Concentration Risk

6 Months Ended

Jun. 30, 2020

(a) Revenue Concentration by Asset Class

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



	Six Months Ended
	June 30,
	2020		2019
Money Market Assets	43	%	38	%
Equity Assets	36	%	41	%
Fixed-Income Assets	13	%	14	%

The change in the relative proportion of Federated Hermes' revenue attributable to money market assets for the six months ended June 30, 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				Six Months Ended
	June 30,				June 30,
	2020		2019		2020		2019
Federated Hermes Government Obligations Fund	14	%	9	%	13	%	9	%
Federated Hermes Strategic Value Dividend strategy¹	8	%	11	%	9	%	11	%

1Strategy includes Federated Hermes Funds and Separate Accounts.

A significant and prolonged decline in the AUM in this fund or strategy 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 this fund or strategy.

Approximately 8% and 10% of Federated Hermes' total revenue for the three- and six-month periods ended June 30, 2020, respectively, and 11% for both the three- and six-month periods ended June 30, 2019 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.