Federated Hermes, Inc. reports record assets under management with fourth quarter and full-year 2025 earnings

PITTSBURGH, Jan. 29, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) for Q4 2025 of $1.39, compared to $1.04 for the same quarter last year, on net income of $107.0 million for Q4 2025, compared to $84.7 million for Q4 2024. Full-year 2025 EPS was $5.13, compared to $3.23 for 2024 on net income of $403.3 million for 2025, compared to $268.3 million for 2024. Federated Hermes' full-year 2024 results included a $66.3 million non-cash expense, or ($0.73) per diluted share, related to the Q2 2024 impairment of an indefinite-lived intangible asset.

Federated Hermes' total managed assets were a record $902.6 billion at Dec. 31, 2025, up $73.0 billion or 9% from $829.6 billion at Dec. 31, 2024 and up $31.4 billion or 4% from $871.2 billion at Sept. 30, 2025. Average managed assets for Q4 2025 were $873.7 billion, up $69.3 billion or 9% from $804.4 billion reported for Q4 2024 and up $14.2 billion or 2% from $859.5 billion reported for Q3 2025.

"Federated Hermes' record assets at year-end were again driven by money market asset increases, as our liquidity products provided attractive cash management resources and opportunities for risk-adjusted returns," said J. Christopher Donahue, president and chief executive officer. "We also continued to see investor interest in our growing range of investment solutions beyond mutual funds, including ETFs, CITs and SMAs, which provide additional opportunities for financial professionals to meet the needs of their customers. In the fourth quarter, SMA net sales were led by our MDT All Cap Core strategy, our MDT Mid Cap Growth equity strategy and our Core Plus fixed-income strategy."

Federated Hermes' board of directors declared a quarterly dividend of $0.34 per share. The dividend is payable on Feb. 13, 2026 to shareholders of record as of Feb. 6, 2026. During Q4 2025, Federated Hermes purchased 1,566,901 shares of Federated Hermes class B common stock for $78.7 million, bringing the total shares of Class B common stock purchased in 2025 to 6,192,433 shares for $263.4 million.

Federated Hermes' equity assets were $97.9 billion at Dec. 31, 2025, up $18.5 billion or 23% from $79.4 billion at Dec. 31, 2024 and up $3.2 billion or 3% from $94.7 billion at Sept. 30, 2025. Top-selling equity funds on a net basis during Q4 2025 were Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT US Equity Fund, Federated Hermes Asia ex-Japan Fund and Federated Hermes MDT All Cap Core Fund.

Federated Hermes' fixed-income assets were $100.1 billion at Dec. 31, 2025, up $2.0 billion or 2% from $98.1 billion at Dec. 31, 2024 and down $1.7 billion or 2% from $101.8 billion at Sept. 30, 2025. Top-selling fixed-income funds on a net basis during Q4 2025 were Federated Hermes Ultrashort Bond Fund, Federated Hermes Government Ultrashort Fund, Federated Hermes Total Return Bond Fund, Federated Hermes Short-Term Income Fund and Federated Hermes Municipal Ultrashort Fund.

Federated Hermes' alternative/private markets assets were $19.1 billion at Dec. 31, 2025, up $0.2 billion or 1% from $18.9 billion at Dec. 31, 2024 and up $0.1 billion or less than 1% from $19.0 billion at Sept. 30, 2025.

Federated Hermes' money market assets were a record $682.6 billion at Dec. 31, 2025, up $52.3 billion or 8% from $630.3 billion at Dec. 31, 2024 and up $29.8 billion or 5% from $652.8 billion at Sept. 30, 2025. Money market mutual fund assets were a record $508.4 billion at Dec. 31, 2025, up $46.7 billion or 10% from $461.7 billion at Dec. 31, 2024 and up $15.7 billion or 3% from $492.7 billion at Sept. 30, 2025. Federated Hermes' money market separate account assets were a record $174.2 billion at Dec. 31, 2025, up $5.6 billion or 3% from $168.6 billion at Dec. 31, 2024 and up $14.1 billion or 9% from $160.1 billion at Sept. 30, 2025.

