Federated Hermes (FHI) 10-Q 2 May 23 2023 Q1 Quarterly report Financial data

Cover

Cover - shares	3 Months Ended
	Mar. 31, 2023	Apr. 21, 2023
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
Document Transition Report	false
Entity File Number	001-14818
Entity Registrant Name	Federated Hermes, Inc.
Entity Incorporation, State or Country Code	PA
Entity Tax Identification Number	25-1111467
Entity Address, Address Line One	1001 Liberty Avenue
Entity Address, City or Town	Pittsburgh,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	15222-3779
City Area Code	412
Local Phone Number	288-1900
Title of 12(b) Security	Class B common stock, no par value
Trading Symbol	FHI
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Central Index Key	0001056288
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q1
Amendment Flag	false
Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		9,000
Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		89,510,164

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Current Assets
Cash and Cash Equivalents	$ 323,983	$ 336,782
Investments—Consolidated Investment Companies	83,366	108,448
Investments—Affiliates and Other	80,640	76,524
Receivables, net of reserve of $21 and $21, respectively	75,234	58,068
Receivables—Affiliates	35,018	35,941
Prepaid Expenses	31,450	27,004
Other Current Assets	6,561	8,264
Total Current Assets	636,252	651,031
Long-Term Assets
Goodwill	802,940	800,417
Intangible Assets, net of accumulated amortization of $51,984 and $47,650, respectively	410,982	409,157
Property and Equipment, net of accumulated depreciation of $116,983 and $119,640, respectively	32,501	35,743
Right-of-Use Assets, net	84,234	92,860
Other Long-Term Assets	32,070	31,271
Total Long-Term Assets	1,362,727	1,369,448
Total Assets	1,998,979	2,020,479
Current Liabilities
Accounts Payable and Accrued Expenses	95,377	73,901
Accrued Compensation and Benefits	69,028	149,760
Lease Liabilities	18,891	18,394
Income Taxes Payable	22,048	2,286
Other Current Liabilities	6,846	13,072
Total Current Liabilities	212,190	257,413
Long-Term Liabilities
Long-Term Debt	347,645	347,581
Long-Term Deferred Tax Liability, net	180,908	180,410
Long-Term Lease Liabilities	76,931	86,809
Other Long-Term Liabilities	35,094	40,753
Total Long-Term Liabilities	640,578	655,553
Total Liabilities	852,768	912,966
Commitments and Contingencies (Note (17))
TEMPORARY EQUITY
Redeemable Noncontrolling Interests in Subsidiaries	39,508	61,821
Federated Hermes, Inc. Shareholders’ Equity
Retained Earnings	1,051,095	1,015,589
Treasury Stock, at Cost, 9,986,317 and 10,229,521 Shares Class B Common Stock, respectively	(360,155)	(365,363)
Accumulated Other Comprehensive Income (Loss), net of tax	(36,056)	(45,676)
Total Permanent Equity	1,106,703	1,045,692
Total Liabilities, Temporary Equity and Permanent Equity	1,998,979	2,020,479
Class A
Federated Hermes, Inc. Shareholders’ Equity
Common Stock	$ 189	$ 189
Common stock, shares issued (in shares)	9,000	9,000
Class B
Federated Hermes, Inc. Shareholders’ Equity
Common Stock	$ 451,630	$ 440,953
Common stock, shares issued (in shares)	99,505,456	99,505,456

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Receivables, reserve	$ 21	$ 21
Intangible assets, accumulated amortization	51,984	47,650
Property and equipment, accumulated depreciation	$ 116,983	$ 119,640
Treasury stock, shares (in shares)	9,986,317	10,229,521
Class A
Common stock, no par value (usd per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	20,000	20,000
Common stock, shares issued (in shares)	9,000	9,000
Common stock, shares outstanding (in shares)	9,000	9,000
Class B
Common stock, no par value (usd per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	900,000,000	900,000,000
Common stock, shares issued (in shares)	99,505,456	99,505,456
Common stock, shares outstanding (in shares)	89,519,139	89,275,935

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Revenue
Total Revenue	$ 382,189	$ 324,764
Operating Expenses
Compensation and Related	136,878	133,965
Distribution	93,333	48,562
Systems and Communications	19,972	19,494
Professional Service Fees	16,220	13,468
Office and Occupancy	12,874	11,322
Advertising and Promotional	4,342	2,732
Intangible Asset Related	3,326	3,334
Travel and Related	3,231	1,795
Other	6,847	6,143
Total Operating Expenses	297,023	240,815
Operating Income	85,166	83,949
Nonoperating Income (Expenses)
Investment Income, net	4,820	1,093
Gain (Loss) on Securities, net	5,492	(11,695)
Debt Expense	(3,125)	(1,222)
Other, net	122	83
Total Nonoperating Income (Expenses), net	7,309	(11,741)
Income Before Income Taxes	92,475	72,208
Income Tax Provision	21,009	17,611
Net Income Including the Noncontrolling Interests in Subsidiaries	71,466	54,597
Less: Net Income (Loss) Attributable to the Noncontrolling Interests in Subsidiaries	1,865	(1,266)
Net Income	$ 69,601	$ 55,863
Amounts Attributable to Federated Hermes, Inc.
Earnings Per Common Share—Basic (usd per share)	$ 0.78	$ 0.61
Earnings Per Common Share—Diluted (usd per share)	0.78	0.61
Cash Dividends Per Share (usd per share)	$ 0.27	$ 0.27
Investment Advisory Fees, net—Affiliates
Revenue
Total Revenue	$ 201,889	$ 170,221
Investment Advisory Fees, net—Other
Revenue
Total Revenue	62,093	62,773
Administrative Service Fees, net—Affiliates
Revenue
Total Revenue	79,180	73,507
Other Service Fees, net—Affiliates
Revenue
Total Revenue	34,862	13,607
Other Service Fees, net—Other
Revenue
Total Revenue	$ 4,165	$ 4,656

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net Income Including the Noncontrolling Interests in Subsidiaries	$ 71,466	$ 54,597
Permanent Equity
Foreign Currency Translation Gain (Loss)	9,620	(17,134)
Temporary Equity
Foreign Currency Translation Gain (Loss)	232	(457)
Other Comprehensive Income (Loss), net of tax	9,852	(17,591)
Comprehensive Income Including the Noncontrolling Interests in Subsidiaries	81,318	37,006
Less: Comprehensive Income (Loss) Attributable to Redeemable Noncontrolling Interests in Subsidiaries	2,097	(1,723)
Comprehensive Income Attributable to Federated Hermes, Inc.	$ 79,221	$ 38,729

Consolidated Statements of Chan

Consolidated Statements of Changes in Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-in Capital from Treasury Stock Transactions	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss), net of tax	Redeemable Noncontrolling Interest in Subsidiaries/ Temporary Equity
Balance, beginning of period at Dec. 31, 2021	$ 1,114,017	$ 449,118	$ 0	$ 1,187,001	$ (538,464)	$ 16,362
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	55,863			55,863
Other Comprehensive Income (Loss), net of tax	(17,134)					(17,134)
Stock Award Activity	9,319	9,288		(12,116)	12,147
Dividends Declared	(24,952)			(24,952)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests	(14,221)			(14,221)
Acquisition of Additional Equity of FHL	37,566		3,518		34,048
Purchase of Treasury Stock	(102,537)				(102,537)
Balance, end of period at Mar. 31, 2022	1,057,921	458,406	3,518	1,191,575	(594,806)	(772)
Temporary equity, beginning balance at Dec. 31, 2021	63,202						$ 63,202
Increase (Decrease) in Temporary Equity [Roll Forward]
Net Income (Loss)	(1,266)						(1,266)
Other Comprehensive Income (Loss), net of tax	(457)						(457)
Subscriptions—Redeemable Noncontrolling Interest Holders	30,340						30,340
Consolidation (Deconsolidation)	(16,034)						(16,034)
Stock Award Activity	707						707
Distributions to Noncontrolling Interests in Subsidiaries	(4,339)						(4,339)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL	14,221						14,221
Acquisition of Additional Equity of FHL	(37,805)						(37,805)
Temporary equity, ending balance at Mar. 31, 2022	48,569						48,569
Balance, beginning of period at Dec. 31, 2022	1,045,692	441,142	0	1,015,589	(365,363)	(45,676)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss)	69,601			69,601
Other Comprehensive Income (Loss), net of tax	9,620					9,620
Stock Award Activity	10,677	10,677		(9,950)	9,950
Dividends Declared	(24,145)			(24,145)
Purchase of Treasury Stock	(4,742)				(4,742)
Balance, end of period at Mar. 31, 2023	1,106,703	$ 451,819	$ 0	$ 1,051,095	$ (360,155)	$ (36,056)
Temporary equity, beginning balance at Dec. 31, 2022	61,821						61,821
Increase (Decrease) in Temporary Equity [Roll Forward]
Net Income (Loss)	1,865						1,865
Other Comprehensive Income (Loss), net of tax	232						232
Subscriptions—Redeemable Noncontrolling Interest Holders	12,776						12,776
Consolidation (Deconsolidation)	(33,962)						(33,962)
Distributions to Noncontrolling Interests in Subsidiaries	(3,224)						(3,224)
Temporary equity, ending balance at Mar. 31, 2023	$ 39,508						$ 39,508

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Operating Activities
Net Income Including the Noncontrolling Interests in Subsidiaries	$ 71,466	$ 54,597
Adjustments to Reconcile Net Income to Net Cash Provided (Used) by Operating Activities
Depreciation and Amortization	8,022	7,462
Share-Based Compensation Expense	10,680	9,288
Subsidiary Share-Based Compensation Expense	0	707
(Gain) Loss on Disposal of Assets	481	(150)
Provision (Benefit) for Deferred Income Taxes	(76)	2,342
Consolidation/(Deconsolidation) of Other Entities	(2,176)	(20)
Net Unrealized (Gain) Loss on Investments	(5,974)	11,847
Net Sales (Purchases) of Investments—Consolidated Investment Companies	(8,383)	(30,937)
Other Changes in Assets and Liabilities:
(Increase) Decrease in Receivables, net	(15,232)	9,843
(Increase) Decrease in Prepaid Expenses and Other Assets	1,324	(2,892)
Increase (Decrease) in Accounts Payable and Accrued Expenses	(61,621)	(88,206)
Increase (Decrease) in Other Liabilities	6,909	6,872
Net Cash Provided (Used) by Operating Activities	5,420	(19,247)
Investing Activities
Purchases of Investments—Affiliates and Other	(1,583)	(2,008)
Proceeds from Redemptions of Investments—Affiliates and Other	4,160	1,321
Cash Paid for Property and Equipment	(739)	(1,853)
Net Cash Provided (Used) by Investing Activities	1,838	(2,540)
Financing Activities
Dividends Paid	(24,149)	(24,953)
Purchases of Treasury Stock	(6,562)	(113,338)
Distributions to Noncontrolling Interests in Subsidiaries	(3,224)	(4,339)
Contributions from Noncontrolling Interests in Subsidiaries	12,776	30,340
Cash paid for Business Acquisitions	(857)	(6,913)
Proceeds from New Borrowings	0	488,300
Payments on Debt	0	(311,650)
Other Financing Activities	0	(2,586)
Net Cash Provided (Used) by Financing Activities	(22,016)	54,861
Effect of Exchange Rates on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	2,047	(4,505)
Net Increase (Decrease) in Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(12,711)	28,569
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Beginning of Period	340,955	238,052
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, End of Period	328,244	266,621
Less: Restricted Cash Recorded in Other Current Assets	3,867	4,289
Less: Restricted Cash and Restricted Cash Equivalents Recorded in Other Long-Term Assets	394	289
Cash and Cash Equivalents	$ 323,983	$ 262,043

