Federated(US:FHI) Prnewswire·2025-04-24 20:15Core Insights - Federated Hermes, Inc. reported Q1 2025 earnings per diluted share (EPS) of $1.25, a significant increase from $0.89 in Q1 2024, with net income rising to $101.1 million from $75.0 million year-over-year [1][15][19] - The company achieved record total managed assets of $839.8 billion as of March 31, 2025, reflecting an 8% increase from $778.7 billion a year earlier [2][15] - The board declared a quarterly dividend of $0.34 per share, marking a 9.7% increase from the previous quarter [3][15] Financial Performance - Revenue for Q1 2025 increased by $27.2 million or 7% compared to Q1 2024, driven by higher average money market assets and increased performance fees [8][19] - Operating expenses decreased by $6.0 million or 2% primarily due to a VAT refund and fluctuations in foreign currency exchange rates [10][19] - Nonoperating income decreased by $1.2 million, attributed to a smaller increase in the market value of investments compared to the previous year [11] Asset Management - Total average managed assets for Q1 2025 were $843.2 billion, up 9% from $776.5 billion in Q1 2024 [2] - Money market assets reached a record $637.1 billion, up 10% from $578.8 billion year-over-year [7][15] - Equity assets increased to $80.9 billion, a 1% rise from $80.2 billion in Q1 2024, while fixed-income assets rose to $99.5 billion, up 3% from $96.3 billion [4][5] Investment Strategies - The company noted strong inflows into money market funds and separate accounts as investors sought stability amid market volatility [3] - Demand for MDT products, particularly the MDT Market Neutral Fund, was robust, aiming for long-term capital appreciation with limited stock market risk exposure [3] Shareholder Actions - During Q1 2025, Federated Hermes repurchased 3,057,542 shares of its class B common stock for $120.1 million [3] - The company ranks in the top 7% of equity fund managers and the top 8% of money market fund managers in the industry [17]