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Federated Hermes, Inc. reports record assets under management with third quarter 2025 earnings

prnewswire.com

PITTSBURGH, Oct. 30, 2025 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.34 for Q3 2025, compared to $1.06 for the same quarter last year, on net income of $104.1 million for Q3 2025, compared to $87.5 million for Q3 2024.

Federated Hermes' total managed assets were a record $871.2 billion at Sept. 30, 2025, up $70.7 billion or 9% from $800.5 billion at Sept. 30, 2024 and up $25.5 billion or 3% from $845.7 billion at June 30, 2025. Total average managed assets for Q3 2025 were $859.5 billion, up $66.0 billion or 8% from $793.5 billion for Q3 2024 and up $22.2 billion or 3% from $837.3 billion for Q2 2025.

"We saw record net sales of equity funds in the third quarter, driven by continued interest in our MDT equity and alternative quantitative investment offerings—a broad suite of quantitative investment solutions that employ a disciplined, bottom-up investment approach that fits a variety of portfolio structures as core or complementary strategies," said J. Christopher Donahue, president and chief executive officer. "In the declining rate environment of the third quarter, investors with interest in capital preservation and liquidity continued to rely on our money market offerings. They also turned to our microshort and ultrashort funds, which are a step further out the yield curve and pursue higher yields than money market strategies."

Federated Hermes' board of directors declared a dividend of $0.34 per share. The dividend is payable on Nov. 14, 2025 to shareholders of record as of Nov. 7, 2025. During Q3 2025, Federated Hermes purchased 20,808 shares of Federated Hermes class B common stock due to employee restricted stock forfeitures.

Equity assets were $94.7 billion at Sept. 30, 2025, up $11.1 billion or 13% from $83.6 billion at Sept. 30, 2024 and up $5.7 billion or 6% from $89.0 billion at June 30, 2025. Top-selling equity funds during Q3 2025 on a net basis were Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT All Cap Core Fund, Federated Hermes Asia ex-Japan Equity Fund and Federated Hermes MDT Large Cap Value Fund.

Fixed-income assets were a record $101.8 billion at Sept. 30, 2025, up $1.6 billion or 2% from $100.2 billion at Sept. 30, 2024 and up $3.1 billion or 3% from $98.7 billion at June 30, 2025. Top-selling fixed-income funds during Q3 2025 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Sustainable Global Investment Grade Credit Fund, Federated Hermes Municipal Ultrashort Fund, Federated Hermes Government Ultrashort Fund and Federated Hermes Short Term Income Fund.

Alternative/private markets assets were $19.0 billion at Sept. 30, 2025, down $1.7 billion or 8% from $20.7 billion at Sept. 30, 2024 and down $1.7 billion or 8% from $20.7 billion at June 30, 2025.

Money market assets were a record $652.8 billion at Sept. 30, 2025, up $59.8 billion or 10% from $593.0 billion at Sept. 30, 2024 and up $18.4 billion or 3% from $634.4 billion at June 30, 2025. Money market fund assets were a record $492.7 billion at Sept. 30, 2025, up $52.3 billion or 12% from $440.4 billion at Sept. 30, 2024 and up $24.7 billion or 5% from $468.0 billion at June 30, 2025.

Financial Summary

Q3 2025 vs. Q3 2024

Revenue increased $61.0 million or 15% primarily due to an increase in revenue resulting from higher average money market and equity assets.

During Q3 2025, Federated Hermes derived 52% of its revenue from money market assets, 46% from long-term assets (29% from equity, 11% from fixed-income, and 6% from alternative/private markets and multi-asset) and 2% from sources other than managed assets.

Operating expenses increased $43.3 million or 15% primarily due to a $17.7 million increase in distribution expenses resulting primarily from higher average managed money market fund assets, an increase in Other expense of $13.7 million primarily due to fluctuations in foreign currency exchange rates and a $8.5 million increase in Compensation and related expense primarily related to higher incentive compensation.

Nonoperating income (expenses), net for Q3 2025 was flat, as compared to the same period in 2024.

Q3 2025 vs. Q2 2025

Revenue increased $44.6 million or 10% primarily due to an increase in revenue from higher average money market and equity assets.

Operating expenses increased $32.2 million or 10% including a $14.3 million increase in Other expense primarily due to fluctuations in foreign currency exchange rates and a $14.2 million increase in Distribution expenses resulting primarily from higher average managed money market fund assets.