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation Federated Hermes, Inc. and its consolidated subsidiaries (collectively, Federated Hermes) provide investment advisory, administrative, distribution and other services to various investment products, including sponsored investment companies, collective funds and other funds (Federated Hermes Funds) and separate accounts (which include separately managed accounts, institutional accounts, certain sub-advised funds and other managed products, collectively Separate Accounts) in both domestic and international markets. In addition, Federated Hermes markets and provides stewardship and real estate development services to various domestic and international companies. The interim consolidated financial statements of Federated Hermes included herein (Consolidated Financial Statements) have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP). In the opinion of management, the financial statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods presented. In preparing the Consolidated Financial Statements, management is required to make estimates and assumptions that affect the amounts reported therein and in the accompanying notes. Actual results may differ from those estimates, and such differences may be material to the Consolidated Financial Statements.

Significant Accounting Policies

Significant Accounting Policies	3 Months Ended
	Mar. 31, 2023
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies For a listing of Federated Hermes’ significant accounting policies, please refer to Federated Hermes’ Annual Report on Form 10-K for the year ended December 31, 2022.

Business Combination

Business Combination	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Business Combination	Business Combination CWH Acquisition Effective October 1, 2022, Federated Hermes completed the acquisition of substantially all of the assets of C.W. Henderson and Associates, Inc. (CWH), a Chicago-based registered investment advisor specializing in the management of tax-exempt municipal securities (CWH Acquisition). This acquisition will enhance Federated Hermes’ existing separately managed accounts business. The CWH Acquisition included an upfront cash payment of $28.1 million. The purchase agreement also provides for a series of contingent purchase price payments, which can total as much as $17.6 million in the aggregate and is payable annually over the first five years if certain levels of net revenue growth are achieved. Federated Hermes has performed a valuation of the fair value of the CWH Acquisition. Due to the timing of the acquisition and status of the valuation work, the purchase price allocation for assets acquired (excluding the Right-of-Use Asset and the trade name Intangible Assets) and liabilities assumed (excluding the Lease Liability Assumed) is preliminary. Provisional amounts will be finalized as new information is obtained about facts and circumstances that existed as of October 1, 2022. Although preliminary results of the valuation are reflected in the Consolidated Financial Statements as of March 31, 2023, the final purchase price allocation may reflect adjustments to this preliminary valuation and such adjustments may be material. The following table summarizes the preliminary purchase price allocation determined as of the purchase date: (in millions) Right-of-Use Asset $ 0.8 Intangible Assets 1 15.4 Goodwill 2 16.4 Less: Lease Liability Assumed 0.8 Less: Fair Value of Contingent Consideration 3.7 Total Upfront Purchase Price Consideration $ 28.1 1 Includes $14.8 million for customer relationships with an estimated useful life of 12 years and $0.6 million for a trade name with an estimated useful life of five years, all of which are recorded in Intangibles Assets, net on the Consolidated Balance Sheets. 2 The goodwill recognized is attributable to enhanced revenue and AUM growth opportunities from future investors and the assembled workforce of CWH and is deductible for tax purposes.

Revenue from Contracts with Cus

Revenue from Contracts with Customers	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Revenue from Contracts with Customers	Revenue from Contracts with Customers The following table presents Federated Hermes’ revenue disaggregated by asset class: Three Months Ended March 31, (in thousands) 2023 2022 Money market $ 179,536 $ 86,290 Equity 124,653 146,856 Fixed-income 47,890 57,874 Other 1 30,110 33,744 Total Revenue $ 382,189 $ 324,764 1 Primarily includes Alternative / Private Markets (including but not limited to private equity, real estate and infrastructure), multi-asset and stewardship services revenue. The following table presents Federated Hermes’ revenue disaggregated by performance obligation: Three Months Ended March 31, (in thousands) 2023 2022 Asset Management 1 $ 263,982 $ 232,994 Administrative Services 79,180 73,507 Distribution 2 32,877 11,077 Other 3 6,150 7,186 Total Revenue $ 382,189 $ 324,764 1 The performance obligation can include administrative, distribution and other services recorded as a single asset management fee under Topic 606, as it is part of a unitary fee arrangement with a single performance obligation. 2 The performance obligation is satisfied at a point in time. A portion of this revenue relates to a performance obligation that has been satisfied in a prior period. 3 Primarily includes shareholder service fees and stewardship services revenue. The following table presents Federated Hermes’ revenue disaggregated by geographical market: Three Months Ended March 31, (in thousands) 2023 2022 Domestic $ 318,948 $ 246,809 Foreign 1 63,241 77,955 Total Revenue $ 382,189 $ 324,764 1 This represents revenue earned by non-U.S. domiciled subsidiaries. The following table presents Federated Hermes’ revenue disaggregated by product type: Three Months Ended March 31, (in thousands) 2023 2022 Federated Hermes Funds $ 315,931 $ 257,335 Separate Accounts 62,093 62,773 Other 1 4,165 4,656 Total Revenue $ 382,189 $ 324,764 1 Primarily includes stewardship services revenue. For nearly all revenue, Federated Hermes is not required to disclose certain estimates of revenue expected to be recorded in future periods as a result of applying the following exemptions: (1) contract terms are short-term in nature (i.e., expected duration of one year or less due to termination provisions) and (2) the expected variable consideration would be allocated entirely to future service periods. Federated Hermes expects to recognize revenue in the future related to the unsatisfied portion of the stewardship services and real estate development performance obligations at March 31, 2023. Generally, contracts are billed in arrears on a quarterly basis and have a three-year duration, after which the customer can terminate the agreement with notice, generally from three (in thousands) Remainder of 2023 $ 7,791 2024 3,823 2025 1,236 2026 and Thereafter 372 Total Remaining Unsatisfied Performance Obligations $ 13,222

Concentration Risk

Concentration Risk	3 Months Ended
	Mar. 31, 2023
Risks and Uncertainties [Abstract]
Concentration Risk	Concentration Risk (a) Revenue Concentration by Asset Class The following table presents Federated Hermes’ significant revenue concentration by asset class: Three Months Ended March 31, 2023 2022 Money Market Assets 47 % 27 % Equity Assets 33 % 45 % Fixed-Income Assets 13 % 18 % The change in the relative proportion of Federated Hermes’ revenue attributable to money market assets for the three months ended March 31, 2023 as compared to the same period in 2022, was primarily the result of an increase in money market revenue due to a decrease in fee waivers in order for certain money market funds to maintain positive or zero net yields (Voluntary Yield-related Fee Waivers). See section below entitled Low Short-Term Interest Rates. The change in the relative proportion of Federated Hermes’ revenue attributable to equity and fixed-income assets for the three months ended March 31, 2023 as compared to the same period in 2022, was primarily the result of increased money market revenue due to the decrease in Voluntary Yield-related Fee Waivers and decreased equity and fixed-income revenue from lower average equity assets and fixed-income asset mix, respectively, in 2023. Low Short-Term Interest Rates In March 2020, in response to disrupted economic activity as a result of the outbreak of a novel coronavirus (the Pandemic), the Federal Open Market Committee (FOMC) of the Federal Reserve Board (Fed) decreased the federal funds target rate range to 0% - 0.25%. The federal funds target rate drives short-term interest rates. As a result of the near-zero interest-rate environment, the gross yield earned by certain money market funds was not sufficient to cover all of the fund’s operating expenses. Beginning in the first quarter 2020, Federated Hermes had implemented Voluntary Yield-related Fee Waivers. These waivers had been partially offset by related reductions in distribution expense as a result of Federated Hermes’ mutual understanding and agreement with third-party intermediaries to share the impact of the Voluntary Yield-related Fee Waivers. In response to global economic activity and elevated inflation levels, the FOMC raised the federal funds target rate multiple times in 2022 and 2023. The range is currently 4.75% - 5.00% as of the March 2023 FOMC meeting. These rate increases eliminated the net negative pre-tax impact of the Voluntary Yield-related Fee Waivers in the second half of 2022. There were no Voluntary Yield-related Fee Waivers during the quarter ended March 31, 2023. During the three months ended March 31, 2022, Voluntary Yield-related Fee Waivers totaled $75.8 million. These fee waivers were partially offset by related reductions in distribution expenses of $57.5 million, such that the net negative pre-tax impact to Federated Hermes was $18.3 million for the three months ended March 31, 2022. (b) Revenue Concentration by Investment Fund Strategy The following table presents Federated Hermes’ revenue concentration by investment fund strategy: Three Months Ended March 31, 2023 2022 Federated Hermes Government Obligations Fund 14 % 7 % Federated Hermes Strategic Value Dividend strategy 1 10 % 10 % 1 Strategy includes Federated Hermes Funds and Separate Accounts. A significant and prolonged decline in the AUM in these funds could have a material adverse effect on Federated Hermes’ future revenues and, to a lesser extent, net income, due to a related reduction in distribution expenses associated with these funds. (c) Revenue Concentration by Intermediary Approximately 13% of Federated Hermes’ total revenue for the three-month period ended March 31, 2023 and 5% for the three-month period ended March 31, 2022 was derived from services provided to one intermediary, The Bank of New York Mellon Corporation, including its Pershing subsidiary. The increase in 2023 was primarily due to a decrease in Voluntary Yield-related Fee Waivers. Significant negative changes in Federated Hermes’ relationship with this intermediary could have a material adverse effect on Federated Hermes’ future revenues and, to a lesser extent, net income due to a related reduction in distribution expenses associated with this intermediary.

