FHI

MKT CAP —P/E 10.4DIV YIELD 2.50%FCF YIELD —REV TTM $1.9B +15.0%NET INCOME $411.9M +13.0%NET DEBT $46.8M52W 47.30 – 65.39SEC XBRL · TTM TO Invalid Date

How FHI rewrote its risk factors

10-K ITEM 1A · FY2024 → FY2025

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Item 1A – Risk Factors – Specific Risk Factors – Risk Related to Federated Hermes’ Common Stock and Corporate Structure – Common Stock and Status as a Controlled Company for additional information on its Class A common stock.
The following table summarizes stock repurchases under Federated Hermes’ share repurchase programs during the fourth quarter 2025.
Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs 1 Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs 1 October 2 4,479 $ 2.55 0 6,144,315 November 2 616,572 48.70 612,693 5,531,622 December 2 945,850 51.42 935,000 4,596,622 Total 1,566,901 $ 50.21 1,547,693 4,596,622 1 In October 2024, the board of directors authorized a share repurchase program with no stated expiration date that allowed the repurchase of up to 5.0 million shares of Class B common stock.
This program was fulfilled in December 2025.
In July 2025, the board of directors authorized an additional 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 December 31, 2025.
See Note (14) to the Consolidated Financial Statements for additional information. 2 In October, November and December 2025 , 4,479, 3,879 and 10,850 shares, respectively, of Class B common stock with a weighted-average price of $2.55, $0.00 and $2.40 per share, respectively, were repurchased as a result of employee-forfeited restricted stock.
Stock Performance Graph The following performance graph compares the total shareholder return of an investment in Federated Hermes’ Class B common stock to that of the Standard and Poor’s MidCap 400 ® Index (S&P MidCap 400 Index) and to the S&P 1500 Asset Management & Custody Banks Index for the five-year period ended on December 31, 2025.
The graph assumes that the value of the investment in Federated Hermes’ Class B common stock and each index was $100 on December 31, 2020.
As a member of the S&P MidCap 400 Index as of December 31, 2025, Federated Hermes is required to include this comparison.
Federated Hermes does not make or endorse any predictions as to future stock performance. 12/31/2021 12/31/2022 12/31/2023 12/31/2024 12/31/2025 Federated Hermes $ 134.68 $ 134.47 $ 129.34 $ 167.63 $ 218.68 S&P MidCap 400 Index $ 124.76 $ 108.47 $ 126.29 $ 143.89 $ 154.68 S&P 1500 Asset Management & Custody Banks Index $ 134.82 $ 108.66 $ 124.38 $ 164.00 $ 174.28 ITEM 6 – [RESERVED] ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with Item 1- Business, Item 1A – Risk Factors and Item 8 – Financial Statements and Supplementary Data.
General Federated Hermes is a global leader in active investing with $902.6 billion in managed assets as of December 31, 2025.
Federated Hermes also derives revenue from providing administrative and other fund-related services (including distribution and shareholder servicing) as well as stewardship, real estate development and renewable energy project development services.
Generally, managed assets in Federated Hermes’ public market investment products and strategies (together with other offered services, as applicable, offerings) can be redeemed or withdrawn at any time with no advance notice requirement, while managed assets in Federated Hermes’ private market investment offerings are subject to restrictions on withdrawals.
Federated Hermes can implement fee waivers, rebates or expense reimbursements for competitive reasons such as to maintain positive or zero net yields (Voluntary Yield-related Fee Waivers), to maintain certain fund expense ratios, to meet regulatory requirements or to meet contractual requirements (collectively, Fee Waivers).
Since Federated Hermes’ public market offerings are largely distributed and serviced through financial intermediary customers, Federated Hermes makes payments, out of its reasonable profits and other resources, to the financial intermediary customers that sell these offerings.
Federated Hermes generally pays out a larger portion of the revenue earned from managed assets in money market, multi-asset, and fixed-income funds than the revenue earned from managed assets in equity and alternative/private markets funds.
The discussion and analysis of Federated Hermes’ financial condition and results of operations are based on Federated Hermes’ Consolidated Financial Statements.
Business Developments Business Combination On April 7, 2025, FHL acquired a majority (60%) equity interest in Rivington Energy Management Limited (Rivington), a U.K.-based renewable energy project development business.
