Federated Hermes Implements Major Changes with Portfolio Manager Retirements for a Smooth Transition

Federated Hermes Announces Key Portfolio Management Transitions

On November 5, 2025, Federated Hermes, Inc. (NYSE: FHI), a worldwide leader in active investing, made a noteworthy announcement about upcoming changes in its investment management team, designed for a seamless transition in 2026. The company revealed that five seasoned portfolio managers are set to retire, prompting strategic adjustments in leadership roles across its investment teams as part of its carefully orchestrated long-term succession planning.

John B. Fisher, president of Federated Advisory Companies, elaborated on the initiative, stating, "The transition of these portfolio management responsibilities represents the evolution of our long-term succession planning that has been firmly under development for several years." He highlighted the supportive and developmental environment fostered by the firm's chief investment officers: Stephen Auth (Equities), Deborah Cunningham (Global Liquidity Markets), and Robert Ostrowski (Global Fixed Income Group). These leaders have actively guided their teams to cultivate the next generation of portfolio managers.

Expressing gratitude, Fisher said, "We are deeply appreciative of the outstanding contributions these portfolio managers have made during their many years with Federated Hermes." He assured clients that with a wealth of experienced professionals stepping up, the company will continue to provide the same strategies that have bolstered its reputation for equity performance, robust risk-adjusted fixed-income returns, and competitive liquidity fund outcomes.

The expected retirements include key figures such as Todd Abraham, senior portfolio manager and head of the Government/Mortgage Backed Fixed Income Group, who plans to retire on April 2, 2026. Following his departure, Liam O'Connell, a portfolio manager with 22 years of experience at Federated Hermes, will take leadership of the group.

Lee Cunningham II, another senior portfolio manager focusing on municipal securities, is set to retire on April 1, 2026. After Cunningham's exit, Ann Ferentino, CFA, senior portfolio manager and co-head of the Municipal Bond Group, will continue guiding portfolio management and research related to municipal securities, leveraging her three-decade experience with the firm.

Additionally, B. Anthony Delserone Jr., a senior portfolio manager in domestic high-yield securities, will retire on the same date as Cunningham. Kathryn (Katie) Glass, currently co-head of the Domestic High Yield Group, will then lead this sector, drawing on her own 26 years of experience with Federated Hermes.

Mary Jo Ochson, chief investment officer and senior portfolio manager overseeing Tax Free Liquidity Investment and Short Term Municipal Bonds, will retire on April 2, 2026. In her place, Kyle Stewart, CFA, senior portfolio manager with 29 years of experience at the firm, will head these areas.

Finally, Hans Utsch, senior portfolio manager and co-head of the Kaufmann Group, plans to retire on July 1, 2026. Following him, John Ettinger, also a senior portfolio manager and current co-head of the Kaufmann Group, will assume full leadership. With 31 years in investment management and having worked alongside Utsch for 29 years, Ettinger brings a wealth of experience to the role.

The Kaufmann Group of Federated Hermes comprises seven portfolio managers who average 20 years of service with the firm, along with six analysts and three traders who contribute significantly to its comprehensive investment strategy. Likewise, the firm’s fixed-income team boasts 106 portfolio managers, analysts, traders, and other investment professionals who average 14 years of experience within the organization, while the liquidity management team has 34 experts with an average tenure of 22 years.

Federated Hermes, headquartered in Pittsburgh, is actively managing $871.2 billion in assets as of September 30, 2025. The firm serves over 10,000 institutions worldwide, including corporations, government entities, and foundations, delivering a variety of investment solutions tailored to achieve diverse outcomes across equity, fixed income, alternative markets, and liquidity management strategies. Fisher proudly remarked, "We take great pride in the stability and depth of investment management experience we offer across our liquidity, fixed income, and equity asset classes, which help ensure successful execution of our succession strategies."

As these management transitions prepare to unfold in 2026, further details will be made available through regulatory disclosures regarding the respective funds managed by the retiring portfolio managers.