21:59:39 EDT Thu 30 Jul 2026
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Federated Hermes, Inc. reports record assets under management with second quarter 2026 earnings

2026-07-30 16:17 ET - News Release

Federated Hermes, Inc. reports record assets under management with second quarter 2026 earnings

PR Newswire

  • Total assets under management reach a record $911.6 billion
  • Equity assets reach a record $109.6 billion
  • Q2 2026 earnings per diluted share of $1.38
  • Board declares $0.38 per share dividend

PITTSBURGH, July 30, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.38 for Q2 2026, compared to $1.16 for the same quarter last year, on net income of $104.3 million for Q2 2026, compared to $91.0 million for Q2 2025.

Federated Hermes' total managed assets were a record $911.6 billion at June 30, 2026, up $65.9 billion or 8% from $845.7 billion at June 30, 2025 and up $4.5 billion from $907.1 billion at March 31, 2026. Total average managed assets for Q2 2026 were $910.0 billion, up $72.7 billion or 9% from $837.3 billion for Q2 2025 and down $5.6 billion or 1% from $915.6 billion for Q1 2026.

"In addition to reaching record high equity assets in the second quarter, we achieved record gross sales across the range of our MDT suite of quantitative investment solutions, reaching all-time highs in MDT institutional separate accounts and SMAs (separately managed accounts). We also saw net positive MDT sales for the 14th consecutive quarter," said J. Christopher Donahue, president and chief executive officer.

"We continued to broaden our investment offerings by launching two new exchange-traded funds (ETFs) and introducing our first fund designed for use by participants in the blockchain ecosystem. We also expanded our private markets business by acquiring a majority interest in U.S. real estate manager FCP Fund Manager, L.P.," he said.

Federated Hermes' board of directors declared a dividend of $0.38 per share. The dividend is payable on Aug 14, 2026 to shareholders of record as of Aug 7, 2026. During Q2 2026, Federated Hermes purchased 1,119,805 shares of Federated Hermes class B common stock for $58.9 million.

Equity assets were a record $109.6 billion at June 30, 2026, up $20.6 billion or 23% from $89.0 billion at June 30, 2025 and up $8.8 billion or 9% from $100.8 billion at March 31, 2026. Top-selling equity funds during Q2 2026 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT US Equity Fund, Federated Hermes MDT All Cap Core Fund and Federated Hermes MDT Small Cap Core Fund.

Fixed-income assets were $100.5 billion at June 30, 2026, up $1.8 billion or 2% from $98.7 billion at June 30, 2025 and up $0.7 billion or 1% from $99.8 billion at March 31, 2026. Top-selling fixed-income funds during Q2 2026 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Conservative Municipal Microshort Fund, Federated Hermes Adjustable Rate Fund and Federated Hermes Conservative Microshort Fund.

Alternative/private markets assets were $21.6 billion at June 30, 2026, up $0.9 billion or 4% from $20.7 billion at June 30, 2025 and up $2.6 billion or 14% from $19.0 billion at March 31, 2026. The increase was primarily due to $3.2 billion of assets acquired through the FCP Fund Manager, L.P. (FCP) transaction.

Money market assets were $676.9 billion at June 30, 2026, up $42.5 billion or 7% from $634.4 billion at June 30, 2025 and down $7.8 billion or 1% from $684.7 billion at March 31, 2026. Money market fund assets were $499.9 billion at June 30, 2026, up $31.9 billion or 7% from $468.0 billion at June 30, 2025 and down $2.9 billion or 1% from $502.8 billion at March 31, 2026.

Financial Summary

Q2 2026 vs. Q2 2025

Revenue increased $77.9 million or 18% primarily due to an increase from higher average equity and money market assets as well as due to the FCP acquisition in Q2 2026 ($13.9 million).

During Q2 2026, Federated Hermes derived 50% of its revenue from money market assets, 48% from long-term assets (30% from equity, 10% from fixed-income, and 8% from alternative/private markets and multi-asset) and 2% from sources other than managed assets.

Operating expenses increased $62.1 million or 20% primarily due to a $22.4 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $16.7 million increase in compensation and related expense, including $6.5 million of FCP-acquisition-related expenses, a $9.2 million increase in other expense primarily due to fluctuations in foreign currency exchange rates, and a $7.0 million increase in professional service fees including $4.7 million of FCP-acquisition-related expenses. Intangible asset related expenses increased $2.9 million, including $3.0 million of amortization of intangible assets associated with the FCP acquisition.

