Federated Hermes, Inc. Hits Milestone With Record AUM
Federated Hermes, Inc. Achieves Record Assets Under Management
Federated Hermes, Inc. (NYSE: FHI), a leader in active investment management, recently announced a remarkable achievement in its asset management portfolio. The company proudly reported total assets under management (AUM) reaching an impressive $845.7 billion. This milestone represents a significant jump of $63.0 billion, equivalent to an 8% increase from the previous year.
Quarterly Financial Highlights
For the second quarter of 2025, the earnings per diluted share soared to $1.16, compared to just $0.20 reported for the same quarter the previous year. This increase is backed by a net income of $91.0 million for Q2 2025, reflecting a substantial improvement from $21.0 million in Q2 2024. Notably, the previous year’s results included a significant non-cash impairment expense, emphasizing the positive turnaround in this year's performance.
Growth in Investment Strategies
The company has seen a growing interest in its MDT strategies, which now total $23.2 billion—up $6.4 billion from the first quarter of 2025 and $8.9 billion year-to-date. Federated Hermes is garnering attention due to its unique blend of traditional equity and alternative quantitative investment solutions that utilize disciplined investment processes based on fundamental and technical analyses.
Dividend Declaration and Share Repurchase Initiatives
In light of its financial success, Federated Hermes' board has declared a dividend of $0.34 per share, with plans for distribution on August 15, 2025, following the record date of August 8, 2025. This dividend underscores the company's commitment to returning value to its shareholders. Furthermore, the board has authorized a new share repurchase program, allowing the buyback of up to 5 million shares of class B common stock.
Fund Performance and Investor Demand
Investor demand has led to strong performance in various fund categories. Equities totaled $89.0 billion at the end of June 2025, representing a 14% increase from the previous year. The top-selling equity funds this quarter included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund, highlighting the strong interest in mid and large-cap growth strategies.
Fixed Income and Money Market Performance
Meanwhile, fixed-income assets reached $98.7 billion, growing by 4% from the prior year. The firm’s fixed-income funds, such as the Federated Hermes Conservative Municipal Microshort Fund, continue to attract investors seeking stability in more volatile market conditions. Money market assets surged to $634.4 billion, demonstrating an 8% growth compared to June 2024, while the money market fund assets set a benchmark at $468.0 billion, marking an all-time high.
Analyzing Revenue Growth
The revenue for the company saw an increase of $22.3 million or 6% due to the rise in money market and equity assets. Notably, 53% of total revenue now originates from money market assets, while long-term assets bring in 46% of revenue, comprised of 28% from equities and 12% from fixed-income strategies. These results indicate a favorable trend towards active management and strategic product offerings.
Federated Hermes: A Leader in Active Investing
Federated Hermes maintains its position among the leaders in the asset management industry, ranking in the top tiers for equity, money market, and fixed-income fund management. The company continues to innovate and expand its solutions to address the evolving needs of investors globally. This strategic direction supports its growth trajectory while ensuring resilience amid market fluctuations, emphasizing its robust operational foundation.
Frequently Asked Questions
What is the total assets under management reported by Federated Hermes?
Federated Hermes reported total assets under management of $845.7 billion, marking a record achievement.
What was Federated Hermes' earnings per diluted share for Q2 2025?
The company reported earnings of $1.16 per diluted share for the second quarter of 2025.
What dividend has Federated Hermes declared for its shareholders?
The board declared a dividend of $0.34 per share, payable on August 15, 2025.
How much did Federated Hermes invest in share repurchase programs?
Federated Hermes' board authorized a program allowing the repurchase of up to 5 million shares of class B common stock.
What are some top-performing funds of Federated Hermes?
Top performing funds include the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund.
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