Federated Hermes Announces Significant Management Transitions
Federated Hermes, Inc. (NYSE: FHI), a leading name in active investment management, has revealed plans for several important portfolio management transitions as part of its ongoing succession strategy. These changes, anticipated in 2026, follow years of careful planning to ensure a smooth transition and maintain high standards in investment management.
Focus on Succession Planning
Senior leaders acknowledge the critical nature of these transitions in nurturing the next generation of portfolio managers. John B. Fisher, president of Federated Advisory Companies, emphasized that this evolution in portfolio management is reflective of the company’s dedication to its succession planning. The chief investment officers, including Stephen Auth, CFA, Deborah Cunningham, CFA, and Robert Ostrowski, CFA, have worked diligently to prepare their teams for these significant changes.
Appreciation for Tenured Professionals
As these seasoned professionals retire, Fisher expressed deep appreciation for their contributions over the years. Their extensive knowledge and commitment have played a crucial role in fostering the firm’s esteemed reputation for performance in equity and fixed-income investments as well as competitive liquidity outcomes. With robust teams in place, the expected transitions aim to uphold this legacy.
Upcoming Retirements and Leadership Changes
Several retirements are lined up for 2026, with each departing manager leaving behind established successors ready to take over leadership roles:
- Todd Abraham, CFA, senior portfolio manager overseeing the Government/Mortgage Backed Fixed Income Group, will retire on April 2, 2026. Liam O'Connell, CFA, with 22 years of experience at Federated Hermes, will lead this group post-retirement.
- Lee Cunningham II, a senior portfolio manager focusing on municipal securities, will retire on April 1, 2026. Ann Ferentino, CFA, who has 30 years of experience with the firm, will lead the municipal bond management.
- B. Anthony Delserone Jr., CFA, will also retire on April 1, 2026. Kathryn (Katie) Glass, with 26 years at Federated Hermes, will manage domestic high-yield securities following his departure.
- Mary Jo Ochson, CFA, chief investment officer and head of Tax Free Liquidity Investments, will retire on April 2, 2026, with Kyle Stewart, CFA, taking the helm thereafter.
- Finally, Hans Utsch will retire on July 1, 2026; John Ettinger, CFA, will continue at the head of the Kaufmann Group, where he brings 31 years of investment experience.
Strength of the Investment Teams
The Federated Hermes Kaufmann Group operates as part of a robust equity team comprising 156 members, averaging over 20 years at the firm. Alongside them, the fixed-income team, which consists of 106 dedicated professionals, reflects the company’s commitment to expertise and longevity.
The liquidity management team, consisting of 34 members, epitomizes stability, with an average of 22 years of experience per individual. This extensive experience reinforces a tradition of reliability in client services and investment management.
Commitment to Client Success
In their ongoing commitment to maintaining continuity and effectiveness in investment processes, Federated Hermes is optimistic about the future transitions. Fisher noted the pride associated with sustaining depth across various asset classes—equity, fixed income, and liquidity management.
Federated Hermes Overview
Federated Hermes, Inc. stands as a global leader in active investment management, boasting an impressive $871.2 billion in assets under management as of September 30, 2025. They provide tailored investment solutions across a broad spectrum, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies. Their diverse client base—ranging from corporations to government entities and foundations—benefits from the strategic expertise of over 10,000 institutional and intermediary partners worldwide.
Headquartered in Pittsburgh, the firm boasts a workforce of more than 2,000 employees situated in key financial hubs across the globe, including London, New York, and Boston. For further details, visit their official website.
Frequently Asked Questions
What are the main reasons behind the portfolio manager retirements at Federated Hermes?
The retirements reflect a planned succession strategy aimed at ensuring a smooth transition of responsibilities and continued excellence in investment management.
Who will lead the Government/Mortgage Backed Fixed Income Group after Todd Abraham's retirement?
Liam O'Connell, CFA, will step into the leadership role following Todd Abraham's retirement.
How many years of experience do the new portfolio managers have?
The successors have extensive experience, with many staff members averaging over 20 years at Federated Hermes.
What types of investment strategies does Federated Hermes offer?
Federated Hermes provides a wide array of investment strategies including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies.
Where is Federated Hermes headquartered?
Federated Hermes is headquartered in Pittsburgh, with additional offices in major global cities.
