Federated Hermes Project and Trade Finance Tender Fund - IS Class · NASDAQ:XPTFX
Federated Hermes Project and Trade Finance Tender Fund - IS Class — Federated Hermes — Investor Presentation (December 2022)
29 slides from Federated Hermes Project and Trade Finance Tender Fund - IS Class's investor presentation, Dec 31, 2022
Slide 1: Federated Hermes, Inc. Analyst Update
Federated Hermes, Inc. Analyst Update Data as of December 31, 2022 1 23-10007
Slide 2: Forward-looking information
Forward-looking information Analyst Update, December 31, 2022 This presentation is provided as of the date on the cover. Certain statements in this presentation, including those related to the potential for growth and stability constitute forward-looking statements, which involve known and unknown r
Slide 3: Investment considerations
Federated Hermes Investment considerations Analyst Update, December 31, 2022 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
Slide 4: Overview of Federated Hermes
Overview of Federated Hermes Global, active, responsible investment management and stewardship Analyst Update December 31, 2022 Assets under management $668.9 billion Total revenue (Q4 ’22) $373.9 million Founded 1955 Top-tier liquidity management business with $476.8 billion in assets under managem
Slide 5: Q4 2022 Highlights
Q4 2022 Highlights Analyst Update, December 31, 2022 $0.63 Earnings per share* $669 B Managed assets at Q4 period end $0.27 Quarterly dividend of $0.27 $$0.27 81.5 B Equity assets up $6.8 billion or 9% from $74.7 billion at 9/30/22 $86.7 B Fixed-income assets up $1.3 billion from $85.4 billion at 9/
Slide 6: Diversified mix of revenue from managed assets
Diversified mix of revenue from managed assets Analyst Update, December 31, 2022 Percentage of revenue less distribution expense by asset type* Money Market Average 34% High 61% Low 13% Fixed Income Average 19% High 25% Low 11% Equity** Average 44% High 56% Low 27% Alt/Private Market & Multi-asset A
Slide 7: Diversified multi-channel distribution
Diversified multi-channel distribution Total assets under management: $668.9 billion as of December 31, 2022 ($ in billions) Analyst Update, December 31, 2022 International 9% U.S. U.S. Financial Institutional Intermediaries 28% 62% U.S. Financial Intermediaries – Domestic Broker Dealers, Bank Trust
Slide 8: Equity strategies
Equity strategies Total equity AUM: $81.5 billion Analyst Update, December 31, 2022 Global/International $27.8 Quantitative/MDT $5.7 Global Emerging Markets Strategies $6.5 MDT All Cap Core $1.6 Asia ex-Japan Fund $2.9 MDT Small Cap Core $1.1 Global Equity ESG $2.2 MDT Large Cap Value $1.1 Global Eq
Slide 9: Fixed-income strategies
Fixed-income strategies Total fixed-income $86.7B and liquidity $476.8B AUM: $563.6 billion Analyst Update, December 31, 2022 Liquidity $476.8 Multi-Sector and Corporate $60.0 Municipal $7.4 Government $322.3 Multi-Sector Fixed Income Accounts $27.8 CWH Intermediate $3.3 Prime $145.5 Total Return $1
Slide 10: Alternative/private markets and multi-asset strategies
Alternative/private markets and multi-asset strategies Total alternative/private markets $20.8B and multi-asset $3.0B AUM: $23.8 billion Analyst Update, December 31, 2022 Private Equity And Infrastructure $8.2 Multi-asset $3.0 HGPE – Private Equity Advisory $4.6 Muni and Stock Advantage $1.4 HGPE –
Slide 11: EOS at Federated Hermes
19 years of engagement leadership EOS at Federated Hermes Analyst Update, December 31, 2022 Assets under advisement (AUA) as of 12/31/22. Past performance is no guarantee of future results. INSTITUTIONAL Sales Material. Not for Distribution to the Public 11
Slide 12: Monthly average mutual fund & SMA gross sales
Monthly average mutual fund & SMA gross sales Equity and multi-asset, fixed income and ultrashort ($ in millions) Analyst Update, December 31, 2022 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, December 31, 2022 Fixed Income Equity Fixed Income 2019 2020 2021 2022 Total Equity 2019 2020 2021 2022 Total Gross sales $21,424 $37,283 $42,626 $28,016 $129,349 Gross sales $20,554 $20,704 $22,130 $24,228 $87
Slide 14: Liquidity management
Liquidity management Money market funds & separate accounts Analyst Update, December 31, 2022 MMF & Separate Accounts Assets ($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 A
Slide 15: Money market fund assets
Money market fund* assets Analyst Update, December 31, 2022 Indexed Growth** vs. Money Stock, S&P 500, and Industry MMF CAGR (12/93 – 12/22) FHI MMF 9% Industry MMF 8% S&P 500 8% Money Stock 7% *Beginning in Q1 ‘17 – Includes money market fund subadvised accounts Industry MMF Source: Investment Comp
Slide 16: Separate accounts
Separate accounts Total assets under management: $231 billion as of December 31, 2022 ($ in billions) Analyst Update, December 31, 2022 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, December 31, 2022 Centers of Excellence Acquired app. Acquired the $13.9B of $3.6 billion Acquired MEPC, Transformed advisory $3.2B growth equity assets at assets from PNC a leading U.K. partial into business of C.W.
