23:01:56 EST Thu 29 Jan 2026
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Federated Hermes, Inc. reports record assets under management with fourth quarter and full-year 2025 earnings

2026-01-29 16:17 ET - News Release

Federated Hermes, Inc. reports record assets under management with fourth quarter and full-year 2025 earnings

PR Newswire

  • Q4 2025 earnings per diluted share of $1.39; full-year 2025 EPS of $5.13
  • Total assets under management (AUM) at record $902.6 billion
  • Money market AUM reach a record $682.6 billion
  • Board declares $0.34 per share quarterly dividend

PITTSBURGH, Jan. 29, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) for Q4 2025 of $1.39, compared to $1.04 for the same quarter last year, on net income of $107.0 million for Q4 2025, compared to $84.7 million for Q4 2024. Full-year 2025 EPS was $5.13, compared to $3.23 for 2024 on net income of $403.3 million for 2025, compared to $268.3 million for 2024. Federated Hermes' full-year 2024 results included a $66.3 million non-cash expense, or ($0.73) per diluted share, related to the Q2 2024 impairment of an indefinite-lived intangible asset.

Federated Hermes' total managed assets were a record $902.6 billion at Dec. 31, 2025, up $73.0 billion or 9% from $829.6 billion at Dec. 31, 2024 and up $31.4 billion or 4% from $871.2 billion at Sept. 30, 2025. Average managed assets for Q4 2025 were $873.7 billion, up $69.3 billion or 9% from $804.4 billion reported for Q4 2024 and up $14.2 billion or 2% from $859.5 billion reported for Q3 2025.

"Federated Hermes' record assets at year-end were again driven by money market asset increases, as our liquidity products provided attractive cash management resources and opportunities for risk-adjusted returns," said J. Christopher Donahue, president and chief executive officer. "We also continued to see investor interest in our growing range of investment solutions beyond mutual funds, including ETFs, CITs and SMAs, which provide additional opportunities for financial professionals to meet the needs of their customers. In the fourth quarter, SMA net sales were led by our MDT All Cap Core strategy, our MDT Mid Cap Growth equity strategy and our Core Plus fixed-income strategy."

Federated Hermes' board of directors declared a quarterly dividend of $0.34 per share. The dividend is payable on Feb. 13, 2026 to shareholders of record as of Feb. 6, 2026. During Q4 2025, Federated Hermes purchased 1,566,901 shares of Federated Hermes class B common stock for $78.7 million, bringing the total shares of Class B common stock purchased in 2025 to 6,192,433 shares for $263.4 million.

Federated Hermes' equity assets were $97.9 billion at Dec. 31, 2025, up $18.5 billion or 23% from $79.4 billion at Dec. 31, 2024 and up $3.2 billion or 3% from $94.7 billion at Sept. 30, 2025. Top-selling equity funds on a net basis during Q4 2025 were Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT US Equity Fund, Federated Hermes Asia ex-Japan Fund and Federated Hermes MDT All Cap Core Fund.

Federated Hermes' fixed-income assets were $100.1 billion at Dec. 31, 2025, up $2.0 billion or 2% from $98.1 billion at Dec. 31, 2024 and down $1.7 billion or 2% from $101.8 billion at Sept. 30, 2025. Top-selling fixed-income funds on a net basis during Q4 2025 were Federated Hermes Ultrashort Bond Fund, Federated Hermes Government Ultrashort Fund, Federated Hermes Total Return Bond Fund, Federated Hermes Short-Term Income Fund and Federated Hermes Municipal Ultrashort Fund.

Federated Hermes' alternative/private markets assets were $19.1 billion at Dec. 31, 2025, up $0.2 billion or 1% from $18.9 billion at Dec. 31, 2024 and up $0.1 billion or less than 1% from $19.0 billion at Sept. 30, 2025.

Federated Hermes' money market assets were a record $682.6 billion at Dec. 31, 2025, up $52.3 billion or 8% from $630.3 billion at Dec. 31, 2024 and up $29.8 billion or 5% from $652.8 billion at Sept. 30, 2025. Money market mutual fund assets were a record $508.4 billion at Dec. 31, 2025, up $46.7 billion or 10% from $461.7 billion at Dec. 31, 2024 and up $15.7 billion or 3% from $492.7 billion at Sept. 30, 2025. Federated Hermes' money market separate account assets were a record $174.2 billion at Dec. 31, 2025, up $5.6 billion or 3% from $168.6 billion at Dec. 31, 2024 and up $14.1 billion or 9% from $160.1 billion at Sept. 30, 2025.