Nonoperating income (expenses), net decreased $2.9 million primarily due to a smaller increase in the market value of investments in Q3 2025 as compared to the increase in the market value of the investments in Q2 2025.

YTD 2025 vs. YTD 2024

Revenue increased $110.4 million or 9% primarily due to an increase in revenue from higher average money market and equity assets.

For the first nine months of 2025, Federated Hermes derived 53% of its revenue from money market assets, 45% from long-term assets (28% from equity assets, 11% from fixed-income assets and 6% from alternative/private markets and multi-asset), and 2% from sources other than managed assets.

Operating expenses decreased $16.8 million or 2% primarily due to lower intangible asset related expense resulting from the $66.3 million impairment of an intangible asset in Q2 2024 associated with the 2018 acquisition of Federated Hermes Limited and a $13.6 million decrease in Other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. These decreases were partially offset by a $29.4 million increase in Compensation and related expense primarily due to higher incentive compensation and a $27.8 million increase in Distribution expenses resulting primarily from higher average managed money market fund assets.

Nonoperating income (expenses), net increased $10.6 million primarily due to a larger increase in the market value of investments in the first nine months of 2025 compared to the increase in the market value of investments for the same period in 2024.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, Oct. 31, 2025. Investors are invited to listen to the earnings teleconference by calling 888-506-0062 (domestic) or 973-528-0011 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us at least 15 minutes prior to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on Oct. 31, 2025. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 53063. The online replay will be available via FederatedHermes.com/us for one year.

About Federated Hermes

Federated Hermes, Inc. is a global leader in active investment management, with $871.2 billion in assets under management 1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 10,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees in London, New York, Boston and offices worldwide.

Federated Hermes ranks in the top 6% of equity fund managers, the top 7% of money market fund managers and the top 11% of fixed-income fund managers 2 in the industry. Federated Hermes also ranks as the 10th-largest manager of model-delivered separately managed accounts 3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.

###

1) As of Sept. 30, 2025.

2) Morningstar, Sept. 30, 2025. Based on U.S. fund flows rankings.

3) Money Management Institute/Cerulli,Q2 2025.

Federated Securities Corp. is distributor of the Federated Hermes funds.

Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, and Hermes GPE LLP, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.

Cautionary statements

Certain statements in this press release, such as those related to performance, investment strategies and uses, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may" and similar expressions. Any forward-looking statement, and Federated Hermes' level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes' control. Other risks and uncertainties include the ability of the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company to sustain offering demand, the timing and level of offering sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties include the risk factors discussed in the company's annual and quarterly reports as filed with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Quarter Ended

%

Change

Q3 2024

to Q3

2025

Quarter Ended

%

Change

Q2 2025

to Q3

2025

Sept. 30, 2025

Sept. 30, 2024

June 30, 2025

Revenue

Investment advisory fees, net

$ 310,366

$ 274,621

13 %

$ 287,435

8 %

Administrative service fees, net—affiliates

107,234

97,687

10

101,657

5

Other service fees, net

51,846

36,148

43

35,752

45

Total Revenue

469,446

408,456

15

424,844

10

Operating Expenses

Compensation and related

144,563

136,027

6

144,872

0

Distribution

113,569

95,859

18

99,399

14

Systems and communications

26,023

23,656

10

23,481

11

Professional service fees

20,239

19,849

2

18,628

9

Office and occupancy

10,129

9,884

2

9,910

2

Advertising and promotional

5,264

5,378

(2)

6,146

(14)

Travel and related

4,665

4,221

11

4,117

13

Intangible asset related

3,556

3,504

1

3,503

2

Other

11,986

(1,664)

NM

(2,296)

NM

Total Operating Expenses

339,994

296,714

15

307,760

10

Operating Income

129,452

111,742

16

117,084

11

Nonoperating Income (Expenses)

Investment income (loss), net

14,105

14,015

1

16,947

(17)

Debt expense

(3,182)

(3,170)

0

(3,170)

0

Other, net

(48)

16

(400)

(35)

(37)

Total Nonoperating Income (Expenses), net

10,875

10,861

0

13,742

(21)

