Federated Hermes, Inc. reports record assets under management with second quarter 2026 earnings

About this update from Federated Hermes, Inc.

Total assets under management reach a record $911.6 billion Equity assets reach a record $109.6 billion Q2 2026 earnings per diluted share of $1.38 Board declares $0.38 per share dividend PITTSBURGH , July 30, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.38 for Q2 2026, compared to $1.16 for the same quarter last year, on net income of $104.3 million for Q2 2026, compared to $91.0 million for Q2 2025. Federated Hermes' total managed assets were a record $911.6 billion at June 30, 2026, up $65.9 billion or 8% from $845.7 billion at June 30, 2025 and up $4.5 billion from $907.1 billion at March 31, 2026. Total average managed assets for Q2 2026 were $910.0 billion, up $72.7 billion or 9% from $837.3 billion for Q2 2025 and down $5.6 billion or 1% from $915.6 billion for Q1 2026. "In addition to reaching record high equity assets in the second quarter, we achieved record gross sales across the range of our MDT suite of quantitative investment solutions, reaching all-time highs in MDT institutional separate accounts and SMAs (separately managed accounts). We also saw net positive MDT sales for the 14th consecutive quarter," said J. Christopher Donahue, president and chief executive officer. "We continued to broaden our investment offerings by launching two new exchange-traded funds (ETFs) and introducing our first fund designed for use by participants in the blockchain ecosystem. We also expanded our private markets business by acquiring a majority interest in U.S. real estate manager FCP Fund Manager, L.P.," he said. Federated Hermes' board of directors declared a dividend of $0.38 per share. The dividend is payable on Aug 14, 2026 to shareholders of record as of Aug 7, 2026. During Q2 2026, Federated Hermes purchased 1,119,805 shares of Federated Hermes class B common stock for $58.9 million. Equity assets were a record $109.6 billion at June 30, 2026, up $20.6 billion or 23% from $89.0 billion at June 30, 2025 and up $8.8 billion or 9% from $100.8 billion at March 31, 2026. Top-selling equity funds during Q2 2026 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT US Equity Fund, Federated Hermes MDT All Cap Core Fund and Federated Hermes MDT Small Cap Core Fund. Fixed-income assets were $100.5 billion at June 30, 2026, up $1.8 billion or 2% from $98.7 billion at June 30, 2025 and up $0.7 billion or 1% from $99.8 billion at March 31, 2026. Top-selling fixed-income funds during Q2 2026 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Conservative Municipal Microshort Fund, Federated Hermes Adjustable Rate Fund and Federated Hermes Conservative Microshort Fund. Alternative/private markets assets were $21.6 billion at June 30, 2026, up $0.9 billion or 4% from $20.7 billion at June 30, 2025 and up $2.6 billion or 14% from $19.0 billion at March 31, 2026. The increase was primarily due to $3.2 billion of assets acquired through the FCP Fund Manager, L.P. (FCP) transaction. Money market assets were $676.9 billion at June 30, 2026, up $42.5 billion or 7% from $634.4 billion at June 30, 2025 and down $7.8 billion or 1% from $684.7 billion at March 31, 2026. Money market fund assets were $499.9 billion at June 30, 2026, up $31.9 billion or 7% from $468.0 billion at June 30, 2025 and down $2.9 billion or 1% from $502.8 billion at March 31, 2026. Financial Summary Q2 2026 vs. Q2 2025 Revenue increased $77.9 million or 18% primarily due to an increase from higher average equity and money market assets as well as due to the FCP acquisition in Q2 2026 ($13.9 million). During Q2 2026, Federated Hermes derived 50% of its revenue from money market assets, 48% from long-term assets (30% from equity, 10% from fixed-income, and 8% from alternative/private markets and multi-asset) and 2% from sources other than managed assets. Operating expenses increased $62.1 