Federated Hermes, Inc. reports third quarter 2026 earnings
- Q3 2026 earnings per diluted share of $1.50
- Equity assets reach a record $110.5 billion
- Board declares $0.38 per share dividend
PITTSBURGH, Oct. 29, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.50 for Q3 2026, compared to EPS of $1.34 for the same quarter last year, on net income of $111.9 million for Q3 2026, compared to net income of $104.1 million for Q3 2025.
Federated Hermes' total managed assets were $884.4 billion at Sept. 30, 2026, up $13.2 billion or 2% from $871.2 billion at Sept. 30, 2025 and down $27.2 billion or 3% from $911.6 billion at June 30, 2026. Total average managed assets for Q3 2026 were $897.7 billion, up $38.2 billion or 4% from $859.5 billion for Q3 2025 and down $12.3 billion or 1% from $910.0 billion for Q2 2026.
"Federated Hermes generated positive net equity sales in the third quarter of 2026, including across our MDT suite of quantitative investment solutions. Assets in MDT institutional separate accounts and MDT subadvised accounts, as well as total equity assets, reached record highs," said J. Christopher Donahue, president and chief executive officer. "We also continued to see demand for our alternative strategies, including our MDT Market Neutral offerings, with alternative/private markets fund assets reaching record highs."
Federated Hermes' board of directors declared a dividend of $0.38 per share. The dividend is payable on Nov. 13, 2026 to shareholders of record as of Nov. 6, 2026. During Q3 2026, Federated Hermes purchased 992,312 shares of Federated Hermes class B common stock for $57.4 million.
Equity assets were a record $110.5 billion at Sept. 30, 2026, up $15.8 billion or 17% from $94.7 billion at Sept. 30, 2025 and up $0.9 billion or 1% from $109.6 billion at June 30, 2026. Top-selling equity funds during Q3 2026 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Small Cap Core ETF, Federated Hermes MDT All Cap Core Fund, Federated Hermes MDT Large Cap Value Fund and Federated Hermes U.S. Strategic Dividend ETF.
Fixed-income assets were $99.4 billion at Sept. 30, 2026, down $2.4 billion or 2% from $101.8 billion at Sept. 30, 2025 and down $1.1 billion or 1% from $100.5 billion at June 30, 2026. Top-selling fixed-income funds during Q3 2026 on a net basis were Federated Hermes Sterling Cash Plus Fund, Federated Hermes Municipal Ultrashort Fund, Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF and Federated Hermes Conservative Municipal Microshort Fund.
Alternative/private markets assets were $21.7 billion at Sept. 30, 2026, up $2.7 billion or 14% from $19.0 billion at Sept. 30, 2025 and up $0.1 billion from $21.6 billion at June 30, 2026.
Money market assets were $649.9 billion at Sept. 30, 2026, down $2.9 billion from $652.8 billion at Sept. 30, 2025 and down $27.0 billion or 4% from $676.9 billion at June 30, 2026. Money market fund assets were $486.3 billion at Sept. 30, 2026, down $6.4 billion or 1% from $492.7 billion at Sept. 30, 2025 and down $13.6 billion or 3% from $499.9 billion at June 30, 2026.
Financial Summary
Q3 2026 vs. Q3 2025
Revenue increased $37.9 million or 8% primarily due to an increase from higher average equity assets and the Q2 2026 acquisition of FCP Fund Manager, L.P., now operating as Federated Hermes FCP Manager, LLC (FCP).
During Q3 2026, Federated Hermes derived 50% of its revenue from long-term assets (32% from equity, 10% from fixed-income and 8% from alternative/private markets and multi-asset), 49% from money market assets and 1% from sources other than managed assets.
Operating expenses increased $14.0 million or 4% primarily due to an $8.5 million increase in distribution expenses resulting primarily from higher average money market fund assets and a $7.1 million increase in compensation and related expense primarily due to the acquisition of FCP.
Nonoperating income (expenses), net for Q3 2026 decreased $12.1 million primarily due to a decrease in the market value of investments in Q3 2026 as compared to an increase in the market value of investments in Q3 2025 and a decrease in interest and dividend income.
Q3 2026 vs. Q2 2026
Revenue increased $4.6 million or 1% primarily due to higher average equity assets.
