Federated(FHI) - 2024 Q4 - Annual Results

Earnings Performance - Q4 2024 earnings per diluted share (EPS) was $1.04, up from $0.96 in Q4 2023, with net income of $84.7 million compared to $82.2 million in the same quarter last year[1] - Full-year 2024 EPS was $3.23, down from $3.40 in 2023, with net income of $268.3 million compared to $299.0 million in 2023[1] - Basic and diluted earnings per share for Q4 2024 were $1.04, an 8% increase from $0.96 in Q4 2023[20] - Full-year 2024 net income decreased by 10% to $268,314,000 compared to $298,980,000 in 2023[21] Revenue and Expenses - Revenue for Q4 2024 increased by $33.2 million or 8%, primarily due to higher average money market and equity assets[8] - Q4 2024 total revenue increased by 8% to $424,683,000 compared to Q4 2023[20] - Investment advisory fees for Q4 2024 rose by 9% to $288,329,000 from $264,693,000 in Q4 2023[20] - Full-year 2024 total revenue was $1,632,093,000, a 1% increase from $1,609,574,000 in 2023[21] - Total operating expenses for Q4 2024 increased by 9% to $314,256,000 compared to $288,927,000 in Q4 2023[20] - Operating expenses increased by $25.3 million or 9% in Q4 2024, mainly due to higher compensation and distribution expenses[9] Assets Management - Total assets under management reached a record $829.6 billion at Dec. 31, 2024, up $72.0 billion or 10% from $757.6 billion at Dec. 31, 2023[2] - Average managed assets for Q4 2024 were $804.4 billion, up $76.4 billion or 10% from $728.0 billion in Q4 2023[2] - Total Managed Assets increased to $829,578 million as of December 31, 2024, up from $757,622 million a year earlier, representing a growth of 9.5%[31] - Total Fund Assets at the end of Q4 2024 were $565,287 million, compared to $507,696 million at the end of Q4 2023, reflecting a year-over-year increase of 11.3%[31] Market Performance - The company experienced net redemptions of $4,386 million in Q4 2024, compared to net redemptions of $415 million in Q3 2024[25] - Market losses in Q4 2024 amounted to $(1,148) million, contrasting with market gains of $9,914 million in Q3 2024[23] - The company reported a market loss of $(1,176) million in Q4 2024, contrasting with a market gain of $5,736 million in Q4 2023[31] Asset Composition - Money market assets were a record $630.3 billion at Dec. 31, 2024, up $70.3 billion or 13% from $560.0 billion at Dec. 31, 2023[7] - Fixed-income assets were $98.1 billion at Dec. 31, 2024, up $3.2 billion or 3% from $94.9 billion at Dec. 31, 2023[5] - Alternative/private markets assets decreased to $18.9 billion at Dec. 31, 2024, down $1.7 billion or 8% from $20.6 billion at Dec. 31, 2023[6] - The equity asset class managed assets totaled $79,423 million at the end of Q4 2024, down from $79,291 million at the end of Q4 2023, a slight decrease of 0.2%[31] - Fixed-income managed assets rose to $98,059 million in Q4 2024, compared to $94,920 million in Q4 2023, reflecting a growth of 3.6%[31] - Cash and other investments as of December 31, 2024, were $641,042,000, up from $560,675,000 in 2023[22] Dividends - The board declared a quarterly dividend of $0.31 per share, payable on Feb. 14, 2025[3] - Dividends declared per share increased to $2.21 in 2024 from $1.11 in 2023[21]