Federated Hermes Announces Leadership Changes in Investment Division
Federated Hermes, Inc. (NYSE: FHI), a recognized leader in active investment management, recently revealed significant promotional changes within its fixed-income management team. R.J. Gallo, who has been serving as Deputy Chief Investment Officer (CIO), will take over as CIO for global fixed income, succeeding Robert Ostrowski. Gallo's appointment as CIO is a crucial step in Federated Hermes' strategic succession planning.
R.J. Gallo Takes on New Role as CIO
In his new role, Gallo will be responsible for managing all global fixed income investment processes, which encompass $101.8 billion in assets as of the end of September 2025. These assets are diversified across various products, including low duration, high yield, municipal bonds, and international strategies. Gallo’s leadership will center around risk management and developing investment teams that align with the firm's vision.
Gallo’s Experience and Responsibilities
Having joined Federated Hermes in 2000, Gallo brings over 31 years of industry experience to his new position. His previous roles have included serving as senior portfolio manager and overseeing the duration committee, which focuses on tactical portfolio adjustments based on macroeconomic conditions. His deep understanding of market cycles will play a pivotal role in shaping the firm’s fixed-income strategies.
Ann Ferentino Becomes Head of Municipal Bond Group
Alongside Gallo's promotion, Ann Ferentino steps up to lead the Municipal Bond Group as its sole head, after co-leading for some time. She has an extensive background with Federated Hermes spanning three decades, managing significant municipal assets, which total approximately $7.1 billion. Her leadership will ensure the continuity and growth of the group’s asset management capabilities.
Ferentino’s Role and Contributions
Ferentino has made noteworthy contributions to the performance of municipal bond markets, accentuating her qualifications for this significant leadership position. With her vast experience and knowledge, she is expected to further enhance the group’s services and client offerings within the municipal finance landscape.
A Tribute to Robert Ostrowski
As Gallo and Ferentino take on their respective roles, they are succeeding Robert Ostrowski, who will retire after an impressive 38-year tenure at Federated Hermes. Under Ostrowski's leadership, the fixed-income department expanded tremendously, with assets under management increasing dramatically over the years. His influence has been significant in shaping the firm's reputation for risk-adjusted performance and strong client relationships.
Legacy of Excellence
Ostrowski’s commitment to cultivating a cohesive, knowledgeable team will leave a lasting impact as he retires. His contributions have not only shaped the firm but have also established a robust foundation that Gallo and Ferentino are poised to build upon as they take on their new responsibilities. John Fisher, CEO of Federated Hermes, expressed gratitude for Ostrowski's invaluable contributions and assured clients of continued excellence in investment management.
Federated Hermes Overview
Federated Hermes, Inc. stands as a global powerhouse in active investment management, with its comprehensive wealth of over $871.2 billion in assets under management as recorded at the end of September 2025. Through their innovative solutions, they serve a wide array of clients, including corporations, government entities, and financial institutions. The company operates in multiple countries, underscoring its commitment to delivering tailored investment strategies that meet diverse financial goals.
Frequently Asked Questions
Who has been appointed as the new CIO of Federated Hermes?
R.J. Gallo has been appointed as the new Chief Investment Officer for global fixed income.
What position is Ann Ferentino taking on?
Ann Ferentino will become the sole head of the Municipal Bond Group at Federated Hermes.
How long has Robert Ostrowski worked at Federated Hermes?
Robert Ostrowski has worked at Federated Hermes for 38 years before his retirement.
What is the total amount of assets managed by Federated Hermes as of September 2025?
Federated Hermes manages over $871.2 billion in assets as of September 30, 2025.
What investment strategies does Federated Hermes offer?
Federated Hermes offers equity, fixed-income, alternative markets, multi-asset, and liquidity management strategies.