Consolidation

Consolidation	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Consolidation	Consolidation The Consolidated Financial Statements include the accounts of Federated Hermes, certain Federated Hermes Funds and other entities in which Federated Hermes holds a controlling financial interest. Federated Hermes is involved with various entities in the normal course of business that may be deemed to be voting rights entities (VREs) or variable interest entities (VIEs). From time to time, Federated Hermes invests in Federated Hermes Funds for general corporate investment purposes or, in the case of newly launched products, in order to provide investable cash to establish a performance history. Federated Hermes’ investment in, and/or receivables from, these Federated Hermes Funds represents its maximum exposure to loss. The assets of each consolidated Federated Hermes Fund are restricted for use by that Federated Hermes Fund. Generally, neither creditors of, nor equity investors in, the Federated Hermes Funds have any recourse to Federated Hermes’ general credit. Given that the entities consolidated by Federated Hermes generally follow investment company accounting, which prescribes fair-value accounting, a deconsolidation generally does not result in the recognition of gains or losses for Federated Hermes. In the ordinary course of business, Federated Hermes could implement fee waivers, rebates or expense reimbursements for various Federated Hermes Funds for competitive reasons (such as Voluntary Yield-related Fee Waivers or to maintain certain fund expense ratios/yields), to meet regulatory requirements or to meet contractual requirements (collectively, Fee Waivers). For the three months ended March 31, 2023, Fee Waivers totaled $125.2 million of which $96.1 million related to money market funds which meet the scope exception of the consolidation guidance. For the three months ended March 31, 2022, Fee Waivers totaled $198.5 million of which $164.8 million related to money market funds which meet the scope exception of the consolidation guidance. Like other sponsors of investment companies, Federated Hermes in the ordinary course of business could make capital contributions to certain affiliated money market Federated Hermes Funds in connection with the reorganization of such funds into certain other affiliated money market Federated Hermes Funds or in connection with the liquidation of money market Federated Hermes Funds. In these instances, such capital contributions typically are intended to either offset realized losses or other permanent impairments to a fund’s net asset value (NAV), increase the market-based NAV per share of the fund’s portfolio that is being reorganized to equal the market-based NAV per share of the acquiring fund or to bear a portion of expenses relating to a fund liquidation. Under current money market fund regulations and Securities and Exchange Commission (SEC) guidance, Federated Hermes is required to report these types of capital contributions to U.S. money market mutual funds to the SEC as financial support to the investment company that is being reorganized or liquidated. There were no contributions for the three months ended March 31, 2023 and 2022. In accordance with Federated Hermes’ consolidation accounting policy, Federated Hermes first determines whether the entity being evaluated is a VRE or a VIE. Once this determination is made, Federated Hermes proceeds with its evaluation of whether to consolidate the entity. The disclosures below represent the results of such evaluations as of March 31, 2023 and December 31, 2022. (a) Consolidated Voting Rights Entities Although most of the Federated Hermes Funds meet the definition of a VRE, Federated Hermes consolidates VREs only when it is deemed to have control. Consolidated VREs are reported on Federated Hermes’ Consolidated Balance Sheets primarily in Investments—Consolidated Investment Companies and Redeemable Noncontrolling Interests in Subsidiaries. (b) Consolidated Variable Interest Entities As of the periods ended March 31, 2023 and December 31, 2022, Federated Hermes was deemed to be the primary beneficiary of, and therefore consolidated, certain entities as a result of its controlling financial interest. The following table presents the balances related to the consolidated VIEs that were included on the Consolidated Balance Sheets as well as Federated Hermes’ net interest in the consolidated VIEs for each period presented: (in millions) March 31, 2023 December 31, 2022 Cash and Cash Equivalents $ 7.1 $ 8.0 Investments—Consolidated Investment Companies 23.7 50.1 Other Assets 2.6 0.7 Other Long-Term Assets 12.7 13.4 Less: Liabilities 7.7 5.7 Less: Accumulated Other Comprehensive Income (Loss), net of tax 0.7 1.2 Less: Redeemable Noncontrolling Interests in Subsidiaries 25.0 49.5 Federated Hermes’ Net Interest in VIEs $ 12.7 $ 15.8 Federated Hermes’ net interest in the consolidated VIEs represents the value of Federated Hermes’ economic ownership interest in those VIEs. During the three months ended March 31, 2023, one VIE was deconsolidated when Federated Hermes’ ownership decreased due to investments from third-party investors. There was no material impact to the Consolidated Statements of Income as a result of this deconsolidation. There were no new consolidations of VIEs during the three months ended March 31, 2023. (c) Non-Consolidated Variable Interest Entities Federated Hermes’ involvement with certain Federated Hermes Funds that are deemed to be VIEs includes serving as investment manager, or at times, holding a minority interest or both. Federated Hermes’ variable interest is not deemed to absorb losses or receive benefits that could potentially be significant to the VIE. Therefore, Federated Hermes is not the primary beneficiary of these VIEs and has not consolidated these entities. At March 31, 2023 and December 31, 2022, Federated Hermes’ maximum risk of loss related to investments in variable interests in non-consolidated VIEs was $68.7 million and $101.7 million, respectively, (primarily recorded in Cash and Cash Equivalents on the Consolidated Balance Sheets) and was entirely related to Federated Hermes Funds. AUM for these non-consolidated Federated Hermes Funds totaled $5.1 billion and $5.4 billion at March 31, 2023 and December 31, 2022, respectively. Of the Receivables—Affiliates at both March 31, 2023 and December 31, 2022, $0.7 million was related to non-consolidated VIEs and represented Federated Hermes’ maximum risk of loss from non-consolidated VIE receivables.

Investments

Investments	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Investments	Investments At March 31, 2023 and December 31, 2022, Federated Hermes held investments in non-consolidated fluctuating-value Federated Hermes Funds of $73.5 million and $67.0 million, respectively, primarily in mutual funds which represent equity investments for Federated Hermes, and held investments in Separate Accounts of $7.1 million and $9.5 million at March 31, 2023 and December 31, 2022, respectively, that were included in Investments—Affiliates and Other on the Consolidated Balance Sheets. Federated Hermes’ investments held in Separate Accounts as of March 31, 2023 and December 31, 2022 were primarily composed of stocks of large domestic and foreign companies ($3.1 million and $3.4 million, respectively) and domestic debt securities ($2.5 million and $4.6 million, respectively). Federated Hermes consolidates certain Federated Hermes Funds into its Consolidated Financial Statements as a result of its controlling financial interest in these Federated Hermes Funds (see Note (6)). All investments held by these consolidated Federated Hermes Funds were included in Investments—Consolidated Investment Companies on Federated Hermes’ Consolidated Balance Sheets. The investments held by consolidated Federated Hermes Funds as of March 31, 2023 and December 31, 2022 were primarily composed of domestic and foreign debt securities ($57.7 million and $57.8 million, respectively), stocks of large domestic and foreign companies ($18.6 million and $45.3 million, respectively), mutual funds ($3.5 million and $2.1 million, respectively) and stocks of small and mid-sized domestic and foreign companies ($3.5 million and $3.3 million, respectively). The following table presents gains and losses recognized in Gain (Loss) on Securities, net on the Consolidated Statements of Income in connection with Federated Hermes’ investments: Three Months Ended March 31, (in thousands) 2023 2022 Investments—Consolidated Investment Companies Net Unrealized Gains (Losses) $ 3,621 $ (5,188) Net Realized Gains (Losses) 1 (641) (462) Net Gains (Losses) on Investments—Consolidated Investment Companies 2,980 (5,650) Investments—Affiliates and Other Net Unrealized Gains (Losses) 2,353 (6,659) Net Realized Gains (Losses) 1 159 614 Net Gains (Losses) on Investments—Affiliates and Other 2,512 (6,045) Gain (Loss) on Securities, net $ 5,492 $ (11,695) 1 Realized gains and losses are computed on a specific-identification basis.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair value is the price that would be received to sell an asset or the price that would be paid to transfer a liability as of the measurement date. A fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The levels are: Level 1 – Quoted prices for identical instruments in active markets. Level 1 assets can include equity and debt securities that are traded in an active exchange market, including shares of mutual funds. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active markets. NAV Practical Expedient – Investments that calculate NAV per share (or its equivalent) as a practical expedient. These investments have been excluded from the fair value hierarchy. (a) Fair Value Measurements on a Recurring Basis The following table presents fair value measurements for classes of Federated Hermes’ financial assets and liabilities measured at fair value on a recurring basis: (in thousands) Level 1 Level 2 Level 3 Total March 31, 2023 Financial Assets Cash and Cash Equivalents $ 323,983 $ 0 $ 0 $ 323,983 Investments—Consolidated Investment Companies 24,083 59,283 0 83,366 Investments—Affiliates and Other 77,972 2,643 25 80,640 Other 1 6,624 3,490 0 10,114 Total Financial Assets $ 432,662 $ 65,416 $ 25 $ 498,103 Total Financial Liabilities 2 $ 0 $ 0 $ 7,831 $ 7,831 December 31, 2022 Financial Assets Cash and Cash Equivalents $ 336,782 $ 0 $ 0 $ 336,782 Investments—Consolidated Investment Companies 49,119 59,329 0 108,448 Investments—Affiliates and Other 71,369 5,130 25 76,524 Other 1 6,538 469 0 7,007 Total Financial Assets $ 463,808 $ 64,928 $ 25 $ 528,761 Total Financial Liabilities 2 $ 27 $ 4 $ 8,439 $ 8,470 1 Amounts primarily consist of restricted cash, a derivative asset and security deposits as of March 31, 2023, and restricted cash and security deposits as of December 31, 2022. 2 Amounts primarily consist of acquisition-related future contingent consideration liabilities. The following is a description of the valuation methodologies used for financial assets and liabilities measured at fair value on a recurring basis. Federated Hermes did not hold any nonfinancial assets or liabilities measured at fair value on a recurring basis at March 31, 2023 or December 31, 2022. Cash and Cash Equivalents Cash and Cash Equivalents include deposits with banks and investments in money market funds. Investments in money market funds totaled $287.0 million and $289.8 million at March 31, 2023 and December 31, 2022, respectively. Cash investments in publicly available money market funds are valued under the market approach through the use of quoted market prices in an active market, which is the NAV of the funds, and are classified within Level 1 of the valuation hierarchy. Investments—Consolidated Investment Companies Investments—Consolidated Investment Companies represent securities held by consolidated Federated Hermes Funds. For publicly traded securities available in an active market, the fair value of these securities is classified as Level 1 when the fair value is based on quoted market prices. The fair values of certain securities held by consolidated Federated Hermes Funds which are determined by third-party pricing services and utilize observable market inputs of comparable investments are classified within Level 2 of the valuation hierarchy. Investments—Affiliates and Other Investments—Affiliates and Other primarily represent investments in fluctuating-value Federated Hermes Funds, as well as investments held in Separate Accounts. For investments in fluctuating-value Federated Hermes Funds that are publicly available, the securities are valued under the market approach through the use of quoted market prices available in an active market, which is the NAV of the funds, and are classified within Level 1 of the valuation hierarchy. For publicly traded securities available in an active market, the fair value of these securities is classified as Level 1 when the fair value is based on quoted market prices. The fair values of certain securities which are determined by third-party pricing services and utilize observable market inputs of comparable investments are classified within Level 2 of the valuation hierarchy. Acquisition-related future contingent consideration liabilities From time to time, pursuant to agreements entered into in connection with certain business combinations and asset acquisitions, Federated Hermes could be required to make future consideration payments if certain contingencies are met. In connection with certain business combinations, Federated Hermes records a liability representing the estimated fair value of future consideration payments as of the acquisition date. The liability is subsequently re-measured at fair value on a recurring basis with changes in fair value recorded in earnings. As of March 31, 2023, acquisition-related future consideration liabilities of $7.8 million were primarily related to the CWH Acquisition and business combinations made in 2020 and were recorded in Other Current Liabilities ($1.0 million) and Other Long-Term Liabilities ($6.8 million) on the Consolidated Balance Sheets. Management estimated the fair value of future consideration payments based primarily upon expected future cash flows using an income approach valuation methodology with unobservable market data inputs (Level 3). The following table presents a reconciliation of the beginning and ending balances for Federated Hermes’ liability for future consideration payments related to these business combinations/asset acquisitions: (in thousands) Balance at December 31, 2022 $ 8,439 Changes in Fair Value 249 Contingent Consideration Payments (857) Balance at March 31, 2023 $ 7,831 Investments using Practical Expedients For investments in mutual funds that are not publicly available but for which the NAV is calculated monthly and for which there are redemption restrictions, the investments are valued using NAV as a practical expedient and are excluded from the fair value hierarchy. As of March 31, 2023 and December 31, 2022, these investments totaled $18.9 million and $18.3 million, respectively, and were recorded in Other Long-Term Assets. (b) Fair Value Measurements on a Nonrecurring Basis Federated Hermes did not hold any assets or liabilities measured at fair value on a nonrecurring basis at March 31, 2023. (c) Fair Value Measurements of Other Financial Instruments The fair value of Federated Hermes’ debt is estimated by management using observable market data (Level 2). Based on this fair value estimate, the carrying value of debt appearing on the Consolidated Balance Sheets approximates fair value, net of unamortized issuance costs in the amount of $2.4 million.

