Federated Hermes Project and Trade Finance Tender Fund - IS Class · NASDAQ:XPTFX
Federated Hermes Project and Trade Finance Tender Fund - IS Class — Federated Hermes — Q1 2024 Earnings Presentation
29 slides from Federated Hermes Project and Trade Finance Tender Fund - IS Class's earnings presentation, Mar 31, 2024
Slide 1: Federated Hermes, Inc. Analyst Update
Federated Hermes, Inc. Analyst Update Data as of March 31, 2024 1 24-10034
Slide 2: Forward-looking information
Forward-looking information Analyst Update, March 31, 2024 This presentation is provided as of the date on the cover and contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended
Slide 3: Investment considerations
Federated Hermes Investment considerations Analyst Update, March 31, 2024 Federated Hermes offers world-class active management and engagement services that target financial outperformance across a wide range of asset classes for investors around the world Business mix offers potential for growth, s
Slide 4: Overview of Federated Hermes
Overview of Federated Hermes Global, active, responsible investment management and stewardship Analyst Update, March 31, 2024 Assets under management $779 billion Total revenue (Q1 ’24) $396.4 million Founded 1955 Top-tier liquidity management business with $578.8 billion in assets under management
Slide 5: Q1 2024 Highlights
Q1 2024 Highlights Analyst Update, March 31, 2024 $0.89 Earnings per share* $778.7 B Managed assets at Q1 period end $0.28 Paid dividend of $0.28 on 2/15/24 Declared dividend of $1.31 to be paid on 5/15/24. Includes $1.00 special dividend and $0.31 quarterly dividend, a 10.7% increase $80.2 B Equity
Slide 6: Diversified mix of revenue from managed assets
Diversified mix of revenue from managed assets Analyst Update, March 31, 2024 Percentage of revenue less distribution expense by asset type* Money Market Average 33% High 61% Low 13% 42% Fixed Income Average 19% 14% High 25% Low 11% Equity** 35% Average 44% High 56% Low 27% 7% 11% 8% 6% Alt/Private
Slide 7: Diversified multi-channel distribution
Diversified multi-channel distribution Total assets under management: $778.7 billion as of March 31, 2024 ($ in billions) Analyst Update, March 31, 2024 International 9% U.S. U.S. Financial Institutional Intermediaries 28% 64% U.S. Financial Intermediaries – Domestic Broker Dealers, Bank Trust, Priv
Slide 8: Equity strategies
Equity strategies Total equity AUM: $80.2 billion Analyst Update, March 31, 2024 Global/International $28.9 Quantitative Equity/MDT $9.2 Global Emerging Markets Strategies $5.1 MDT All Cap Core $2.7 Asia ex-Japan Fund $3.1 MDT Small Cap Core $1.3 Global Equity ESG $2.4 MDT Large Cap Value $1.3 Globa
Slide 9: Fixed-income strategies
Fixed-income strategies Total fixed-income $96.3 billion and liquidity $578.8 billion AUM: $675.1 billion Analyst Update, March 31, 2024 Liquidity $578.8 Multi-Sector and Corporate $69.7 Municipal $7.2 Government $358.8 Multi-Sector Fixed Income Accounts $28.3 CWH Intermediate $3.2 Prime $207.1 Tota
Slide 10: Alternative/private markets and multi-asset strategies
Alternative/private markets and multi-asset strategies Total alternative/private markets $20.5 billion and multi-asset $2.9 billion AUM: $23.4 billion Analyst Update, March 31, 2024 Private Equity And Infrastructure $7.6 Multi-asset $2.9 HGPE – Private Equity Advisory $4.7 Muni and Stock Advantage $
Slide 11: 20 years of Stewardship Services Leadership
20 years of Stewardship Services Leadership EOS at Federated Hermes Analyst Update, March 31, 2024 Assets under advisement (AUA) as of 3/31/24. Past performance is no guarantee of future results. 11
Slide 12: Monthly average mutual fund & SMA gross sales
Monthly average mutual fund & SMA gross sales Equity and multi-asset, fixed income and ultrashort ($ in millions) Analyst Update, March 31, 2024 12 *CAGR – Compound annual growth rate Alternative/Private Markets products are not illustrated
Slide 13: Equity and fixed-income sales
Equity* and fixed-income sales Fund and separate accounts ($ in millions) Analyst Update, March 31, 2024 Fixed Income Equity Q1 2024 Q1 2024 Fixed Income 2021 2022 2023 Total Equity 2021 2022 2023 Total YTD YTD Gross sales $42,626 $28,016 $26,809 $6,583 $104,034 Gross sales $22,130 $24,228 $17,876 $
Slide 14: Liquidity management
Liquidity management Money market funds & separate accounts Analyst Update, March 31, 2024 MMF & Separate Accounts Assets ($B) Total Period End AUM Average MMF AUM Average Separate Acct AUM Total Average AUM Broad product line Value-added services Strength in large banks MMF & Separate Accounts Asse