Financial Summary

Q4 2025 vs. Q4 2024

Revenue increased $58.2 million or 14% primarily due to a $51.7 million increase in revenue from higher average money market and equity assets and a $7.9 million increase in real estate development fees.

During Q4 2025, Federated Hermes derived 52% of its revenue from money market assets, 45% from long-term assets (29% from equity assets, 11% from fixed-income assets and 5% from alternative/private markets and multi-asset) and 3% from sources other than managed assets.

Operating expenses increased $33.0 million or 11% primarily due to a $24.3 million increase in distribution expenses resulting primarily from higher average money market fund assets and an increase in compensation and related expense of $7.8 million primarily related to higher incentive compensation.

Nonoperating income (expenses), net increased $2.9 million primarily due to an increase in the market value of investments in Q4 2025 compared to a decrease in the market value of investments in Q4 2024.

Q4 2025 vs. Q3 2025

Revenue increased $13.4 million or 3% primarily due to a $13.5 million increase in revenue from higher average money market and equity assets and an $8.3 million increase in real estate development fees.

Operating expenses increased $7.3 million or 2% primarily due to an $8.8 million increase in distribution expenses resulting primarily from higher average money market fund assets.

Nonoperating income (expenses), net decreased $6.1 million primarily due to a smaller increase in the market value of investments in Q4 2025 as compared to the increase in the market value of investments in Q3 2025.

2025 vs. 2024

Revenue increased $168.6 million or 10% primarily due to a $142.5 million increase in revenue from higher average money market and equity assets, a $7.9 million increase in performance fees and a $7.8 million increase in real estate development fees.

During 2025, Federated Hermes derived 53% of its revenue from money market assets, 45% from long-term assets (28% from equity assets, 11% from fixed-income assets and 6% from alternative/private markets and multi-asset) and 2% from sources other than managed assets.

Operating expenses increased by $16.2 million or 1% primarily due to a $52.1 million increase in distribution expenses resulting primarily from higher average money market fund assets and an increase in compensation and related expense of $37.2 million primarily related to higher incentive compensation. These increases were partially offset by lower intangible asset related expense resulting from the $66.3 million impairment of an indefinite-lived intangible asset in Q2 2024 associated with the 2018 acquisition of Federated Hermes Limited and a $16.1 million decrease 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.

Nonoperating income (expenses), net increased $13.5 million primarily due to a larger increase in the market value of investments in 2025 as compared to the increase in the market value of investments in 2024.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Jan. 30, 2026. Investors are invited to listen to the earnings teleconference by calling 888-506-0062 (domestic) or 973-528-0011 (international) prior to the 9 a.m. start time. To listen online, visit FederatedHermes.com/us at least 15 minutes prior to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on Jan. 30, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 53455. 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, responsible investment management, with $902.6 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 2,000 employees in London, New York, Boston and offices worldwide.

Federated Hermes ranks in the top 6% of equity fund managers, the top 8% of money market fund managers and the top 12% of fixed-income fund managers2 in the industry. Federated Hermes also ranks as the 10th-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 Dec. 31, 2025.
2) Morningstar, Dec. 31, 2025. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli,Q3 2025.
Federated Securities Corp. is distributor of the U.S. registered 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, and Hermes GPE LLP, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.

Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, 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                           % Change        Quarter Ended                 % Change
                                                                                                                                  Q4 2024 to                                    Q3 2025 to
                                                                                                                                    Q4 2025                                       Q4 2025


                                                                                       Dec. 31, 2025               Dec. 31, 2024            Sept. 30, 2025



 
          Revenue



 Investment advisory fees, net                                                             $313,975                     $288,329                        9 %          $310,366                       1 %



 Administrative service fees, net                                                           109,759                       99,711                         10            107,234                         2



 Other service fees, net                                                                     59,099                       36,643                         61             51,846                        14



 
          Total Revenue                                                                   482,833                      424,683                         14            469,446                         3





 
          Operating Expenses



 Compensation and related                                                                   144,981                      137,165                          6            144,563                         0



 Distribution                                                                               122,339                       98,070                         25            113,569                         8