See Note (3) to the Consolidated Financial Statements for additional information.
On October 23, 2025, Federated Hermes entered into an agreement to acquire a majority (80%) interest in FCP Fund Manager, L.P.
(FCP), a U.S.-based real estate investment manager.
The transaction is expected to be completed in the second quarter 2026.
Current Regulatory Environment With Federated Hermes’ global operations, Federated Hermes, and certain of its subsidiaries and offerings (such as the Federated Hermes Funds), are registered with or licensed by, and subject to examination by, various U.S. and/or non-U.S. regulators, self-regulatory agencies or exchanges, such as, among others, the SEC, FINRA, CFTC, DOL, NYSE, FCA, CBI, CIMA, Monetary Authority of Singapore, ASIC and CSSF.
Asset Highlights Managed Assets at Period End in millions as of December 31, 2025 2024 2025 vs. 2024 By Asset Class Equity $ 97,898 $ 79,423 23 % Fixed-Income 100,127 98,059 2 Alternative / Private Markets 19,101 18,864 1 Multi-Asset 2,854 2,883 (1) Total Long-Term Assets 219,980 199,229 10 Money Market 682,604 630,349 8 Total Managed Assets $ 902,584 $ 829,578 9 % By Offering Type Funds: Equity $ 54,988 $ 43,752 26 % Fixed-Income 45,973 45,550 1 Alternative / Private Markets 12,085 11,501 5 Multi-Asset 2,850 2,764 3 Total Long-Term Assets 115,896 103,567 12 Money Market 508,403 461,720 10 Total Fund Assets 624,299 565,287 10 Separate Accounts: Equity 42,910 35,671 20 Fixed-Income 54,154 52,509 3 Alternative / Private Markets 7,016 7,363 (5) Multi-Asset 4 119 (97) Total Long-Term Assets 104,084 95,662 9 Money Market 174,201 168,629 3 Total Separate Account Assets 278,285 264,291 5 Total Managed Assets $ 902,584 $ 829,578 9 % Average Managed Assets in millions for the years ended December 31, 2025 2024 2023 2025 vs. 2024 2024 vs. 2023 By Asset Class Equity $ 88,627 $ 79,893 $ 81,348 11 % (2) % Fixed-Income 99,446 96,773 89,079 3 9 Alternative / Private Markets 19,474 20,250 21,096 (4) (4) Multi-Asset 2,853 2,902 2,887 (2) 1 Total Long-Term Assets 210,400 199,818 194,410 5 3 Money Market 643,025 588,653 511,568 9 15 Total Average Managed Assets $ 853,425 $ 788,471 $ 705,978 8 % 12 % By Offering Type Funds: Equity $ 49,538 $ 43,380 $ 43,314 14 % 0 % Fixed-Income 45,636 44,600 43,482 2 3 Alternative / Private Markets 12,049 12,292 12,999 (2) (5) Multi-Asset 2,758 2,766 2,749 0 1 Total Long-Term Assets 109,981 103,038 102,544 7 0 Money Market 475,501 429,273 365,500 11 17 Total Average Fund Assets 585,482 532,311 468,044 10 14 Separate Accounts: Equity 1 39,089 36,513 38,034 7 (4) Fixed-Income 53,810 52,173 45,597 3 14 Alternative / Private Markets 7,425 7,958 8,097 (7) (2) Multi-Asset 1 95 136 138 (30) (1) Total Long-Term Assets 100,419 96,780 91,866 4 5 Money Market 167,524 159,380 146,068 5 9 Total Average Separate Account Assets 267,943 256,160 237,934 5 8 Total Average Managed Assets $ 853,425 $ 788,471 $ 705,978 8 % 12 % 1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.