million or 20% primarily due to a $22.4 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $16.7 million increase in compensation and related expense, including $6.5 million of FCP-acquisition-related expenses, a $9.2 million increase in other expense primarily due to fluctuations in foreign currency exchange rates, and a $7.0 million increase in professional service fees including $4.7 million of FCP-acquisition-related expenses. Intangible asset related expenses increased $2.9 million, including $3.0 million of amortization of intangible assets associated with the FCP acquisition. Nonoperating income (expenses), net for Q2 2026 decreased $2.6 million or 19% primarily due to a decrease in interest and dividend income. Q2 2026 vs. Q1 2026 Revenue increased $23.8 million or 5% primarily due to the FCP acquisition in Q2 2026 ($13.9 million) and higher average equity assets. Operating expenses increased $17.3 million or 5% primarily due to a $7.4 million increase in compensation and related expense including $6.5 million of FCP-acquisition-related expenses and a $4.3 million increase in professional service fees primarily due to the increase of FCP-acquisition-related expenses of $3.2 million. Intangible asset related expenses increased $3.0 million due to the amortization of intangible assets associated with the FCP acquisition. Nonoperating income (expenses), net increased $7.7 million primarily due to a larger increase in the market value of investments in Q2 2026 as compared to the increase in the market value of the investments in Q1 2026. YTD 2026 vs. YTD 2025 Revenue increased $133.3 million or 16% primarily due to an increase from higher average money market and equity assets and due to the FCP acquisition in Q2 2026 ($13.9 million). For the first half of 2026, Federated Hermes derived 52% of its revenue from money market assets, 47% from long-term assets (30% from equity, 10% from fixed-income, and 7% from alternative/private markets and multi-asset) and 1% from sources other than managed assets. Operating expenses increased $123.0 million or 21% primarily due to a $49.0 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $27.5 million increase in compensation and related expense primarily due to higher incentive compensation and $6.5 million of FCP-acquisition-related expenses, a $27.4 million increase 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, and a $9.8 million increase in professional service fees primarily due to $6.2 million in FCP-acquisition-related expenses and costs related to global technology projects. Intangible asset related expenses increased $3.1 million due primarily to $3.0 million related to the amortization of intangible assets associated with the FCP acquisition. Nonoperating income (expenses), net decreased $3.4 million primarily due to a decrease in interest and dividend income. Earnings call information Federated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, July 31, 2026. Investors are invited to listen to the earnings teleconference by calling 877-545-0523 (domestic) or 973-528-0016 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on July 31, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 54241. 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 $911.6 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 2,200 employees in London, New York, Boston and offices worldwide. Federated Hermes ranks in the top 5% of equity fund managers, the top 8% of money market fund managers and the top 11% of fixed-income fund managers 2 in the industry. Federated Hermes also ranks as the 9th-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 June   30, 2026. 2) Morningstar, June   30, 2026. Based on U.S. fund flows rankings. 3) Money Management Institute/Cerulli Q1 2026. 