Original source text
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 , /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 June 30, 2026.
2) Morningstar, June 30, 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
%
Change
Q2 2025
to Q2
2026
Quarter Ended
%
Change
Q1 2026
to Q2
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 Share1
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 Share1
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, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 2025
Equity
Beginning assets
$ 100,832
$ 97,898
$ 80,913
$ 97,898
$ 79,423
Sales1
9,062
9,091
7,961
18,153
15,373
Redemptions1
(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 exchange2
(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
Sales1
7,687
5,927
5,267
13,614
11,211
Redemptions1
(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 exchange2
(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
Sales1
650
629
782
1,279
1,867
Redemptions1
(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 exchange2
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
Sales1
41
58
44
99
107
Redemptions1
(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
Sales1
17,440
15,705
14,054
33,145
28,558
Redemptions1
(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 exchange2
(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
Markets
Multi-asset
Total
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds.
Separate
Accounts1
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 exchange2
(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
Markets
Multi-asset
Total
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds
Separate
Accounts1
Funds
Separate
Accounts1
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 exchange2
(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, 2026
March 31, 2026
June 30, 2025
June 30, 2026
June 30, 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 exchange1
(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 Assets3
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 exchange1
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 Assets3
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 exchange1
(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, 2026
March 31, 2026
Dec. 31, 2025
Sept. 30, 2025
June 30, 2025
By Asset Class
Equity1
$ 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-Asset1
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:
Equity1
$ 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-Asset1
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, 2026
March 31, 2026
Dec. 31, 2025
Sept. 30, 2025
June 30, 2025
By Asset Class
Equity1
$ 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-Asset1
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:
Equity1
$ 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-Asset1
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
Equity1
$ 104,534
$ 82,834
Fixed-Income
100,519
98,862
Alternative / Private Markets
20,796
19,533
Multi-Asset1
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:
Equity1
$ 45,574
$ 37,222
Fixed-Income
54,557
53,518
Alternative / Private Markets
7,042
7,543
Multi-Asset1
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.
SOURCE Federated Hermes, Inc.
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