Operating expenses decreased $15.9 million or 4% primarily due to a $9.8 million decrease in compensation and related expense and a $6.1 million decrease in professional service fees expense primarily due to $6.5 million and $4.6 million, respectively, of FCP acquisition-related expenses in Q2 2026.
Nonoperating income (expenses), net decreased $12.4 million primarily due to a decrease in the market value of investments in Q3 2026 as compared to an increase in the market value of investments in Q2 2026.
YTD 2026 vs. YTD 2025
Revenue increased $171.2 million or 13% primarily due to an increase from higher average equity assets and money market assets and the acquisition of FCP in Q2 2026.
For the first nine months of 2026, Federated Hermes derived 51% of its revenue from money market assets, 48% from long-term assets (31% 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 $137.0 million or 15% primarily due to a $57.5 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $34.6 million increase in compensation and related expense primarily due to compensation related to the acquisition of FCP and higher incentive compensation, an increase of $25.2 million 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 $9.0 million increase in professional service fees primarily due to FCP acquisition-related expenses and an increase in global project costs.
Nonoperating income (expenses), net decreased $15.5 million primarily due to the deconsolidation of two Federated Hermes Funds.
Earnings call information
Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, Oct. 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, go to the About section of FederatedHermes.com and select links for Investor Relations and Earnings call and webcast. A replay will be available at approximately 12:30 p.m. Eastern on Oct. 30, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 54652. The online replay will be available via FederatedHermes.com for three months.
About Federated Hermes
Federated Hermes, Inc. is a global leader in active investment management, with $884.4 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 2,100 employees in London, New York, Boston and offices worldwide.
Federated Hermes ranks in the top 5% of equity fund managers, the top 9% 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.
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1) As of Sept. 30, 2026.
2) Morningstar, Sept. 30, 2026. Based on U.S. fund flows rankings.
3) Money Management Institute/Cerulli Q2 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 | % | |||
Sept. 30, 2026 | Sept. 30, 2025 | June 30, 2026 | ||||
Revenue | ||||||
Investment advisory fees, net | $ 346,791 | $ 310,366 | 12 % | $ 337,721 | 3 % | |
Administrative service fees, net—affiliates | 110,492 | 107,234 | 3 | 110,117 | 0 | |
Other service fees, net | 50,046 | 51,846 | (3) | 54,938 | (9) | |
Total Revenue | 507,329 | 469,446 | 8 | 502,776 | 1 | |
Operating Expenses | ||||||
Compensation and related | 151,706 | 144,563 | 5 | 161,528 | (6) | |
Distribution | 122,038 | 113,569 | 7 | 121,766 | 0 | |
Systems and communications | 26,156 | 26,023 | 1 | 25,950 | 1 | |
Professional service fees | 19,510 | 20,239 | (4) | 25,610 | (24) | |
Office and occupancy | 9,522 | 10,129 | (6) | 9,836 | (3) | |