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, Hermes GPE LLP, and Federated Hermes FCP Manager, LLC, 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, opportunities to meet client needs, investment offerings, 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 Q2 2025 to Q2 2026 Quarter Ended % Change Q1 2026 to Q2 2026 June   30, 2026 June   30,   2025 March   31,   2026 Revenue Investment advisory fees, net $       337,721 $       287,435 17 % $       319,408 6 % Administrative service fees, net—affiliates 110,117 101,657 8 110,285 0 Other service fees, net 54,938 35,752 54 49,264 12 Total Revenue 502,776 424,844 18 478,957 5 Operating Expenses Compensation and related 161,528 144,872 11 154,119 5 Distribution 121,766 99,399 23 125,745 (3) Systems and communications 25,950 23,481 11 26,463 (2) Professional service fees 25,610 18,628 37 21,336 20 Office and occupancy 9,836 9,910 (1) 10,062 (2) Advertising and promotional 7,329 6,146 19 4,098 79 Intangible asset related 6,384 3,503 82 3,422 87 Travel and related 4,558 4,117 11 3,850 18 Other 6,934 (2,296) 402 3,531 96 Total Operating Expenses 369,895 307,760 20 352,626 5 Operating Income 132,881 117,084 13 126,331 5 Nonoperating Income (Expenses) Investment income (loss), net 14,330 16,947 (15) 6,653 115 Debt expense (3,159) (3,170) 0 (3,185) (1) Other, net (22) (35) (37) (30) (27) Total Nonoperating Income (Expenses), net 11,149 13,742 (19) 3,438 224 Income before income taxes 144,030 130,826 10 129,769 11 Income tax provision 37,216 34,135 9 33,823 10 Net income including the noncontrolling interests in subsidiaries 106,814 96,691 10 95,946 11 Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries 2,496 5,691 (56) (432) NM Net Income $       104,318 $         91,000 15 % $         96,378 8 % Amounts Attributable to Federated Hermes, Inc. Earnings Per Share 1 Basic and diluted $            1.38 $            1.16 19 % $           1.27 9 % Weighted-Average Shares Outstanding Basic 71,944 75,064 72,648 Diluted 71,947 75,072 72,650 Dividends Declared Per Share $            0.38 $            0.34 $           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 $4.8 million, $4.1 million and $4.4 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended June 30, 2026, June 30, 2025 and March 31, 2026, respectively, was excluded from the computation of earnings per share.   Unaudited Condensed Consolidated Statements of Income (in thousands, except per share data) Six Months Ended June   30, 2026 June   30,   2025 % Change Revenue Investment advisory fees, net $        657,129 $         574,895 14 % Administrative service fees, net—affiliates 220,402 202,766 9 Other service fees, net 104,202 70,723 47 Total Revenue 981,733 848,384 16 Operating Expenses Compensation and related 315,647 288,143 10 Distribution 247,510 198,484 25 Systems and communications 52,413 47,707 10 Professional service fees 46,946 37,176 26 Office and occupancy 19,898 19,862 0 Advertising and promotional 11,427 10,722 7 Intangible asset related 9,805 6,699 46 Travel and related 8,408 7,670 10 Other 10,467 (16,935) 162 Total Operating Expenses 722,521 599,528 21 Operating Income 259,212 248,856 4 Nonoperating Income (Expenses) Investment income (loss), net 20,984 24,422 (14) Debt expense (6,344) (6,349) 0 Other, net (53) (62) (15) Total Nonoperating Income (Expenses), net 14,587 18,011 (19) Income before income taxes 273,799 266,867 3 Income tax provision 71,039 66,300 7 Net income including the noncontrolling interests in subsidiaries 202,760 200,567 1 Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries 2,064 8,433 (76) Net Income $        200,696 $         192,134 4 % Amounts Attributable to Federated Hermes, Inc. Earnings Per Share 1 Basic and diluted $            2.65 $             2.40 10 % Weighted-Average Shares Outstanding Basic 72,294 76,296 Diluted 72,297 76,300 Dividends Declared Per Share $            0.72 $             0.65 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 $9.1 million and $8.7 million available to unvested restricted Federated Hermes shareholders for the six months ended June 30, 2026 and June 30, 2025, respectively, was excluded from the computation of earnings per share.     