Financial Summary

Q4 2025 vs. Q4 2024

Revenue increased $58.2 million or 14% primarily due to a $51.7 million increase in revenue from higher average money market and equity assets and a $7.9 million increase in real estate development fees.

During Q4 2025, Federated Hermes derived 52% of its revenue from money market assets, 45% from long-term assets (29% from equity assets, 11% from fixed-income assets and 5% from alternative/private markets and multi-asset) and 3% from sources other than managed assets.

Operating expenses increased $33.0 million or 11% primarily due to a $24.3 million increase in distribution expenses resulting primarily from higher average money market fund assets and an increase in compensation and related expense of $7.8 million primarily related to higher incentive compensation.

Nonoperating income (expenses), net increased $2.9 million primarily due to an increase in the market value of investments in Q4 2025 compared to a decrease in the market value of investments in Q4 2024.

Q4 2025 vs. Q3 2025

Revenue increased $13.4 million or 3% primarily due to a $13.5 million increase in revenue from higher average money market and equity assets and an $8.3 million increase in real estate development fees.

Operating expenses increased $7.3 million or 2% primarily due to an $8.8 million increase in distribution expenses resulting primarily from higher average money market fund assets.

Nonoperating income (expenses), net decreased $6.1 million primarily due to a smaller increase in the market value of investments in Q4 2025 as compared to the increase in the market value of investments in Q3 2025.

2025 vs. 2024

Revenue increased $168.6 million or 10% primarily due to a $142.5 million increase in revenue from higher average money market and equity assets, a $7.9 million increase in performance fees and a $7.8 million increase in real estate development fees.

During 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 increased by $16.2 million or 1% primarily due to a $52.1 million increase in distribution expenses resulting primarily from higher average money market fund assets and an increase in compensation and related expense of $37.2 million primarily related to higher incentive compensation. These increases were partially offset by lower intangible asset related expense resulting from the $66.3 million impairment of an indefinite-lived intangible asset in Q2 2024 associated with the 2018 acquisition of Federated Hermes Limited and a $16.1 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. and fluctuations in foreign currency exchange rates.

Nonoperating income (expenses), net increased $13.5 million primarily due to a larger increase in the market value of investments in 2025 as compared to the increase in the market value of investments in 2024.

Earnings call information

Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Jan. 30, 2026. 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, visit 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 Jan. 30, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 53455. 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, responsible investment management, with $902.6 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 11,000 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 8% of money market fund managers and the top 12% 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 Dec. 31, 2025.

2) Morningstar, Dec. 31, 2025. Based on U.S. fund flows rankings.

3) Money Management Institute/Cerulli,Q3 2025.

Federated Securities Corp. is distributor of the U.S. registered 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.

Certain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, 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 product demand, the timing and level of product 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

Q4 2024 to

Q4 2025

Quarter Ended

% Change

Q3 2025 to

Q4 2025

Dec. 31, 2025

Dec. 31, 2024

Sept. 30, 2025

Revenue

Investment advisory fees, net

$ 313,975

$ 288,329

9 %

$ 310,366

1 %

Administrative service fees, net

109,759

99,711

107,234

Other service fees, net

59,099

36,643

51,846

Total Revenue

482,833

424,683

469,446

Operating Expenses

Compensation and related

144,981

137,165

144,563

Distribution

122,339

98,070

113,569

Systems and communications

24,719

23,843

26,023

(5)

Professional service fees

23,399

20,307

20,239

Office and occupancy

9,704

10,328

(6)

10,129

(4)

Advertising and promotional

7,001

7,785

(10)

5,264

Travel and related

4,677

4,058

4,665

Intangible asset related

3,475

3,230

3,556

(2)

Other

6,964

9,470

(26)

11,986

(42)

Total Operating Expenses

347,259

314,256

339,994

Operating Income

135,574

110,427

129,452

Nonoperating Income (Expenses)

Investment income (loss), net

7,886

5,037

14,105

(44)

Debt expense

(3,201)

(3,187)

(3,182)

Other, net

(48)

252

Total Nonoperating Income (Expenses), net

4,758

1,904

150

10,875

(56)

Income before income taxes

140,332

112,331

140,327

Income tax provision

32,899

28,477

34,232

(4)

Net income including the noncontrolling interests in subsidiaries

107,433

83,854

106,095

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

394

(862)

