10 unchanged sentences
At December 31, 2023, management considered a hypothetical 300-basis-point fluctuation in interest rates.
−Removed: Management determined that the impact of such a fluctuation on these investments would not have a material effect on Federated Hermes’ results of operations or financial condition.
+Added: Management determined that the impact of such a fluctuation on these investments could impact Federated Hermes’ results of operations and financial condition by approximately $11 million.
At December 31, 2023, these investments and additional investments in money market accounts ($324.4 million) exposed Federated Hermes to credit risk.
5 unchanged sentences
At December 31, 2023, management considered a hypothetical 20% fluctuation in fair value and determined that such a fluctuation on these investments could impact Federated Hermes’ results of operations and financial condition by approximately $11 million.
−Removed: Foreign exchange risk is the risk that an investment’s value will change due to changes in currency exchange rates.
+Added: Foreign exchange risk is the risk that an investment’s value will change due to fluctuations in currency exchange rates.
As of December 31, 2023, Federated Hermes was exposed to foreign exchange risk as a result of its investments in Federated Hermes Funds holding non-USD securities as well as non-USD operating cash accounts and receivables held by certain foreign operating subsidiaries of Federated Hermes ($42.2 million).
1 unchanged sentence
Federated Hermes also has certain investments in foreign operations, whose net assets and results of operations are exposed to foreign currency risk when translated into USD upon consolidation .
−Removed: During 2022, FHL entered into foreign currency forward transactions in order to hedge against foreign exchange rate fluctuations in the USD (combined notional amount of £67.3 million as of December 31, 2022).
−Removed: FHL is exposed to foreign currency exchange risk as a result of a portion of its revenue being earned in USD.
−Removed: Management considered a hypothetical 20% fluctuation in the currency exchange rate and determined
−Removed: that such a fluctuation could impact Federated Hermes’ results of operations and financial condition by approximately $11 million.
+Added: During 2023, Federated Hermes entered into foreign currency forward transactions in order to hedge against foreign exchange rate fluctuations related to FHL, a British Pound
+Added: Sterling-denominated subsidiary (combined notional amount of £84.3 million as of December 31, 2023).
+Added: Management considered a hypothetical 20% fluctuation in the currency exchange rate and determined that such a fluctuation could impact Federated Hermes’ results of operations and financial condition by approximately $7 million.
In addition to market risks attributable to Federated Hermes’ investments, nearly all of Federated Hermes’ revenue is calculated based on AUM.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.