Unaudited Condensed Consolidated Balance Sheets (in thousands) June   30, 2026 Dec.   31, 2025 Assets   Cash and other investments $          480,710 $          724,297   Other current assets 179,795 139,495   Intangible assets, net, including goodwill 1,502,875 1,183,612   Other long-term assets 166,774 181,933   Total Assets $        2,330,154 $        2,229,337 Liabilities, Redeemable Noncontrolling Interests and Equity   Current liabilities $          254,800 $          314,141   Long-term debt 348,499 348,369   Other long-term liabilities 330,001 303,350   Redeemable noncontrolling interests 144,164 66,529 Equity excluding treasury stock 2,226,526 2,070,162 Treasury stock (973,836) (873,214)   Total Liabilities, Redeemable Noncontrolling Interests and Equity $        2,330,154 $        2,229,337   Unaudited Changes in Long-Term Assets - By Asset Class (in millions) Quarter Ended Six Months Ended June   30, 2026 March   31,   2026 June   30,   2025 June   30, 2026 June   30,   2025 Equity Beginning assets $      100,832 $       97,898 $       80,913 $       97,898 $       79,423 Sales 1 9,062 9,091 7,961 18,153 15,373 Redemptions 1 (10,202) (6,878) (6,180) (17,080) (12,173) Net sales (redemptions) 1 (1,140) 2,213 1,781 1,073 3,200 Net exchanges 134 (139) 0 (5) (114) Impact of foreign exchange 2 (37) (287) 1,023 (324) 1,777 Market gains and (losses) 3 9,801 1,147 5,277 10,948 4,708 Ending assets $      109,590 $      100,832 $       88,994 $      109,590 $       88,994 Fixed Income Beginning assets $       99,798 $      100,127 $       99,486 $      100,127 $       98,059 Sales 1 7,687 5,927 5,267 13,614 11,211 Redemptions 1 (7,864) (6,349) (7,652) (14,213) (13,940) Net sales (redemptions) 1 (177) (422) (2,385) (599) (2,729) Net exchanges (153) 148 5 (5) 106 Impact of foreign exchange 2 (12) (40) 208 (52) 293 Market gains and (losses) 3 1,031 (15) 1,373 1,016 2,958 Ending assets $      100,487 $       99,798 $       98,687 $      100,487 $       98,687 Alternative/Private Markets Beginning assets $       18,991 $       19,101 $       19,426 $       19,101 $       18,864 Sales 1 650 629 782 1,279 1,867 Redemptions 1 (1,002) (547) (551) (1,549) (1,575) Net sales (redemptions) 1 (352) 82 231 (270) 292 Net exchanges 8 0 (1) 8 0 Acquisitions/(dispositions) 3,237 0 109 3,237 109 Impact of foreign exchange 2 26 (275) 1,091 (249) 1,623 Market gains and (losses) 3 (263) 83 (118) (180) (150) Ending assets $       21,647 $       18,991 $       20,738 $       21,647 $       20,738 Multi-asset Beginning assets $         2,778 $         2,854 $         2,826 $         2,854 $         2,883 Sales 1 41 58 44 99 107 Redemptions 1 (102) (94) (137) (196) (242) Net sales (redemptions) 1 (61) (36) (93) (97) (135) Net exchanges 0 1 (2) 1 0 Market gains and (losses) 3 222 (41) 125 181 108 Ending assets $         2,939 $         2,778 $         2,856 $         2,939 $         2,856 Total Long-term Assets Beginning assets $      222,399 $      219,980 $      202,651 $      219,980 $      199,229 Sales 1 17,440 15,705 14,054 33,145 28,558 Redemptions 1 (19,170) (13,868) (14,520) (33,038) (27,930) Net sales (redemptions) 1 (1,730) 1,837 (466) 107 628 Net exchanges (11) 10 2 (1) (8) Acquisitions/(dispositions) 3,237 0 109 3,237 109 Impact of foreign exchange 2 (23) (602) 2,322 (625) 3,693 Market gains and (losses) 3 10,791 1,174 6,657 11,965 7,624 Ending assets $      234,663 $      222,399 $      211,275 $      234,663 $      211,275 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 June   30, 2026 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 $   55,188 $   45,644 $   45,921 $   53,877 $  12,339 $   6,652 $   2,774 $       4 $ 116,222 $  106,177 Sales 5,443 3,619 3,867 3,820 576 74 41 0 9,927 7,513 Redemptions (4,080) (6,122) (3,994) (3,870) (661) (341) (102) 0 (8,837) (10,333) Net sales (redemptions) 1,363 (2,503) (127) (50) (85) (267) (61) 