair value of the securities held by portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.
3. Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed products.
4. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.