Nonoperating income (expenses), net for Q2 2026 decreased $2.6 million or 19% primarily due to a decrease in interest and dividend income.

Q2 2026 vs. Q1 2026

Revenue increased $23.8 million or 5% primarily due to the FCP acquisition in Q2 2026 ($13.9 million) and higher average equity assets.

Operating expenses increased $17.3 million or 5% primarily due to a $7.4 million increase in compensation and related expense including $6.5 million of FCP-acquisition-related expenses and a $4.3 million increase in professional service fees primarily due to the increase of FCP-acquisition-related expenses of $3.2 million. Intangible asset related expenses increased $3.0 million due to the amortization of intangible assets associated with the FCP acquisition.

Nonoperating income (expenses), net increased $7.7 million primarily due to a larger increase in the market value of investments in Q2 2026 as compared to the increase in the market value of the investments in Q1 2026.

YTD 2026 vs. YTD 2025

Revenue increased $133.3 million or 16% primarily due to an increase from higher average money market and equity assets and due to the FCP acquisition in Q2 2026 ($13.9 million).

For the first half of 2026, Federated Hermes derived 52% of its revenue from money market assets, 47% from long-term assets (30% from equity, 10% from fixed-income, and 7% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.

Operating expenses increased $123.0 million or 21% primarily due to a $49.0 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $27.5 million increase in compensation and related expense primarily due to higher incentive compensation and $6.5 million of FCP-acquisition-related expenses, a $27.4 million increase in other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. and fluctuations in foreign currency exchange rates, and a $9.8 million increase in professional service fees primarily due to $6.2 million in FCP-acquisition-related expenses and costs related to global technology projects. Intangible asset related expenses increased $3.1 million due primarily to $3.0 million related to the amortization of intangible assets associated with the FCP acquisition.

Nonoperating income (expenses), net decreased $3.4 million primarily due to a decrease in interest and dividend income.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, July 31, 2026. Investors are invited to listen to the earnings teleconference by calling 877-545-0523 (domestic) or 973-528-0016 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on July 31, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 54241. The online replay will be available via FederatedHermes.com/us for one year.

About Federated Hermes

Federated Hermes, Inc. is a global leader in active investment management, with $911.6 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,200 employees in London, New York, Boston and offices worldwide.

Federated Hermes ranks in the top 5% of equity fund managers, the top 8% of money market fund managers and the top 11% of fixed-income fund managers2 in the industry. Federated Hermes also ranks as the 9th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.

###

1) As of June30, 2026.
2) Morningstar, June30, 2026. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli Q1 2026.
Federated Securities Corp. is distributor of the Federated Hermes funds.
Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, Hermes GPE LLP, and Federated Hermes FCP Manager, LLC, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.

Cautionary statements
Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, investment offerings, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may," and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes' control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.


 
          
            Unaudited Condensed Consolidated Statements of Income



 
          (in thousands, except per share data)


                                                                                                     Quarter Ended                           %                    Quarter Ended                %
                                                                                                                                   Change                                             Change
                                                                                                                                  Q2 2025                                            Q1 2026
                                                                                                                                    to Q2                                              to Q2
                                                                                                                                          2026                                               2026


                                                                                       June 30, 2026               June 30, 2025                   March 31, 2026



 
          Revenue



 Investment advisory fees, net                                                             $337,721                     $287,435             17 %                         $319,408               6 %



 Administrative service fees, net-affiliates                                                110,117                      101,657                8                           110,285                 0



 Other service fees, net                                                                     54,938                       35,752               54                            49,264                12



 
          Total Revenue                                                                   502,776                      424,844               18                           478,957                 5





 
          Operating Expenses



 Compensation and related                                                                   161,528                      144,872               11                           154,119                 5



 Distribution                                                                               121,766                       99,399               23                           125,745               (3)



 Systems and communications                                                                  25,950                       23,481               11                            26,463               (2)



 Professional service fees                                                                   25,610                       18,628               37                            21,336                20



 Office and occupancy                                                                         9,836                        9,910              (1)                           10,062               (2)



 Advertising and promotional                                                                  7,329                        6,146               19                             4,098                79



 Intangible asset related                                                                     6,384                        3,503               82                             3,422                87



 Travel and related                                                                           4,558                        4,117               11                             3,850                18



 Other                                                                                        6,934                      (2,296)             402                             3,531                96