146

1,969

(80)

Net Income

$ 107,039

$ 84,716

26 %

$ 104,126

3 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share 1

Basic and diluted

$ 1.39

$ 1.04

34 %

$ 1.34

4 %

Weighted-Average Shares Outstanding

Basic and Diluted

73,795

78,300

74,057

Dividends Declared Per Share

$ 0.34

$ 0.31

$ 0.34

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 $4.8 million, $3.6 million and $4.7 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended Dec. 31, 2025, Dec. 31, 2024 and Sept. 30, 2025, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Statements of Income

(in thousands, except per share data)

Year Ended

Dec. 31, 2025

Dec. 31, 2024

% Change

Revenue

Investment advisory fees, net

$ 1,199,236

$ 1,097,866

9 %

Administrative service fees, net—affiliates

419,759

387,531

Other service fees, net

181,668

146,696

Total Revenue

1,800,663

1,632,093

Operating Expenses

Compensation and related

577,686

540,486

Distribution

434,391

382,327

Systems and communications

98,449

92,515

Professional service fees

80,814

78,353

Office and occupancy

39,695

39,946

(1)

Advertising and promotional

22,986

24,090

(5)

Travel and related

17,012

15,399

Intangible asset related

13,731

79,361

(83)

Other

2,017

18,149

(89)

Total Operating Expenses

1,286,781

1,270,626

Operating Income

513,882

361,467

Nonoperating Income (Expenses)

Investment income (loss), net

46,412

32,668

Debt expense

(12,732)

(12,665)

Other, net

(36)

139

(126)

Total Nonoperating Income (Expenses), net

33,644

20,142

Income before income taxes

547,526

381,609

Income tax provision

133,431

113,179

Net income including the noncontrolling interests in subsidiaries

414,095

268,430

Less: Net income attributable to the noncontrolling

interests in subsidiaries

10,796

116

Net Income

$ 403,299

$ 268,314

50 %

Amounts Attributable to Federated Hermes, Inc.

Earnings Per Share 1

Basic and diluted

$ 5.13

$ 3.23

59 %

Weighted-Average Shares Outstanding

Basic

75,101

79,426

Diluted

75,103

79,430

Dividends Declared Per Share

$ 1.33

$ 2.21

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 $18.1 million and $11.6 million available to unvested restricted Federated Hermes shareholders for the years ended Dec. 31, 2025 and Dec. 31, 2024, respectively, was excluded from the computation of earnings per share.

Unaudited Condensed Consolidated Balance Sheets

(in thousands)

Dec. 31, 2025

Dec. 31, 2024

Assets

Cash and other investments

$ 724,297

$ 641,042

Other current assets

139,495

140,310

Intangible assets, net, including goodwill

1,183,612

1,132,699

Other long-term assets

181,933

170,633

Total Assets

$ 2,229,337

$ 2,084,684

Liabilities, Redeemable Noncontrolling Interests and Equity

Current liabilities

$ 314,141

$ 289,193

Long-term debt

348,369

348,106

Other long-term liabilities

303,350

296,665

Redeemable noncontrolling interests

66,529

55,514

Equity excluding treasury stock

2,070,162

1,728,044

Treasury stock

(873,214)

(632,838)

Total Liabilities, Redeemable Noncontrolling Interests and Equity

$ 2,229,337

$ 2,084,684

Unaudited Changes in Long-Term Assets - By Asset Class

(in millions)

Quarter Ended

Year Ended

Dec. 31, 2025

Sept. 30, 2025

Dec. 31, 2024

Dec. 31, 2025

Dec. 31, 2024

Equity

Beginning assets

$ 94,656

$ 88,994

$ 83,609

$ 79,423

$ 79,291

Sales 1

8,949

6,845

4,868

31,167

16,201

Redemptions 1

(7,431)

(6,975)

(7,388)

(26,579)

(26,856)

Net sales (redemptions) 1

1,518

(130)

(2,520)

4,588

(10,655)

Net exchanges

139

154

(39)

179

(29)

Impact of foreign exchange 2

107

(85)

(1,313)

1,799

(1,143)

Market gains and (losses) 3

1,478

5,723

(314)