Changes in Equity Fund and Separate Account Assets in millions for the years ended December 31, 2025 2024 Equity Funds Beginning Assets $ 43,752 $ 42,513 Sales 19,937 10,220 Redemptions (16,502) (13,979) Net Sales (Redemptions) 3,435 (3,759) Net Exchanges 63 (29) Impact of Foreign Exchange 1 833 (453) Market Gains and (Losses) 2 6,905 5,480 Ending Assets $ 54,988 $ 43,752 Equity Separate Accounts Beginning Assets $ 35,671 $ 36,778 Sales 3 11,230 5,981 Redemptions 3 (10,077) (12,877) Net Sales (Redemptions) 3 1,153 (6,896) Net Exchanges 116 0 Impact of Foreign Exchange 1 966 (690) Market Gains and (Losses) 2 5,004 6,479 Ending Assets $ 42,910 $ 35,671 Total Equity Beginning Assets $ 79,423 $ 79,291 Sales 3 31,167 16,201 Redemptions 3 (26,579) (26,856) Net Sales (Redemptions) 3 4,588 (10,655) Net Exchanges 179 (29) Impact of Foreign Exchange 1 1,799 (1,143) Market Gains and (Losses) 2 11,909 11,959 Ending Assets $ 97,898 $ 79,423 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Fixed-Income Fund and Separate Account Assets in millions for the years ended December 31, 2025 2024 Fixed-Income Funds Beginning Assets $ 45,550 $ 43,908 Sales 14,289 15,307 Redemptions (16,633) (14,760) Net Sales (Redemptions) (2,344) 547 Net Exchanges (9) (145) Impact of Foreign Exchange 1 158 (68) Market Gains and (Losses) 2 2,618 1,308 Ending Assets $ 45,973 $ 45,550 Fixed-Income Separate Accounts Beginning Assets $ 52,509 $ 51,012 Sales 3 10,358 10,283 Redemptions 3 (11,881) (10,621) Net Sales (Redemptions) 3 (1,523) (338) Net Exchanges (4) (18) Impact of Foreign Exchange 1 119 (73) Market Gains and (Losses) 2 3,053 1,926 Ending Assets $ 54,154 $ 52,509 Total Fixed-Income Beginning Assets $ 98,059 $ 94,920 Sales 3 24,647 25,590 Redemptions 3 (28,514) (25,381) Net Sales (Redemptions) 3 (3,867) 209 Net Exchanges (13) (163) Impact of Foreign Exchange 1 277 (141) Market Gains and (Losses) 2 5,671 3,234 Ending Assets $ 100,127 $ 98,059 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Alternative / Private Markets Fund and Separate Account Assets in millions for the years ended December 31, 2025 2024 Alternative / Private Markets Funds Beginning Assets $ 11,501 $ 12,379 Sales 3,032 2,144 Redemptions (3,577) (3,478) Net Sales (Redemptions) (545) (1,334) Net Exchanges 0 187 Acquisitions/(Dispositions) 109 0 Impact of Foreign Exchange 1 747 (216) Market Gains and (Losses) 2 273 485 Ending Assets $ 12,085 $ 11,501 Alternative / Private Markets Separate Accounts Beginning Assets $ 7,363 $ 8,172 Sales 3 229 440 Redemptions 3 (881) (807) Net Sales (Redemptions) 3 (652) (367) Impact of Foreign Exchange 1 570 (160) Market Gains and (Losses) 2 (265) (282) Ending Assets $ 7,016 $ 7,363 Total Alternative / Private Markets Beginning Assets $ 18,864 $ 20,551 Sales 3 3,261 2,584 Redemptions 3 (4,458) (4,285) Net Sales (Redemptions) 3 (1,197) (1,701) Net Exchanges 0 187 Acquisitions/(Dispositions) 109 0 Impact of Foreign Exchange 1 1,317 (376) Market Gains and (Losses) 2 8 203 Ending Assets $ 19,101 $ 18,864 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Multi-Asset Fund and Separate Account Assets in millions for the years ended December 31, 2025 2024 Multi-Asset Funds Beginning Assets $ 2,764 $ 2,730 Sales 211 163 Redemptions (401) (396) Net Sales (Redemptions) (190) (233) Net Exchanges (1) 13 Market Gains and (Losses) 1 277 254 Ending Assets $ 2,850 $ 2,764 Multi-Asset Separate Accounts Beginning Assets $ 119 $ 137 Sales 2 0 6 Redemptions 2 (25) (20) Net Sales (Redemptions) 2 (25) (14) Net Exchanges (123) 0 Market Gains and (Losses) 1 33 (4) Ending