 
          Total Operating Expenses                                                        369,895                      307,760               20                           352,626                 5



 Operating Income                                                                           132,881                      117,084               13                           126,331                 5





 
          Nonoperating Income (Expenses)



 Investment income (loss), net                                                               14,330                       16,947             (15)                            6,653               115



 Debt expense                                                                               (3,159)                     (3,170)               0                           (3,185)              (1)



 Other, net                                                                                    (22)                        (35)            (37)                             (30)             (27)



 
          Total Nonoperating Income (Expenses), net                                        11,149                       13,742             (19)                            3,438               224



 Income before income taxes                                                                 144,030                      130,826               10                           129,769                11



 Income tax provision                                                                        37,216                       34,135                9                            33,823                10



 Net income including the noncontrolling interests in subsidiaries                          106,814                       96,691               10                            95,946                11



 Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries         2,496                        5,691             (56)                            (432)               NM



 Net Income                                                                                $104,318                      $91,000             15 %                          $96,378               8 %





 
          Amounts Attributable to Federated Hermes, Inc.



 
          Earnings Per Share
          
            (1)



 Basic and diluted                                                                            $1.38                        $1.16             19 %                            $1.27               9 %



 
          Weighted-Average Shares Outstanding



 Basic                                                                                       71,944                       75,064                                            72,648



 Diluted                                                                                     71,947                       75,072                                            72,650



 
          Dividends Declared Per Share                                                      $0.38                        $0.34                                             $0.34

 1) Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the
     computation of earnings per share under the "two-class method." As such, total net income of $4.8 million, $4.1 million and $4.4 million available to
     unvested restricted Federated Hermes shareholders for the quarterly periods ended June 30, 2026, June 30, 2025 and March 31, 2026, respectively, was
     excluded from the computation of earnings per share.


 
            
              Unaudited Condensed Consolidated Statements of Income



 
            (in thousands, except per share data)


                                                                                                     Six Months Ended


                                                                                       June 30, 2026       June 30, 2025  % Change



 
            Revenue



 Investment advisory fees, net                                                             $657,129             $574,895       14 %



 Administrative service fees, net-affiliates                                                220,402              202,766          9



 Other service fees, net                                                                    104,202               70,723         47



 
            Total Revenue                                                                 981,733              848,384         16





 
            Operating Expenses



 Compensation and related                                                                   315,647              288,143         10



 Distribution                                                                               247,510              198,484         25



 Systems and communications                                                                  52,413               47,707         10



 Professional service fees                                                                   46,946               37,176         26



 Office and occupancy                                                                        19,898               19,862          0



 Advertising and promotional                                                                 11,427               10,722          7



 Intangible asset related                                                                     9,805                6,699         46



 Travel and related                                                                           8,408                7,670         10



 Other                                                                                       10,467             (16,935)       162



 
            Total Operating Expenses                                                      722,521              599,528         21



 Operating Income                                                                           259,212              248,856          4





 
            Nonoperating Income (Expenses)



 Investment income (loss), net                                                               20,984               24,422       (14)



 Debt expense                                                                               (6,344)             (6,349)         0



 Other, net                                                                                    (53)                (62)      (15)



 
            Total Nonoperating Income (Expenses), net                                      14,587               18,011       (19)



 Income before income taxes                                                                 273,799              266,867          3



 Income tax provision                                                                        71,039               66,300          7



 Net income including the noncontrolling interests in subsidiaries                          202,760              200,567          1



 Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries         2,064                8,433       (76)



 Net Income                                                                                $200,696             $192,134        4 %





 
            Amounts Attributable to Federated Hermes, Inc.



 
            Earnings Per Share
            
              (1)



 Basic and diluted                                                                            $2.65                $2.40       10 %



 
            Weighted-Average Shares Outstanding



 Basic                                                                                       72,294               76,296



 Diluted                                                                                     72,297               76,300



 
            Dividends Declared Per Share                                                    $0.72                $0.65

 1) Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the
     computation of earnings per share under the "two-class method." As such, total net income of $9.1 million and $8.7 million available to unvested
     restricted Federated Hermes shareholders for the six months ended June 30, 2026 and June 30, 2025, respectively, was excluded from the computation of
     earnings per share.


