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Federated Hermes Reports Record High in Assets Under Management

In a notable announcement on October 30, 2025, Federated Hermes, Inc., a prominent global leader in active investment management, revealed its exceptional financial performance for the third quarter of the year. The firm successfully increased its total assets under management to a staggering $871.2 billion. This achievement represents a significant rise of $70.7 billion, or 9%, compared to $800.5 billion recorded a year earlier on September 30, 2024.

The surge in managed assets was primarily bolstered by impressive contributions from the money market and fixed-income sectors, which reached record-high figures of $652.8 billion and $101.8 billion, respectively. This robust performance reflects an ongoing investor preference for capital preservation strategies amid economic uncertainties, increasing the demand for money market funds and alternative investment solutions offered by the firm.

In terms of earnings, the company reported earnings per diluted share (EPS) of $1.34 for Q3 2025, a notable increase from $1.06 in the previous year’s third quarter. The net income for this quarter was $104.1 million, showcasing a solid growth from $87.5 million in Q3 2024.

Federated Hermes' President and CEO, J. Christopher Donahue, highlighted the crucial role of their MDT equity funds and alternative investment offerings in attracting significant net sales. He emphasized that the firm has catered to the rising interest in their quantitative investment strategies, which are tailored for compatibility with various portfolio structures. The company also noted substantial inflows into lower-duration fixed-income products like their microshort and ultrashort funds, stepping further out on the yield curve and pursuing enhanced returns in comparison to traditional money market strategies.

The board of directors of Federated Hermes declared a dividend of $0.34 per share, with the payout scheduled for November 14, 2025. The dividends reflect the firm's commitment to returning value to its shareholders and is indicative of the company’s solid financial footing amid increasing asset management success.

In terms of product performance, Federated Hermes reported that its equity assets amounted to $94.7 billion, a rise of 13% from $83.6 billion a year earlier. The top-performing equity funds during the quarter included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund, among others.

Fixed-income investments also registered a record high, now totaling $101.8 billion, marking a 2% increase from the previous year. This growth was largely driven by the popularity of products such as the Federated Hermes Ultrashort Bond Fund and the Federated Hermes Sustainable Global Investment Grade Credit Fund.

On the other hand, alternative and private market assets saw a minor decline, dropping to $19 billion from $20.7 billion in the previous year. This sector remains crucial to the overall revenue of Federated Hermes, making up 6% of long-term assets.

The company’s financial outlook appears positive with record net sales in various fund categories and a strong demand for their offerings. With continued expansion in managed assets and a focus on delivering robust earnings, Federated Hermes is well-positioned for sustained growth in the coming quarters. Investors, market analysts, and institutional clients are likely to monitor the evolving dynamics and performance of Federated Hermes as they navigate the investment landscape in these changing economic times.

As a final note, Federated Hermes will hold an earnings conference call on October 31, 2025, at 9 a.m. Eastern. Investors and analysts are encouraged to participate to gain additional insights into the firm’s performance and strategic plans moving forward.