Income before income taxes

140,327

122,603

14

130,826

7

Income tax provision

34,232

32,262

6

34,135

0

Net income including the noncontrolling interests

in subsidiaries

106,095

90,341

17

96,691

10

Less: Net income (loss) attributable to the

noncontrolling interests in subsidiaries

1,969

2,803

(30)

5,691

(65)

Net Income

$ 104,126

$ 87,538

19 %

$ 91,000

14 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share 1

Basic and diluted

$ 1.34

$ 1.06

26 %

$ 1.16

16 %

Weighted-Average Shares Outstanding

Basic

74,057

78,690

75,064

Diluted

74,057

78,706

75,072

Dividends Declared Per Share

$ 0.34

$ 0.31

$ 0.34

1)

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $4.7 million, $3.7 million and $4.1 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Sept. 30, 2025, Sept. 30, 2024 and June 30, 2025, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Nine Months Ended

Sept. 30, 2025

Sept. 30, 2024

% Change

Revenue

Investment advisory fees, net

$ 885,261

$ 809,537

9 %

Administrative service fees, net—affiliates

310,000

287,819

8

Other service fees, net

122,569

110,054

11

Total Revenue

1,317,830

1,207,410

9

Operating Expenses

Compensation and related

432,705

403,321

7

Distribution

312,052

284,257

10

Systems and communications

73,730

68,672

7

Professional service fees

57,415

58,046

(1)

Office and occupancy

29,991

29,617

1

Advertising and promotional

15,985

16,306

(2)

Travel and related

12,335

11,341

9

Intangible asset related

10,255

76,131

(87)

Other

(4,946)

8,679

(157)

Total Operating Expenses

939,522

956,370

(2)

Operating Income

378,308

251,040

51

Nonoperating Income (Expenses)

Investment income (loss), net

38,527

27,630

39

Debt expense

(9,531)

(9,478)

1

Other, net

(110)

85

(229)

Total Nonoperating Income (Expenses), net

28,886

18,237

58

Income before income taxes

407,194

269,277

51

Income tax provision

100,532

84,701

19

Net income including the noncontrolling interests in subsidiaries

306,662

184,576

66

Less: Net income (loss) attributable to the noncontrolling interests in

subsidiaries

10,402

978

NM

Net Income

$ 296,260

$ 183,598

61 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share 1

Basic and diluted

$ 3.75

$ 2.20

70 %

Weighted-Average Shares Outstanding

Basic

75,541

79,804

Diluted

75,544

79,809

Dividends Declared Per Share

$ 0.99

$ 1.90

1)

Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $13.3 million and $8.0 million available to unvested restricted Federated Hermes shareholders for the nine months ended Sept. 30, 2025 and Sept. 30, 2024, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Sept. 30, 2025

Dec. 31, 2024

Assets

Cash and other investments

$ 647,391

$ 641,042

Other current assets

154,945

140,310

Intangible assets, net, including goodwill

1,195,992

1,132,699

Other long-term assets

183,942

170,633

Total Assets

$ 2,182,270

$ 2,084,684

Liabilities, Redeemable Noncontrolling Interests and Equity

Current liabilities

$ 256,400

$ 289,193

Long-term debt

348,303

348,106

Other long-term liabilities

326,766

296,665

Redeemable noncontrolling interests

63,515

55,514

Equity excluding treasury stock

1,993,883

1,728,044

Treasury stock

(806,597)

(632,838)

Total Liabilities, Redeemable Noncontrolling Interests and Equity

$ 2,182,270

$ 2,084,684

Unaudited Changes in Long-Term Assets - By Asset Class

(in millions)

Quarter Ended

Nine Months Ended

Sept. 30, 2025

June 30, 2025

Sept. 30, 2024

Sept. 30, 2025

Sept. 30, 2024

Equity

Beginning assets

$ 88,994

$ 80,913

$ 77,851

$ 79,423

$ 79,291

Sales 1

6,845

7,961

3,607

22,218

11,333

Redemptions 1

(6,975)

(6,180)

(5,046)

(19,148)

(19,468)

Net sales (redemptions) 1

(130)

1,781

(1,439)

3,070

(8,135)

Net exchanges

154

0

(4)

40

10

Impact of foreign exchange 2

(85)

1,023

725

1,692

170

Market gains and (losses) 3

5,723

5,277

6,476

10,431

12,273

Ending assets

$ 94,656

$ 88,994

$ 83,609

$ 94,656

$ 83,609

Fixed Income

Beginning assets

$ 98,687

$ 99,486

$ 95,294

$ 98,059

$ 94,920

Sales 1

7,545

5,267

7,345

18,756

19,190

Redemptions 1

(5,887)