  Unaudited Condensed Consolidated Balance Sheets



 
            (in thousands)                                              June 30, 2026 Dec. 31, 2025



 
            Assets



   Cash and other investments                                                  $480,710       $724,297



   Other current assets                                                         179,795        139,495



   Intangible assets, net, including goodwill                                 1,502,875      1,183,612



   Other long-term assets                                                       166,774        181,933



   Total Assets                                                              $2,330,154     $2,229,337





 
            Liabilities, Redeemable Noncontrolling Interests and Equity



   Current liabilities                                                         $254,800       $314,141



   Long-term debt                                                               348,499        348,369



   Other long-term liabilities                                                  330,001        303,350



   Redeemable noncontrolling interests                                          144,164         66,529



 Equity excluding treasury stock                                              2,226,526      2,070,162



 Treasury stock                                                               (973,836)     (873,214)



   Total Liabilities, Redeemable Noncontrolling Interests and Equity         $2,330,154     $2,229,337


 
            
              Unaudited Changes in Long-Term Assets - By Asset Class



 
            (in millions)                                                                
 
 Quarter Ended                      Six Months Ended


                                                                                     June 30,       March 31,  June 30,   June 30,                  June 30,
                                                                                        2026            2026        2025        2026                       2025



 
            Equity



 Beginning assets                                                                   $100,832          $97,898    $80,913     $97,898                    $79,423



 Sales(1)                                                                              9,062            9,091      7,961      18,153                     15,373



 Redemptions(1)                                                                     (10,202)         (6,878)   (6,180)   (17,080)                  (12,173)



 Net sales (redemptions)(1)                                                          (1,140)           2,213      1,781       1,073                      3,200



 Net exchanges                                                                           134            (139)         0         (5)                     (114)



 Impact of foreign exchange(2)                                                          (37)           (287)     1,023       (324)                     1,777



 Market gains and (losses)(3)                                                          9,801            1,147      5,277      10,948                      4,708



 Ending assets                                                                      $109,590         $100,832    $88,994    $109,590                    $88,994





 
            Fixed Income



 Beginning assets                                                                    $99,798         $100,127    $99,486    $100,127                    $98,059



 Sales(1)                                                                              7,687            5,927      5,267      13,614                     11,211



 Redemptions(1)                                                                      (7,864)         (6,349)   (7,652)   (14,213)                  (13,940)



 Net sales (redemptions)(1)                                                            (177)           (422)   (2,385)      (599)                   (2,729)



 Net exchanges                                                                         (153)             148          5         (5)                       106



 Impact of foreign exchange(2)                                                          (12)            (40)       208        (52)                       293



 Market gains and (losses)(3)                                                          1,031             (15)     1,373       1,016                      2,958



 Ending assets                                                                      $100,487          $99,798    $98,687    $100,487                    $98,687




               Alternative/Private Markets



 Beginning assets                                                                    $18,991          $19,101    $19,426     $19,101                    $18,864



 Sales(1)                                                                                650              629        782       1,279                      1,867



 Redemptions(1)                                                                      (1,002)           (547)     (551)    (1,549)                   (1,575)



 Net sales (redemptions)(1)                                                            (352)              82        231       (270)                       292



 Net exchanges                                                                             8                0        (1)          8                          0



 Acquisitions/(dispositions)                                                           3,237                0        109       3,237                        109



 Impact of foreign exchange(2)                                                            26            (275)     1,091       (249)                     1,623



 Market gains and (losses)(3)                                                          (263)              83      (118)      (180)                     (150)



 Ending assets                                                                       $21,647          $18,991    $20,738     $21,647                    $20,738





 
            Multi-asset



 Beginning assets                                                                     $2,778           $2,854     $2,826      $2,854                     $2,883



 Sales(1)                                                                                 41               58         44          99                        107



 Redemptions(1)                                                                        (102)            (94)     (137)      (196)                     (242)



 Net sales (redemptions)(1)                                                             (61)            (36)      (93)       (97)                     (135)



 Net exchanges                                                                             0                1        (2)          1                          0



 Market gains and (losses)(3)                                                            222             (41)       125         181                        108



 Ending assets                                                                        $2,939           $2,778     $2,856      $2,939                     $2,856





 
            Total Long-term Assets



 Beginning assets                                                                   $222,399         $219,980   $202,651    $219,980                   $199,229



 Sales(1)                                                                             17,440           15,705     14,054      33,145                     28,558



 Redemptions(1)                                                                     (19,170)        (13,868)  (14,520)   (33,038)                  (27,930)



 Net sales (redemptions)(1)                                                          (1,730)           1,837      (466)        107                        628



 Net exchanges                                                                          (11)              10          2         (1)                       (8)



 Acquisitions/(dispositions)                                                           3,237                0        109       3,237                        109



 Impact of foreign exchange(2)                                                          (23)           (602)     2,322       (625)                     3,693



 Market gains and (losses)(3)                                                         10,791            1,174      6,657      11,965                      7,624



 Ending assets                                                                      $234,663         $222,399   $211,275    $234,663                   $211,275

 1) For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings, Sales and
     Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.


