Federated Hermes reported a record $715.2 billion in assets under management at the end of the third quarter, up nearly 15% from $624.4 billion in the year-ago quarter and up almost 2% from $704 billion in the second quarter this year.
Net income for the Pittsburgh-based asset manager was also up in the third quarter, for which the firm reported an income of $75 million, and a year-to-date income of $216.8 million for the first three quarters of 2023.
Federated Hermes' money market assets leaped 19% to a record $525.1 billion in the third quarter, up from $441.3 billion last quarter.
In a statement, the firm's president and CEO J. Christopher Donahue attributed the interest in Federated Hermes' money market assets to the "current interest rate environment, where general market volatility made the improved yields of our cash offerings an appealing haven for investors."
The firm's fixed income assets and alternative/private markets assets also saw modest growth.
Equities assets at Federated Hermes fell to $77.3 billion in the third quarter, down 7% from $83 billion in the previous quarter but up 4% year over year.
The firm's operating expenses climbed 6% year over year in the third quarter, primarily attributable to increased compensation expenses.