(7,652)

(5,942)

(19,827)

(18,036)

Net sales (redemptions) 1

1,658

(2,385)

1,403

(1,071)

1,154

Net exchanges

(134)

5

(12)

(28)

(198)

Impact of foreign exchange 2

(22)

208

98

271

19

Market gains and (losses) 3

1,624

1,373

3,388

4,582

4,276

Ending assets

$ 101,813

$ 98,687

$ 100,171

$ 101,813

$ 100,171

Alternative/Private Markets

Beginning assets

$ 20,738

$ 19,426

$ 20,061

$ 18,864

$ 20,551

Sales 1

670

782

558

2,537

1,966

Redemptions 1

(2,291)

(551)

(881)

(3,866)

(2,798)

Net sales (redemptions) 1

(1,621)

231

(323)

(1,329)

(832)

Net exchanges

0

(1)

12

0

188

Acquisitions/(dispositions)

0

109

0

109

0

Impact of foreign exchange 2

(341)

1,091

1,017

1,282

812

Market gains and (losses) 3

248

(118)

(84)

98

(36)

Ending assets

$ 19,024

$ 20,738

$ 20,683

$ 19,024

$ 20,683

Multi-asset

Beginning assets

$ 2,856

$ 2,826

$ 2,876

$ 2,883

$ 2,867

Sales 1

45

44

38

152

124

Redemptions 1

(92)

(137)

(94)

(334)

(319)

Net sales (redemptions) 1

(47)

(93)

(56)

(182)

(195)

Net exchanges

(3)

(2)

4

(3)

5

Market gains and (losses) 3

134

125

134

242

281

Ending assets

$ 2,940

$ 2,856

$ 2,958

$ 2,940

$ 2,958

Total Long-term Assets

Beginning assets

$ 211,275

$ 202,651

$ 196,082

$ 199,229

$ 197,629

Sales 1

15,105

14,054

11,548

43,663

32,613

Redemptions 1

(15,245)

(14,520)

(11,963)

(43,175)

(40,621)

Net sales (redemptions) 1

(140)

(466)

(415)

488

(8,008)

Net exchanges

17

2

0

9

5

Acquisitions/(dispositions)

0

109

0

109

0

Impact of foreign exchange 2

(448)

2,322

1,840

3,245

1,001

Market gains and (losses) 3

7,729

6,657

9,914

15,353

16,794

Ending assets

$ 218,433

$ 211,275

$ 207,421

$ 218,433

$ 207,421

1)

For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.

3)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type

(in millions)

Quarter Ended

Sept. 30, 2025

Equity

Fixed Income

Alternative / Private

Markets

Multi-asset

Total

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds .

Separate

Accounts 1

Beginning assets

$ 49,359

$ 39,635

$ 45,415

$ 53,272

$ 12,905

$ 7,833

$ 2,730

$ 126

$ 110,409

$ 100,866

Sales

4,797

2,048

3,556

3,989

620

50

45

0

9,018

6,087

Redemptions

(3,386)

(3,589)

(3,090)

(2,797)

(1,786)

(505)

(87)

(5)

(8,349)

(6,896)

Net sales (redemptions)

1,411

(1,541)

466

1,192

(1,166)

(455)

(42)

(5)

669

(809)

Net exchanges

154

0

(134)

0

0

0

(3)

0

17

0

Impact of foreign exchange 2

(82)

(3)

(18)

(4)

(194)

(147)

0

0

(294)

(154)

Market gains and (losses) 3

3,268

2,455

749

875

269

(21)

128

6

4,414

3,315

Ending assets

$ 54,110

$ 40,546

$ 46,478

$ 55,335

$ 11,814

$ 7,210

$ 2,813

$ 127

$ 115,215

$ 103,218

Nine Months Ended

Sept. 30, 2025

Equity

Fixed Income

Alternative / Private

Markets

Multi-asset

Total

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Funds

Separate

Accounts 1

Beginning assets

$ 43,752

$ 35,671

$ 45,550

$ 52,509

$ 11,501

$ 7,363

$ 2,764

$ 119

$ 103,567

$ 95,662

Sales

14,276

7,942

10,272

8,484

2,350

187

152

0

27,050

16,613

Redemptions

(11,224)