 2) Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.


 3) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and
     net investment income.


 
            
              Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type



 
            (in millions)


                                                                                                                             
         
       Quarter Ended


                                                                                                                             
         
       June 30, 2026


                                                                                  Equity                         Fixed Income                     Alternative /
                                                                                                                                                         Private                     Multi-asset                           Total
                                                                                                                                         Markets


                                                                  Funds              Separate            Funds           Separate        Funds              Separate      Funds              Separate         Funds.              Separate
                                                                               Accounts(1)                         Accounts(1)                        Accounts(1)                      Accounts(1)                          Accounts(1)



 Beginning assets                                              $55,188                $45,644           $45,921             $53,877       $12,339                 $6,652      $2,774                     $4        $116,222               $106,177



 Sales                                                           5,443                  3,619             3,867               3,820           576                     74          41                      0           9,927                  7,513



 Redemptions                                                   (4,080)               (6,122)          (3,994)            (3,870)        (661)                 (341)      (102)                     0         (8,837)              (10,333)



 Net sales (redemptions)                                         1,363                (2,503)            (127)               (50)         (85)                 (267)       (61)                     0           1,090                (2,820)



 Net exchanges                                                     144                   (10)            (153)                  0             8                      0           0                      0             (1)                  (10)



 Acquisitions/(dispositions)                                         0                      0                 0                   0         2,788                    449           0                      0           2,788                    449



 Impact of foreign exchange(2)                                    (68)                    31               (3)                (9)           12                     14           0                      0            (59)                    36



 Market gains and (losses)(3)                                    7,442                  2,359               551                 480         (144)                 (119)        222                      0           8,071                  2,720



 Ending assets                                                 $64,069                $45,521           $46,189             $54,298       $14,918                 $6,729      $2,935                     $4        $128,111               $106,552




                                                                                                                           
         
       Six Months Ended


                                                                                                                             
         
       June 30, 2026


                                                                                  Equity                         Fixed Income                     Alternative /
                                                                                                                                                         Private                     Multi-asset                           Total
                                                                                                                                         Markets


                                                                  Funds              Separate            Funds           Separate        Funds              Separate      Funds              Separate         Funds               Separate
                                                                               Accounts(1)                         Accounts(1)                        Accounts(1)                      Accounts(1)                          Accounts(1)



 Beginning assets                                              $54,988                $42,910           $45,973             $54,154       $12,085                 $7,016      $2,850                     $4        $115,896               $104,084



 Sales                                                          11,298                  6,855             7,852               5,762         1,185                     94          99                      0          20,434                 12,711



 Redemptions                                                   (8,641)               (8,439)          (7,987)            (6,226)        (979)                 (570)      (196)                     0        (17,803)              (15,235)



 Net sales (redemptions)                                         2,657                (1,584)            (135)              (464)          206                  (476)       (97)                     0           2,631                (2,524)



 Net exchanges                                                    (25)                    20               (5)                  0             8                      0           1                      0            (21)                    20



 Acquisition/(dispositions)                                          0                      0                 0                   0         2,788                    449           0                      0           2,788                    449



 Impact of foreign exchange(2)                                   (226)                  (98)             (29)               (23)        (147)                 (102)          0                      0           (402)                 (223)



 Market gains and (losses)(3)                                    6,675                  4,273               385                 631          (22)                 (158)        181                      0           7,219                  4,746



 Ending assets                                                 $64,069                $45,521           $46,189             $54,298       $14,918                 $6,729      $2,935                     $4        $128,111               $106,552

 1)     Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and
         Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.


 2) 
 
 Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.


 3)     Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and
         net investment income.


