Investments

12 Months Ended

Dec. 31, 2023

Investments, Debt and Equity Securities [Abstract]

At December 31, 2023 and 2022, Federated Hermes held investments in non-consolidated fluctuating-value Federated Hermes Funds of $99.5 million and $67.0 million, respectively, primarily in mutual funds which represent equity investments for Federated Hermes, and held investments in Separate Accounts of $7.5 million and $9.5 million at December 31, 2023 and 2022, respectively, that were included in Investments—Affiliates and Other on the Consolidated Balance Sheets. Federated Hermes’ investments held in Separate Accounts as of December 31, 2023 and 2022, were primarily composed of stocks of large domestic and foreign companies ($3.4 million for both periods) and domestic debt securities ($2.4 million and $4.6 million, respectively).

Federated Hermes consolidates certain Federated Hermes Funds into its Consolidated Financial Statements as a result of its controlling financial interest in these Federated Hermes Funds (see Note (6)). 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 December 31, 2023 and 2022, were primarily composed of domestic and foreign debt securities ($59.1 million and $57.8 million, respectively), stocks of large foreign and domestic companies ($4.9 million and $45.3 million, respectively) and stocks of small and mid-sized domestic and foreign companies ($4.2 million and $3.3 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:


(in thousands)	2023		2022		2021
Investments—Consolidated Investment Companies
Net Unrealized Gains (Losses)	$	8,969	$	(7,896)	$	642
Net Realized Gains (Losses)1	(1,734)		(7,333)		1,609
Net Gains (Losses) on Investments—Consolidated Investment Companies	7,235		(15,229)		2,251








Investments—Affiliates and Other
Net Unrealized Gains (Losses)	4,454		(16,487)		1,323
Net Realized Gains (Losses)1	1,492		3,020		5,958
Net Gains (Losses) on Investments—Affiliates and Other	5,946		(13,467)		7,281
Gain (Loss) on Securities, net	$	13,181	$	(28,696)	$	9,532

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