Analyst Note| Greggory Warren, CFA |
There was nothing in no-moat Federated Hermes first-quarter results that would alter our long-term view of the firm. We are leaving our $28 per share fair value estimate in place. Federated closed out the March quarter with a record $625 billion in managed assets, up 0.9% sequentially and 3.2% on a year-over-year basis. Net long-term inflows of $3.2 billion during the first quarter were driven primarily by the company's fixed-income operations, which reported $2.9 billion in inflows, some of which we believe was due to rotation out of the firm's money market funds, as well as portfolio rebalancing activity that typically takes place during the first quarter of any given year.