11,909

11,959

Ending assets

$ 97,898

$ 94,656

$ 79,423

$ 97,898

$ 79,423

Fixed Income

Beginning assets

$ 101,813

$ 98,687

$ 100,171

$ 98,059

$ 94,920

Sales 1

5,891

7,545

6,400

24,647

25,590

Redemptions 1

(8,687)

(5,887)

(7,345)

(28,514)

(25,381)

Net sales (redemptions) 1

(2,796)

1,658

(945)

(3,867)

209

Net exchanges

(134)

(13)

(163)

Impact of foreign exchange 2

(22)

(160)

277

(141)

Market gains and (losses) 3

1,089

1,624

(1,042)

5,671

3,234

Ending assets

$ 100,127

$ 101,813

$ 98,059

$ 100,127

$ 98,059

Alternative / Private Markets

Beginning assets

$ 19,024

$ 20,738

$ 20,683

$ 18,864

$ 20,551

Sales 1

724

670

618

3,261

2,584

Redemptions 1

(592)

(2,291)

(1,487)

(4,458)

(4,285)

Net sales (redemptions) 1

132

(1,621)

(869)

(1,197)

(1,701)

Net exchanges

(1)

187

Acquisitions/(dispositions)

109

Impact of foreign exchange 2

(341)

(1,188)

1,317

(376)

Market gains and (losses) 3

(90)

248

239

203

Ending assets

$ 19,101

$ 19,024

$ 18,864

$ 19,101

$ 18,864

Multi-asset

Beginning assets

$ 2,940

$ 2,856

$ 2,958

$ 2,883

$ 2,867

Sales 1

211

169

Redemptions 1

(92)

(97)

(426)

(416)

Net sales (redemptions) 1

(33)

(47)

(52)

(215)

(247)

Net exchanges

(121)

(3)

(124)

Market gains and (losses) 3

134

(31)

310

250

Ending assets

$ 2,854

$ 2,940

$ 2,883

$ 2,854

$ 2,883

Total Long-term Assets

Beginning assets

$ 218,433

$ 211,275

$ 207,421

$ 199,229

$ 197,629

Sales 1

15,623

15,105

11,931

59,286

44,544

Redemptions 1

(16,802)

(15,245)

(16,317)

(59,977)

(56,938)

Net sales (redemptions) 1

(1,179)

(140)

(4,386)

(691)

(12,394)

Net exchanges

Acquisitions/(dispositions)

109

Impact of foreign exchange 2

148

(448)

(2,661)

3,393

(1,660)

Market gains and (losses) 3

2,545

7,729

(1,148)

17,898

15,646

Ending assets

$ 219,980

$ 218,433

$ 199,229

$ 219,980

$ 199,229

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

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

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 Product Type

(in millions)

Quarter Ended

Dec. 31, 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

$ 54,110

$ 40,546

$ 46,478

$ 55,335

$ 11,814

$ 7,210

$ 2,813

$ 127

$ 115,215

$ 103,218

Sales

5,661

3,288

4,017

1,874

682

10,419

5,204

Redemptions

(5,278)

(2,153)

(5,015)

(3,672)

(450)

(142)

(92)

(10,835)

(5,967)

Net sales (redemptions)

383

1,135

(998)

(1,798)

232

(100)

(33)

(416)

(763)

Net exchanges

123

(123)

Impact of foreign exchange 2

114

Market gains and (losses) 3

469

1,009

473

616

(110)

1,030

1,515

Ending assets

$ 54,988

$ 42,910

$ 45,973

$ 54,154

$ 12,085

$ 7,016

$ 2,850

$ 4

$ 115,896

$ 104,084

Year Ended

Dec. 31, 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

19,937

11,230

14,289

10,358

3,032

229

211

37,469

21,817

Redemptions

(16,502)

(10,077)

(16,633)

(11,881)

(3,577)

(881)

(401)

(25)

(37,113)

(22,864)

Net sales (redemptions)

3,435

1,153

(2,344)

(1,523)

(545)

(652)

(190)

(25)

356

(1,047)

Net exchanges

116

(9)

(4)

(1)

(123)

(11)

Acquisitions/(dispositions)