 Systems and communications                                                                  24,719                       23,843                          4             26,023                       (5)



 Professional service fees                                                                   23,399                       20,307                         15             20,239                        16



 Office and occupancy                                                                         9,704                       10,328                        (6)            10,129                       (4)



 Advertising and promotional                                                                  7,001                        7,785                       (10)             5,264                        33



 Travel and related                                                                           4,677                        4,058                         15              4,665                         0



 Intangible asset related                                                                     3,475                        3,230                          8              3,556                       (2)



 Other                                                                                        6,964                        9,470                       (26)            11,986                      (42)



 
          Total Operating Expenses                                                        347,259                      314,256                         11            339,994                         2



 Operating Income                                                                           135,574                      110,427                         23            129,452                         5





 
          Nonoperating Income (Expenses)



 Investment income (loss), net                                                                7,886                        5,037                         57             14,105                      (44)



 Debt expense                                                                               (3,201)                     (3,187)                         0            (3,182)                        1



 Other, net                                                                                      73                           54                         35               (48)                      252



 
          Total Nonoperating Income (Expenses), net                                         4,758                        1,904                        150             10,875                      (56)



 Income before income taxes                                                                 140,332                      112,331                         25            140,327                         0



 Income tax provision                                                                        32,899                       28,477                         16             34,232                       (4)



 Net income including the noncontrolling interests in subsidiaries                          107,433                       83,854                         28            106,095                         1



 Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries           394                        (862)                       146              1,969                      (80)



 Net Income                                                                                $107,039                      $84,716                       26 %          $104,126                       3 %





 
          Amounts Attributable to Federated Hermes, Inc.



 
          Earnings Per Share(1)



 Basic and diluted                                                                            $1.39                        $1.04                       34 %             $1.34                       4 %



 
          Weighted-Average Shares Outstanding



 Basic and Diluted                                                                           73,795                       78,300                                       74,057



 
          Dividends Declared Per Share                                                      $0.34                        $0.31                                        $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, $3.6 million and $4.7 million available to
     unvested restricted Federated Hermes shareholders for the quarterly periods ended Dec. 31, 2025, Dec. 31, 2024 and Sept. 30, 2025, respectively, was
     excluded from the computation of earnings per share.


 
            
              Unaudited Condensed Consolidated Statements of Income



 
            (in thousands, except per share data)


                                                                                                  
 
 Year Ended


                                                                                    Dec. 31, 2025         Dec. 31, 2024  % Change



 
            Revenue



 Investment advisory fees, net                                                        $1,199,236             $1,097,866        9 %



 Administrative service fees, net-affiliates                                             419,759                387,531          8



 Other service fees, net                                                                 181,668                146,696         24



 
                 Total Revenue                                                       1,800,663              1,632,093         10





 
            Operating Expenses



 Compensation and related                                                                577,686                540,486          7



 Distribution                                                                            434,391                382,327         14



 Systems and communications                                                               98,449                 92,515          6



 Professional service fees                                                                80,814                 78,353          3



 Office and occupancy                                                                     39,695                 39,946        (1)



 Advertising and promotional                                                              22,986                 24,090        (5)



 Travel and related                                                                       17,012                 15,399         10



 Intangible asset related                                                                 13,731                 79,361       (83)



 Other                                                                                     2,017                 18,149       (89)



 
                 Total Operating Expenses                                            1,286,781              1,270,626          1



 Operating Income                                                                        513,882                361,467         42





 
            Nonoperating Income (Expenses)



 Investment income (loss), net                                                            46,412                 32,668         42



 Debt expense                                                                           (12,732)              (12,665)         1



 Other, net                                                                                 (36)                   139      (126)



 
                 Total Nonoperating Income (Expenses), net                              33,644                 20,142         67



 Income before income taxes                                                              547,526                381,609         43



 Income tax provision                                                                    133,431                113,179         18



 Net income including the noncontrolling interests in subsidiaries                       414,095                268,430         54



 Less: Net income attributable to the noncontrolling                                      10,796                    116         NM


 interests in subsidiaries



 Net Income                                                                             $403,299               $268,314       50 %





 
            Amounts Attributable to Federated Hermes, Inc.