Derivatives

Derivatives	3 Months Ended
	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivatives	Derivatives Federated Hermes Limited (FHL), a British Pound Sterling-denominated subsidiary of Federated Hermes, enters into foreign currency forward transactions in order to hedge against foreign exchange rate fluctuations in the USD. None of these forwards have been designated as hedging instruments for accounting purposes. As of March 31, 2023, FHL held foreign currency forwards with a combined notional amount of £74.2 million and expiration dates ranging from June 2023 through December 2023. Federated Hermes recorded $3.5 million in Other Current Assets on the Consolidated Balance Sheets, which represented the fair value of these derivative instruments as of March 31, 2023. As of December 31, 2022, FHL held foreign currency forward derivative instruments with a combined notional amount of £67.3 million and expiration dates ranging from March 2023 through September 2023. Federated Hermes recorded $0.5 million in Other Current Assets on the Consolidated Balance Sheets, which represented the fair value of these derivative instruments as of December 31, 2022.

Intangible Assets, including Go

Intangible Assets, including Goodwill	3 Months Ended
	Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, including Goodwill	Intangible Assets, including Goodwill Intangible Assets, net at March 31, 2023 increased $1.8 million from December 31, 2022 primarily due to a $5.0 million increase in the value of intangible assets denominated in a foreign currency as a result of foreign exchange rate fluctuations, partially offset by $3.3 million of amortization expense. See the Critical Accounting Policies section of Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information.Goodwill at March 31, 2023 increased $2.5 million from December 31, 2022 primarily as a result of foreign exchange rate fluctuations on goodwill denominated in a foreign currency.

Debt

Debt	3 Months Ended
	Mar. 31, 2023
Debt Disclosure [Abstract]
Debt	Debt Unsecured Senior Notes On March 17, 2022, Federated Hermes entered into a Note Purchase Agreement (Note Purchase Agreement) by and among Federated Hermes and the purchasers of certain unsecured senior notes in the aggregate amount of $350 million ($350 million Notes), at a fixed interest rate of 3.29% per annum, payable semiannually in arrears in March and September in each year of the agreement. Citigroup Global Markets Inc. and PNC Capital Markets LLC acted as lead placement agents in relation to the $350 million Notes and certain subsidiaries of Federated Hermes are guarantors of the obligations owed under the Note Purchase Agreement. As of March 31, 2023, $347.6 million, net of unamortized issuance costs in the amount of $2.4 million, was recorded in Long-Term Debt on the Consolidated Balance Sheets. T he entire principal amount of the $350 million Notes will become due March 17, 2032, subject to certain prepayment requirements under limited conditions. Federated Hermes can elect to prepay the $350 million Notes under certain limited circumstances including with a make-whole amount if mandatorily prepaid without the consent of the holders of the $350 million Notes. The Note Purchase Agreement does not feature a facility for the further issuance of additional notes or borrowing of any other amounts and there is no commitment fee payable in connection with the $350 million Notes. The Note Purchase Agreement includes an interest coverage ratio covenant and a leverage ratio covenant as well as other customary terms and conditions. Federated Hermes was in compliance with all of its covenants at and during the period ended March 31, 2023. See the Liquidity and Capital Resources section of Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations for additional information. The Note Purchase Agreement includes certain stated events of default and cross default provisions which would permit the lenders/counterparties to accelerate the repayment of the $350 million Notes if not cured within the applicable grace periods. The events of default generally include breaches of contract, failure to make required payments, insolvency, certain material misrepresentations and other proceedings, whether voluntary or involuntary, that would require repayment of the $350 million Notes prior to their stated date of maturity. Any such accelerated amounts would accrue interest at a default rate and could include an additional make-whole amount upon repayment. The $350 million Notes rank, without preference or priority, with other unsecured and senior indebtedness of Federated Hermes. Revolving Credit Facility On July 30, 2021, Federated Hermes entered into an unsecured Fourth Amended and Restated Credit Agreement by and among Federated Hermes, certain of its subsidiaries as guarantors party thereto, a syndicate of eleven banks as Lenders party thereto, PNC Bank, National Association as administrative agent, PNC Capital Markets LLC, as sole bookrunner and joint lead arranger, Citigroup Global Markets, Inc., as joint lead arranger, Citibank, N.A. as syndication agent, and Toronto-Dominion Bank, New York Branch as documentation agent (Credit Agreement). The Credit Agreement consists of a $350 million revolving credit facility with an additional $200 million available via an optional increase (or accordion) feature. The interest on the borrowings from the revolving credit facility is calculated at the London Interbank Offering Rate (LIBOR) based on the tenor selection plus a spread unless a base rate option is elected. The borrowings under the revolving credit facility may include up to $50 million for which interest is calculated at the daily LIBOR plus a spread unless a base rate option is elected (Swing Line). The Credit Agreement provides for a replacement reference interest rate index upon the eventual discontinuation of LIBOR, which can be either the term Secured Overnight Financing Rate (SOFR) plus a spread, daily simple SOFR plus a spread, each having a benchmark adjustment applied based on its historical relationship to LIBOR, or another alternative interest rate index (selected by the administrative agent and Federated Hermes) plus a spread. The Credit Agreement, which expires on July 30, 2026, has no principal payment schedule, but instead requires that any outstanding principal be repaid by the expiration date. Federated Hermes, however, can elect to make discretionary principal payments. There was no activity on the Credit Agreement during the three months ended March 31, 2023. As of March 31, 2023 and December 31, 2022, there were no outstanding borrowings under the revolving credit facility. The commitment fee under the Credit Agreement is 0.10% per annum on the daily unused portion of each Lender’s commitment. As of March 31, 2023, Federated Hermes has $350 million available for borrowings under the revolving credit facility and an additional $200 million available via its optional accordion feature.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2023
Share-Based Payment Arrangement [Abstract]
Share-Based Compensation	Share-Based Compensation During the three months ended March 31, 2023, Federated Hermes awarded 375,796 shares of restricted Federated Hermes Class B common stock, all of which was granted in connection with a bonus program in which certain key employees received a portion of their bonus in the form of restricted stock under the Plan. This restricted stock, which was granted on the bonus payment date and issued out of treasury, generally vests over a three-year period. During 2022, Federated Hermes awarded 494,043 shares of restricted Class B common stock in connection with a bonus program in which certain key employees received a portion of their bonus in the form of restricted stock under the Plan. This bonus restricted stock, which was granted on the bonus payment date and issued out of treasury, generally vests over a three-year period. Federated Hermes also awarded 474,500 shares of restricted Class B common stock under this same Plan that generally vest over a ten-year period. In addition, Federated Hermes awarded 1,345,999 shares of restricted Class B common stock under the Federated Hermes UK Sub-Plan that generally vest over a five-year period. Of that amount, 1,183,066 shares were granted pursuant to award agreements to certain FHL employees in exchange for their beneficial interests in awards of restricted FHL shares in connection with the acquisition of the remaining FHL noncontrolling interests.