Assets $ 4 $ 119 Total Multi-Asset Beginning Assets $ 2,883 $ 2,867 Sales 2 211 169 Redemptions 2 (426) (416) Net Sales (Redemptions) 2 (215) (247) Net Exchanges (124) 13 Market Gains and (Losses) 1 310 250 Ending Assets $ 2,854 $ 2,883 1 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 2 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Total Long-Term Fund and Separate Account Assets in millions for the years ended December 31, 2025 2024 Total Long-Term Funds Beginning Assets $ 103,567 $ 101,530 Sales 37,469 27,834 Redemptions (37,113) (32,613) Net Sales (Redemptions) 356 (4,779) Net Exchanges 53 26 Acquisitions/(Dispositions) 109 0 Impact of Foreign Exchange 1 1,738 (737) Market Gains and (Losses) 2 10,073 7,527 Ending Assets $ 115,896 $ 103,567 Total Long-Term Separate Accounts Beginning Assets $ 95,662 $ 96,099 Sales 3 21,817 16,710 Redemptions 3 (22,864) (24,325) Net Sales (Redemptions) 3 (1,047) (7,615) Net Exchanges (11) (18) Impact of Foreign Exchange 1 1,655 (923) Market Gains and (Losses) 2 7,825 8,119 Ending Assets $ 104,084 $ 95,662 Total Long-Term Beginning Assets $ 199,229 $ 197,629 Sales 3 59,286 44,544 Redemptions 3 (59,977) (56,938) Net Sales (Redemptions) 3 (691) (12,394) Net Exchanges 42 8 Acquisitions/(Dispositions) 109 0 Impact of Foreign Exchange 1 3,393 (1,660) Market Gains and (Losses) 2 17,898 15,646 Ending Assets $ 219,980 $ 199,229 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
The following table presents the relative composition of average managed assets and the percent of total revenue derived from each asset class and offering type for the last three years: Percent of Total Average Managed Assets Percent of Total Revenue 2025 2024 2023 2025 2024 2023 By Asset Class Money Market 75 % 75 % 72 % 53 % 51 % 47 % Equity 11 % 10 % 12 % 28 % 29 % 30 % Fixed-Income 12 % 12 % 13 % 11 % 12 % 12 % Alternative / Private Markets 2 % 3 % 3 % 5 % 6 % 9 % Multi-Asset 0 % 0 % 0 % 1 % 1 % 1 % Other — — — 2 % 1 % 1 % By Offering Type Funds: Money Market 56 % 55 % 52 % 50 % 48 % 44 % Equity 6 % 5 % 6 % 22 % 22 % 23 % Fixed-Income 6 % 6 % 6 % 8 % 9 % 9 % Alternative / Private Markets 1 % 2 % 2 % 3 % 4 % 7 % Multi-Asset 0 % 0 % 0 % 1 % 1 % 1 % Separate Accounts: Money Market 19 % 20 % 20 % 3 % 3 % 3 % Equity 5 % 5 % 6 % 6 % 7 % 7 % Fixed-Income 6 % 6 % 7 % 3 % 3 % 3 % Alternative / Private Markets 1 % 1 % 1 % 2 % 2 % 2 % Multi-Asset 0 % 0 % 0 % 0 % 0 % 0 % Other — — — 2 % 1 % 1 % Total managed assets represent the total AUM at a point in time, while total average managed assets represent the average balance of AUM during a period of time.
Average managed assets increased 8% for 2025 as compared to 2024.
Period-end managed assets increased 9% at December 31, 2025 as compared to December 31, 2024, primarily from an increase in money market and equity assets.
Total average money market assets increased 9% for 2025 compared to 2024.
Period-end money market assets increased 8% at December 31, 2025 as compared to December 31, 2024.
The Federal Reserve implemented a series of three rate cuts, starting in September 2025, landing at a range of 3.5% to 3.75% by December 2025, and U.S. money market funds reached a record high at $8.2 trillion.
Average equity assets increased 11% for 2025 as compared to 2024.
Period-end equity assets increased 23% at December 31, 2025 as compared to December 31, 2024 primarily due to market appreciation and, to a lesser extent, net sales.
The S&P 500 finished the year up more than 16%, as tech stocks continued to drive returns, although market breadth improved late in the year.