 
            Earnings Per Share(1)



 Basic and diluted                                                                         $5.13                  $3.23       59 %



 
            Weighted-Average Shares Outstanding



     Basic                                                                                75,101                 79,426



     Diluted                                                                              75,103                 79,430



 
            Dividends Declared Per Share                                                 $1.33                  $2.21



 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 $18.1 million and $11.6 million available to unvested
     restricted Federated Hermes shareholders for the years ended Dec. 31, 2025 and Dec. 31, 2024, respectively, was excluded from the computation of earnings
     per share.


 
            
              Unaudited Condensed Consolidated Balance Sheets



 
            (in thousands)                                                        Dec. 31, 2025 Dec. 31, 2024



 
            Assets



   Cash and other investments                                                            $724,297       $641,042



   Other current assets                                                                   139,495        140,310



   Intangible assets, net, including goodwill                                           1,183,612      1,132,699



   Other long-term assets                                                                 181,933        170,633



 
                Total Assets                                                         $2,229,337     $2,084,684





 
            Liabilities, Redeemable Noncontrolling Interests and Equity



   Current liabilities                                                                   $314,141       $289,193



   Long-term debt                                                                         348,369        348,106



   Other long-term liabilities                                                            303,350        296,665



   Redeemable noncontrolling interests                                                     66,529         55,514



 Equity excluding treasury stock                                                        2,070,162      1,728,044



 Treasury stock                                                                         (873,214)     (632,838)



 
                Total Liabilities, Redeemable Noncontrolling Interests and Equity    $2,229,337     $2,084,684


 
            
              Unaudited Changes in Long-Term Assets - By Asset Class



 
            (in millions)                                                                    
 
 Quarter Ended                                     Year Ended


                                                                                  Dec. 31, 2025      Sept. 30, 2025  Dec. 31, 2024   Dec. 31, 2025               Dec. 31, 2024



 
            Equity



 Beginning assets                                                                      $94,656              $88,994         $83,609          $79,423                      $79,291



 Sales(1)                                                                                8,949                6,845           4,868           31,167                       16,201



 Redemptions(1)                                                                        (7,431)             (6,975)        (7,388)        (26,579)                    (26,856)



 Net sales (redemptions)(1)                                                              1,518                (130)        (2,520)           4,588                     (10,655)



 Net exchanges                                                                             139                  154            (39)             179                         (29)



 Impact of foreign exchange(2)                                                             107                 (85)        (1,313)           1,799                      (1,143)



 Market gains and (losses)(3)                                                            1,478                5,723           (314)          11,909                       11,959



 Ending assets                                                                         $97,898              $94,656         $79,423          $97,898                      $79,423





 
            Fixed Income



 Beginning assets                                                                     $101,813              $98,687        $100,171          $98,059                      $94,920



 Sales(1)                                                                                5,891                7,545           6,400           24,647                       25,590



 Redemptions(1)                                                                        (8,687)             (5,887)        (7,345)        (28,514)                    (25,381)



 Net sales (redemptions)(1)                                                            (2,796)               1,658           (945)         (3,867)                         209



 Net exchanges                                                                              15                (134)             35             (13)                       (163)



 Impact of foreign exchange(2)                                                               6                 (22)          (160)             277                        (141)



 Market gains and (losses)(3)                                                            1,089                1,624         (1,042)           5,671                        3,234



 Ending assets                                                                        $100,127             $101,813         $98,059         $100,127                      $98,059




               Alternative /Private Markets



 Beginning assets                                                                      $19,024              $20,738         $20,683          $18,864                      $20,551



 Sales(1)                                                                                  724                  670             618            3,261                        2,584



 Redemptions(1)                                                                          (592)             (2,291)        (1,487)         (4,458)                     (4,285)



 Net sales (redemptions)(1)                                                                132              (1,621)          (869)         (1,197)                     (1,701)



 Net exchanges                                                                               0                    0             (1)               0                          187



 Acquisitions/(dispositions)                                                                 0                    0               0              109                            0



 Impact of foreign exchange(2)                                                              35                (341)        (1,188)           1,317                        (376)



 Market gains and (losses)(3)                                                             (90)                 248             239                8                          203



 Ending assets                                                                         $19,101              $19,024         $18,864          $19,101                      $18,864





 
            Multi-asset



 Beginning assets                                                                       $2,940               $2,856          $2,958           $2,883                       $2,867



 Sales(1)                                                                                   59                   45              45              211                          169



