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Concentration Risk
 12 Months Ended
Dec. 31, 2024
Risks and Uncertainties [Abstract]  
Concentration Risk Concentration Risk
The following information summarizes Federated Hermes’ revenue concentrations. See additional information on the risks related to such concentrations in Item 1A – Risk Factors (unaudited).
(a) Revenue Concentration by Asset Class
The following table presents Federated Hermes’ significant revenue concentration by asset class over the last three years:
202420232022
Money Market Assets51 %47 %40 %
Equity Assets29 %30 %36 %
Fixed-Income Assets12 %12 %14 %
The change in the relative proportion of Federated Hermes’ revenue attributable to money market assets in 2024, as compared to the same period in 2023, was primarily the result of an increase in money market revenue due to higher average money market assets.
The change in the relative proportion of Federated Hermes’ revenue attributable to money market assets in 2023, as compared to the same period in 2022, was primarily the result of increased money market revenue primarily due to the elimination of Voluntary Yield-related Fee Waivers and higher average money market assets in 2023.
(b) Revenue Concentration by Investment Fund Strategy
The following table presents Federated Hermes’ revenue concentration by investment fund strategy over the last three years:
202420232022
Federated Government Obligations Fund15 %14 %12 %
Federated Strategic Value Dividend strategy1
8 %9 %10 %
1    Strategy includes Federated Hermes Funds and Separate Accounts.
A significant and prolonged decline in the AUM in these fund strategies 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 these fund strategies.
(c) Revenue Concentration by Intermediary
Approximately 10% of Federated Hermes’ total revenue for 2024, and 11% for both 2023 and 2022, 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.