 
            
              Unaudited Changes in Long-Term Assets - By Offering Type



 
            (in millions)                                                                    
 
 Quarter Ended                        Six Months Ended


                                                                                       June 30,      March 31, 2026  June 30,   June 30,                  June 30,
                                                                                          2026                           2025        2026                       2025



 
            Total Fund Assets



 Beginning assets                                                                     $116,222             $115,896   $104,289    $115,896                   $103,567



 Sales                                                                                   9,927               10,507      8,753      20,434                     18,032



 Redemptions                                                                           (8,837)             (8,966)   (9,166)   (17,803)                  (17,929)



 Net sales (redemptions)                                                                 1,090                1,541      (413)      2,631                        103



 Net exchanges                                                                             (1)                (20)         3        (21)                         3



 Acquisitions/(dispositions)                                                             2,788                    0        109       2,788                        109



 Impact of foreign exchange(1)                                                            (59)               (343)     1,313       (402)                     1,998



 Market gains and (losses)(2)                                                            8,071                (852)     5,108       7,219                      4,629



 Ending assets                                                                        $128,111             $116,222   $110,409    $128,111                   $110,409




               Total Separate Account Assets
                 (3)



 Beginning assets                                                                     $106,177             $104,084    $98,362    $104,084                    $95,662



 Sales4                                                                                  7,513                5,198      5,301      12,711                     10,526



 Redemptions4                                                                         (10,333)             (4,902)   (5,354)   (15,235)                  (10,001)



 Net sales (redemptions)4                                                              (2,820)                 296       (53)    (2,524)                       525



 Net exchanges                                                                            (10)                  30        (1)         20                       (11)



 Acquisitions/(dispositions)                                                               449                    0          0         449                          0



 Impact of foreign exchange(1)                                                              36                (259)     1,009       (223)                     1,695



 Market gains and (losses)(2)                                                            2,720                2,026      1,549       4,746                      2,995



 Ending assets                                                                        $106,552             $106,177   $100,866    $106,552                   $100,866




               Total Long-term Assets
            
              (3)



 Beginning assets                                                                     $222,399             $219,980   $202,651    $219,980                   $199,229



 Sales4                                                                                 17,440               15,705     14,054      33,145                     28,558



 Redemptions4                                                                         (19,170)            (13,868)  (14,520)   (33,038)                  (27,930)



 Net sales (redemptions)4                                                              (1,730)               1,837      (466)        107                        628



 Net exchanges                                                                            (11)                  10          2         (1)                       (8)



 Acquisitions/(dispositions)                                                             3,237                    0        109       3,237                        109



 Impact of foreign exchange(1)                                                            (23)               (602)     2,322       (625)                     3,693



 Market gains and (losses)(2)                                                           10,791                1,174      6,657      11,965                      7,624



 Ending assets                                                                        $234,663             $222,399   $211,275    $234,663                   $211,275

 1) Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.


 2) Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends,
     distributions and net investment income.


 3) Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings.


 4) For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the
     calculation of total investment return.

                                Unaudited Managed Assets



   (in millions)                                        June 30, March 31,  Dec. 31,   Sept. 30,    June 30,
                                                            2026      2026        2025        2025          2025


                                By Asset Class

---


   Equity(1)                                            $109,590   $100,832    $97,898      $94,656      $88,994



   Fixed-Income                                          100,487     99,798    100,127      101,813       98,687



   Alternative / Private Markets                          21,647     18,991     19,101       19,024       20,738



   Multi-Asset(1)                                          2,939      2,778      2,854        2,940        2,856



   Total Long-Term Assets                                234,663    222,399    219,980      218,433      211,275



   Money Market                                          676,897    684,748    682,604      652,767      634,400



   
            Total Managed Assets                    $911,560   $907,147   $902,584     $871,200     $845,675




                                By Offering Type

---


   
            Funds:



   Equity                                                $64,069    $55,188    $54,988      $54,110      $49,359



   Fixed-Income                                           46,189     45,921     45,973       46,478       45,415



   Alternative / Private Markets                          14,918     12,339     12,085       11,814       12,905



   Multi-Asset                                             2,935      2,774      2,850        2,813        2,730



   Total Long-Term Assets                                128,111    116,222    115,896      115,215      110,409



   Money Market                                          499,927    502,775    508,403      492,701      468,044



   
            Total Fund Assets                       $628,038   $618,997   $624,299     $607,916     $578,453



   
            Separate Accounts:



   Equity(1)                                             $45,521    $45,644    $42,910      $40,546      $39,635



   Fixed-Income                                           54,298     53,877     54,154       55,335       53,272



   Alternative / Private Markets                           6,729      6,652      7,016        7,210        7,833



   Multi-Asset(1)                                              4          4          4          127          126



