• Like a focused version of BlackRock or Fidelity, managing a broad range of investment funds and portfolios for individuals and institutions.
• Think of them as an asset manager akin to T. Rowe Price or Vanguard, creating and overseeing mutual funds and separate accounts across stocks, bonds, and money markets.

• Mutual Funds: Pooled investment vehicles managed across equity, fixed income, balanced, and money market strategies for various client types.
• Managed Portfolios: Customized investment accounts tailored for clients, spanning equity, fixed income, balanced, and money market asset classes.

J. Christopher Donahue President, Chief Executive Officer and Chairman of the Board

J. Christopher Donahue has served as the President, Chief Executive Officer, and Chairman of the Board of Federated Hermes, Inc. since April 1998. He joined Federated in 1972 as a law clerk and subsequently held various executive positions, including President and Chief Operating Officer from 1993 to 1998. His father, John F. Donahue, co-founded Federated in 1955. Notably, Federated was sold to Aetna Life & Casualty Co. in 1982, but management repurchased Aetna's stake in 1989, reestablishing majority control.

Thomas R. Donahue Director, Vice President, Treasurer and Chief Financial Officer; President, FII Holdings, Inc.

Thomas R. Donahue serves as a Director, Vice President, Treasurer, and Chief Financial Officer of Federated Hermes, Inc., a position he has held since 1998. He is also the President of FII Holdings, Inc. He frequently participates in investor conferences alongside the CEO.

Saker Anwar Nusseibeh Chief Executive Officer, Federated Hermes Limited

Saker Anwar Nusseibeh is the Chief Executive Officer of Federated Hermes Limited, a key international component of Federated Hermes, Inc.

Paul A. Uhlman Vice President; President and Chief Executive Officer of Federated Advisory Companies (effective April 30, 2026)

Paul A. Uhlman will assume the role of President and Chief Executive Officer of the Federated Advisory Companies, effective April 30, 2026. He is currently a Vice President and executive officer of Federated Hermes, Inc. Uhlman joined Federated Hermes in 1990 and has held various leadership roles within the Sales Division, including Intermediary Sales, Liquidity Sales, Strategic Solutions, Retirement, and Institutional Sales.

Bryan M. Burke President, Federated Securities Corp. (effective April 30, 2026)

Bryan M. Burke is slated to become President of Federated Securities Corp. and an executive officer, effective April 30, 2026. He has been with Federated Hermes for 23 years, previously serving as National Sales Director, Strategic Solutions, and Executive Vice President of Federated Securities Corp.

Key Risks to Federated Hermes (FHI)

1. Dependence on Money Market Funds and Regulatory Changes: Federated Hermes faces significant risk due to its substantial reliance on money market funds, which constitute a large portion of its revenue and managed assets. For instance, cash management operations are expected to generate over half of the company's revenue, and money market funds comprise 75% of its managed assets. This dependence exposes the company to potential adverse impacts from fluctuations in market interest rates and regulatory reforms. The U.S. Securities and Exchange Commission (SEC) has enacted amendments to Rule 2a-7, governing money market funds, which directly affects Federated Hermes by requiring increased liquid assets and potentially raising operational costs while reducing yield potential on its substantial money market assets.
2. Market Volatility and Fee Pressure: As an asset management company, Federated Hermes operates within an environment highly susceptible to market volatility and economic downturns. Such conditions can significantly impair the performance of its funds, erode investor confidence, and negatively impact its overall financial results. Furthermore, persistent fee compression on active funds presents an ongoing challenge that could impede the company's long-term growth and affect its valuation. A significant concentration of revenue in investment advisory fees, which accounted for 65% of total revenues as of December 31, 2025, also makes the company vulnerable to market fluctuations in asset fair values or increased fund redemptions.
3. Intense Competition and Talent Retention: The global asset management industry is characterized by intense competition, with numerous global and regional firms actively vying for market share through diverse investment strategies and client services. This competitive landscape necessitates continuous innovation, particularly in areas like sustainable investing and digital client engagement. While Federated Hermes employs comprehensive compensation programs to attract and retain highly qualified professionals, securing and retaining top talent remains critical for maintaining its competitive advantage in this dynamic industry.

• The continued and accelerating shift of investor capital into lower-cost passive investment strategies, such as index funds and exchange-traded funds (ETFs), which directly pressure the fee structures and market share of actively managed funds.
• The increasing sophistication and adoption of technology-driven, automated investment platforms and robo-advisors, offering lower-cost alternatives to traditional human advisory services and managed portfolios.