Slide 15: Money market fund assets
Money market fund* assets Analyst Update, March 31, 2024 Indexed Growth** vs. Money Stock, S&P 500, and Industry MMF CAGR (9/93 – 3/24) FHI MMF 9% Industry MMF 8% S&P 500 8% Money Stock 6% *Beginning in Q1 ‘17 – Includes money market fund subadvised accounts Industry MMF Source: Investment Company I
Slide 16: Separate accounts
Separate accounts Total assets under management: $258.4 billion as of March 31, 2024 ($ in billions) Analyst Update, March 31, 2024 Product Type Asset Type Total may not equal the sum of the parts due to rounding 16
Slide 17: Acquisitions and alliances
Acquisitions and alliances Timeline of key historical transactions Analyst Update, March 31, 2024 Centers of Excellence Acquired app. Acquired the $13.9B of $3.5 billion Acquired MEPC, Transformed advisory $3.2B growth equity assets at assets from PNC a leading U.K. partial into business of C.W. clo
Slide 18: Global footprint
Global footprint Assets by region ($ in billions) Analyst Update, March 31, 2024 North America: $716.0 billion COPENHAGEN Europe: $57.6 billion TORONTO FRANKFURT • U.K. & Ireland: $33.3 DUBLIN billion CLEVELAND BOSTON MILAN CHICAGO • Germany: $8.2 billion PITTSBURGH NEW YORK LONDON • Other: $16.0 bi
Slide 19: Value delivered to shareholders
Value delivered to shareholders Historical uses of cash ($ in billions) Analyst Update, March 31, 2024 Uses of cash Uses of cash over time ($m) Acquisitions Share 21% Repurchases 33% Dividends 46% Total Share Repurchase/Acquisition/Dividend since IPO 1998: $6.1 billion Data as of 3/31/24 Numbers may
Slide 20: Dividend history and weighted average shares outstanding
Dividend history and weighted average shares outstanding Since IPO in 1998 Analyst Update, March 31, 2024 CAGR: 11%* Total Regular Dividends: $20.05 Total Special Dividends: $7.53 Special Dividend to be paid on May 15, 2024 Data as of 3/31/24 *CAGR ‘98 – ’23, special dividends not included 20
Slide 21: Investment considerations
Federated Hermes Investment considerations Analyst Update, March 31, 2024 Federated Hermes offers world-class active management and engagement services that target financial outperformance across a wide range of asset classes for investors around the world Business mix offers potential for growth, s
Slide 22: Appendix
Appendix
Slide 23: Appendix
Appendix Analyst Update, March 31, 2024 Managed assets by asset class Managed assets by product type Equity & Fixed Income fund sales Equity, Fixed Income Separate Account sales Revenue & distribution expense by asset type Financial highlights 23
Slide 24: Managed assets by asset class
Managed assets by asset class $ in billions Analyst Update, March 31, 2024 CAGR* Q1 ‘24 1998** Q1 ‘24 Q1 ’23 YoY % Chg. `98 -`24 Money market $ 578.8 $ 77.1 8% $ 578.8 $ 505.8 14% Equity 80.2 16.4 7% 80.2 83.6 -4% Fixed income 96.3 18.1 7% 96.3 87.5 10% Alternative/private market 20.5 NA NA 20.5 21.
Slide 25: Managed assets by product type
Managed assets by product type $ in billions Analyst Update, March 31, 2024 CAGR* Q1 ‘24 1998** Q1 ‘24 Q1 ’23 % Chg. `98 -`24 Funds Money market $ 417.1 $ 77.1 7% $ 417.1 $ 357.3 17% Equity 43.4 15.5 4% 43.4 44.7 -3% Fixed income 44.5 16.4 4% 44.5 43.6 2% Alternative/private markets 12.5 NA NA 12.5
Slide 26: Equity and fixed-income fund sales
Equity* and fixed-income fund sales $ in millions Analyst Update, March 31, 2024 Fixed Income Equity Q1 2024 Q1 2024 Fixed Income 2021 2022 2023 Total Equity 2021 2022 2023 Total YTD YTD Gross sales $30,862 $18,403 $14,739 $4,049 $68,053 Gross sales $14,564 $13,037 $9,180 $2,463 $39,244 Net sales $5
Slide 27: Equity and fixed-income separate account sales
Equity* and fixed-income separate account sales $ in millions Analyst Update, March 31, 2024 Fixed Income Equity Q1 2024 Q1 2024 Fixed Income 2021 2022 2023 Total Equity 2021 2022 2023 Total YTD YTD Gross sales $11,764 $9,613 $12,070 $2,534 $35,981 Gross sales $7,566 $11,191 $8,696 $1,496 $28,949 Ne
Slide 28: Revenue and distribution expense by asset type
Revenue and distribution expense by asset type Reconciliation of non-GAAP measure ($ in millions) Ql 2008 Ql 2009 Ql 2010 Ql 2011 Ql 2012 Ql 2013 Ql 2014 Ql 2015 Ql 2016 Ql 2017 Ql 2018 Ql 2019 Ql 2020 Ql 2021 Ql 2022 Ql 2023 Ql 2024 Analyst Update, March 31, 2024 Revenue By Asset Type Money Market
Slide 29: Financial highlights
Financial highlights $ in millions Analyst Update, March 31, 2024 BALANCE SHEET 3/31/24 12/31/23 12/31/22 12/31/21 12/31/20 12/31/19 12/31/18 12/31/17 12/31/16 12/31/15 12/31/14 HIGHLIGHTS $559 $561 $ 522 $427 $439 $341 $190 $370 $301 $347 $ 297 Cash & Investments (a) 348 348 348 223 75 100 135 170