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Federated Hermes Achieves Record Assets Under Management in Q2 2025

Federated Hermes, Inc., a renowned name in active investment management, has announced impressive financial results for the second quarter of 2025. The company reported earnings per diluted share of $1.16, a significant increase compared to $0.20 reported in the same period last year. This growth corresponds to a net income of $91.0 million for Q2 2025, compared to $21.0 million for Q2 2024. The results reflect a notable context shift as Q2 2024 included a substantial non-cash expense of $66.3 million related to the impairment of an indefinite-lived intangible asset.

One of the most remarkable highlights of this quarter is Federated Hermes' total assets under management (AUM), which has reached an unprecedented $845.7 billion as of June 30, 2025. This marks an impressive increase of $63.0 billion, or 8%, from $782.7 billion reported a year earlier. This achievement underscores the growing trust and reliance investors place on Federated Hermes for their investment needs.

During Q2 2025, Federated Hermes saw a surge in demand for its MDT equity and alternative quantitative investment solutions. J. Christopher Donahue, president and CEO of Federated Hermes, emphasized, “Our comprehensive suite of MDT strategies aims at offering opportunities for outperformance. The discernible interest from investors leaning towards capital preservation and liquidity has enhanced the demand for our microshort and ultrashort funds.” These funds provide a path for higher yields compared to traditional money market strategies, which has undeniably attracted a larger customer base during this period.

The Q2 2025 results also highlighted robust performance in the average managed assets, amounting to $837.3 billion, although this reflects a slight decrease from previous quarter totals but represents a year-over-year increase of $57.7 billion or 7% from the previous year.

In terms of dividend performance, Federated Hermes' board of directors declared a dividend of $0.34 per share, which will be payable on August 15, 2025. Additionally, a new share repurchase program was authorized, allowing the company to buy back up to 5 million shares of its class B stock without any expiration constraint. This strategic financial maneuver, alongside the previous program, is crafted to better manage shareholder value and fulfill potential corporate activities effectively.

Looking into the details of their equity and fixed-income performance, equity assets amounted to $89.0 billion within the period, reflecting an increase of 14% from the previous year. The top-selling equity funds included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes Asia ex-Japan Equity Fund, among others.

On the fixed-income side, although total fixed-income assets reached $98.7 billion, this represented a slight decrease from last quarter, yet it showcased a year-over-year growth of 4%.

The alternative/private markets assets rose to $20.7 billion, and money market assets experienced a notable growth to $634.4 billion, marking an 8% increase from the year before. This shows that investment in secure instruments remains a priority for many investors amid uncertain market conditions.

In summary, the financial performance reported by Federated Hermes for Q2 2025 encapsulates a strong upward trend underscored by increased investor confidence, an innovative suite of investment solutions, and solidifying their position as a leader in the active investment management space. Investors are invited to join the earnings conference call on August 1, 2025, where further insights into these remarkable results will be discussed.

For those eyeing burgeoning opportunities in asset management, Federated Hermes is clearly a name to watch in the upcoming quarters.