Equity

Equity	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Equity	Equity In June 2022, the board of directors authorized a share repurchase program with no stated expiration date that allows the repurchase of up to 5.0 million shares of Class B common stock. No other program existed as of March 31, 2023. The program authorizes executive management to determine the timing and the amount of shares for each purchase. The repurchased stock is to be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities, unless Federated Hermes’ board of directors subsequently determines to retire the repurchased stock and restore the shares to authorized but unissued status (rather than holding the shares in treasury). During the three months ended March 31, 2023, Federated Hermes repurchased approximately 0.1 million shares of its Class B common stock for $4.7 million, nearly all of which were repurchased in the open market. At March 31, 2023, approximately 4.6 million shares remain available to be repurchased under this share repurchase program. The following table presents the activity for the Class B common stock and Treasury stock for the three months ended March 31, 2023 and 2022. Class A shares have been excluded as there was no activity during these same periods. Three Months Ended March 31, 2023 2022 Class B Shares Beginning Balance 89,275,935 93,410,968 Stock Award Activity 375,796 1,692,542 Purchase of Treasury Stock (132,592) (3,039,917) Ending Balance 89,519,139 92,063,593 Treasury Shares Beginning Balance 10,229,521 16,094,488 Stock Award Activity (375,796) (1,692,542) Purchase of Treasury Stock 132,592 3,039,917 Ending Balance 9,986,317 17,441,863 Redeemable Noncontrolling Interests in Subsidiaries The following table presents the changes in Redeemable Noncontrolling Interests in Subsidiaries: (in thousands) Consolidated Investment Companies FHL and other entities Total Balance at December 31, 2022 $ 50,317 $ 11,504 $ 61,821 Net Income (Loss) 1,925 (60) 1,865 Other Comprehensive Income (Loss), net of tax 0 232 232 Subscriptions—Redeemable Noncontrolling Interest Holders 12,669 107 12,776 Consolidation/(Deconsolidation) (33,962) 0 (33,962) Distributions to Noncontrolling Interests in Subsidiaries (2,499) (725) (3,224) Balance at March 31, 2023 $ 28,450 $ 11,058 $ 39,508 Balance at December 31, 2021 $ 24,659 $ 38,543 $ 63,202 Net Income (Loss) (1,744) 478 (1,266) Other Comprehensive Income (Loss), net of tax 0 (457) (457) Subscriptions—Redeemable Noncontrolling Interest Holders 29,577 763 30,340 Consolidation/(Deconsolidation) (16,034) 0 (16,034) Stock Award Activity 0 707 707 Distributions to Noncontrolling Interests in Subsidiaries (771) (3,568) (4,339) Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL 0 14,221 14,221 Acquisition of Additional Equity of FHL 0 (37,805) (37,805) Balance at March 31, 2022 $ 35,687 $ 12,882 $ 48,569

Earnings Per Share Attributable

Earnings Per Share Attributable to Federated Hermes, Inc. Shareholders	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Earnings Per Share Attributable to Federated Hermes, Inc. Shareholders	Earnings Per Share Attributable to Federated Hermes, Inc. Shareholders The following table sets forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Federated Hermes: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator Net Income Attributable to Federated Hermes, Inc. $ 69,601 $ 55,863 Less: Total Net Income Available to Participating Unvested Restricted Shareholders 1 (3,509) (2,443) Total Net Income Attributable to Federated Hermes Common Stock - Basic and Diluted $ 66,092 $ 53,420 Denominator Basic and Diluted Weighted-Average Federated Hermes Common Stock 2 84,875 88,270 Earnings Per Share Net Income Attributable to Federated Hermes Common Stock - Basic and Diluted 2 $ 0.78 $ 0.61 1 Includes dividends paid on unvested restricted Federated Hermes Class B common stock and their proportionate share of undistributed earnings attributable to Federated Hermes shareholders. 2

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss) Attributable to Federated Hermes, Inc. Shareholders	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Accumulated Other Comprehensive Income (Loss) Attributable to Federated Hermes, Inc. Shareholders	Accumulated Other Comprehensive Income (Loss) Attributable to Federated Hermes, Inc. Shareholders Accumulated Other Comprehensive Income (Loss), net of tax, attributable to Federated Hermes shareholders resulted from foreign currency translation gain (loss): (in thousands) Balance at December 31, 2022 $ (45,676) Other Comprehensive Income (Loss) 9,620 Balance at March 31, 2023 $ (36,056) Balance at December 31, 2021 $ 16,362 Other Comprehensive Income (Loss) (17,134) Balance at March 31, 2022 $ (772)

Redeemable Noncontrolling Inter

Redeemable Noncontrolling Interests in Subsidiaries	3 Months Ended
	Mar. 31, 2023
Noncontrolling Interest [Abstract]
Redeemable Noncontrolling Interests in Subsidiaries	Equity In June 2022, the board of directors authorized a share repurchase program with no stated expiration date that allows the repurchase of up to 5.0 million shares of Class B common stock. No other program existed as of March 31, 2023. The program authorizes executive management to determine the timing and the amount of shares for each purchase. The repurchased stock is to be held in treasury for employee share-based compensation plans, potential acquisitions and other corporate activities, unless Federated Hermes’ board of directors subsequently determines to retire the repurchased stock and restore the shares to authorized but unissued status (rather than holding the shares in treasury). During the three months ended March 31, 2023, Federated Hermes repurchased approximately 0.1 million shares of its Class B common stock for $4.7 million, nearly all of which were repurchased in the open market. At March 31, 2023, approximately 4.6 million shares remain available to be repurchased under this share repurchase program. The following table presents the activity for the Class B common stock and Treasury stock for the three months ended March 31, 2023 and 2022. Class A shares have been excluded as there was no activity during these same periods. Three Months Ended March 31, 2023 2022 Class B Shares Beginning Balance 89,275,935 93,410,968 Stock Award Activity 375,796 1,692,542 Purchase of Treasury Stock (132,592) (3,039,917) Ending Balance 89,519,139 92,063,593 Treasury Shares Beginning Balance 10,229,521 16,094,488 Stock Award Activity (375,796) (1,692,542) Purchase of Treasury Stock 132,592 3,039,917 Ending Balance 9,986,317 17,441,863 Redeemable Noncontrolling Interests in Subsidiaries The following table presents the changes in Redeemable Noncontrolling Interests in Subsidiaries: (in thousands) Consolidated Investment Companies FHL and other entities Total Balance at December 31, 2022 $ 50,317 $ 11,504 $ 61,821 Net Income (Loss) 1,925 (60) 1,865 Other Comprehensive Income (Loss), net of tax 0 232 232 Subscriptions—Redeemable Noncontrolling Interest Holders 12,669 107 12,776 Consolidation/(Deconsolidation) (33,962) 0 (33,962) Distributions to Noncontrolling Interests in Subsidiaries (2,499) (725) (3,224) Balance at March 31, 2023 $ 28,450 $ 11,058 $ 39,508 Balance at December 31, 2021 $ 24,659 $ 38,543 $ 63,202 Net Income (Loss) (1,744) 478 (1,266) Other Comprehensive Income (Loss), net of tax 0 (457) (457) Subscriptions—Redeemable Noncontrolling Interest Holders 29,577 763 30,340 Consolidation/(Deconsolidation) (16,034) 0 (16,034) Stock Award Activity 0 707 707 Distributions to Noncontrolling Interests in Subsidiaries (771) (3,568) (4,339) Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL 0 14,221 14,221 Acquisition of Additional Equity of FHL 0 (37,805) (37,805) Balance at March 31, 2022 $ 35,687 $ 12,882 $ 48,569

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies (a) Contractual From time to time, pursuant to agreements entered into in connection with certain business combinations and asset acquisitions, Federated Hermes is obligated to make future payments under various agreements to which it is a party. See Note (8) for additional information regarding these payments. (b) Guarantees and Indemnifications On an intercompany basis, various subsidiaries of Federated Hermes guarantee certain financial obligations of Federated Hermes, Inc. and of other consolidated subsidiaries, and Federated Hermes, Inc. guarantees certain financial and performance-related obligations of various wholly-owned subsidiaries. In addition, in the normal course of business, Federated Hermes has entered into contracts that provide a variety of indemnifications. Typically, obligations to indemnify third parties arise in the context of contracts entered into by Federated Hermes, under which Federated Hermes agrees to hold the other party harmless against losses arising out of the contract, provided the other party’s actions are not deemed to have breached an agreed-upon standard of care. In each of these circumstances, payment by Federated Hermes is contingent on the other party making a claim for indemnity, subject to Federated Hermes’ right to challenge the claim. Further, Federated Hermes’ obligations under these agreements can be limited in terms of time and/or amount. It is not possible to predict the maximum potential amount of future payments under these or similar agreements due to the conditional nature of Federated Hermes’ obligations and the unique facts and circumstances involved in each particular agreement. As of March 31, 2023, management does not believe that a material loss related to any of these matters is reasonably possible. (c) Legal Proceedings Like other companies, Federated Hermes has claims asserted and threatened against it in the ordinary course of business. As of March 31, 2023, Federated Hermes does not believe that a material loss related to any of these claims is reasonably possible. (d) Other During the first quarter 2023, an administrative error was identified related to a failure to register certain shares issued by a Federated Hermes tender fund. Federated Hermes currently estimates a probable cost of $19.6 million related to correcting the issue, which is recorded to Accounts Payable and Accrued Expenses at March 31, 2023. While a determination of coverage has not yet been issued, management expects that a corresponding insurance reimbursement is probable to be received. Accordingly, $17.1 million has been recorded to Receivables, net at March 31, 2023, resulting in $2.5 million being recorded to Operating Expenses - Other representing Federated Hermes' retention under the policy. Changes to these estimates and expectations, which are contingent upon completion of regulatory and insurer review/discussion and acceptance by the affected shareholders that purchased unregistered shares, could occur based on various factors and those changes could be material.

Subsequent Events

Subsequent Events	3 Months Ended
	Mar. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On April 27, 2023, Federated Hermes’ board of directors declared a $0.28 per share dividend to Federated Hermes’ Class A and Class B common stock shareholders of record as of May 8, 2023 to be paid on May 15, 2023.

Basis of Presentation (Policies

Basis of Presentation (Policies)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Federated Hermes, Inc. and its consolidated subsidiaries (collectively, Federated Hermes) provide investment advisory, administrative, distribution and other services to various investment products, including sponsored investment companies, collective funds and other funds (Federated Hermes Funds) and separate accounts (which include separately managed accounts, institutional accounts, certain sub-advised funds and other managed products, collectively Separate Accounts) in both domestic and international markets. In addition, Federated Hermes markets and provides stewardship and real estate development services to various domestic and international companies. The interim consolidated financial statements of Federated Hermes included herein (Consolidated Financial Statements) have been prepared in accordance with United States (U.S.) generally accepted accounting principles (GAAP). In the opinion of management, the financial statements reflect all adjustments that are of a normal recurring nature and necessary for a fair presentation of the results for the interim periods presented.
Use of Estimates	In preparing the Consolidated Financial Statements, management is required to make estimates and assumptions that affect the amounts reported therein and in the accompanying notes. Actual results may differ from those estimates, and such differences may be material to the Consolidated Financial Statements.
Fair Value Measurements	Fair value is the price that would be received to sell an asset or the price that would be paid to transfer a liability as of the measurement date. A fair-value reporting hierarchy exists for disclosure of fair value measurements based on the observability of the inputs to the valuation of financial assets and liabilities. The levels are: Level 1 – Quoted prices for identical instruments in active markets. Level 1 assets can include equity and debt securities that are traded in an active exchange market, including shares of mutual funds. Level 2 – Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 assets and liabilities may include debt and equity securities, purchased loans and over-the-counter derivative contracts whose fair value is determined using a pricing model without significant unobservable market data inputs. Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable in active markets.