Average fixed-income assets increased 3% for 2025 as compared to 2024.

and 309 more.

Gone since FY2024

Item 1A – Risk Factors – Specific Risk Factors – Risk Related to Federated Hermes’ Corporate Structure – Status as a Controlled Company for additional information on its Class A common stock.
The following table summarizes stock repurchases under Federated Hermes’ share repurchase programs during the fourth quarter 2024.
Total Number of Shares Purchased Average Price Paid Per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs 1 Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs 1 October 2 10,626 $ 13.70 0 6,242,415 November 2 224,507 39.03 210,000 6,032,415 December 2 317,400 41.67 315,000 5,717,415 Total 552,533 $ 40.06 525,000 5,717,415 1 In October 2023, 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.
In October 2024, the board of directors authorized an additional 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 programs existed as of December 31, 2024.
See Note (14) to the Consolidated Financial Statements for additional information. 2 In October, November and December 2024, 10,626, 14,507 and 2,400 shares, respectively, of Class B common stock with a weighted-average price of $13.70, $0.00 and $3.00 per share, respectively, were repurchased primarily as a result of employee-forfeited restricted stock.
Stock Performance Graph The following performance graph compares the total shareholder return of an investment in Federated Hermes’ Class B common stock to that of the Standard and Poor’s MidCap 400 ® Index (S&P MidCap 400 Index) and to the S&P 1500 Asset Management & Custody Banks Index for the five-year period ended on December 31, 2024.
The graph assumes that the value of the investment in Class B common stock and each index was $100 on December 31, 2019.
As a member of the S&P MidCap 400 Index as of December 31, 2024, Federated Hermes is required to include this comparison.
Federated Hermes does not make or endorse any predictions as to future stock performance. 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Federated Hermes $ 96.21 $ 129.58 $ 129.38 $ 124.45 $ 161.28 S&P MidCap 400 Index $ 113.66 $ 141.80 $ 123.28 $ 143.54 $ 163.54 S&P 1500 Asset Management & Custody Banks Index $ 116.20 $ 156.67 $ 126.27 $ 144.54 $ 190.57 ITEM 6 – [RESERVED] ITEM 7 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Management’s Discussion and Analysis of Financial Condition and Results of Operations should be read in conjunction with Item 1- Business, Item 1A – Risk Factors and Item 8 – Financial Statements and Supplementary Data.
General Federated Hermes is a global leader in active, responsible investing with $829.6 billion in managed assets as of December 31, 2024.
Federated Hermes also derives revenue from providing administrative and other fund-related services (including distribution and shareholder servicing) as well as stewardship and real estate development services.
Generally, managed assets in Federated Hermes’ public market investment offerings can be redeemed or withdrawn at any time with no advance notice requirement, while managed assets in Federated Hermes’ private market investment offerings are subject to restrictions to withdrawals.
Federated Hermes can implement fee waivers for competitive reasons such as Voluntary Yield-related Fee Waivers, to maintain certain fund expense ratios, to meet regulatory requirements or to meet contractual requirements (collectively, Fee Waivers).
Since Federated Hermes’ public market offerings are largely distributed and serviced through financial intermediary customers, Federated Hermes pays a portion of fees earned from sponsored offerings to the financial intermediary customers that sell these offerings.
Federated Hermes generally pays out a larger portion of the revenue earned from managed assets in equity, money market and multi-asset funds than the revenue earned from managed assets in fixed-income and alternative/private markets funds.
The discussion and analysis of Federated Hermes’ Financial Condition (including results of operations) are based on Federated Hermes’ Consolidated Financial Statements.
Business Developments Intangible Asset Impairment During the second quarter of 2024, a $66.3 million non-cash impairment of an indefinite-lived intangible asset associated with the 2018 FHL acquisition was recorded in Intangible Asset Related expense on the Consolidated Statements of Income.
See Note (9) to the Consolidated Financial Statements for additional information related to the impairment of this indefinite-lived intangible asset.
There were no other impairments during the year ended December 31, 2024.
