Is Federated Investors Now Federated Hermes?

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If you’re a follower of the financial services industry, you may have heard about Federated Investors’ recent name change to Federated Hermes. But what does this mean for the company and its investors? Let’s dive in.

What is Federated Investors?

Federated Investors is an investment management firm that was founded in 1955. The company offers a variety of investment products to individual and institutional investors, including mutual funds, ETFs, and separately managed accounts.

Why the Name Change?

In June of 2019, Federated Investors announced that it would be acquiring a majority stake in Hermes Investment Management, a UK-based asset manager. The acquisition was completed in early 2020, and as part of the deal, Federated Investors agreed to adopt the Hermes name.

What Does This Mean for Investors?

For investors in Federated’s products, not much will change beyond the name on their statements. The company’s investment strategies and portfolio management teams will remain largely unchanged.

However, there are some potential benefits to the merger for both companies. For Federated, the acquisition provides access to Hermes’ expertise in ESG (Environmental, Social, and Governance) investing. For Hermes, the deal brings access to a wider range of distribution channels in North America.

What About Shareholders?

From a shareholder perspective, the merger appears to be beneficial as well. The combined company is expected to generate cost savings through synergies in areas such as technology and operations.

In addition, both Federated and Hermes have strong track records of delivering value to shareholders. According to a press release announcing the merger completion: “Over their respective histories as independent companies through Dec. 31, 2019: Federated’s total return was 15% compound annual growth rate (CAGR) versus 9% CAGR for the S&P 500 and Hermes’ total return was 12% CAGR versus 10% CAGR for the FTSE All-Share.”

Conclusion

In summary, Federated Investors’ name change to Federated Hermes is a result of the company’s acquisition of Hermes Investment Management. For investors and shareholders, the merger appears to be a positive development, with potential benefits including increased access to ESG expertise and cost savings through synergies.

6 Related Question Answers Found

Is Federated Hermes Same as Federated Investors?

If you’re into investing, you might have come across the terms “Federated Hermes” and “Federated Investors”. Are these two companies the same? Let’s take a closer look.

Is Hermes Federated?

If you’re a fan of luxury fashion, then you’ve probably heard of Hermes. The French fashion house is known around the world for its high-end products, including leather goods, accessories, and clothing. But have you ever wondered if Hermes is federated?

Is Federated Hermes a Good Investment?

Are you considering investing in Federated Hermes but unsure if it’s a good choice? In this article, we will delve into the company’s history, financial performance, and current position in the market to help you make an informed decision. Background: Federated Hermes is an investment management firm that provides a wide range of financial services to clients worldwide.

When Did Federated Investors Become Federated Hermes?

Federated Investors is a well-known investment management firm that has been providing exceptional financial services to its clients for over 60 years. In 2020, the company announced a significant change – it would be rebranding as Federated Hermes. This move came as a surprise to many, but the company’s leadership team had been considering it for quite some time.

Is Federated Hermes a Good Company?

Federated Hermes is a global investment management company that specializes in active asset management. The company was founded in 1955 and has since grown to become one of the largest investment managers in the world, with assets under management of over $600 billion. Company Overview: Federated Hermes offers a wide range of investment products and services to institutional and individual investors.

Is Federated Hermes a Public Company?

Have you been wondering whether Federated Hermes is a public company? Well, the answer is yes! Federated Hermes, Inc. (NYSE: FHI) is a publicly traded investment management firm that offers a wide range of financial products and services to individuals, institutions, and corporations.