Business Combination (Tables)

Business Combination (Tables)	3 Months Ended
	Mar. 31, 2023
Business Combination and Asset Acquisition [Abstract]
Schedule of Preliminary Purchase Price Allocation	The following table summarizes the preliminary purchase price allocation determined as of the purchase date: (in millions) Right-of-Use Asset $ 0.8 Intangible Assets 1 15.4 Goodwill 2 16.4 Less: Lease Liability Assumed 0.8 Less: Fair Value of Contingent Consideration 3.7 Total Upfront Purchase Price Consideration $ 28.1 1 Includes $14.8 million for customer relationships with an estimated useful life of 12 years and $0.6 million for a trade name with an estimated useful life of five years, all of which are recorded in Intangibles Assets, net on the Consolidated Balance Sheets. 2 The goodwill recognized is attributable to enhanced revenue and AUM growth opportunities from future investors and the assembled workforce of CWH and is deductible for tax purposes.

Revenue from Contracts with C_2

Revenue from Contracts with Customers (Tables)	3 Months Ended
	Mar. 31, 2023
Revenue from Contract with Customer [Abstract]
Schedule of Disaggregation of Revenue	The following table presents Federated Hermes’ revenue disaggregated by asset class: Three Months Ended March 31, (in thousands) 2023 2022 Money market $ 179,536 $ 86,290 Equity 124,653 146,856 Fixed-income 47,890 57,874 Other 1 30,110 33,744 Total Revenue $ 382,189 $ 324,764 1 Primarily includes Alternative / Private Markets (including but not limited to private equity, real estate and infrastructure), multi-asset and stewardship services revenue. The following table presents Federated Hermes’ revenue disaggregated by performance obligation: Three Months Ended March 31, (in thousands) 2023 2022 Asset Management 1 $ 263,982 $ 232,994 Administrative Services 79,180 73,507 Distribution 2 32,877 11,077 Other 3 6,150 7,186 Total Revenue $ 382,189 $ 324,764 1 The performance obligation can include administrative, distribution and other services recorded as a single asset management fee under Topic 606, as it is part of a unitary fee arrangement with a single performance obligation. 2 The performance obligation is satisfied at a point in time. A portion of this revenue relates to a performance obligation that has been satisfied in a prior period. 3 Primarily includes shareholder service fees and stewardship services revenue. The following table presents Federated Hermes’ revenue disaggregated by geographical market: Three Months Ended March 31, (in thousands) 2023 2022 Domestic $ 318,948 $ 246,809 Foreign 1 63,241 77,955 Total Revenue $ 382,189 $ 324,764 1 This represents revenue earned by non-U.S. domiciled subsidiaries. The following table presents Federated Hermes’ revenue disaggregated by product type: Three Months Ended March 31, (in thousands) 2023 2022 Federated Hermes Funds $ 315,931 $ 257,335 Separate Accounts 62,093 62,773 Other 1 4,165 4,656 Total Revenue $ 382,189 $ 324,764 1 Primarily includes stewardship services revenue.
Schedule of Remaining Unsatisfied Performance Obligations	Based on existing contracts and the applicable foreign exchange rates as of March 31, 2023, Federated Hermes may recognize future fixed revenue from these services as presented in the following table: (in thousands) Remainder of 2023 $ 7,791 2024 3,823 2025 1,236 2026 and Thereafter 372 Total Remaining Unsatisfied Performance Obligations $ 13,222

Concentration Risk (Tables)

Concentration Risk (Tables)	3 Months Ended
	Mar. 31, 2023
Risks and Uncertainties [Abstract]
Schedule of Revenue Concentration	The following table presents Federated Hermes’ significant revenue concentration by asset class: Three Months Ended March 31, 2023 2022 Money Market Assets 47 % 27 % Equity Assets 33 % 45 % Fixed-Income Assets 13 % 18 % The following table presents Federated Hermes’ revenue concentration by investment fund strategy: Three Months Ended March 31, 2023 2022 Federated Hermes Government Obligations Fund 14 % 7 % Federated Hermes Strategic Value Dividend strategy 1 10 % 10 % 1 Strategy includes Federated Hermes Funds and Separate Accounts.

Consolidation (Tables)

Consolidation (Tables)	3 Months Ended
	Mar. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Consolidated Federated Funds VIE	The following table presents the balances related to the consolidated VIEs that were included on the Consolidated Balance Sheets as well as Federated Hermes’ net interest in the consolidated VIEs for each period presented: (in millions) March 31, 2023 December 31, 2022 Cash and Cash Equivalents $ 7.1 $ 8.0 Investments—Consolidated Investment Companies 23.7 50.1 Other Assets 2.6 0.7 Other Long-Term Assets 12.7 13.4 Less: Liabilities 7.7 5.7 Less: Accumulated Other Comprehensive Income (Loss), net of tax 0.7 1.2 Less: Redeemable Noncontrolling Interests in Subsidiaries 25.0 49.5 Federated Hermes’ Net Interest in VIEs $ 12.7 $ 15.8

Investments (Tables)

Investments (Tables)	3 Months Ended
	Mar. 31, 2023
Investments, Debt and Equity Securities [Abstract]
Schedule of Gains and Losses Recognized in Gain (Loss) on Securities, Net	The following table presents gains and losses recognized in Gain (Loss) on Securities, net on the Consolidated Statements of Income in connection with Federated Hermes’ investments: Three Months Ended March 31, (in thousands) 2023 2022 Investments—Consolidated Investment Companies Net Unrealized Gains (Losses) $ 3,621 $ (5,188) Net Realized Gains (Losses) 1 (641) (462) Net Gains (Losses) on Investments—Consolidated Investment Companies 2,980 (5,650) Investments—Affiliates and Other Net Unrealized Gains (Losses) 2,353 (6,659) Net Realized Gains (Losses) 1 159 614 Net Gains (Losses) on Investments—Affiliates and Other 2,512 (6,045) Gain (Loss) on Securities, net $ 5,492 $ (11,695) 1 Realized gains and losses are computed on a specific-identification basis.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Mar. 31, 2023
Fair Value Disclosures [Abstract]
Schedule of Classes of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis	The following table presents fair value measurements for classes of Federated Hermes’ financial assets and liabilities measured at fair value on a recurring basis: (in thousands) Level 1 Level 2 Level 3 Total March 31, 2023 Financial Assets Cash and Cash Equivalents $ 323,983 $ 0 $ 0 $ 323,983 Investments—Consolidated Investment Companies 24,083 59,283 0 83,366 Investments—Affiliates and Other 77,972 2,643 25 80,640 Other 1 6,624 3,490 0 10,114 Total Financial Assets $ 432,662 $ 65,416 $ 25 $ 498,103 Total Financial Liabilities 2 $ 0 $ 0 $ 7,831 $ 7,831 December 31, 2022 Financial Assets Cash and Cash Equivalents $ 336,782 $ 0 $ 0 $ 336,782 Investments—Consolidated Investment Companies 49,119 59,329 0 108,448 Investments—Affiliates and Other 71,369 5,130 25 76,524 Other 1 6,538 469 0 7,007 Total Financial Assets $ 463,808 $ 64,928 $ 25 $ 528,761 Total Financial Liabilities 2 $ 27 $ 4 $ 8,439 $ 8,470 1 Amounts primarily consist of restricted cash, a derivative asset and security deposits as of March 31, 2023, and restricted cash and security deposits as of December 31, 2022.
Schedule of Reconciliation of Liability for Future Consideration Payments	The following table presents a reconciliation of the beginning and ending balances for Federated Hermes’ liability for future consideration payments related to these business combinations/asset acquisitions: (in thousands) Balance at December 31, 2022 $ 8,439 Changes in Fair Value 249 Contingent Consideration Payments (857) Balance at March 31, 2023 $ 7,831

Equity (Tables)

Equity (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Activity for Class B Common Stock and Treasury Stock	The following table presents the activity for the Class B common stock and Treasury stock for the three months ended March 31, 2023 and 2022. Class A shares have been excluded as there was no activity during these same periods. Three Months Ended March 31, 2023 2022 Class B Shares Beginning Balance 89,275,935 93,410,968 Stock Award Activity 375,796 1,692,542 Purchase of Treasury Stock (132,592) (3,039,917) Ending Balance 89,519,139 92,063,593 Treasury Shares Beginning Balance 10,229,521 16,094,488 Stock Award Activity (375,796) (1,692,542) Purchase of Treasury Stock 132,592 3,039,917 Ending Balance 9,986,317 17,441,863

Earnings Per Share Attributab_2

Earnings Per Share Attributable to Federated Hermes, Inc. Shareholders (Tables)	3 Months Ended
	Mar. 31, 2023
Earnings Per Share [Abstract]
Schedule of Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share using the two-class method for amounts attributable to Federated Hermes: Three Months Ended March 31, (in thousands, except per share data) 2023 2022 Numerator Net Income Attributable to Federated Hermes, Inc. $ 69,601 $ 55,863 Less: Total Net Income Available to Participating Unvested Restricted Shareholders 1 (3,509) (2,443) Total Net Income Attributable to Federated Hermes Common Stock - Basic and Diluted $ 66,092 $ 53,420 Denominator Basic and Diluted Weighted-Average Federated Hermes Common Stock 2 84,875 88,270 Earnings Per Share Net Income Attributable to Federated Hermes Common Stock - Basic and Diluted 2 $ 0.78 $ 0.61 1 Includes dividends paid on unvested restricted Federated Hermes Class B common stock and their proportionate share of undistributed earnings attributable to Federated Hermes shareholders. 2

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) Attributable to Federated Hermes, Inc. Shareholders (Tables)	3 Months Ended
	Mar. 31, 2023
Equity [Abstract]
Schedule of Accumulated Other Comprehensive Income (Loss)	Accumulated Other Comprehensive Income (Loss), net of tax, attributable to Federated Hermes shareholders resulted from foreign currency translation gain (loss): (in thousands) Balance at December 31, 2022 $ (45,676) Other Comprehensive Income (Loss) 9,620 Balance at March 31, 2023 $ (36,056) Balance at December 31, 2021 $ 16,362 Other Comprehensive Income (Loss) (17,134) Balance at March 31, 2022 $ (772)