Current Regulatory Environment With Federated Hermes’ global operations, Federated Hermes, and certain of its subsidiaries and offerings (such as the Federated Hermes Funds), are registered with or licensed by, and subject to examination by, various U.S. and/or non-U.S. regulators, self-regulatory agencies or exchanges, such as, among others, the SEC, FINRA, CFTC, DOL, NYSE, FCA, CBI, CIMA, Monetary Authority of Singapore, ASICS and CSSF.
Asset Highlights Managed Assets at Period End in millions as of December 31, 2024 2023 2024 vs. 2023 By Asset Class Equity $ 79,423 $ 79,291 0 % Fixed-Income 98,059 94,920 3 Alternative / Private Markets 18,864 20,551 (8) Multi-Asset 2,883 2,867 1 Total Long-Term Assets 199,229 197,629 1 Money Market 630,349 559,993 13 Total Managed Assets $ 829,578 $ 757,622 9 % By Offering Type Funds: Equity $ 43,752 $ 42,513 3 % Fixed-Income 45,550 43,908 4 Alternative / Private Markets 11,501 12,379 (7) Multi-Asset 2,764 2,730 1 Total Long-Term Assets 103,567 101,530 2 Money Market 461,720 406,166 14 Total Fund Assets 565,287 507,696 11 Separate Accounts: Equity 35,671 36,778 (3) Fixed-Income 52,509 51,012 3 Alternative / Private Markets 7,363 8,172 (10) Multi-Asset 119 137 (13) Total Long-Term Assets 95,662 96,099 0 Money Market 168,629 153,827 10 Total Separate Account Assets 264,291 249,926 6 Total Managed Assets $ 829,578 $ 757,622 9 % Average Managed Assets in millions for the years ended December 31, 2024 2023 2022 2024 vs. 2023 2023 vs. 2022 By Asset Class Equity $ 79,893 $ 81,348 $ 84,793 (2) % (4) % Fixed-Income 96,773 89,079 89,776 9 (1) Alternative / Private Markets 20,250 21,096 21,799 (4) (3) Multi-Asset 2,902 2,887 3,273 1 (12) Total Long-Term Assets 199,818 194,410 199,641 3 (3) Money Market 588,653 511,568 432,992 15 18 Total Average Managed Assets $ 788,471 $ 705,978 $ 632,633 12 % 12 % By Offering Type Funds: Equity $ 43,380 $ 43,314 $ 47,047 0 % (8) % Fixed-Income 44,600 43,482 50,043 3 (13) Alternative / Private Markets 12,292 12,999 13,903 (5) (7) Multi-Asset 2,766 2,749 3,130 1 (12) Total Long-Term Assets 103,038 102,544 114,123 0 (10) Money Market 429,273 365,500 294,490 17 24 Total Average Fund Assets 532,311 468,044 408,613 14 15 Separate Accounts: Equity 36,513 38,034 37,746 (4) 1 Fixed-Income 52,173 45,597 39,733 14 15 Alternative / Private Markets 7,958 8,097 7,896 (2) 3 Multi-Asset 136 138 143 (1) (3) Total Long-Term Assets 96,780 91,866 85,518 5 7 Money Market 159,380 146,068 138,502 9 5 Total Average Separate Account Assets 256,160 237,934 224,020 8 6 Total Average Managed Assets $ 788,471 $ 705,978 $ 632,633 12 % 12 % Changes in Equity Fund and Separate Account Assets in millions for the years ended December 31, 2024 2023 Equity Funds Beginning Assets $ 42,513 $ 43,342 Sales 10,220 9,038 Redemptions (13,979) (13,987) Net Sales (Redemptions) (3,759) (4,949) Net Exchanges (29) 69 Impact of Foreign Exchange 1 (453) 345 Market Gains and (Losses) 2 5,480 3,706 Ending Assets $ 43,752 $ 42,513 Equity Separate Accounts Beginning Assets $ 36,778 $ 38,181 Sales 3 5,981 8,694 Redemptions 3 (12,877) (10,755) Net Sales (Redemptions) 3 (6,896) (2,061) Net Exchanges 0 51 Impact of Foreign Exchange 1 (690) 193 Market Gains and (Losses) 2 6,479 414 Ending Assets $ 35,671 $ 36,778 Total Equity Beginning Assets $ 79,291 $ 81,523 Sales 3 16,201 17,732 Redemptions 3 (26,856) (24,742) Net Sales (Redemptions) 3 (10,655) (7,010) Net Exchanges (29) 120 Impact of Foreign Exchange 1 (1,143) 538 Market Gains and (Losses) 2 11,959 4,120 Ending Assets $ 79,423 $ 79,291 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Fixed-Income Fund and Separate Account Assets in millions for the years ended December 31, 2024 2023 Fixed-Income Funds Beginning Assets $ 43,908 $ 43,180 Sales 15,307 14,739 Redemptions (14,760) (16,608) Net Sales (Redemptions) 