 Redemptions(1)                                                                           (92)                (92)           (97)           (426)                       (416)



 Net sales (redemptions)(1)                                                               (33)                (47)           (52)           (215)                       (247)



 Net exchanges                                                                           (121)                 (3)              8            (124)                          13



 Market gains and (losses)(3)                                                               68                  134            (31)             310                          250



 Ending assets                                                                          $2,854               $2,940          $2,883           $2,854                       $2,883





 
            Total Long-term Assets



 Beginning assets                                                                     $218,433             $211,275        $207,421         $199,229                     $197,629



 Sales(1)                                                                               15,623               15,105          11,931           59,286                       44,544



 Redemptions(1)                                                                       (16,802)            (15,245)       (16,317)        (59,977)                    (56,938)



 Net sales (redemptions)(1)                                                            (1,179)               (140)        (4,386)           (691)                    (12,394)



 Net exchanges                                                                              33                   17               3               42                            8



 Acquisitions/(dispositions)                                                                 0                    0               0              109                            0



 Impact of foreign exchange(2)                                                             148                (448)        (2,661)           3,393                      (1,660)



 Market gains and (losses)(3)                                                            2,545                7,729         (1,148)          17,898                       15,646



 Ending assets                                                                        $219,980             $218,433        $199,229         $219,980                     $199,229



 1)   For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed products, 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 Asset Class and Product Type



 
            (in millions)


                                                                                                                            
        
          Quarter Ended


                                                                                                                            
        
          Dec. 31, 2025


                                                                                     Equity                      Fixed Income                       Alternative /Private
                                                                                                                                                           Markets                     Multi-asset                             Total


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



 Beginning assets                                                 $54,110                $40,546        $46,478             $55,335         $11,814                 $7,210      $2,813                   $127         $115,215               $103,218



 Sales                                                              5,661                  3,288          4,017               1,874             682                     42          59                      0           10,419                  5,204



 Redemptions                                                      (5,278)               (2,153)       (5,015)            (3,672)          (450)                 (142)       (92)                     0         (10,835)               (5,967)



 Net sales (redemptions)                                              383                  1,135          (998)            (1,798)            232                  (100)       (33)                     0            (416)                 (763)



 Net exchanges                                                         16                    123             15                   0               0                      0           2                  (123)              33                      0



 Impact of foreign exchange(2)                                         10                     97              5                   1              19                     16           0                      0               34                    114



 Market gains and (losses)(3)                                         469                  1,009            473                 616              20                  (110)         68                      0            1,030                  1,515



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




                                                                                                                              
        
          Year Ended


                                                                                                                            
        
          Dec. 31, 2025


                                                                                     Equity                      Fixed Income                       Alternative /Private
                                                                                                                                                           Markets                     Multi-asset                             Total


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



 Beginning assets                                                 $43,752                $35,671        $45,550             $52,509         $11,501                 $7,363      $2,764                   $119         $103,567                $95,662



 Sales                                                             19,937                 11,230         14,289              10,358           3,032                    229         211                      0           37,469                 21,817



 Redemptions                                                     (16,502)              (10,077)      (16,633)           (11,881)        (3,577)                 (881)      (401)                  (25)        (37,113)              (22,864)



 Net sales (redemptions)                                            3,435                  1,153        (2,344)            (1,523)          (545)                 (652)      (190)                  (25)             356                (1,047)



 Net exchanges                                                         63                    116            (9)                (4)              0                      0         (1)                 (123)              53                   (11)



 Acquisitions/(dispositions)                                            0                      0              0                   0             109                      0           0                      0              109                      0



 Impact of foreign exchange(2)                                        833                    966            158                 119             747                    570           0                      0            1,738                  1,655



 Market gains and (losses)3                                         6,905                  5,004          2,618               3,053             273                  (265)        277                     33           10,073                  7,825



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



 1)                Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed products. 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 Product Type


 
            (in millions)


                                                                                                    
 
 Quarter Ended                                Year Ended


                                                                                      Dec. 31, 2025      Sept. 30, 2025  Dec. 31, 2024   Dec. 31,
                                                                                                                                            2025                Dec. 31, 2024





 
            Total Fund Assets



 Beginning assets                                                                         $115,215             $110,409        $106,799    $103,567                    $101,530



 Sales                                                                                      10,419                9,018           7,704      37,469                      27,834