Redeemable Noncontrolling Int_2

Redeemable Noncontrolling Interests in Subsidiaries (Tables)	3 Months Ended
	Mar. 31, 2023
Noncontrolling Interest [Abstract]
Schedule of Changes in Redeemable Noncontrolling Interest in Subsidiaries	The following table presents the changes in Redeemable Noncontrolling Interests in Subsidiaries: (in thousands) Consolidated Investment Companies FHL and other entities Total Balance at December 31, 2022 $ 50,317 $ 11,504 $ 61,821 Net Income (Loss) 1,925 (60) 1,865 Other Comprehensive Income (Loss), net of tax 0 232 232 Subscriptions—Redeemable Noncontrolling Interest Holders 12,669 107 12,776 Consolidation/(Deconsolidation) (33,962) 0 (33,962) Distributions to Noncontrolling Interests in Subsidiaries (2,499) (725) (3,224) Balance at March 31, 2023 $ 28,450 $ 11,058 $ 39,508 Balance at December 31, 2021 $ 24,659 $ 38,543 $ 63,202 Net Income (Loss) (1,744) 478 (1,266) Other Comprehensive Income (Loss), net of tax 0 (457) (457) Subscriptions—Redeemable Noncontrolling Interest Holders 29,577 763 30,340 Consolidation/(Deconsolidation) (16,034) 0 (16,034) Stock Award Activity 0 707 707 Distributions to Noncontrolling Interests in Subsidiaries (771) (3,568) (4,339) Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL 0 14,221 14,221 Acquisition of Additional Equity of FHL 0 (37,805) (37,805) Balance at March 31, 2022 $ 35,687 $ 12,882 $ 48,569

Business Combination - Narrativ

Business Combination - Narrative (Details) - C.W. Henderson and Associates $ in Millions	Oct. 01, 2022 USD ($)
Business Acquisition [Line Items]
Payments to acquire business	$ 28.1
Maximum contingent purchase price payments	$ 17.6
Maturity of contingent purchase price payments, term	5 years

Business Combination - Schedule

Business Combination - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands	Oct. 01, 2022	Mar. 31, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill		$ 802,940	$ 800,417
C.W. Henderson and Associates
Business Acquisition [Line Items]
Right-of-Use Asset	$ 800
Intangible Assets	15,400
Goodwill	16,400
Less: Lease Liability Assumed	800
Less: Fair Value of Contingent Consideration	3,700
Total Upfront Purchase Price Consideration	28,100
C.W. Henderson and Associates | Customer Relationships
Business Acquisition [Line Items]
Intangible assets acquired	$ 14,800
Estimated useful life	12 years
C.W. Henderson and Associates | Trade Names
Business Acquisition [Line Items]
Intangible assets acquired	$ 600
Estimated useful life	5 years

Revenue from Contracts with C_3

Revenue from Contracts with Customers - Disaggregation of Revenue by Asset Class (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total Revenue	$ 382,189	$ 324,764
Money market
Disaggregation of Revenue [Line Items]
Total Revenue	179,536	86,290
Equity
Disaggregation of Revenue [Line Items]
Total Revenue	124,653	146,856
Fixed-income
Disaggregation of Revenue [Line Items]
Total Revenue	47,890	57,874
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 30,110	$ 33,744

Revenue from Contracts with C_4

Revenue from Contracts with Customers - Disaggregation of Revenue by Performance Obligation (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total Revenue	$ 382,189	$ 324,764
Asset Management
Disaggregation of Revenue [Line Items]
Total Revenue	263,982	232,994
Administrative Services
Disaggregation of Revenue [Line Items]
Total Revenue	79,180	73,507
Distribution
Disaggregation of Revenue [Line Items]
Total Revenue	32,877	11,077
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 6,150	$ 7,186

Revenue from Contracts with C_5

Revenue from Contracts with Customers - Disaggregation of Revenue by Geographic Market (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total Revenue	$ 382,189	$ 324,764
Domestic
Disaggregation of Revenue [Line Items]
Total Revenue	318,948	246,809
Foreign
Disaggregation of Revenue [Line Items]
Total Revenue	$ 63,241	$ 77,955

Revenue from Contracts with C_6

Revenue from Contracts with Customers - Disaggregation of Revenue by Product Type (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Disaggregation of Revenue [Line Items]
Total Revenue	$ 382,189	$ 324,764
Federated Hermes Funds
Disaggregation of Revenue [Line Items]
Total Revenue	315,931	257,335
Separate Accounts
Disaggregation of Revenue [Line Items]
Total Revenue	62,093	62,773
Other
Disaggregation of Revenue [Line Items]
Total Revenue	$ 4,165	$ 4,656

Revenue from Contracts with C_7

Revenue from Contracts with Customers - Narrative (Details)	3 Months Ended
	Mar. 31, 2023
Disaggregation of Revenue [Line Items]
Contract terms	Generally, contracts are billed in arrears on a quarterly basis and have a three-year duration, after which the customer can terminate the agreement with notice, generally from three to twelve months.
Minimum
Disaggregation of Revenue [Line Items]
Termination period	3 months
Maximum
Disaggregation of Revenue [Line Items]
Termination period	12 months

Revenue from Contracts with C_8

Revenue from Contracts with Customers - Future Fixed Revenue from Stewardship and Real Estate Development Services (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Revenue from Contract with Customer [Abstract]
Total Remaining Unsatisfied Performance Obligations	$ 13,222
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-04-01
Revenue from Contract with Customer [Abstract]
Total Remaining Unsatisfied Performance Obligations	$ 7,791
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	9 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01
Revenue from Contract with Customer [Abstract]
Total Remaining Unsatisfied Performance Obligations	$ 3,823
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Total Remaining Unsatisfied Performance Obligations	$ 1,236
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01
Revenue from Contract with Customer [Abstract]
Total Remaining Unsatisfied Performance Obligations	$ 372
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Expected timing of satisfaction, period

Concentration Risk - Schedule o

Concentration Risk - Schedule of Revenue Concentration (Details) - Product Concentration Risk - Revenue Benchmark	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Money Market Assets
Concentration Risk [Line Items]
Concentration risk	47%	27%
Equity Assets
Concentration Risk [Line Items]
Concentration risk	33%	45%
Fixed-Income Assets
Concentration Risk [Line Items]
Concentration risk	13%	18%

Concentration Risk - Narrative

Concentration Risk - Narrative (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Concentration Risk [Line Items]
Voluntary yield-related fee waivers	$ 0	$ 75,800,000
Decrease in distribution expenses		57,500,000
Net negative pre-tax impact		$ 18,300,000
Customer Concentration Risk | Revenue benchmark | Bank of New York Mellon Corporation
Concentration Risk [Line Items]
Concentration risk	13%	5%

Concentration Risk - Schedule_2

Concentration Risk - Schedule of Revenue Concentration by Investment Strategy/Fund (Details) - Product Concentration Risk - Revenue benchmark	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Federated Hermes Government Obligations Fund
Concentration Risk [Line Items]
Concentration risk	14%	7%
Federated Hermes Strategic Value Dividend strategy
Concentration Risk [Line Items]
Concentration risk	10%	10%

Consolidation - Narrative (Deta

Consolidation - Narrative (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) variable_interest_entity	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Variable Interest Entities [Line Items]
Fee waivers	$ 125,200,000	$ 198,500,000
Number of VIEs deconsolidated | variable_interest_entity	1
Variable Interest Entity Not Primary Beneficiary
Variable Interest Entities [Line Items]
Assets under managed investments	$ 5,100,000,000		$ 5,400,000,000
Cash and Cash Equivalents | Variable Interest Entity Not Primary Beneficiary
Variable Interest Entities [Line Items]
Federated Hermes' maximum risk of loss in non-consolidated investment companies	68,700,000		101,700,000
Receivables - Affiliates | Variable Interest Entity Not Primary Beneficiary
Variable Interest Entities [Line Items]
Federated Hermes' maximum risk of loss in non-consolidated investment companies	700,000		$ 700,000
Financial Support, Fee Waivers
Variable Interest Entities [Line Items]
Money market funds which meet the scope exception of the consolidation guidance	96,100,000	164,800,000
Financial Support, Capital Contributions
Variable Interest Entities [Line Items]
Money market funds which meet the scope exception of the consolidation guidance	$ 0	$ 0

Consolidation - Consolidated Fe

Consolidation - Consolidated Federated Fund VIEs (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Variable Interest Entities [Line Items]
Consolidated VIE assets	$ 1,998,979	$ 2,020,479
Less: Liabilities	852,768	912,966
Less: Accumulated Other Comprehensive Income (Loss), net of tax	(36,056)	(45,676)
Variable Interest Entity, Primary Beneficiary
Variable Interest Entities [Line Items]
Less: Liabilities	7,700	5,700
Less: Accumulated Other Comprehensive Income (Loss), net of tax	700	1,200
Less: Redeemable Noncontrolling Interests in Subsidiaries	25,000	49,500
Federated Hermes’ Net Interest in VIEs	12,700	15,800
Cash and Cash Equivalents | Variable Interest Entity, Primary Beneficiary
Variable Interest Entities [Line Items]
Consolidated VIE assets	7,100	8,000
Investments—Consolidated Investment Companies | Variable Interest Entity, Primary Beneficiary
Variable Interest Entities [Line Items]
Consolidated VIE assets	23,700	50,100
Other Assets | Variable Interest Entity, Primary Beneficiary
Variable Interest Entities [Line Items]
Consolidated VIE assets	2,600	700
Other Long-Term Assets | Variable Interest Entity, Primary Beneficiary
Variable Interest Entities [Line Items]
Consolidated VIE assets	$ 12,700	$ 13,400

Investments - Narrative (Detail

Investments - Narrative (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Schedule of Investments [Line Items]
Investments—Affiliates and Other	$ 80,640	$ 76,524
Investments - consolidated investment companies	83,366	108,448
Stocks of Large Companies
Schedule of Investments [Line Items]
Investments - consolidated investment companies	18,600	45,300
Debt Securities
Schedule of Investments [Line Items]
Investments - consolidated investment companies	57,700	57,800
Mutual Fund
Schedule of Investments [Line Items]
Investments - consolidated investment companies	3,500	2,100
Stocks of Small and Mid Sized Companies
Schedule of Investments [Line Items]
Investments - consolidated investment companies	3,500	3,300
Federated Hermes Funds
Schedule of Investments [Line Items]
Investments—Affiliates and Other	73,500	67,000
Separate Accounts
Schedule of Investments [Line Items]
Investments—Affiliates and Other	7,100	9,500
Separate Accounts | Stocks of Large Companies
Schedule of Investments [Line Items]
Investments—Affiliates and Other	3,100	3,400
Separate Accounts | Debt Securities
Schedule of Investments [Line Items]
Investments—Affiliates and Other	$ 2,500	$ 4,600