Advertising and promotional | 5,548 | 5,264 | 5 | 7,329 | (24) | |
Intangible asset related | 4,924 | 3,556 | 38 | 6,384 | (23) | |
Travel and related | 4,782 | 4,665 | 3 | 4,558 | 5 | |
Other | 9,836 | 11,986 | (18) | 6,934 | 42 | |
Total Operating Expenses | 354,022 | 339,994 | 4 | 369,895 | (4) | |
Operating Income | 153,307 | 129,452 | 18 | 132,881 | 15 | |
Nonoperating Income (Expenses) | ||||||
Investment income (loss), net | 1,951 | 14,105 | (86) | 14,330 | (86) | |
Debt expense | (3,165) | (3,182) | (1) | (3,159) | 0 | |
Other, net | (27) | (48) | (44) | (22) | 23 | |
Total Nonoperating Income (Expenses), net | (1,241) | 10,875 | (111) | 11,149 | (111) | |
Income before income taxes | 152,066 | 140,327 | 8 | 144,030 | 6 | |
Income tax provision | 41,187 | 34,232 | 20 | 37,216 | 11 | |
Net income including the noncontrolling interests | 110,879 | 106,095 | 5 | 106,814 | 4 | |
Less: Net income (loss) attributable to the | (1,006) | 1,969 | (151) | 2,496 | (140) | |
Net Income | $ 111,885 | $ 104,126 | 7 % | $ 104,318 | 7 % | |
Amounts Attributable to Federated Hermes, Inc. | ||||||
Earnings Per Share1 | ||||||
Basic and diluted | $ 1.50 | $ 1.34 | 12 % | $ 1.38 | 9 % | |
Weighted-Average Shares Outstanding | ||||||
Basic | 70,996 | 74,057 | 71,944 | |||
Diluted | 70,997 | 74,057 | 71,947 | |||
Dividends Declared Per Share | $ 0.38 | $ 0.34 | $ 0.38 | |||
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 $5.1 million, $4.7 million and $4.8 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Sept. 30, 2026, Sept. 30, 2025 and June 30, 2026, respectively, was excluded from the computation of earnings per share. |
Unaudited Condensed Consolidated Statements of Income | |||
(in thousands, except per share data) | |||
Nine Months Ended | |||
Sept. 30, 2026 | Sept. 30, 2025 | % Change | |
Revenue | |||
Investment advisory fees, net | $ 1,003,920 | $ 885,261 | 13 % |
Administrative service fees, net—affiliates | 330,894 | 310,000 | 7 |
Other service fees, net | 154,248 | 122,569 | 26 |
Total Revenue | 1,489,062 | 1,317,830 | 13 |
Operating Expenses | |||
Compensation and related | 467,353 | 432,705 | 8 |
Distribution | 369,548 | 312,052 | 18 |
Systems and communications | 78,570 | 73,730 | 7 |
Professional service fees | 66,456 | 57,415 | 16 |
Office and occupancy | 29,419 | 29,991 | (2) |
Advertising and promotional | 16,975 | 15,985 | 6 |
Intangible asset related | 14,730 | 10,255 | 44 |
Travel and related | 13,190 | 12,335 | 7 |
Other | 20,302 | (4,946) | NM |
Total Operating Expenses | 1,076,543 | 939,522 | 15 |
Operating Income | 412,519 | 378,308 | 9 |
Nonoperating Income (Expenses) | |||
Investment income (loss), net | 22,935 | 38,527 | (40) |
Debt expense | (9,509) | (9,531) | 0 |
Other, net | (80) | (110) | (27) |
Total Nonoperating Income (Expenses), net | 13,346 | 28,886 | (54) |
Income before income taxes | 425,865 | 407,194 | 5 |
Income tax provision | 112,226 | 100,532 | 12 |
Net income including the noncontrolling interests in subsidiaries | 313,639 | 306,662 | 2 |
Less: Net income (loss) attributable to the noncontrolling interests in | 1,058 | 10,402 | (90) |
Net Income | $ 312,581 | $ 296,260 | 6 % |
Amounts Attributable to Federated Hermes, Inc. | |||
Earnings Per Share1 | |||