109

Impact of foreign exchange 2

833

966

158

119

747

570

1,738

1,655

Market gains and (losses) 3

6,905

5,004

2,618

3,053

273

(265)

277

10,073

7,825

Ending assets

$ 54,988

$ 42,910

$ 45,973

$ 54,154

$ 12,085

$ 7,016

$ 2,850

$ 4

$ 115,896

$ 104,084

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

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

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 Product Type

(in millions)

Quarter Ended

Year Ended

Dec. 31, 2025

Sept. 30, 2025

Dec. 31, 2024

Dec. 31, 2025

Dec. 31, 2024

Total Fund Assets

Beginning assets

$ 115,215

$ 110,409

$ 106,799

$ 103,567

$ 101,530

Sales

10,419

9,018

7,704

37,469

27,834

Redemptions

(10,835)

(8,349)

(8,392)

(37,113)

(32,613)

Net sales (redemptions)

(416)

669

(688)

356

(4,779)

Net exchanges

Acquisitions/(dispositions)

109

Impact of foreign exchange 1

(294)

(1,372)

1,738

(737)

Market gains and (losses) 2

1,030

4,414

(1,176)

10,073

7,527

Ending assets

$ 115,896

$ 115,215

$ 103,567

$ 115,896

$ 103,567

Total Separate Accounts Assets 3

Beginning assets

$ 103,218

$ 100,866

$ 100,622

$ 95,662

$ 96,099

Sales 4

5,204

6,087

4,227

21,817

16,710

Redemptions 4

(5,967)

(6,896)

(7,925)

(22,864)

(24,325)

Net sales (redemptions) 4

(763)

(809)

(3,698)

(1,047)

(7,615)

Net exchanges

(1)

(11)

(18)

Impact of foreign exchange 1

114

(154)

(1,289)

1,655

(923)

Market gains and (losses) 2

1,515

3,315

7,825

8,119

Ending assets

$ 104,084

$ 103,218

$ 95,662

$ 104,084

$ 95,662

Total Long-term Assets 3

Beginning assets

$ 218,433

$ 211,275

$ 207,421

$ 199,229

$ 197,629

Sales 4

15,623

15,105

11,931

59,286

44,544

Redemptions 4

(16,802)

(15,245)

(16,317)

(59,977)

(56,938)

Net sales (redemptions) 4

(1,179)

(140)

(4,386)

(691)

(12,394)

Net exchanges

Acquisitions/(dispositions)

109

Impact of foreign exchange 1

148

(448)

(2,661)

3,393

(1,660)

Market gains and (losses) 2

2,545

7,729

(1,148)

17,898

15,646

Ending assets

$ 219,980

$ 218,433

$ 199,229

$ 219,980

$ 199,229

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

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.

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

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)

Dec. 31, 2025

Sept. 30, 2025

June 30, 2025

March 31, 2025

Dec. 31, 2024

By Asset Class

Equity

$ 97,898

$ 94,656

$ 88,994

$ 80,913

$ 79,423

Fixed-Income

100,127

101,813

98,687

99,486

98,059

Alternative / Private Markets

19,101

19,024

20,738

19,426

18,864

Multi-Asset

2,854

2,940

2,856

2,826

2,883

Total Long-Term Assets

219,980

218,433

211,275

202,651

199,229

Money Market

682,604

652,767

634,400

637,122

630,349

Total Managed Assets

$ 902,584

$ 871,200

$ 845,675

$ 839,773

$ 829,578

By Offering Type

Funds:

Equity

$ 54,988

$ 54,110

$ 49,359

$ 43,910

$ 43,752

Fixed-Income

45,973

46,478

45,415

45,800

45,550

Alternative / Private Markets

12,085

11,814

12,905

11,879

11,501

Multi-Asset

2,850

2,813

2,730

2,700

2,764

Total Long-Term Assets

115,896

115,215

110,409

104,289

103,567

Money Market

508,403

492,701

468,044

464,912

461,720

Total Fund Assets

$ 624,299

$ 607,916

$ 578,453

$ 569,201

$ 565,287

Separate Accounts:

Equity

$ 42,910

$ 40,546

$ 39,635

$ 37,003

$ 35,671

Fixed-Income

54,154

55,335

53,272

53,686

52,509

Alternative / Private Markets

7,016

7,210

7,833

7,547

7,363

Multi-Asset

127

126

119

Total Long-Term Assets

104,084

103,218

100,866

98,362

95,662

Money Market

174,201

160,066

166,356

172,210

168,629

Total Separate Account Assets

$ 278,285

$ 263,284

$ 267,222

$ 270,572

$ 264,291

Total Managed Assets

$ 902,584

$ 871,200

$ 845,675

$ 839,773

$ 829,578

Unaudited Average Managed Assets

Quarter Ended

(in millions)

Dec. 31, 2025

Sept. 30, 2025

June 30, 2025

March 31, 2025

Dec. 31, 2024

By Asset Class

Equity

$ 96,404

$ 92,436

$ 83,564

$ 82,105

$ 82,247

Fixed-Income

100,855

99,206

98,365

99,360

98,254

Alternative / Private Markets

18,971

19,862

20,053

19,012

19,754

Multi-Asset

2,836

2,895

2,779

2,900

2,934

Total Long-Term Assets

219,066

214,399

204,761

203,377

203,189

Money Market

654,635

645,092

632,543

639,827

601,169

Total Avg. Managed Assets

$ 873,701

$ 859,491

$ 837,304

$ 843,204

$ 804,358

By Offering Type

Funds:

Equity

$ 55,101

$ 51,828

$ 45,965

$ 45,260

$ 45,261

Fixed-Income

46,116

45,743

44,972

45,715

45,654

Alternative / Private Markets

11,871

12,347

12,370

11,610

12,010

Multi-Asset

2,833

2,770

2,654

2,774

2,811

Total Long-Term Assets

115,921

112,688

105,961

105,359

105,736

Money Market

493,355

482,237

462,683

463,727

445,775

Total Avg. Fund Assets

$ 609,276

$ 594,925

$ 568,644

$ 569,086

$ 551,511

Separate Accounts:

Equity

$ 41,303

$ 40,608

$ 37,599

$ 36,845

$ 36,986

Fixed-Income

54,739

53,463

53,393

53,645

52,600

Alternative / Private Markets

7,100

7,515

7,683

7,402

7,744

Multi-Asset

125

126

123

Total Long-Term Assets

103,145

101,711

98,800

98,018

97,453

Money Market

161,280

162,855

169,860

176,100

155,394

Total Avg. Separate Account Assets

$ 264,425

$ 264,566

$ 268,660

$ 274,118

$ 252,847

Total Avg. Managed Assets

$ 873,701

$ 859,491

$ 837,304

$ 843,204

$ 804,358

Unaudited Average Managed Assets

Year Ended

(in millions)

Dec. 31, 2025

Dec. 31, 2024

By Asset Class

Equity

$ 88,627

$ 79,893

Fixed-Income

99,446

96,773

Alternative / Private Markets

19,474

20,250

Multi-Asset

2,853

2,902

Total Long-Term Assets

210,400

199,818

Money Market

643,025

588,653

Total Avg. Managed Assets

$ 853,425

$ 788,471

By Offering Type

Funds:

Equity

$ 49,538

$ 43,380

Fixed-Income

45,636

44,600

Alternative / Private Markets

12,049

12,292

Multi-Asset

2,758

2,766

Total Long-Term Assets

109,981

103,038

Money Market

475,501

429,273

Total Avg. Fund Assets

$ 585,482

$ 532,311

Separate Accounts:

Equity 1

$ 39,089

$ 36,513

Fixed-Income

53,810

52,173

Alternative / Private Markets

7,425

7,958

Multi-Asset 1

136

Total Long-Term Assets

100,419

96,780

Money Market

167,524

159,380

Total Avg. Separate Account Assets

$ 267,943

$ 256,160

Total Avg. Managed Assets

$ 853,425

$ 788,471

A Separate Account was reclassified from Multi-Asset to Equity. Average assets are represented under Multi-Asset for the quarters ended March 31, 2025, June 30, 2025 and Sept. 30, 2025. Average assets are represented under Equity for the quarter ended Dec. 31, 2025.

SOURCE Federated Hermes, Inc.