Federated Hermes Inc
DUS:3KC

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Federated Hermes Inc
DUS:3KC
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Price: 47.2 EUR -2.48% Market Closed
Market Cap: €4.1B

Federated Hermes Inc
Investor Relations

Federated Hermes is an investment manager that helps individuals, financial advisers, retirement plans, and institutions invest money. It sells mutual funds, money market funds, separate accounts, and other portfolio services, with a strong focus on cash-management and fixed-income products as well as equity and alternative strategies. The company mainly earns money by charging management fees based on assets it oversees, plus related service and distribution fees. A big part of Federated Hermes’ business is helping customers park cash and short-term funds in money market and liquidity products. It also runs long-term investment portfolios for clients who want stock, bond, or multi-asset exposure. In addition, the firm is known for responsible-investing and stewardship services, where it helps clients consider environmental, social, and governance issues and engages with companies on their behalf. What makes Federated Hermes different is that it sits in the middle of the investment value chain: it does not manufacture products or lend money, but instead manages other people’s capital and collects fees for doing so. Its earnings depend on the mix of assets clients place with it and the types of products they choose, which makes client trust, fund performance, and distribution relationships central to the business.

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Last Earnings Call
Fiscal Period
Q1 2026
Call Date
May 1, 2026
AI Summary
Q1 2026

Record assets: Federated Hermes ended Q1 with record assets under management of $907 billion, helped by strength in Equity and Money Market strategies.

Equity momentum: Equity assets rose to a record $101 billion, with record gross sales of $9.1 billion and strong demand for MDT Quant strategies.

Money market strength: Money Market assets also hit a record $685 billion, though fund assets dipped seasonally while separate accounts rose.

Private markets growth: The firm closed its European Direct Lending III fund at $780 million, advanced several new private-markets vehicles, and added $3.2 billion of managed assets from the FCP acquisition.

Digital push: Management said tokenization and digital cash are still early, but the firm is building infrastructure now and expects products to evolve over time.

Outlook mixed: Q2 is expected to benefit from fixed-income and private-markets inflows, while Equity is expected to see net redemptions driven by a large sub-advised mandate internalization.

Key Financials
Assets under management
$907 billion
Equity assets
$101 billion
Equity gross sales
$9.1 billion
MDT Equity and Market-Neutral gross sales
$5.8 billion
MDT Equity and Market-Neutral net sales
over $3.5 billion
MDT U.S. Equity UCITS net sales
$177 million
MDT U.S. Equity UCITS assets
about $800 million
Equity funds beating peers
51%
Equity funds in top quartile
30%
Fixed income assets
just under $100 billion
Fixed income net redemptions
$422 million
Fixed-income funds beating peers
41%
Fixed-income funds in top quartile
21%
Private markets net sales
$82 million
MDT Market Neutral Fund and ETF net sales
$341 million
European Direct Lending III fund close
$780 million
Global Private Equity co-invest fund raised to date
about $300 million
FCP managed assets added at closing
$3.2 billion
Net institutional mandates yet to fund
about $1.1 billion
Private Market strategies expected net inflows in Q2
about $1.4 billion
Fixed income expected net sales in Q2
about $1.1 billion
Core Plus expected win in Q2
about $1.8 billion
Government Bond strategy expected redemptions in Q2
about $800 million
Equity strategies expected net redemptions in Q2
about $1.4 billion
Global Equity expected redemptions in Q2
$3 billion
MDT expected additions in Q2
$1.7 billion
Money Market assets
$685 billion
Money Market separate accounts
$8 billion
Money Market fund assets
$6 billion
Money market mutual fund market share
about 6.9%
Total revenue
down $3.9 million, or 1%
Q1 operating expenses
up $5.4 million, or 2%
Q1 carried interest and performance fees
$388,000
Effective tax rate
26.1%
Cash and investments
$645 million
Cash and investments excluding non-controlling interests
$607 million
Shares repurchased
1.2 million
Share repurchases
$66 million
Dividend
$0.38
Earnings Call Recording
Other Earnings Calls

Management

Mr. John Christopher Donahue
President, CEO & Chairman
No Bio Available
Mr. John Basil Fisher
VP & Director
No Bio Available
Mr. Saker Anwar Nusseibeh CBE, Ph.D.
Chief Executive Officer of Federated Hermes Limited
No Bio Available
Ms. Mary Jo Ochson CFA
Head of the Tax-Free Money Market Investment Area, Chief Investment Officer, SVP & Sr Portfolio Mngr
No Bio Available
Mr. Richard Anthony Novak
VP, Assistant Treasurer & Principal Accounting Officer
No Bio Available
Mr. Raymond J. Hanley
Senior Vice President
No Bio Available
Mr. Stephen Paul Van Meter
VP & Chief Compliance Officer
No Bio Available
Ms. Dolores D. Dudiak
VP & Director of Human Resources
No Bio Available
Mr. Michael R. Granito
Head of Capital Market Research & Senior VP
No Bio Available
Mr. Stephen Frank Auth C.F.A.
Chief Investment Officer of Global Equities, Executive VP & Portfolio Manager
No Bio Available

Contacts

Address
PENNSYLVANIA
Pittsburgh
1001 Liberty Avenue, 1001 Liberty Ave
Contacts
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