Basic and diluted | $ 4.15 | $ 3.75 | 11 % |
Weighted-Average Shares Outstanding | |||
Basic | 71,856 | 75,541 | |
Diluted | 71,858 | 75,544 | |
Dividends Declared Per Share | $ 1.10 | $ 0.99 | |
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 $14.2 million and $13.3 million available to unvested restricted Federated Hermes shareholders for the nine months ended Sept. 30, 2026 and Sept. 30, 2025, respectively, was excluded from the computation of earnings per share. |
Unaudited Condensed Consolidated Balance Sheets | ||
(in thousands) | Sept. 30, 2026 | Dec. 31, 2025 |
Assets | ||
Cash and other investments | $ 580,271 | $ 724,297 |
Other current assets | 162,327 | 139,495 |
Intangible assets, net, including goodwill | 1,499,333 | 1,183,612 |
Other long-term assets | 225,146 | 181,933 |
Total Assets | $ 2,467,077 | $ 2,229,337 |
Liabilities, Redeemable Noncontrolling Interests and Equity | ||
Current liabilities | $ 299,649 | $ 314,141 |
Long-term debt | 348,565 | 348,369 |
Other long-term liabilities | 356,000 | 303,350 |
Redeemable noncontrolling interests | 171,943 | 66,529 |
Equity excluding treasury stock | 2,322,714 | 2,070,162 |
Treasury stock | (1,031,794) | (873,214) |
Total Liabilities, Redeemable Noncontrolling Interests and Equity | $ 2,467,077 | $ 2,229,337 |
Unaudited Changes in Long-Term Assets - By Asset Class | ||||||
(in millions) | Quarter Ended | Nine Months Ended | ||||
Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 | Sept. 30, 2026 | Sept. 30, 2025 | ||
Equity | ||||||
Beginning assets | $ 109,590 | $ 100,832 | $ 88,994 | $ 97,898 | $ 79,423 | |
Sales1 | 8,527 | 9,062 | 6,845 | 26,680 | 22,218 | |
Redemptions1 | (6,624) | (10,202) | (6,975) | (23,704) | (19,148) | |
Net sales (redemptions)1 | 1,903 | (1,140) | (130) | 2,976 | 3,070 | |
Net exchanges | 1 | 134 | 154 | (4) | 40 | |
Impact of foreign exchange2 | (81) | (37) | (85) | (405) | 1,692 | |
Market gains and (losses)3 | (874) | 9,801 | 5,723 | 10,074 | 10,431 | |
Ending assets | $ 110,539 | $ 109,590 | $ 94,656 | $ 110,539 | $ 94,656 | |
Fixed Income | ||||||
Beginning assets | $ 100,487 | $ 99,798 | $ 98,687 | $ 100,127 | $ 98,059 | |
Sales1 | 7,085 | 7,687 | 7,545 | 20,699 | 18,756 | |
Redemptions1 | (6,385) | (7,864) | (5,887) | (20,598) | (19,827) | |
Net sales (redemptions)1 | 700 | (177) | 1,658 | 101 | (1,071) | |
Net exchanges | (7) | (153) | (134) | (12) | (28) | |
Impact of foreign exchange2 | (20) | (12) | (22) | (72) | 271 | |
Market gains and (losses)3 | (1,761) | 1,031 | 1,624 | (745) | 4,582 | |
Ending assets | $ 99,399 | $ 100,487 | $ 101,813 | $ 99,399 | $ 101,813 | |
Alternative/Private Markets | ||||||
Beginning assets | $ 21,647 | $ 18,991 | $ 20,738 | $ 19,101 | $ 18,864 | |
Sales1 | 562 | 650 | 670 | 1,841 | 2,537 | |
Redemptions1 | (701) | (1,002) | (2,291) | (2,250) | (3,866) | |
Net sales (redemptions)1 | (139) | (352) | (1,621) | (409) | (1,329) | |
Net exchanges | 1 | 8 | 0 | 9 | 0 | |
Acquisitions/(dispositions) | 0 | 3,237 | 0 | 3,237 | 109 | |
Impact of foreign exchange2 | (11) | 26 | (341) | (260) | 1,282 | |
Market gains and (losses)3 | 236 | (263) | 248 | 56 | 98 | |
Ending assets | $ 21,734 | $ 21,647 | $ 19,024 | $ 21,734 | $ 19,024 | |
Multi-asset | ||||||
Beginning assets | $ 2,939 | $ 2,778 | $ 2,856 | $ 2,854 | $ 2,883 | |
