Investments

9 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Investments

Investments

At September 30, 2020 and December 31, 2019, Federated Hermes held investments in non-consolidated fluctuating-value Federated Hermes Funds of $33.8 million and $20.1 million, respectively, primarily in mutual funds which invest in equity securities. Federated Hermes held investments in Separate Accounts of $9.4 million and $6.8 million at September 30, 2020 and December 31, 2019, respectively, that were included in Investments—Affiliates and Other on the Consolidated Balance Sheets. Federated Hermes' investments held in Separate Accounts as of September 30, 2020 and December 31, 2019, were primarily composed of domestic debt securities ($5.5 million and $2.6 million, respectively) and stocks of large U.S. and international companies ($3.0 million at each period end).

Federated Hermes consolidates certain Federated Hermes Funds into its Consolidated Financial Statements as a result of Federated Hermes' controlling financial interest in these Federated Hermes Funds (see Note (7)). All investments held by these consolidated Federated Hermes Funds were included in Investments—Consolidated Investment Companies on Federated Hermes' Consolidated Balance Sheets.

The investments held by consolidated Federated Hermes Funds as of September 30, 2020 and December 31, 2019 were primarily composed of domestic and foreign debt securities ($38.0 million and $38.9 million, respectively) and stocks of large international and U.S. companies ($26.8 million and $22.6 million, respectively).

The following table presents gains and losses recognized in Gain (Loss) on Securities, net on the Consolidated Statements of Income in connection with Federated Hermes' investments:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(in thousands)	2020		2019		2020		2019
Investments—Consolidated Investment Companies
Unrealized Gains (Losses)	$	4,451	$	(364)	$	3,987	$	1,345
Net Realized Gains (Losses)1	(47)		(119)		(1,151)		(786)
Net Gains (Losses) on Investments—Consolidated Investment Companies	4,404		(483)		2,836		559
Investments—Affiliates and Other
Unrealized Gains (Losses)	1,816		2,298		1,410		3,515
Net Realized Gains (Losses)1	(368)		(2,401)		(406)		(2,404)
Net Gains (Losses) on Investments—Affiliates and Other	1,448		(103)		1,004		1,111
Gain (Loss) on Securities, net	$	5,852	$	(586)	$	3,840	$	1,670

1     Realized gains and losses are computed on a specific-identification basis.