0 1,090 (2,820) Net exchanges 144 (10) (153) 0 8 0 0 0 (1) (10) Acquisitions/(dispositions) 0 0 0 0 2,788 449 0 0 2,788 449 Impact of foreign exchange 2 (68) 31 (3) (9) 12 14 0 0 (59) 36 Market gains and (losses) 3 7,442 2,359 551 480 (144) (119) 222 0 8,071 2,720 Ending assets $   64,069 $   45,521 $   46,189 $   54,298 $  14,918 $   6,729 $   2,935 $       4 $ 128,111 $  106,552 Six Months Ended June   30, 2026 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 $   54,988 $   42,910 $   45,973 $   54,154 $  12,085 $   7,016 $   2,850 $       4 $ 115,896 $  104,084 Sales 11,298 6,855 7,852 5,762 1,185 94 99 0 20,434 12,711 Redemptions (8,641) (8,439) (7,987) (6,226) (979) (570) (196) 0 (17,803) (15,235) Net sales (redemptions) 2,657 (1,584) (135) (464) 206 (476) (97) 0 2,631 (2,524) Net exchanges (25) 20 (5) 0 8 0 1 0 (21) 20 Acquisition/(dispositions) 0 0 0 0 2,788 449 0 0 2,788 449 Impact of foreign exchange 2 (226) (98) (29) (23) (147) (102) 0 0 (402) (223) Market gains and (losses) 3 6,675 4,273 385 631 (22) (158) 181 0 7,219 4,746 Ending assets $   64,069 $   45,521 $   46,189 $   54,298 $  14,918 $   6,729 $   2,935 $       4 $ 128,111 $  106,552 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 Six Months Ended June   30, 2026 March   31,   2026 June   30,   2025 June   30, 2026 June   30,   2025 Total Fund Assets Beginning assets $       116,222 $      115,896 $      104,289 $      115,896 $      103,567 Sales 9,927 10,507 8,753 20,434 18,032 Redemptions (8,837) (8,966) (9,166) (17,803) (17,929) Net sales (redemptions) 1,090 1,541 (413) 2,631 103 Net exchanges (1) (20) 3 (21) 3 Acquisitions/(dispositions) 2,788 0 109 2,788 109 Impact of foreign exchange 1 (59) (343) 1,313 (402) 1,998 Market gains and (losses) 2 8,071 (852) 5,108 7,219 4,629 Ending assets $       128,111 $      116,222 $      110,409 $      128,111 $      110,409 Total Separate Account Assets 3 Beginning assets $       106,177 $      104,084 $       98,362 $      104,084 $       95,662 Sales 4 7,513 5,198 5,301 12,711 10,526 Redemptions 4 (10,333) (4,902) (5,354) (15,235) (10,001) Net sales (redemptions) 4 (2,820) 296 (53) (2,524) 525 Net exchanges (10) 30 (1) 20 (11) Acquisitions/(dispositions) 449 0 0 449 0 Impact of foreign exchange 1 36 (259) 1,009 (223) 1,695 Market gains and (losses) 2 2,720 2,026 1,549 4,746 2,995 Ending assets $       106,552 $      106,177 $      100,866 $      106,552 $      100,866 Total Long-term Assets 3 Beginning assets $       222,399 $      219,980 $      202,651 $      219,980 $      199,229 Sales 4 17,440 15,705 14,054 33,145 28,558 Redemptions 4 (19,170) (13,868) (14,520) (33,038) (27,930) Net sales (redemptions) 4 (1,730) 1,837 (466) 107 628 Net exchanges (11) 10 2 (1) (8) Acquisitions/(dispositions) 3,237 0 109 3,237 109 Impact of foreign exchange 1 (23) (602) 2,322 (625) 3,693 Market gains and (losses) 2 10,791 1,174 6,657 11,965 7,624 Ending assets $       234,663 $      222,399 $      211,275 $      234,663 $      211,275 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) June   30, 2026 March   31,   2026 Dec.   31,   2025 Sept.   30,   2025 June   30,   2025 By Asset Class Equity 1 $       109,590 $       100,832 $        97,898 $        94,656 $        88,994 Fixed-Income 100,487 99,798 100,127 101,813 98,687 Alternative / Private Markets 21,647 18,991 19,101 19,024 20,738 Multi-Asset 1 2,939 2,778 2,854 2,940 2,856 Total Long-Term Assets 234,663 222,399 219,980 218,433 211,275 Money Market 676,897 684,748 682,604 652,767 634,400 Total Managed Assets $       911,560 $       907,147 $       902,584 $       871,200 $       845,675 By Offering Type Funds: Equity $        64,069 $        55,188 $        54,988 $        54,110 $        49,359 Fixed-Income 46,189 45,921 45,973 46,478 45,415 Alternative / Private Markets 14,918 12,339 12,085 11,814 12,905 Multi-Asset 2,935 2,774 2,850 2,813 2,730 Total Long-Term Assets 128,111 116,222 115,896 115,215 110,409 