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Federated Hermes Reports Record AUM for Q1 2026

In a significant milestone for the investment management firm, Federated Hermes, Inc. (NYSE: FHI) has achieved record assets under management, totaling an impressive $907.1 billion as of March 31, 2026. This remarkable growth reflects a $67.3 billion increase from the previous year, highlighting the sustained investor confidence in the firm's active investment strategies.

The company reported an earnings per diluted share (EPS) of $1.27 for the first quarter of 2026, demonstrating a slight increase from $1.25 in the same period last year, despite a dip in net income from $101.1 million to $96.4 million. This fluctuation resulted from several factors, including a previous year's $12.9 million VAT refund that impacted Q1 2025 figures.

Breakdown of Growth

Federated Hermes' total average managed assets for the quarter stood at $915.6 billion, a robust 9% increase from $843.2 billion a year prior. Notably, the firm's money market assets surged to a record $684.7 billion, a 7% increase year-over-year, while equity assets also soared to a new high of $100.8 billion, marking a 25% increase from the previous year.

The firm's President and CEO, J. Christopher Donahue, attributed this growth to strong sales across equity offerings and increased demand for money market products. He stated, "In the first quarter, we saw record gross sales and positive net flows in our equity offerings as we continued momentum from the previous year, with investor interest in a range of our offering types."

Notable Product Performance

Top-selling funds during Q1 2026 included the Federated Hermes MDT Mid Cap Growth Fund, MDT Large Cap Growth Fund, and the MDT All Cap Core Fund. The strong performance of these offerings illustrates Federated Hermes' ability to meet varying investor needs, from capital preservation to pursuit of higher yields in a competitive market landscape.

In terms of fixed-income assets, the firm reported $99.8 billion, exhibiting slight fluctuations compared to previous periods. The performance of alternative/private markets assets totaled $19.0 billion, showing a modest decline from prior quarters, yet the firm remains committed to exploring opportunities within this sector.

Dividend Announcement

In conjunction with these strong quarterly results, Federated Hermes announced an increase in its quarterly dividend by 11.8% to $0.38 per share, payable on May 15, 2026. This decision reflects the company's ongoing commitment to delivering value to its shareholders amid a growth-oriented strategy. Over the last quarter, the firm also repurchased 1,191,300 shares of its class B common stock, showcasing confidence in its stock performance.

Looking Ahead

Federated Hermes plans to host an earnings conference call on May 1, 2026, where they will further discuss the quarterly results and outline strategies for continued growth in the upcoming quarters. Investors and analysts will have an opportunity to engage with company executives as they delve into further specifics and outlooks.

As a global leader in active investment management, Federated Hermes continues to solidify its position within the industry through innovative strategies and robust fund performance, appealing to a wide range of investors, including corporations, government entities, and institutional clients.

In summary, Federated Hermes has set a new benchmark in its operational achievements for Q1 2026, reinforcing its commitment to delivering comprehensive investment solutions that resonate with market demands and investor expectations.