547 (1,869) Net Exchanges (145) (91) Impact of Foreign Exchange 1 (68) 95 Market Gains and (Losses) 2 1,308 2,593 Ending Assets $ 45,550 $ 43,908 Fixed-Income Separate Accounts Beginning Assets $ 51,012 $ 43,563 Sales 3 10,283 12,070 Redemptions 3 (10,621) (7,284) Net Sales (Redemptions) 3 (338) 4,786 Net Exchanges (18) (22) Impact of Foreign Exchange 1 (73) 33 Market Gains and (Losses) 2 1,926 2,652 Ending Assets $ 52,509 $ 51,012 Total Fixed-Income Beginning Assets $ 94,920 $ 86,743 Sales 3 25,590 26,809 Redemptions 3 (25,381) (23,892) Net Sales (Redemptions) 3 209 2,917 Net Exchanges (163) (113) Impact of Foreign Exchange 1 (141) 128 Market Gains and (Losses) 2 3,234 5,245 Ending Assets $ 98,059 $ 94,920 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Alternative / Private Markets Fund and Separate Account Assets in millions for the years ended December 31, 2024 2023 Alternative / Private Markets Funds Beginning Assets $ 12,379 $ 13,050 Sales 2,144 2,272 Redemptions (3,478) (2,878) Net Sales (Redemptions) (1,334) (606) Net Exchanges 187 14 Impact of Foreign Exchange 1 (216) 585 Market Gains and (Losses) 2 485 (664) Ending Assets $ 11,501 $ 12,379 Alternative / Private Markets Separate Accounts Beginning Assets $ 8,172 $ 7,752 Sales 3 440 996 Redemptions 3 (807) (280) Net Sales (Redemptions) 3 (367) 716 Net Exchanges 0 (23) Impact of Foreign Exchange 1 (160) 396 Market Gains and (Losses) 2 (282) (669) Ending Assets $ 7,363 $ 8,172 Total Alternative / Private Markets Beginning Assets $ 20,551 $ 20,802 Sales 3 2,584 3,268 Redemptions 3 (4,285) (3,158) Net Sales (Redemptions) 3 (1,701) 110 Net Exchanges 187 (9) Impact of Foreign Exchange 1 (376) 981 Market Gains and (Losses) 2 203 (1,333) Ending Assets $ 18,864 $ 20,551 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Multi-Asset Fund and Separate Account Assets in millions for the years ended December 31, 2024 2023 Multi-Asset Funds Beginning Assets $ 2,730 $ 2,851 Sales 163 142 Redemptions (396) (530) Net Sales (Redemptions) (233) (388) Net Exchanges 13 11 Market Gains and (Losses) 1 254 256 Ending Assets $ 2,764 $ 2,730 Multi-Asset Separate Accounts Beginning Assets $ 137 $ 138 Sales 2 6 2 Redemptions 2 (20) (18) Net Sales (Redemptions) 2 (14) (16) Market Gains and (Losses) 1 (4) 15 Ending Assets $ 119 $ 137 Total Multi-Asset Beginning Assets $ 2,867 $ 2,989 Sales 2 169 144 Redemptions 2 (416) (548) Net Sales (Redemptions) 2 (247) (404) Net Exchanges 13 11 Market Gains and (Losses) 1 250 271 Ending Assets $ 2,883 $ 2,867 1 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 2 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
Changes in Total Long-Term Assets in millions for the years ended December 31, 2024 2023 Total Long-Term Fund Assets Beginning Assets $ 101,530 $ 102,423 Sales 27,834 26,191 Redemptions (32,613) (34,003) Net Sales (Redemptions) (4,779) (7,812) Net Exchanges 26 3 Impact of Foreign Exchange 1 (737) 1,025 Market Gains and (Losses) 2 7,527 5,891 Ending Assets $ 103,567 $ 101,530 Total Long-Term Separate Accounts Assets Beginning Assets $ 96,099 $ 89,634 Sales 3 16,710 21,762 Redemptions 3 (24,325) (18,337) Net Sales (Redemptions) 3 (7,615) 3,425 Net Exchanges (18) 6 Impact of Foreign Exchange 1 (923) 622 Market Gains and (Losses) 2 8,119 2,412 Ending Assets $ 95,662 $ 96,099 Total Long-Term Assets Beginning Assets $ 197,629 $ 192,057 Sales 3 44,544 47,953 Redemptions 3 (56,938) (52,340) Net Sales (Redemptions) 3 (12,394) (4,387) Net Exchanges 8 9 Impact of Foreign Exchange 1 (1,660) 1,647 Market Gains and (Losses) 2 15,646 8,303 Ending Assets $ 199,229 $ 197,629 1 Reflects the impact of translating non-USD denominated AUM into USD for reporting purposes. 2 Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income. 3 For Separate Accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.