Money Market 499,927 502,775 508,403 492,701 468,044 Total Fund Assets $       628,038 $       618,997 $       624,299 $       607,916 $       578,453 Separate Accounts: Equity 1 $        45,521 $        45,644 $        42,910 $        40,546 $        39,635 Fixed-Income 54,298 53,877 54,154 55,335 53,272 Alternative / Private Markets 6,729 6,652 7,016 7,210 7,833 Multi-Asset 1 4 4 4 127 126 Total Long-Term Assets 106,552 106,177 104,084 103,218 100,866 Money Market 176,970 181,973 174,201 160,066 166,356 Total Separate Account Assets $       283,522 $       288,150 $       278,285 $       263,284 $       267,222 Total Managed Assets $       911,560 $       907,147 $       902,584 $       871,200 $       845,675 1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.   Unaudited Average Managed Assets Quarter Ended ( in millions) June   30, 2026 March   31,   2026 Dec.   31,   2025 Sept.   30,   2025 June   30,   2025 By Asset Class Equity 1 $       107,031 $       102,037 $        96,404 $        92,436 $        83,564 Fixed-Income 100,041 100,996 100,855 99,206 98,365 Alternative / Private Markets 22,359 19,232 18,971 19,862 20,053 Multi-Asset 1 2,898 2,859 2,836 2,895 2,779 Total Long-Term Assets 232,329 225,124 219,066 214,399 204,761 Money Market 677,685 690,450 654,635 645,092 632,543 Total Avg. Managed Assets $       910,014 $       915,574 $       873,701 $       859,491 $       837,304 By Offering Type Funds: Equity $        60,933 $        56,987 $        55,101 $        51,828 $        45,965 Fixed-Income 45,827 46,096 46,116 45,743 44,972 Alternative / Private Markets 15,253 12,254 11,871 12,347 12,370 Multi-Asset 2,893 2,855 2,833 2,770 2,654 Total Long-Term Assets 124,906 118,192 115,921 112,688 105,961 Money Market 498,338 507,752 493,355 482,237 462,683 Total Avg. Fund Assets $       623,244 $       625,944 $       609,276 $       594,925 $       568,644 Separate Accounts: Equity 1 $        46,098 $        45,050 $        41,303 $        40,608 $        37,599 Fixed-Income 54,214 54,900 54,739 53,463 53,393 Alternative / Private Markets 7,106 6,978 7,100 7,515 7,683 Multi-Asset 1 5 4 3 125 125 Total Long-Term Assets 107,423 106,932 103,145 101,711 98,800 Money Market 179,347 182,698 161,280 162,855 169,860 Total Avg. Separate Account Assets $       286,770 $       289,630 $       264,425 $       264,566 $       268,660 Total Avg. Managed Assets $       910,014 $       915,574 $       873,701 $       859,491 $       837,304 1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.   Unaudited Average Managed Assets Six Months Ended (in millions) June   30, 2026 June   30,   2025 By Asset Class Equity 1 $               104,534 $                 82,834 Fixed-Income 100,519 98,862 Alternative / Private Markets 20,796 19,533 Multi-Asset 1 2,878 2,840 Total Long-Term Assets 228,727 204,069 Money Market 684,067 636,185 Total Avg. Managed Assets $               912,794 $               840,254 By Offering Type Funds: Equity $                58,960 $                 45,612 Fixed-Income 45,962 45,344 Alternative / Private Markets 13,754 11,990 Multi-Asset 2,873 2,714 Total Long-Term Assets 121,549 105,660 Money Market 503,045 463,205 Total Avg. Fund Assets $               624,594 $               568,865 Separate Accounts: Equity 1 $                45,574 $                 37,222 Fixed-Income 54,557 53,518 Alternative / Private Markets 7,042 7,543 Multi-Asset 1 5 126 Total Long-Term Assets 107,178 98,409 Money Market 181,022 172,980 Total Avg. Separate Account Assets $               288,200 $               271,389 Total Avg. Managed Assets $               912,794 $               840,254 1) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.   View original content: https://www.prnewswire.com/news-releases/federated-hermes-inc-reports-record-assets-under-management-with-second-quarter-2026-earnings-302839477.html SOURCE Federated Hermes, Inc.

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