Investments - Gains and Losses

Investments - Gains and Losses Recognized in Gain (Loss) on Securities, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
(Loss) Gain on Securities [Line Items]
Net Unrealized Gains (Losses)	$ 5,974	$ (11,847)
Gain (Loss) on Securities, net	5,492	(11,695)
Investments—Consolidated Investment Companies
(Loss) Gain on Securities [Line Items]
Net Unrealized Gains (Losses)	3,621	(5,188)
Net Realized Gains (Losses)	(641)	(462)
Gain (Loss) on Securities, net	2,980	(5,650)
Investments—Affiliates and Other
(Loss) Gain on Securities [Line Items]
Net Unrealized Gains (Losses)	2,353	(6,659)
Net Realized Gains (Losses)	159	614
Gain (Loss) on Securities, net	$ 2,512	$ (6,045)

Fair Value Measurements - Class

Fair Value Measurements - Classes of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Assets
Investments—Consolidated Investment Companies	$ 83,366	$ 108,448
Investments—Affiliates and Other	80,640	76,524
Fair Value, Measurements, Recurring
Financial Assets
Cash and Cash Equivalents	323,983	336,782
Investments—Consolidated Investment Companies	83,366	108,448
Investments—Affiliates and Other	80,640	76,524
Other	10,114	7,007
Total Financial Assets	498,103	528,761
Financial Liabilities
Total Financial Liabilities	7,831	8,470
Fair Value, Measurements, Recurring | Level 1
Financial Assets
Cash and Cash Equivalents	323,983	336,782
Investments—Consolidated Investment Companies	24,083	49,119
Investments—Affiliates and Other	77,972	71,369
Other	6,624	6,538
Total Financial Assets	432,662	463,808
Financial Liabilities
Total Financial Liabilities	0	27
Fair Value, Measurements, Recurring | Level 2
Financial Assets
Cash and Cash Equivalents	0	0
Investments—Consolidated Investment Companies	59,283	59,329
Investments—Affiliates and Other	2,643	5,130
Other	3,490	469
Total Financial Assets	65,416	64,928
Financial Liabilities
Total Financial Liabilities	0	4
Fair Value, Measurements, Recurring | Level 3
Financial Assets
Cash and Cash Equivalents	0	0
Investments—Consolidated Investment Companies	0	0
Investments—Affiliates and Other	25	25
Other	0	0
Total Financial Assets	25	25
Financial Liabilities
Total Financial Liabilities	$ 7,831	$ 8,439

Fair Value Measurements - Narra

Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Acquisition-related future consideration liabilities	$ 7.8
Acquisition-related future consideration liabilities recorded in other current liabilities	1
Acquisition-related future consideration liabilities recorded in other long-term liabilities	6.8
Unsecured Senior Notes | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Issuance costs, net	2.4
Money market
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	287	$ 289.8
Mutual Fund | NAV
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financial assets	$ 18.9	$ 18.3

Fair Value Measurements - Recon

Fair Value Measurements - Reconciliation of Liability for Future Consideration Payments (Details) - Contingent Consideration $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance at December 31, 2022	$ 8,439
Changes in Fair Value	249
Contingent Consideration Payments	(857)
Balance at March 31, 2023	$ 7,831

Derivatives (Details)

Derivatives (Details) - Foreign Currency Forward £ in Millions, $ in Millions	Mar. 31, 2023 GBP (£)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 GBP (£)	Dec. 31, 2022 USD ($)
Derivative [Line Items]
Derivative asset, notional amount | £	£ 74.2		£ 67.3
Derivative assets | $		$ 3.5		$ 0.5

Intangible Assets, including _2

Intangible Assets, including Goodwill - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Increase (decrease) in intangible assets	$ 1.8
Increase in value of intangible assets denominated in a foreign currency as a result of foreign exchange rate fluctuations	5
Amortization expense for finite-lived intangible assets	3.3
Goodwill, period increase (decrease)	$ 2.5

Debt (Details)

Debt (Details)		3 Months Ended
	Mar. 17, 2022 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)	Jul. 30, 2021 USD ($) bank
Debt Instrument [Line Items]
Long-term debt, net of issuance costs		$ 347,645,000	$ 347,581,000
Line of credit facility, maximum borrowing capacity				$ 350,000,000
Number of banks as lenders | bank				11
Optional increase (or an accordion feature)				$ 200,000,000
Amounts outstanding under the revolving credit facility		$ 0	$ 0
Commitment fee		0.10%
Available for borrowings		$ 350,000,000
Accordion feature, available for borrowings		200,000,000
Senior Notes | Unsecured Senior Notes
Debt Instrument [Line Items]
Aggregate amount	$ 350,000,000
Fixed rate	3.29%
Long-term debt, net of issuance costs		347,600,000
Issuance costs, net		$ 2,400,000
Commitment fee amount	$ 0
Swing Line
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity				$ 50,000,000

Share-Based Compensation (Detai

Share-Based Compensation (Details) - shares	3 Months Ended	12 Months Ended
	Mar. 31, 2023	Dec. 31, 2022
Class B Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awarded in period (in shares)		1,183,066
Class B Common Stock Bonus
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awarded in period (in shares)	375,796	494,043
Vesting period	3 years	3 years
Class B Common Stock Key Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awarded in period (in shares)		474,500
Vesting period		10 years
U.K. Subsidiary Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Restricted stock awarded in period (in shares)		1,345,999
Vesting period		5 years

Equity - Narrative (Details)

Equity - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Jun. 30, 2022
Equity, Class of Treasury Stock [Line Items]
Purchase of treasury stock (in shares)	132,592	3,039,917
Purchase of treasury stock	$ 4,742	$ 102,537
Class B Shares
Equity, Class of Treasury Stock [Line Items]
Number of shares authorized under share repurchase program (in shares)			5,000,000
Purchase of treasury stock (in shares)	100,000
Purchase of treasury stock	$ 4,700
Remaining number of shares authorized to be repurchased (in shares)	4,600,000

Equity - Activity for Class B C

Equity - Activity for Class B Common Stock and Treasury Stock (Details) - shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	10,229,521	16,094,488
Stock Award Activity (in shares)	(375,796)	(1,692,542)
Purchase of Treasury Stock (in shares)	132,592	3,039,917
Ending Balance (in shares)	9,986,317	17,441,863
Class B Shares
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning Balance (in shares)	89,275,935	93,410,968
Stock Award Activity (in shares)	375,796	1,692,542
Purchase of Treasury Stock (in shares)	(132,592)	(3,039,917)
Ending Balance (in shares)	89,519,139	92,063,593
Purchase of Treasury Stock (in shares)	100,000

Earnings Per Share Attributab_3

Earnings Per Share Attributable to Federated Hermes, Inc. Shareholders (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Numerator
Net Income Attributable to Federated Hermes, Inc.	$ 69,601	$ 55,863
Less: Total Net Income Available to Participating Unvested Restricted Shareholders	(3,509)	(2,443)
Total Net Income Attributable to Federated Hermes Common Stock - Basic	66,092	53,420
Total Net Income Attributable to Federated Hermes Common Stock - Diluted	$ 66,092	$ 53,420
Denominator
Basic Weighted-Average Federated Hermes Common Stock (in shares)	84,875	88,270
Diluted Weighted-Average Federated Hermes Common Stock (in shares)	84,875	88,270
Net Income Attributable to Federated Hermes Common Stock – Basic (usd per share)	$ 0.78	$ 0.61
Net Income Attributable to Federated Hermes Common Share—Diluted (usd per share)	$ 0.78	$ 0.61

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) Attributable to Federated Hermes, Inc. Shareholders (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss), net of tax [Rollforward]
Balance, beginning of period	$ 1,045,692	$ 1,114,017
Balance, end of period	1,106,703	1,057,921
Foreign Currency Translation Gain (Loss)
Accumulated Other Comprehensive Income (Loss), net of tax [Rollforward]
Balance, beginning of period	(45,676)	16,362
Other Comprehensive Income (Loss)	9,620	(17,134)
Balance, end of period	$ (36,056)	$ (772)

Redeemable Noncontrolling Int_3

Redeemable Noncontrolling Interests in Subsidiaries (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Increase (Decrease) in Temporary Equity [Roll Forward]
Temporary equity, beginning balance	$ 61,821	$ 63,202
Net Income (Loss)	1,865	(1,266)
Other Comprehensive Income (Loss), net of tax	232	(457)
Subscriptions—Redeemable Noncontrolling Interest Holders	12,776	30,340
Consolidation/(Deconsolidation)	(33,962)	(16,034)
Stock Award Activity		707
Distributions to Noncontrolling Interests in Subsidiaries	(3,224)	(4,339)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL		14,221
Acquisition of Additional Equity of FHL		(37,805)
Temporary equity, ending balance	39,508	48,569
Consolidated Investment Companies
Increase (Decrease) in Temporary Equity [Roll Forward]
Temporary equity, beginning balance	50,317	24,659
Net Income (Loss)	1,925	(1,744)
Subscriptions—Redeemable Noncontrolling Interest Holders	12,669	29,577
Consolidation/(Deconsolidation)	(33,962)	(16,034)
Distributions to Noncontrolling Interests in Subsidiaries	(2,499)	(771)
Temporary equity, ending balance	28,450	35,687
FHL and other entities
Increase (Decrease) in Temporary Equity [Roll Forward]
Temporary equity, beginning balance	11,504	38,543
Net Income (Loss)	(60)	478
Other Comprehensive Income (Loss), net of tax	232	(457)
Subscriptions—Redeemable Noncontrolling Interest Holders	107	763
Stock Award Activity		707
Distributions to Noncontrolling Interests in Subsidiaries	(725)	(3,568)
Change in Estimated Redemption Value of Redeemable Noncontrolling Interests in FHL		14,221
Acquisition of Additional Equity of FHL		(37,805)
Temporary equity, ending balance	$ 11,058	$ 12,882

Commitments and Contingencies (

Commitments and Contingencies (Details) - Administrative error related to unregistered shares $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Loss Contingencies [Line Items]
Loss contingency estimated probable cost	$ 19.6
Insurance reimbursement receivable	17.1
Loss contingency provision	$ 2.5

Subsequent Events (Details)

Subsequent Events (Details) - Subsequent Event	Apr. 27, 2023 $ / shares
Class A Shares
Subsequent Event [Line Items]
Dividends declared (usd per share)	$ 0.28
Class B Shares
Subsequent Event [Line Items]
Dividends declared (usd per share)	$ 0.28