 Redemptions                                                                              (10,835)             (8,349)        (8,392)   (37,113)                   (32,613)



 Net sales (redemptions)                                                                     (416)                 669           (688)        356                     (4,779)



 Net exchanges                                                                                  33                   17               4          53                          26



 Acquisitions/(dispositions)                                                                     0                    0               0         109                           0



 Impact of foreign exchange(1)                                                                  34                (294)        (1,372)      1,738                       (737)



 Market gains and (losses)(2)                                                                1,030                4,414         (1,176)     10,073                       7,527



 Ending assets                                                                            $115,896             $115,215        $103,567    $115,896                    $103,567





 
            Total Separate Accounts Assets(3)



 Beginning assets                                                                         $103,218             $100,866        $100,622     $95,662                     $96,099



 Sales4                                                                                      5,204                6,087           4,227      21,817                      16,710



 Redemptions4                                                                              (5,967)             (6,896)        (7,925)   (22,864)                   (24,325)



 Net sales (redemptions)4                                                                    (763)               (809)        (3,698)    (1,047)                    (7,615)



 Net exchanges                                                                                   0                    0             (1)       (11)                       (18)



 Impact of foreign exchange(1)                                                                 114                (154)        (1,289)      1,655                       (923)



 Market gains and (losses)(2)                                                                1,515                3,315              28       7,825                       8,119



 Ending assets                                                                            $104,084             $103,218         $95,662    $104,084                     $95,662





 
            Total Long-term Assets(3)



 Beginning assets                                                                         $218,433             $211,275        $207,421    $199,229                    $197,629



 Sales4                                                                                     15,623               15,105          11,931      59,286                      44,544



 Redemptions4                                                                             (16,802)            (15,245)       (16,317)   (59,977)                   (56,938)



 Net sales (redemptions)4                                                                  (1,179)               (140)        (4,386)      (691)                   (12,394)



 Net exchanges                                                                                  33                   17               3          42                           8



 Acquisitions/(dispositions)                                                                     0                    0               0         109                           0



 Impact of foreign exchange(1)                                                                 148                (448)        (2,661)      3,393                     (1,660)



 Market gains and (losses)(2)                                                                2,545                7,729         (1,148)     17,898                      15,646



 Ending assets                                                                            $219,980             $218,433        $199,229    $219,980                    $199,229



 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 products.


 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 Dec. 31, 2025 Sept. 30,
                                                                          2025    June 30, 2025  March 31, 2025   Dec. 31, 2024

     
            (in millions)


                                By Asset Class

---


   Equity                                                     $97,898    $94,656        $88,994          $80,913          $79,423



   Fixed-Income                                               100,127    101,813         98,687           99,486           98,059



   Alternative / Private Markets                               19,101     19,024         20,738           19,426           18,864



   Multi-Asset                                                  2,854      2,940          2,856            2,826            2,883



   Total Long-Term Assets                                     219,980    218,433        211,275          202,651          199,229



    Money Market                                              682,604    652,767        634,400          637,122          630,349



   
            Total Managed Assets                         $902,584   $871,200       $845,675         $839,773         $829,578




                                By Offering Type

---


   
            Funds:



   Equity                                                     $54,988    $54,110        $49,359          $43,910          $43,752



   Fixed-Income                                                45,973     46,478         45,415           45,800           45,550



   Alternative / Private Markets                               12,085     11,814         12,905           11,879           11,501



   Multi-Asset                                                  2,850      2,813          2,730            2,700            2,764



   Total Long-Term Assets                                     115,896    115,215        110,409          104,289          103,567



   Money Market                                               508,403    492,701        468,044          464,912          461,720



   
            Total Fund Assets                            $624,299   $607,916       $578,453         $569,201         $565,287



   
            Separate Accounts:



   Equity                                                     $42,910    $40,546        $39,635          $37,003          $35,671



   Fixed-Income                                                54,154     55,335         53,272           53,686           52,509



   Alternative / Private Markets                                7,016      7,210          7,833            7,547            7,363



   Multi-Asset                                                      4        127            126              126              119



   Total Long-Term Assets                                     104,084    103,218        100,866           98,362           95,662



   Money Market                                               174,201    160,066        166,356          172,210          168,629


                 Total Separate Account Assets                $278,285   $263,284       $267,222         $270,572         $264,291