The following table presents the relative composition of average managed assets and the percent of total revenue derived from each asset class and offering type over the last three years: Percent of Total Average Managed Assets Percent of Total Revenue 2024 2023 2022 2024 2023 2022 By Asset Class Money Market 75 % 72 % 69 % 51 % 47 % 40 % Equity 10 % 12 % 13 % 29 % 30 % 36 % Fixed-Income 12 % 13 % 14 % 12 % 12 % 14 % Alternative / Private Markets 3 % 3 % 3 % 6 % 9 % 7 % Multi-Asset 0 % 0 % 1 % 1 % 1 % 2 % Other — % — % — % 1 % 1 % 1 % By Offering Type Funds: Money Market 55 % 52 % 47 % 48 % 44 % 37 % Equity 5 % 6 % 7 % 22 % 23 % 28 % Fixed-Income 6 % 6 % 8 % 9 % 9 % 12 % Alternative / Private Markets 2 % 2 % 2 % 4 % 7 % 4 % Multi-Asset 0 % 0 % 1 % 1 % 1 % 2 % Separate Accounts: Money Market 20 % 20 % 22 % 3 % 3 % 3 % Equity 5 % 6 % 6 % 7 % 7 % 8 % Fixed-Income 6 % 7 % 6 % 3 % 3 % 2 % Alternative / Private Markets 1 % 1 % 1 % 2 % 2 % 3 % Multi-Asset 0 % 0 % 0 % 0 % 0 % 0 % Other — % — % — % 1 % 1 % 1 % Total managed assets represent the total AUM at a point in time, while total average managed assets represent the average balance of AUM during a period of time.
Average managed assets increased 12% for 2024 as compared to 2023.
Period-end managed assets increased 9% at December 31, 2024 as compared to December 31, 2023, primarily from an increase in money market assets.
Total average money market assets increased 15% for 2024 compared to 2023.
Period-end money market assets increased 13% at December 31, 2024 as compared to December 31, 2023.
The Federal Reserve lowered the federal funds rate three times beginning in September, settling at a range of 4.25% to 4.5% in December, and U.S. money market funds reached a record high at nearly $7 trillion.
Average equity assets decreased 2% for 2024 as compared to 2023.
Period-end equity assets remained flat at December 31, 2024 as compared to December 31, 2023 primarily due to market appreciation nearly completely offset by net redemptions.
The S&P 500 finished the year up more than 21%, aided by the tech stocks, which benefited from the artificial intelligence boom.
Average fixed-income assets increased 9% for 2024 as compared to 2023.
Period-end fixed-income assets increased 3% at December 31, 2024 as compared to December 31, 2023 primarily due to market appreciation.
Overall, fixed-income markets had a volatile year, with yields surging late in 2024 on concerns over a potential reacceleration of inflation.
Yields on the 10-Year Treasury note increased from 3.9% at the start of the year to above 4.5% by the year’s end.
Average alternative/private markets assets decreased 4% for 2024 as compared to 2023.

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