Federated Hermes, Inc. reports record assets under management with second quarter 2026 earnings
- Total assets under management reach a record $911.6 billion
- Equity assets reach a record $109.6 billion
- Q2 2026 earnings per diluted share of $1.38
- Board declares $0.38 per share dividend
PITTSBURGH, July 30, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.38 for Q2 2026, compared to $1.16 for the same quarter last year, on net income of $104.3 million for Q2 2026, compared to $91.0 million for Q2 2025.
Federated Hermes' total managed assets were a record $911.6 billion at June 30, 2026, up $65.9 billion or 8% from $845.7 billion at June 30, 2025 and up $4.5 billion from $907.1 billion at March 31, 2026. Total average managed assets for Q2 2026 were $910.0 billion, up $72.7 billion or 9% from $837.3 billion for Q2 2025 and down $5.6 billion or 1% from $915.6 billion for Q1 2026.
"In addition to reaching record high equity assets in the second quarter, we achieved record gross sales across the range of our MDT suite of quantitative investment solutions, reaching all-time highs in MDT institutional separate accounts and SMAs (separately managed accounts). We also saw net positive MDT sales for the 14th consecutive quarter," said J. Christopher Donahue, president and chief executive officer.
"We continued to broaden our investment offerings by launching two new exchange-traded funds (ETFs) and introducing our first fund designed for use by participants in the blockchain ecosystem. We also expanded our private markets business by acquiring a majority interest in U.S. real estate manager FCP Fund Manager, L.P.," he said.
Federated Hermes' board of directors declared a dividend of $0.38 per share. The dividend is payable on Aug 14, 2026 to shareholders of record as of Aug 7, 2026. During Q2 2026, Federated Hermes purchased 1,119,805 shares of Federated Hermes class B common stock for $58.9 million.
Equity assets were a record $109.6 billion at June 30, 2026, up $20.6 billion or 23% from $89.0 billion at June 30, 2025 and up $8.8 billion or 9% from $100.8 billion at March 31, 2026. Top-selling equity funds during Q2 2026 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT US Equity Fund, Federated Hermes MDT All Cap Core Fund and Federated Hermes MDT Small Cap Core Fund.
Fixed-income assets were $100.5 billion at June 30, 2026, up $1.8 billion or 2% from $98.7 billion at June 30, 2025 and up $0.7 billion or 1% from $99.8 billion at March 31, 2026. Top-selling fixed-income funds during Q2 2026 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Conservative Municipal Microshort Fund, Federated Hermes Adjustable Rate Fund and Federated Hermes Conservative Microshort Fund.
Alternative/private markets assets were $21.6 billion at June 30, 2026, up $0.9 billion or 4% from $20.7 billion at June 30, 2025 and up $2.6 billion or 14% from $19.0 billion at March 31, 2026. The increase was primarily due to $3.2 billion of assets acquired through the FCP Fund Manager, L.P. (FCP) transaction.
Money market assets were $676.9 billion at June 30, 2026, up $42.5 billion or 7% from $634.4 billion at June 30, 2025 and down $7.8 billion or 1% from $684.7 billion at March 31, 2026. Money market fund assets were $499.9 billion at June 30, 2026, up $31.9 billion or 7% from $468.0 billion at June 30, 2025 and down $2.9 billion or 1% from $502.8 billion at March 31, 2026.
Financial Summary
Q2 2026 vs. Q2 2025
Revenue increased $77.9 million or 18% primarily due to an increase from higher average equity and money market assets as well as due to the FCP acquisition in Q2 2026 ($13.9 million).
During Q2 2026, Federated Hermes derived 50% of its revenue from money market assets, 48% from long-term assets (30% from equity, 10% from fixed-income, and 8% from alternative/private markets and multi-asset) and 2% from sources other than managed assets.
Operating expenses increased $62.1 million or 20% primarily due to a $22.4 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $16.7 million increase in compensation and related expense, including $6.5 million of FCP-acquisition-related expenses, a $9.2 million increase in other expense primarily due to fluctuations in foreign currency exchange rates, and a $7.0 million increase in professional service fees including $4.7 million of FCP-acquisition-related expenses. Intangible asset related expenses increased $2.9 million, including $3.0 million of amortization of intangible assets associated with the FCP acquisition.
Nonoperating income (expenses), net for Q2 2026 decreased $2.6 million or 19% primarily due to a decrease in interest and dividend income.
Q2 2026 vs. Q1 2026
Revenue increased $23.8 million or 5% primarily due to the FCP acquisition in Q2 2026 ($13.9 million) and higher average equity assets.
Operating expenses increased $17.3 million or 5% primarily due to a $7.4 million increase in compensation and related expense including $6.5 million of FCP-acquisition-related expenses and a $4.3 million increase in professional service fees primarily due to the increase of FCP-acquisition-related expenses of $3.2 million. Intangible asset related expenses increased $3.0 million due to the amortization of intangible assets associated with the FCP acquisition.
Nonoperating income (expenses), net increased $7.7 million primarily due to a larger increase in the market value of investments in Q2 2026 as compared to the increase in the market value of the investments in Q1 2026.
YTD 2026 vs. YTD 2025
Revenue increased $133.3 million or 16% primarily due to an increase from higher average money market and equity assets and due to the FCP acquisition in Q2 2026 ($13.9 million).
For the first half of 2026, Federated Hermes derived 52% of its revenue from money market assets, 47% from long-term assets (30% from equity, 10% from fixed-income, and 7% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.
Operating expenses increased $123.0 million or 21% primarily due to a $49.0 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $27.5 million increase in compensation and related expense primarily due to higher incentive compensation and $6.5 million of FCP-acquisition-related expenses, a $27.4 million increase in other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. and fluctuations in foreign currency exchange rates, and a $9.8 million increase in professional service fees primarily due to $6.2 million in FCP-acquisition-related expenses and costs related to global technology projects. Intangible asset related expenses increased $3.1 million due primarily to $3.0 million related to the amortization of intangible assets associated with the FCP acquisition.
Nonoperating income (expenses), net decreased $3.4 million primarily due to a decrease in interest and dividend income.
Earnings call information
Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, July 31, 2026. Investors are invited to listen to the earnings teleconference by calling 877-545-0523 (domestic) or 973-528-0016 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on July 31, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 54241. The online replay will be available via FederatedHermes.com/us for one year.
About Federated Hermes
Federated Hermes, Inc. is a global leader in active investment management, with $911.6 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,200 employees in London, New York, Boston and offices worldwide.
Federated Hermes ranks in the top 5% of equity fund managers, the top 8% of money market fund managers and the top 11% of fixed-income fund managers2 in the industry. Federated Hermes also ranks as the 9th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.
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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 | % | Quarter Ended | % | |||
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 | Multi-asset | Total | ||||||
Funds | Separate | Funds | Separate | Funds | Separate | Funds | Separate | Funds. | Separate | |
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 | Multi-asset | Total | ||||||
Funds | Separate | Funds | Separate | Funds | Separate | Funds | Separate | Funds | Separate | |
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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