Sales1 | 45 | 41 | 45 | 144 | 152 | |
Redemptions1 | (85) | (102) | (92) | (281) | (334) | |
Net sales (redemptions)1 | (40) | (61) | (47) | (137) | (182) | |
Net exchanges | 0 | 0 | (3) | 1 | (3) | |
Market gains and (losses)3 | (44) | 222 | 134 | 137 | 242 | |
Ending assets | $ 2,855 | $ 2,939 | $ 2,940 | $ 2,855 | $ 2,940 | |
Total Long-term Assets | ||||||
Beginning assets | $ 234,663 | $ 222,399 | $ 211,275 | $ 219,980 | $ 199,229 | |
Sales1 | 16,219 | 17,440 | 15,105 | 49,364 | 43,663 | |
Redemptions1 | (13,795) | (19,170) | (15,245) | (46,833) | (43,175) | |
Net sales (redemptions)1 | 2,424 | (1,730) | (140) | 2,531 | 488 | |
Net exchanges | (5) | (11) | 17 | (6) | 9 | |
Acquisitions/(dispositions) | 0 | 3,237 | 0 | 3,237 | 109 | |
Impact of foreign exchange2 | (112) | (23) | (448) | (737) | 3,245 | |
Market gains and (losses)3 | (2,443) | 10,791 | 7,729 | 9,522 | 15,353 | |
Ending assets | $ 234,527 | $ 234,663 | $ 218,433 | $ 234,527 | $ 218,433 | |
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 | ||||||||||
Sept. 30, 2026 | ||||||||||
Equity | Fixed Income | Alternative / Private | Multi-asset | Total | ||||||
Funds | Separate | Funds | Separate | Funds | Separate | Funds | Separate | Funds. | Separate | |
Beginning assets | $ 64,069 | $ 45,521 | $ 46,189 | $ 54,298 | $ 14,918 | $ 6,729 | $ 2,935 | $ 4 | $ 128,111 | $ 106,552 |
Sales | 4,333 | 4,194 | 3,841 | 3,244 | 489 | 73 | 44 | 1 | 8,707 | 7,512 |
Redemptions | (4,322) | (2,302) | (4,040) | (2,345) | (566) | (135) | (85) | 0 | (9,013) | (4,782) |
Net sales (redemptions) | 11 | 1,892 | (199) | 899 | (77) | (62) | (41) | 1 | (306) | 2,730 |
Net exchanges | 1 | 0 | (7) | 0 | 1 | 0 | 0 | 0 | (5) | 0 |
Impact of foreign exchange2 | (53) | (28) | (13) | (7) | (7) | (4) | 0 | 0 | (73) | (39) |
Market gains and (losses)3 | (922) | 48 | (1,001) | (760) | 244 | (8) | (45) | 1 | (1,724) | (719) |
Ending assets | $ 63,106 | $ 47,433 | $ 44,969 | $ 54,430 | $ 15,079 | $ 6,655 | $ 2,849 | $ 6 | $ 126,003 | $ 108,524 |
Nine Months Ended | ||||||||||
Sept. 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 | 15,631 | 11,049 | 11,693 | 9,006 | 1,674 | 167 | 143 | 1 | 29,141 | 20,223 |
Redemptions | (12,963) | (10,741) | (12,027) | (8,571) | (1,545) | (705) | (281) | 0 | (26,816) | (20,017) |
Net sales (redemptions) | 2,668 | 308 | (334) | 435 | 129 | (538) | (138) | 1 | 2,325 | 206 |
Net exchanges | (24) | 20 | (12) | 0 | 9 | 0 | 1 | 0 | (26) | 20 |
Acquisition/(dispositions) | 0 | 0 | 0 | 0 | 2,788 | 449 | 0 | 0 | 2,788 | 449 |
Impact of foreign exchange2 | (279) | (126) | (42) | (30) | (154) | (106) | 0 | 0 | (475) | (262) |
Market gains and (losses)3 | 5,753 | 4,321 | (616) | (129) | 222 | (166) | 136 | 1 | 5,495 | 4,027 |
Ending assets | $ 63,106 | $ 47,433 | $ 44,969 | $ 54,430 | $ 15,079 | $ 6,655 | $ 2,849 | $ 6 | $ 126,003 | $ 108,524 |
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 | Nine Months Ended | ||||
Sept. 30, 2026 | June 30, 2026 | Sept. 30, 2025 | Sept. 30, 2026 | Sept. 30, 2025 | ||
Total Fund Assets | ||||||
Beginning assets | $ 128,111 | $ 116,222 | $ 110,409 | $ 115,896 | $ 103,567 | |
Sales | 8,707 | 9,927 | 9,018 | 29,141 | 27,050 | |
Redemptions | (9,013) | (8,837) | (8,349) | (26,816) | (26,278) | |
