Federated Hermes Announces Leadership Changes in Fixed Income
Federated Hermes has recently restructured its fixed-income team and elevated Kathryn Glass to co-head of its Domestic High Yield Group. This strategic move highlights the organization's commitment to maintaining leadership in active investment management while fostering internal talent.
Kathryn Glass: A Seasoned Investor
Kathryn (Katie) Glass, CFA, brings an impressive 27 years of investment experience to her new role. Having been with Federated Hermes since 1999, she is recognized for her contributions to various investment strategies, including mutual funds and exchange-traded funds (ETFs). Her elevation alongside Mark Durbiano, who holds over four decades of experience with Federated Hermes, emphasizes a focus on continuity and expertise within the firm.
Changes Ahead in the Team
As part of the adjustments, Federated Hermes will also be addressing the upcoming retirement of Jeff Kozemchak, a senior portfolio manager known for his long-standing impact on the municipal fixed-income team. His departure marks the end of a remarkable 38-year career, during which he has significantly shaped the firm's reputation for delivering strong risk-adjusted results.
In light of Kozemchak’s retirement, the firm is set to implement several key portfolio manager changes effective soon. Ann Ferentino, a veteran with 27 years of experience, will join the Federated Hermes Municipal Ultrashort Fund as a portfolio manager, enhancing the team's capabilities in this segment. Additionally, other municipal funds will see strategic adjustments with the inclusion of seasoned professionals.
Enhanced Municipal Fixed-Income Strategies
Federated Hermes boasts a substantial team of investment professionals dedicated to municipal portfolio management. This group manages approximately $23 billion in municipal strategies, reflecting the firm’s strong commitment to this vital area of investment.
A Focus on Growth and Stability
The reorganization signifies Federated Hermes' strategic approach to adapt to market conditions while maintaining a strong team dynamic. The firm manages around $98 billion in fixed-income assets as of the end of 2024, showcasing its vast market presence and robust performance.
The Importance of Risk Management
Investing in high-yield and municipal bonds comes with its set of challenges. It's essential for investors to recognize the sensitivity of bond prices to interest rate changes. The recent leadership changes within Federated Hermes aim to enhance both operational efficiency and risk management, ensuring they remain well-prepared to navigate the complexities of the market.
About Federated Hermes
Federated Hermes, Inc. (NYSE: FHI) is renowned for its active, responsible investment management. With over $829.6 billion in assets under management, the firm offers diverse investment solutions, encompassing equity, fixed-income, alternative markets, and liquidity management strategies available to a wide array of clients, including institutions and intermediaries globally. The company's headquarters are in Pittsburgh, with offices in key financial centers around the world.
Frequently Asked Questions
What prompted Federated Hermes to restructure its fixed-income team?
The restructuring aims to enhance leadership depth and continuity within its fixed-income investment strategies while preparing for retirements within the team.
Who is Kathryn Glass?
Kathryn Glass is a seasoned investor with 27 years of experience at Federated Hermes, recently promoted to co-head of the Domestic High Yield Group.
What are the impacts of Jeff Kozemchak's retirement?
Kozemchak's retirement brings a wealth of experience to the next generation of leaders at Federated Hermes and allows for new strategies in municipal fixed income management.
How much capital does Federated Hermes manage in fixed-income strategies?
As of the end of December 2024, Federated Hermes manages approximately $98 billion in fixed-income assets.
What type of investment strategies does Federated Hermes offer?
Federated Hermes offers a variety of investment strategies, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management solutions.