(7,924)

(11,618)

(8,209)

(3,127)

(739)

(309)

(25)

(26,278)

(16,897)

Net sales (redemptions)

3,052

18

(1,346)

275

(777)

(552)

(157)

(25)

772

(284)

Net exchanges

47

(7)

(24)

(4)

0

0

(3)

0

20

(11)

Acquisition-related

0

0

0

0

109

0

0

0

109

0

Impact of foreign exchange 2

823

869

153

118

728

554

0

0

1,704

1,541

Market gains and (losses) 3

6,436

3,995

2,145

2,437

253

(155)

209

33

9,043

6,310

Ending assets

$ 54,110

$ 40,546

$ 46,478

$ 55,335

$ 11,814

$ 7,210

$ 2,813

$ 127

$ 115,215

$ 103,218

1)

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

2)

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

3)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

Unaudited Changes in Long-Term Assets - By Offering Type

(in millions)

Quarter Ended

Nine Months Ended

Sept. 30, 2025

June 30, 2025

Sept. 30, 2024

Sept. 30, 2025

Sept. 30, 2024

Total Fund Assets

Beginning assets

$ 110,409

$ 104,289

$ 101,247

$ 103,567

$ 101,530

Sales

9,018

8,753

6,646

27,050

20,130

Redemptions

(8,349)

(9,166)

(7,234)

(26,278)

(24,221)

Net sales (redemptions)

669

(413)

(588)

772

(4,091)

Net exchanges

17

3

14

20

22

Acquisitions/(dispositions)

0

109

0

109

0

Impact of foreign exchange 1

(294)

1,313

1,060

1,704

635

Market gains and (losses) 2

4,414

5,108

5,066

9,043

8,703

Ending assets

$ 115,215

$ 110,409

$ 106,799

$ 115,215

$ 106,799

Total Separate Account Assets 3

Beginning assets

$ 100,866

$ 98,362

$ 94,835

$ 95,662

$ 96,099

Sales 4

6,087

5,301

4,902

16,613

12,483

Redemptions 4

(6,896)

(5,354)

(4,729)

(16,897)

(16,400)

Net sales (redemptions) 4

(809)

(53)

173

(284)

(3,917)

Net exchanges

0

(1)

(14)

(11)

(17)

Impact of foreign exchange 1

(154)

1,009

780

1,541

366

Market gains and (losses) 2

3,315

1,549

4,848

6,310

8,091

Ending assets

$ 103,218

$ 100,866

$ 100,622

$ 103,218

$ 100,622

Total Long-term Assets 3

Beginning assets

$ 211,275

$ 202,651

$ 196,082

$ 199,229

$ 197,629

Sales 4

15,105

14,054

11,548

43,663

32,613

Redemptions 4

(15,245)

(14,520)

(11,963)

(43,175)

(40,621)

Net sales (redemptions) 4

(140)

(466)

(415)

488

(8,008)

Net exchanges

17

2

0

9

5

Acquisitions/(dispositions)

0

109

0

109

0

Impact of foreign exchange 1

(448)

2,322

1,840

3,245

1,001

Market gains and (losses) 2

7,729

6,657

9,914

15,353

16,794

Ending assets

$ 218,433

$ 211,275

$ 207,421

$ 218,433

$ 207,421

1)

Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.

2)

Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.

3)

Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings.

4)

For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.

Unaudited Managed Assets

(in millions)

Sept. 30, 2025

June 30, 2025

March 31, 2025

Dec. 31, 2024

Sept. 30, 2024

By Asset Class

Equity

$ 94,656

$ 88,994

$ 80,913

$ 79,423

$ 83,609

Fixed-income

101,813

98,687

99,486

98,059

100,171

Alternative / private markets

19,024

20,738

19,426

18,864

20,683

Multi-asset

2,940

2,856

2,826

2,883

2,958

Total long-term assets

218,433

211,275

202,651

199,229

207,421

Money market

652,767

634,400

637,122

630,349

593,030

Total Managed Assets

$ 871,200

$ 845,675

$ 839,773

$ 829,578

$ 800,451

By Offering Type

Funds:

Equity

$ 54,110

$ 49,359

$ 43,910

$ 43,752

$ 45,391

Fixed-income

46,478

45,415

45,800

45,550

46,027

Alternative / private markets

11,814

12,905

11,879

11,501

12,558

Multi-asset

2,813

2,730

2,700

2,764

2,823

Total long-term assets

115,215

110,409

104,289

103,567

106,799

Money market

492,701

468,044

464,912

461,720

440,397

Total Fund Assets

$ 607,916

$ 578,453

$ 569,201

$ 565,287

$ 547,196

Separate Accounts:

Equity

$ 40,546

$ 39,635

$ 37,003

$ 35,671

$ 38,218

Fixed-income

55,335

53,272

53,686

52,509

54,144

Alternative / private markets

7,210

7,833

7,547

7,363

8,125

Multi-asset

127

126

126

119

135

Total long-term assets

103,218

100,866

98,362

95,662

100,622

Money market

160,066

166,356

172,210

168,629

152,633

Total Separate Account Assets

$ 263,284

$ 267,222

$ 270,572

$ 264,291

$ 253,255

Total Managed Assets

$ 871,200

$ 845,675

$ 839,773

$ 829,578

$ 800,451

Unaudited Average Managed Assets

Quarter Ended

(in millions)

Sept. 30, 2025

June 30, 2025

March 31, 2025

Dec. 31, 2024

Sept. 30, 2024

By Asset Class

Equity

$ 92,436

$ 83,564

$ 82,105

$ 82,247

$ 80,220

Fixed-income

99,206

98,365

99,360

98,254

97,563

Alternative / private markets

19,862

20,053

19,012

19,754

20,455

Multi-asset

2,895

2,779

2,900

2,934

2,910

Total long-term assets

214,399

204,761

203,377

203,189

201,148

Money market

645,092

632,543

639,827

601,169

592,304

Total Avg. Managed Assets

$ 859,491

$ 837,304

$ 843,204

$ 804,358

$ 793,452

By Offering Type

Funds:

Equity

$ 51,828

$ 45,965

$ 45,260

$ 45,261

$ 43,632

Fixed-income

45,743

44,972

45,715

45,654

44,977

Alternative / private markets

12,347

12,370

11,610

12,010

12,451

Multi-asset

2,770

2,654

2,774

2,811

2,775

Total long-term assets

112,688

105,961

105,359

105,736

103,835

Money market

482,237

462,683

463,727

445,775

436,418

Total Avg. Fund Assets

$ 594,925

$ 568,644

$ 569,086

$ 551,511

$ 540,253

Separate Accounts:

Equity

$ 40,608

$ 37,599

$ 36,845

$ 36,986

$ 36,588

Fixed-income

53,463

53,393

53,645

52,600

52,586

Alternative / private markets

7,515

7,683

7,402

7,744

8,004

Multi-asset

125

125

126

123

135

Total long-term assets

101,711

98,800

98,018

97,453

97,313

Money market

162,855

169,860

176,100

155,394

155,886

Total Avg. Separate Account Assets

$ 264,566

$ 268,660

$ 274,118

$ 252,847

$ 253,199

Total Avg. Managed Assets

$ 859,491

$ 837,304

$ 843,204

$ 804,358

$ 793,452

Unaudited Average Managed Assets

Nine Months Ended

(in millions)

Sept. 30, 2025

Sept. 30, 2024

By Asset Class

Equity

$ 86,035

$ 79,108

Fixed-income

98,977

96,280

Alternative / private markets

19,642

20,415

Multi-asset

2,858

2,891

Total long-term assets

207,512

198,694

Money market

639,154

584,482

Total Avg. Managed Assets

$ 846,666

$ 783,176

By Offering Type

Funds:

Equity

$ 47,684

$ 42,754

Fixed-income

45,477

44,248

Alternative / private markets

12,109

12,386

Multi-asset

2,733

2,751

Total long-term assets

108,003

102,139

Money market

469,549

423,773

Total Avg. Fund Assets

$ 577,552

$ 525,912

Separate Accounts:

Equity

$ 38,351

$ 36,354

Fixed-income

53,500

52,032

Alternative / private markets

7,533

8,029

Multi-asset

125

140

Total long-term assets

99,509

96,555

Money market

169,605

160,709

Total Avg. Separate Account Assets

$ 269,114

$ 257,264

Total Avg. Managed Assets

$ 846,666

$ 783,176

SOURCE Federated Hermes, Inc.