Net sales (redemptions) | (306) | 1,090 | 669 | 2,325 | 772 | |
Net exchanges | (5) | (1) | 17 | (26) | 20 | |
Acquisitions/(dispositions) | 0 | 2,788 | 0 | 2,788 | 109 | |
Impact of foreign exchange1 | (73) | (59) | (294) | (475) | 1,704 | |
Market gains and (losses)2 | (1,724) | 8,071 | 4,414 | 5,495 | 9,043 | |
Ending assets | $ 126,003 | $ 128,111 | $ 115,215 | $ 126,003 | $ 115,215 | |
Total Separate Account Assets3 | ||||||
Beginning assets | $ 106,552 | $ 106,177 | $ 100,866 | $ 104,084 | $ 95,662 | |
Sales4 | 7,512 | 7,513 | 6,087 | 20,223 | 16,613 | |
Redemptions4 | (4,782) | (10,333) | (6,896) | (20,017) | (16,897) | |
Net sales (redemptions)4 | 2,730 | (2,820) | (809) | 206 | (284) | |
Net exchanges | 0 | (10) | 0 | 20 | (11) | |
Acquisitions/(dispositions) | 0 | 449 | 0 | 449 | 0 | |
Impact of foreign exchange1 | (39) | 36 | (154) | (262) | 1,541 | |
Market gains and (losses)2 | (719) | 2,720 | 3,315 | 4,027 | 6,310 | |
Ending assets | $ 108,524 | $ 106,552 | $ 103,218 | $ 108,524 | $ 103,218 | |
Total Long-term Assets3 | ||||||
Beginning assets | $ 234,663 | $ 222,399 | $ 211,275 | $ 219,980 | $ 199,229 | |
Sales4 | 16,219 | 17,440 | 15,105 | 49,364 | 43,663 | |
Redemptions4 | (13,795) | (19,170) | (15,245) | (46,833) | (43,175) | |
Net sales (redemptions)4 | 2,424 | (1,730) | (140) | 2,531 | 488 | |
Net exchanges | (5) | (11) | 17 | (6) | 9 | |
Acquisitions/(dispositions) | 0 | 3,237 | 0 | 3,237 | 109 | |
Impact of foreign exchange1 | (112) | (23) | (448) | (737) | 3,245 | |
Market gains and (losses)2 | (2,443) | 10,791 | 7,729 | 9,522 | 15,353 | |
Ending assets | $ 234,527 | $ 234,663 | $ 218,433 | $ 234,527 | $ 218,433 | |
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) | Sept. 30, 2026 | June 30, 2026 | March 31, 2026 | Dec. 31, 2025 | Sept. 30, 2025 |
By Asset Class | |||||
Equity1 | $ 110,539 | $ 109,590 | $ 100,832 | $ 97,898 | $ 94,656 |
Fixed-Income | 99,399 | 100,487 | 99,798 | 100,127 | 101,813 |
Alternative / Private Markets | 21,734 | 21,647 | 18,991 | 19,101 | 19,024 |
Multi-Asset1 | 2,855 | 2,939 | 2,778 | 2,854 | 2,940 |
Total Long-Term Assets | 234,527 | 234,663 | 222,399 | 219,980 | 218,433 |
Money Market | 649,883 | 676,897 | 684,748 | 682,604 | 652,767 |
Total Managed Assets | $ 884,410 | $ 911,560 | $ 907,147 | $ 902,584 | $ 871,200 |
By Offering Type | |||||
Funds: | |||||
Equity | $ 63,106 | $ 64,069 | $ 55,188 | $ 54,988 | $ 54,110 |
Fixed-Income | 44,969 | 46,189 | 45,921 | 45,973 | 46,478 |
Alternative / Private Markets | 15,079 | 14,918 | 12,339 | 12,085 | 11,814 |
Multi-Asset | 2,849 | 2,935 | 2,774 | 2,850 | 2,813 |
Total Long-Term Assets | 126,003 | 128,111 | 116,222 | 115,896 | 115,215 |
Money Market | 486,270 | 499,927 | 502,775 | 508,403 | 492,701 |
Total Fund Assets | $ 612,273 | $ 628,038 | $ 618,997 | $ 624,299 | $ 607,916 |
Separate Accounts: | |||||
Equity1 | $ 47,433 | $ 45,521 | $ 45,644 | $ 42,910 | $ 40,546 |
Fixed-Income | 54,430 | 54,298 | 53,877 | 54,154 | 55,335 |
Alternative / Private Markets | 6,655 | 6,729 | 6,652 | 7,016 | 7,210 |
Multi-Asset1 | 6 | 4 | 4 | 4 | 127 |
Total Long-Term Assets | 108,524 | 106,552 | 106,177 | 104,084 | 103,218 |
Money Market | 163,613 | 176,970 | 181,973 | 174,201 | 160,066 |
Total Separate Account Assets | $ 272,137 | $ 283,522 | $ 288,150 | $ 278,285 | $ 263,284 |
