Concentration Risk

3 Months Ended

Mar. 31, 2020

(a) Revenue Concentration by Asset Class

The following table presents Federated Hermes' revenue concentration by asset class:



	Three Months Ended
	March 31,
	2020		2019
Equity Assets	38	%	40	%
Money Market Assets	43	%	38	%
Fixed-Income Assets	13	%	14	%

The change in the relative proportion of Federated Hermes' revenue attributable to money market assets for the three months ended March 31, 2020, as compared to the same period in 2019, was primarily the result of a higher proportion of average money market assets to total average assets in 2020 as compared to 2019.

(b) Revenue Concentration by Investment Strategy/Fund

The following table presents Federated Hermes' revenue concentration by investment strategy/fund:



	Three Months Ended
	March 31,
	2020		2019
Federated Government Obligations Fund	12	%	9	%
Federated Strategic Value Dividend strategy¹	9	%	11	%

1Strategy includes Federated Hermes Funds and Separate Accounts.

A significant and prolonged decline in the AUM in these strategies/fund 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 the Federated Hermes Funds managed in accordance with these strategies/fund.

Approximately 11% and 12% of Federated Hermes' total revenue for the three months ended March 31, 2020 and 2019, respectively, was derived from services provided to one intermediary, The Bank of New York Mellon Corporation, including its Pershing subsidiary. 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.