   
            Total Managed Assets                         $902,584   $871,200       $845,675         $839,773         $829,578

                                Unaudited Average Managed Assets                          
 
 Quarter Ended



   
            (in millions)                                   Dec. 31, 2025 Sept. 30,
                                                                                  2025          June 30, 2025  March 31, 2025   Dec. 31, 2024



   
            
              By Asset Class

---


   Equity                                                             $96,404    $92,436              $83,564          $82,105          $82,247



   Fixed-Income                                                       100,855     99,206               98,365           99,360           98,254



   Alternative / Private Markets                                       18,971     19,862               20,053           19,012           19,754



   Multi-Asset                                                          2,836      2,895                2,779            2,900            2,934



   Total Long-Term Assets                                             219,066    214,399              204,761          203,377          203,189



    Money Market                                                      654,635    645,092              632,543          639,827          601,169



   
            Total Avg. Managed Assets                            $873,701   $859,491             $837,304         $843,204         $804,358



   
            
              By Offering Type

---


   
            Funds:



   Equity                                                             $55,101    $51,828              $45,965          $45,260          $45,261



   Fixed-Income                                                        46,116     45,743               44,972           45,715           45,654



   Alternative / Private Markets                                       11,871     12,347               12,370           11,610           12,010



   Multi-Asset                                                          2,833      2,770                2,654            2,774            2,811



   Total Long-Term Assets                                             115,921    112,688              105,961          105,359          105,736



   Money Market                                                       493,355    482,237              462,683          463,727          445,775



   
            Total Avg. Fund Assets                               $609,276   $594,925             $568,644         $569,086         $551,511



   
            Separate Accounts:



   Equity                                                             $41,303    $40,608              $37,599          $36,845          $36,986



   Fixed-Income                                                        54,739     53,463               53,393           53,645           52,600



   Alternative / Private Markets                                        7,100      7,515                7,683            7,402            7,744



   Multi-Asset                                                              3        125                  125              126              123



   Total Long-Term Assets                                             103,145    101,711               98,800           98,018           97,453



   Money Market                                                       161,280    162,855              169,860          176,100          155,394



   
            Total Avg. Separate Account Assets                   $264,425   $264,566             $268,660         $274,118         $252,847



   
            Total Avg. Managed Assets                            $873,701   $859,491             $837,304         $843,204         $804,358

                                Unaudited Average Managed Assets 
          
    Year Ended



   (in millions)                                                  Dec. 31, 2025            Dec. 31, 2024



   
            
              By Asset Class

---


   Equity                                                               $88,627                   $79,893



   Fixed-Income                                                          99,446                    96,773



   Alternative / Private Markets                                         19,474                    20,250



   Multi-Asset                                                            2,853                     2,902



   Total Long-Term Assets                                               210,400                   199,818



   Money Market                                                         643,025                   588,653



   
            Total Avg. Managed Assets                              $853,425                  $788,471



   
            
              By Offering Type

---


   
            Funds:



   Equity                                                               $49,538                   $43,380



   Fixed-Income                                                          45,636                    44,600



   Alternative / Private Markets                                         12,049                    12,292



   Multi-Asset                                                            2,758                     2,766



   Total Long-Term Assets                                               109,981                   103,038



   Money Market                                                         475,501                   429,273



   
            Total Avg. Fund Assets                                 $585,482                  $532,311



   
            Separate Accounts:



   Equity(1)                                                            $39,089                   $36,513



   Fixed-Income                                                          53,810                    52,173



   Alternative / Private Markets                                          7,425                     7,958



   Multi-Asset(1)                                                            95                       136



   Total Long-Term Assets                                               100,419                    96,780



   Money Market                                                         167,524                   159,380



   
            Total Avg. Separate Account Assets                     $267,943                  $256,160



   
            Total Avg. Managed Assets                              $853,425                  $788,471



 1) A Separate Account was reclassified from Multi-Asset to Equity. Average assets are represented under Multi-Asset for the quarters ended March 31, 2025,
     June 30, 2025 and Sept. 30, 2025. Average assets are represented under Equity for the quarter ended Dec. 31, 2025.

View original content:https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-record-assets-under-management-with-fourth-quarter-and-full-year-2025-earnings-302674481.html

SOURCE Federated Hermes, Inc.

Contact:

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

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