Slide 18: Global footprint
Global footprint Assets by region ($ in billions) Analyst Update, December 31, 2022 North America: $614.6 billion COPENHAGEN Europe: $49.5 billion TORONTO FRANKFURT • U.K. & Ireland: $31.0 DUBLIN billion CLEVELAND CHICAGO BOSTON • Germany: $1.9 billion PITTSBURGH NEW YORK LONDON • Other: $15.5 billi
Slide 19: Value delivered to shareholders
Value delivered to shareholders Historical uses of cash ($ in billions) Analyst Update, December 31, 2022 Uses of cash Uses of cash over time ($m) Acquisitions Share 22% Repurchases 31% Dividends 47% Total Share Repurchase/Acquisition/Dividend since IPO 1998: $5.8 billion Cumulative Net Income Since
Slide 20: Dividend history and weighted average shares outstanding
Dividend history and weighted average shares outstanding Since IPO in 1998 Analyst Update, December 31, 2022 CAGR: 11%* Annual Total Regular Dividends: $18.66 Special Dividend Total Special Dividends: $7.53 Data as of 12/31/22 *CAGR ‘98 – ’22, special dividends not included 20
Slide 21: Investment considerations
Federated Hermes Investment considerations Analyst Update, December 31, 2022 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
Slide 22: Appendix
Appendix a
Slide 23: Appendix contents
Appendix Analyst Update, December 31, 2022 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, December 31, 2022 CAGR* Q4 ‘22 1998** Q4 ‘22 Q4 ’21 YoY % Chg. `98 -`22 Money market $ 476.8 $ 77.1 8% $ 476.8 $ 447.9 6% Equity 81.5 16.4 7% 81.5 96.7 -16% Fixed income 86.7 18.1 7% 86.7 97.6 -11% Alternative/private market 20.8 NA NA 20.8
Slide 25: Managed assets by product type
Managed assets by product type $ in billions Analyst Update, December 31, 2022 CAGR* Q4 ‘22 1998** Q4 ‘22 Q4 ’21 % Chg. `98 -`22 Funds Money market $ 335.9 $ 77.1 6% $ 335.9 $ 312.8 7% Equity 43.3 15.5 4% 43.3 57.0 -24% Fixed income 43.2 16.4 4% 43.2 59.9 -28% Alternative/private markets 13.1 NA NA
Slide 26: Equity and fixed-income fund sales
Equity* and fixed-income fund sales $ in millions Analyst Update, December 31, 2022 Fixed Income Equity Fixed Income 2019 2020 2021 2022 Total Equity 2019 2020 2021 2022 Total Gross sales $16,730 $29,453 $30,862 $18,403 $95,448 Gross sales $12,697 $14,671 $14,564 $13,037 $54,969 Net sales $419 $6,88
Slide 27: Equity and fixed-income separate account sales
Equity* and fixed-income separate account sales $ in millions Analyst Update, December 31, 2022 Fixed Income Equity Fixed Income 2019 2020 2021 2022 Total Equity 2019 2020 2021 2022 Total Gross sales $4,694 $7,830 $11,764 $9,613 $33,901 Gross sales $7,857 $6,033 $7,566 $11,191 $32,647 Net sales $(53
Slide 28: Revenue and distribution expense by asset type
Revenue and distribution expense by asset type Reconciliation of non-GAAP measure ($ in millions) Analyst Update, December 31 2022 Q4 2008 Q4 2009 Q4 2010 Q4 2011 Q4 2012 Q4 2013 Q4 2014 Q4 2015 Q4 2016 Q4 2017 Q4 2018 Q4 2019 Q4 2020 Q4 2021 Q4 2022 Revenue By Asset Type Money Markets $208.4 $147.2
Slide 29: Financial highlights
Financial highlights $ in millions Analyst Update, December 31, 2022 BALANCE SHEET 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 12/31/13 12/31/12 HIGHLIGHTS $522 $427 $439 $341 $190 $370 $301 $347 $297 $292 $259 Cash & Investments (a) 348 223 75 100 135 170 191 21
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