Total Managed Assets | $ 884,410 | $ 911,560 | $ 907,147 | $ 902,584 | $ 871,200 |
1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025. |
Unaudited Average Managed Assets | Quarter Ended | ||||
(in millions) | Sept. 30, 2026 | June 30, 2026 | March 31, 2026 | Dec. 31, 2025 | Sept. 30, 2025 |
By Asset Class | |||||
Equity1 | $ 112,104 | $ 107,031 | $ 102,037 | $ 96,404 | $ 92,436 |
Fixed-Income | 100,137 | 100,041 | 100,996 | 100,855 | 99,206 |
Alternative / Private Markets | 22,000 | 22,359 | 19,232 | 18,971 | 19,862 |
Multi-Asset1 | 2,928 | 2,898 | 2,859 | 2,836 | 2,895 |
Total Long-Term Assets | 237,169 | 232,329 | 225,124 | 219,066 | 214,399 |
Money Market | 660,526 | 677,685 | 690,450 | 654,635 | 645,092 |
Total Avg. Managed Assets | $ 897,695 | $ 910,014 | $ 915,574 | $ 873,701 | $ 859,491 |
By Offering Type | |||||
Funds: | |||||
Equity | $ 64,370 | $ 60,933 | $ 56,987 | $ 55,101 | $ 51,828 |
Fixed-Income | 46,043 | 45,827 | 46,096 | 46,116 | 45,743 |
Alternative / Private Markets | 15,198 | 15,253 | 12,254 | 11,871 | 12,347 |
Multi-Asset | 2,923 | 2,893 | 2,855 | 2,833 | 2,770 |
Total Long-Term Assets | 128,534 | 124,906 | 118,192 | 115,921 | 112,688 |
Money Market | 491,758 | 498,338 | 507,752 | 493,355 | 482,237 |
Total Avg. Fund Assets | $ 620,292 | $ 623,244 | $ 625,944 | $ 609,276 | $ 594,925 |
Separate Accounts: | |||||
Equity1 | $ 47,734 | $ 46,098 | $ 45,050 | $ 41,303 | $ 40,608 |
Fixed-Income | 54,094 | 54,214 | 54,900 | 54,739 | 53,463 |
Alternative / Private Markets | 6,802 | 7,106 | 6,978 | 7,100 | 7,515 |
Multi-Asset1 | 5 | 5 | 4 | 3 | 125 |
Total Long-Term Assets | 108,635 | 107,423 | 106,932 | 103,145 | 101,711 |
Money Market | 168,768 | 179,347 | 182,698 | 161,280 | 162,855 |
Total Avg. Separate Account Assets | $ 277,403 | $ 286,770 | $ 289,630 | $ 264,425 | $ 264,566 |
Total Avg. Managed Assets | $ 897,695 | $ 910,014 | $ 915,574 | $ 873,701 | $ 859,491 |
1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025. |
Unaudited Average Managed Assets | Nine Months Ended | |||
(in millions) | Sept. 30, 2026 | Sept. 30, 2025 | ||
By Asset Class | ||||
Equity1 | $ 107,057 | $ 86,035 | ||
Fixed-Income | 100,392 | 98,977 | ||
Alternative / Private Markets | 21,197 | 19,642 | ||
Multi-Asset1 | 2,895 | 2,858 | ||
Total Long-Term Assets | 231,541 | 207,512 | ||
Money Market | 676,220 | 639,154 | ||
Total Avg. Managed Assets | $ 907,761 | $ 846,666 | ||
By Offering Type | ||||
Funds: | ||||
Equity | $ 60,763 | $ 47,684 | ||
Fixed-Income | 45,989 | 45,477 | ||
Alternative / Private Markets | 14,235 | 12,109 | ||
Multi-Asset | 2,890 | 2,733 | ||
Total Long-Term Assets | 123,877 | 108,003 | ||
Money Market | 499,283 | 469,549 | ||
Total Avg. Fund Assets | $ 623,160 | $ 577,552 | ||
Separate Accounts: | ||||
Equity1 | $ 46,294 | $ 38,351 | ||
Fixed-Income | 54,403 | 53,500 | ||
Alternative / Private Markets | 6,962 | 7,533 | ||
Multi-Asset1 | 5 | 125 | ||
Total Long-Term Assets | 107,664 | 99,509 | ||
Money Market | 176,937 | 169,605 | ||
Total Avg. Separate Account Assets | $ 284,601 | $ 269,114 | ||
Total Avg. Managed Assets | $ 907,761 | $ 846,666 | ||
1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025. |
SOURCE Federated Hermes, Inc.
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