Federated Investors

Last updated
Federated Hermes, Inc.
Public
Traded as NYSE:  FHI (Class B)
S&P 400 Component
Industry Financial Services
FoundedOctober 18, 1957 [1]
Headquarters Federated Tower
Pittsburgh, Pennsylvania
United States
Key people
 John F. Donahue, Co-founder and Chairman
J. Christopher Donahue, President and CEO
Products mutual funds
RevenueIncrease2.svg$1.3 billion USD
Number of employees
1,900 [2]
Website www.federatedinvestors.com

Federated Hermes is a leading global investment manager headquartered in Pittsburgh, Pennsylvania, United States. Founded in 1955 and incorporated on October 18, 1957, [1] the company manages $575.9 billion of customer assets, as of Dec. 31, 2019. The corporation offers 135 different types of mutual funds spanning equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies and a range of separately managed account strategies. Federated Hermes offers active investment management and engagement services that target financial outperformance across a wide range of asset classes for investors around the world, and is guided by the conviction that responsible investing is the best way to create wealth over the long term. Federated Hermes offers its services through more than 11,000 institutions and intermediaries. Clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.

Federated offers its services through more than 11,000 client firms. The company offers flexible investing strategies to meet the needs of different customers.

History

Federated Investors was founded in 1955 by high school classmates John F. Donahue, Richard B. Fisher, and Thomas J. Donnelly. [3]

Aetna acquired a majority ownership stake in Federated Investors in 1982; at the time Federated had nearly $30 billion in assets under management. [4] In 1989, Federated management purchased Aetna's stake for $345 million, reestablishing majority control of the company. [5] In 1996, Federated management paid $100 million to acquire the remaining 25% stock ownership still held by Aetna. [6] Federated completed an initial public offering on the NYSE on May 14, 1998. [7]

In 1991 Federated established Federated International Management Limited, a wholly owned subsidiary in Dublin, Ireland, becoming the first U.S. company whose registered money market funds were approved for distribution to the European community. In 1998, Federated launched a venture with insurer LVM-Versicherungen Münster to offer Federated funds in Germany. [8]

In April 2012 Federated Investors, Inc. completed its acquisition of Prime Rate Capital Management LLP (PRCM), a London, United Kingdom-based provider of institutional liquidity and fixed income products, from Matrix Group Limited they did not purchase this company. Federated Prime Rate Capital Management's AAA-rated liquidity funds, known as Qualifying Money Market Funds, serve the corporate and institutional market. The funds, totaling approximately US$4.0 billion (GBP 2.5 billion) in assets, are rated AAA by both Standard & Poor's and Fitch Ratings. [9]

In September 2012, Federated Investors announced that it had bought around $4.4 billion in assets from Fifth Third Asset Management Inc. [10]

In July 2018, Federated Investors, Inc., completed its acquisition of a 60 percent interest in Hermes Fund Managers Limited (Hermes), which operates as Hermes Investment Management, a pioneer of integrated ESG investing, from BT Pension Scheme (BTPS).[ citation needed ]

In February 2020, Federated Investors, Inc. changed its name to Federated Hermes, Inc. and unveiled an updated corporate identity focused on a commitment to responsible investing to achieve financial performance. The company also changed its New York Stock Exchange (NYSE) ticker symbol from FII to FHI, with the firm’s common stock trading under the FHI ticker symbol for the first time on Feb. 3, 2020.

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References

  1. 1 2 https://www.corporations.state.pa.us/corp/soskb/Corp.asp?113529%5B%5D
  2. ↑ https://www.sec.gov/Archives/edgar/data/1056288/000105628817000009/fii-10kfy2016.htm
  3. ↑ A history of innovation - Federated
  4. ↑ Pittsburgh Post-Gazette – Jul 30, 1982
  5. ↑ COMPANY NEWS; Aetna Life to Sell Federated Investors - New York Times. Nytimes.com (1989-03-15). Retrieved on 2013-07-17.
  6. ↑ Pittsburgh Post-Gazette – Mar 5, 1996
  7. ↑ Information and results for 'Federated Investors IPO Enriches Executives.' | AccessMyLibrary - Promoting library advocacy. AccessMyLibrary. Retrieved on 2013-07-17.
  8. ↑ Federated - Federated Investors, Inc. Hires Chief Executive Officer for New Asia Pacific Subsidiary to be Based in Australia. Federatedinvestors.com (2013-07-12). Retrieved on 2013-07-17.
  9. ↑ Federated - Federated Investors, Inc. Expands Globally with Acquisition of London-based Prime Rate Capital Management. Federatedinvestors.com (2013-07-12). Retrieved on 2013-07-17.
  10. ↑ Reuters (11 September 2012). "Deals of the day -- mergers and acquisitions". Reuters.
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