   Total Long-Term Assets                                106,552    106,177    104,084      103,218      100,866



   Money Market                                          176,970    181,973    174,201      160,066      166,356


                 Total Separate Account Assets           $283,522   $288,150   $278,285     $263,284     $267,222



   
            Total Managed Assets                    $911,560   $907,147   $902,584     $871,200     $845,675


 
 
 1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

                                Unaudited Average Managed Assets                
    
 Quarter Ended



   (in millions)                                                June 30, March 31,          Dec. 31,   Sept. 30,    June 30,
                                                                    2026      2026                2025        2025          2025



   
            
              By Asset Class

---


   Equity(1)                                                    $107,031   $102,037            $96,404      $92,436      $83,564



   Fixed-Income                                                  100,041    100,996            100,855       99,206       98,365



   Alternative / Private Markets                                  22,359     19,232             18,971       19,862       20,053



   Multi-Asset(1)                                                  2,898      2,859              2,836        2,895        2,779



   Total Long-Term Assets                                        232,329    225,124            219,066      214,399      204,761



   Money Market                                                  677,685    690,450            654,635      645,092      632,543



   
            Total Avg. Managed Assets                       $910,014   $915,574           $873,701     $859,491     $837,304





   
            
              By Offering Type

---


   
            Funds:



   Equity                                                        $60,933    $56,987            $55,101      $51,828      $45,965



   Fixed-Income                                                   45,827     46,096             46,116       45,743       44,972



   Alternative / Private Markets                                  15,253     12,254             11,871       12,347       12,370



   Multi-Asset                                                     2,893      2,855              2,833        2,770        2,654



   Total Long-Term Assets                                        124,906    118,192            115,921      112,688      105,961



   Money Market                                                  498,338    507,752            493,355      482,237      462,683



   
            Total Avg. Fund Assets                          $623,244   $625,944           $609,276     $594,925     $568,644



   
            Separate Accounts:



   Equity(1)                                                     $46,098    $45,050            $41,303      $40,608      $37,599



   Fixed-Income                                                   54,214     54,900             54,739       53,463       53,393



   Alternative / Private Markets                                   7,106      6,978              7,100        7,515        7,683



   Multi-Asset(1)                                                      5          4                  3          125          125



   Total Long-Term Assets                                        107,423    106,932            103,145      101,711       98,800



   Money Market                                                  179,347    182,698            161,280      162,855      169,860



   
            Total Avg. Separate Account Assets              $286,770   $289,630           $264,425     $264,566     $268,660



   
            Total Avg. Managed Assets                       $910,014   $915,574           $873,701     $859,491     $837,304


 
 
 1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

                                Unaudited Average Managed Assets               Six Months Ended



   
            (in millions)                                   June 30, 2026                  June 30, 2025



   
            
              By Asset Class

---


   Equity(1)                                                         $104,534                         $82,834



   Fixed-Income                                                       100,519                          98,862



   Alternative / Private Markets                                       20,796                          19,533



   Multi-Asset(1)                                                       2,878                           2,840



   Total Long-Term Assets                                             228,727                         204,069



   Money Market                                                       684,067                         636,185



   
            Total Avg. Managed Assets                            $912,794                        $840,254





   
            
              By Offering Type

---


   
            Funds:



   Equity                                                             $58,960                         $45,612



   Fixed-Income                                                        45,962                          45,344



   Alternative / Private Markets                                       13,754                          11,990



   Multi-Asset                                                          2,873                           2,714



   Total Long-Term Assets                                             121,549                         105,660



   Money Market                                                       503,045                         463,205



   
            Total Avg. Fund Assets                               $624,594                        $568,865



   
            Separate Accounts:



   Equity(1)                                                          $45,574                         $37,222



   Fixed-Income                                                        54,557                          53,518



   Alternative / Private Markets                                        7,042                           7,543



   Multi-Asset(1)                                                           5                             126



   Total Long-Term Assets                                             107,178                          98,409



   Money Market                                                       181,022                         172,980



   
            Total Avg. Separate Account Assets                   $288,200                        $271,389



   
            Total Avg. Managed Assets                            $912,794                        $840,254


 
 
 1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.

View original content:https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-record-assets-under-management-with-second-quarter-2026-earnings-302839477.html

SOURCE Federated Hermes, Inc.

Contact:

MEDIA: Ed Costello, 412-288-7538; ANALYSTS: Ray Hanley, 412-288-1920

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