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Federated Hermes Achieves Record Assets Under Management

In a remarkable display of financial health, Federated Hermes, Inc. (NYSE: FHI), a beacon in the sphere of active investment management, has announced extraordinary earnings for the fourth quarter and the full financial year of 2025.

Fourth Quarter Highlights

The company reported earnings per diluted share (EPS) for Q4 2025 at $1.39, marking a substantial increase from $1.04 in the same period last year. This translates to a net income of $107 million during this quarter, compared to $84.7 million in Q4 2024. The full-year EPS surged to $5.13 from $3.23 reported for 2024, reflecting a robust net income of $403.3 million, up from the preceding year’s $268.3 million.

This stunning growth is further complemented by the significant recovery from a $66.3 million non-cash expense related to the impairment of an indefinite-lived intangible asset recognized in Q2 2024. Furthermore, 2025 benefited from a stable operational environment, signaling strong demand for investment solutions.

Record Total Assets Under Management

As of December 31, 2025, Federated Hermes boasts record assets under management (AUM) at $902.6 billion, an impressive rise of $73 billion or 9% compared to $829.6 billion on December 31, 2024. Furthermore, the financial weather remained strong, with a sequential growth of $31.4 billion or 4% from $871.2 billion recorded at the end of Q3 2025.

The average managed assets for Q4 2025 escalated to $873.7 billion, reflecting a $69.3 billion or 9% uptick from $804.4 billion in Q4 2024 and a $14.2 billion or 2% increase from $859.5 billion reported in Q3 2025.

Strategic Investments and Performance

Federated Hermes attributed its remarkable asset growth to increases in money market assets. J. Christopher Donahue, the firm’s president and chief executive officer, noted: "Our liquidity products have provided attractive cash management resources and risk-adjusted returns, stimulating investor interest in a wider range of investment solutions beyond mutual funds, including ETFs, CITs, and SMAs."

In terms of performing products, the SMA net sales saw strong flows led by their MDT All Cap Core strategy, MDT Mid Cap Growth strategy, and Core Plus fixed-income strategy throughout Q4 2025.

Dividend and Share Repurchase Activity

The board of directors declared a quarterly dividend of $0.34 per share, set to be paid on February 13, 2026, to shareholders of record by February 6, 2026. Additionally, in Q4 2025, Federated Hermes repurchased 1,566,901 shares of its Class B common stock for $78.7 million, completing a total acquisition of 6,192,433 shares in 2025 for $263.4 million.

Asset Breakdown

As for the asset classification, equity assets rose to $97.9 billion at the end of 2025, reflecting a significant increase of $18.5 billion or 23% year-on-year. Money market assets reached a new height of $682.6 billion, a gain of $52.3 billion or 8% compared to one year before, with money market mutual fund assets also hitting an all-time high of $508.4 billion.

Fixed-income assets grew modestly to $100.1 billion, and alternative/private markets assets consolidated at $19.1 billion, indicating a steady performance in diverse market conditions.

Summary of Growth and Future Outlook

Overall, Federated Hermes displayed a well-rounded portfolio and a robust financial condition over the past year. Its commitment to delivering comprehensive investment strategies continues to resonate well within the marketplace. With many of its funds enjoying popularity, including the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes Total Return Bond Fund, the company is clearly set on a trajectory of sustained growth.

Looking forward, Federated Hermes plans to maintain its client-centric approach, expanding its diverse offering of investment solutions to meet the evolving demands of institutional and individual investors globally.