Federated Hermes Earnings Call Transcripts
Fiscal Year 2026
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Q2 ended with record AUM of $912 billion, driven by equity and private market growth, while revenues rose 5% and expenses increased due to the FCP acquisition. Money market assets dipped slightly but remain up year-over-year, and positive flows are expected in fixed income and alternatives.
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Record AUM of $907B was driven by equity and money market gains, with strong MDT strategy sales and a major FCP acquisition. Q1 revenue dipped slightly, while expenses rose due to compensation and acquisition costs. Digital initiatives and steady dividend growth highlight ongoing innovation and capital return.
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The meeting featured board transitions, unanimous approval of director elections and a stock incentive plan amendment, and a dividend increase. Strong financial results were highlighted, with record assets and strategic acquisitions expanding private markets and real estate capabilities.
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Assets under management reached $924 billion, with positive net flows and expansion across product wrappers and geographies. Tokenization and digital asset initiatives are underway, while alternatives and private credit are growing. Share repurchases remain active, and investments in technology and international growth continue.
Fiscal Year 2025
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Record AUM of $903B was driven by strong money market and equity inflows, with MDT strategies achieving record sales and top-tier performance. Q4 revenue rose 3% sequentially, while digital asset and global expansion initiatives advanced.
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Record Q3 AUM of $871B driven by money market and equity gains, with strong MDT performance and global expansion. Revenue rose 10% sequentially, and the FCP acquisition is set to close by Q1 2026, supporting further growth.
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An 80% stake in a U.S. multifamily real estate manager is being acquired for up to $331 million, expanding the acquirer's private markets platform into the U.S. The deal brings together complementary expertise, broadens distribution, and is expected to be accretive, with strong management continuity and growth prospects.
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Record AUM of $846 billion was driven by strong equity inflows and robust money market growth, while fixed income saw modest outflows. Digital asset innovation and tokenization initiatives are advancing, and a new share repurchase program was authorized.
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Record AUM of $840 billion was driven by strong money market and equity inflows, especially in MDT strategies, while private markets expanded through new funds and a key acquisition. Q1 revenue dipped slightly, but expenses fell and the dividend was raised nearly 10%.
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The meeting featured unanimous election of directors, a 9.7% dividend increase, and record assets under management. Strategic growth included a renewable energy acquisition and global expansion, while strong financial results and diversified offerings were highlighted.
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Assets under management reached $847 billion, with strong growth in equities and alternatives. Money market funds continue to benefit from higher rates, while technology investments and acquisitions remain key priorities. Share repurchases and seed investments support growth flexibility.
Fiscal Year 2024
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Record AUM of $830B was achieved, led by money market growth, while equity and fixed income saw outflows. Q4 revenue rose 4% sequentially, and new fundraising in alternatives is underway. Management expects continued asset growth and ongoing stock repurchases in 2025.
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Record AUM of $800 billion was achieved, led by strong money market and fixed income growth. Q3 revenue rose 1% sequentially, while operating expenses fell due to a prior impairment. Money market and alternative strategies remain key growth drivers, with continued product innovation and favorable market conditions expected.
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Record AUM of $783B was driven by strong money market inflows, while equity and fixed income saw net redemptions. Q2 revenue rose 2% sequentially, but a $66.3M impairment charge impacted expenses. Institutional pipeline and new fund launches support future growth.