Federated Hermes Announces Key Promotions in Fixed-Income Leadership

Federated Hermes, Inc. has made significant moves in its fixed-income leadership by appointing R.J. Gallo as the new Chief Investment Officer (CIO) for Global Fixed Income. This change comes as the current CIO, Robert Ostrowski, prepares to retire in May 2026, marking the end of a long and successful tenure. Gallo, who has served with Federated Hermes since 2000 and possesses over 31 years of investment experience, will oversee all aspects of the firm’s investment processes in fixed-income products, an area encompassing assets of approximately $101.8 billion as of September 30, 2025.

In addition to Gallo's promotion, Ann Ferentino, who has co-headed the Municipal Bond Group, is set to become the sole head of that division. With a long tenure of 30 years at Federated Hermes, Ferentino’s new role will involve the complete oversight of municipal managed assets, which total $7.1 billion. These appointments highlight Federated Hermes' commitment to cultivating internal talent and ensuring a smooth succession within their leadership.

As the incoming CIO, Gallo will play a crucial role in managing the firm's global fixed-income strategies, which range from multisector and municipal bonds to international and mortgage-backed securities. His responsibilities will also encompass developing investment teams and managing risk portfolios, ensuring that Federated Hermes maintains its reputation for high-quality investment management in fixed-income markets.

Gallo’s longstanding association with Federated Hermes is complemented by his previous experience as a financial analyst and trader at the Federal Reserve Bank of New York. His breadth of expertise across various investment products, coupled with his strategic vision, positions him well to lead Federated Hermes' fixed-income sector into its next phase of growth.

Commenting on Gallo's appointment, John Fisher, President and CEO of the Federated Advisory Companies, said, "R.J. has been integral to the Federated Hermes fixed-income team for decades and possesses the ability to articulate our market strategies clearly and effectively." This indicates Fisher's confidence in Gallo's capabilities to manage the demanding responsibilities that come with being CIO.

Ferentino, stepping into her new role, has also demonstrated a wealth of knowledge in the municipal bond markets. Her leadership is expected to drive continued performance improvements within the Municipal Bond Group, allowing Federated Hermes to adapt to evolving market conditions and client needs effectively. Fisher praised her contributions, noting, "We are confident that the team will continue to benefit from her skills, experience, and perspective."

The transition in leadership comes at a time when Federated Hermes has been experiencing significant growth in the fixed-income sector. Under Ostrowski’s stewardship, assets managed within this segment soared from $29.5 billion in 2004 to the current figure. This impressive progression underscores the firm’s robust approach to fixed-income investment management, which Gallo will now be responsible for perpetuating and enhancing.

The global fixed-income team at Federated Hermes features 107 seasoned professionals who, on average, have nearly two decades of industry experience, ensuring depth and expertise in managing these assets. With the addition of Gallo and Ferentino at the helm, the firm is poised to uphold its successful legacy in this competitive field.

As Federated Hermes prepares for these leadership changes, stakeholders and clients can rest assured that the company remains committed to providing rigorous investment strategies and maintaining its high standards of performance that have defined its reputation in the investment management arena.

For more information about Federated Hermes and its investment strategies, please visit FederatedHermes.com/us.