Federated Hermes Inc. (NYSE: FHI), a global leader in active, responsible investing, reached a definitive agreement to acquire substantially all of the assets of C.W. Henderson and Associates, Inc., a Chicago-based registered investment advisor specializing in the management of tax-exempt municipal securities.
C.W. Henderson is the advisor to approximately $3.63 billion in direct account, dual contract separately managed accounts and sub-advised separately managed account portfolios. With more than three decades of experience and nearly 1,500 client accounts, the firm manages two active municipal bond products—one intermediate and the other short-term—both of which focus on high credit quality with limited interest rate risk while seeking to maintain credit, sector and state diversification to provide additional risk controls.
"Federated Hermes' commitment to fostering a culture that promotes excellence among each of our investment teams provides a solid platform for the C.W. Henderson team and their clients," said J. Christopher Donahue, president and chief executive officer of Federated Hermes. "Combining the proven investment acumen of C.W. Henderson's team and their active investment process with Federated Hermes' extensive distribution capabilities will give our company a new opportunity to grow our $23 billion SMA business."
The transaction was approved by the board of directors of Federated Hermes, Inc. As is typical in this type of transaction, C.W. Henderson will obtain the necessary consents from its clients and continue to manage their assets as Federated Hermes employees after the transaction closes. The transaction is expected to close in the third quarter.
"The C.W. Henderson team has employed unique investment strategies to municipal bond portfolio management that aim to take advantage of market inefficiencies while limiting portfolio risk," said Craig Henderson, chairman and chief executive officer of C.W. Henderson. "We have known Federated Hermes for quite some time. We believe the company is a great home for both our clients and employees. We expect that our clients will benefit from the extensive resources and long-standing reputation for high-quality service of Federated Hermes."