Federated Hermes, Inc. (FHI) operates within vast addressable markets across the global and U.S. asset management industry, offering a range of equity, fixed income, balanced, and money market investment products and services to diverse client segments.

Addressable Markets for Federated Hermes' Main Products and Services:

• Global Asset Management Market (Assets Under Management - AUM): The global assets under management (AUM) reached approximately $139 trillion in 2024 and are projected to grow to $200 trillion by 2030. As of June 2025, global AUM hit a record $147 trillion.
• U.S. Asset Management Market (AUM): North American managers accounted for approximately $88.2 trillion in assets in 2024, representing 63% of the total assets managed by the top 500 firms globally. The U.S. asset management market was valued at $52.08 trillion in 2024 and is expected to reach $134.67 trillion by 2030. The U.S. market is projected to be $70.97 trillion in 2026 and $125.98 trillion by 2031.
• Global Mutual Fund Assets (AUM): The global mutual fund assets market was valued at $55,851.0 billion (or approximately $55.85 trillion) in 2024 and is projected to reach $95,815.0 billion (or approximately $95.815 trillion) by 2034. Another estimate places global mutual fund assets at around $67.48 trillion in 2022, with a prediction to reach approximately $145.23 trillion by 2030.
• U.S. Mutual Fund Assets (AUM): The United States mutual funds market was valued at $34.58 trillion in 2024 and is expected to reach $43.25 trillion by 2030. In January 2026, the combined assets of U.S. mutual funds increased to $31.80 trillion. PwC forecasts U.S. mutual fund AUM to grow to $38 trillion by 2030.
• Global Money Market Funds (AUM): Worldwide money market funds (MMFs) had $10.6 trillion in assets under management by mid-2024. In 2023, global MMFs experienced record net inflows of almost EUR 1.4 trillion (approximately $1.5 trillion).
• U.S. Money Market Funds (AUM): Assets in U.S.-based money market funds totaled $6.5 trillion by mid-2024. By December 1, 2025, U.S. money market funds held over $8 trillion in assets. More recently, total money market fund assets in the U.S. increased to $7.82 trillion for the week ended March 11, 2026.
• Global Fixed Income Asset Management Market (AUM): The fixed income asset management market was $77.99 trillion in 2025, and is projected to reach $86.04 trillion in 2026, and $122.76 trillion in 2030.

Federated Hermes (FHI) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and market trends:

1. Growth in Assets Under Management (AUM) from Money Market and Equity Strategies: The company has consistently reported record AUM, significantly driven by its money market funds, which reached a record high of $682.6 billion by year-end 2025. Anticipated Federal Reserve rate cuts in 2026 are expected to further boost money market fund performance. Additionally, equity assets, particularly through the MDT fundamental quantitative strategies, have demonstrated strong growth and net sales, contributing to overall AUM expansion.
2. Expansion into Alternative and Private Markets: Federated Hermes is actively expanding its alternative and private markets business. A key move in this area is the acquisition of a controlling interest in FCP Fund Manager, L.P., a U.S. real estate investment manager, which will enhance its capabilities in the U.S. private real estate sector and complement its existing U.K. operations. The firm is also marketing new funds in European direct lending and global private equity co-investments.
3. Innovation in Digital Assets and Tokenization: Federated Hermes is focusing on innovation within digital asset infrastructure and the development of tokenized money market funds. These digital asset initiatives are aimed at enhancing market share in emerging financial technologies.
4. Global Outreach and Distribution of MDT Strategies: The company is expanding the global distribution of its MDT strategies, observing considerable interest from international clients. This global expansion also includes establishing a new office in Hong Kong, signaling a commitment to growing its presence in the Asia Pacific region.
5. Increasing Demand for ESG-Focused Investment Strategies: Analysts project revenue growth for Federated Hermes, partly driven by expected AUM growth in ESG (Environmental, Social, and Governance)-focused strategies. The company's 2019 rebranding to emphasize "responsible investing" positions it well to capitalize on the rising global demand for sustainable funds.

Share Repurchases

• Federated Hermes authorized a share repurchase program in October 2023, allowing for the repurchase of up to 5,000,000 Class B common shares with no expiration date.
• In October 2024, the Board authorized an additional share repurchase plan of up to 5,000,000 shares of Class B Common Stock.
• As of September 2025, the company repurchased over 1.5 million shares in the prior quarter. The buyback yield was 5.45% in the last 12 months and 5.22% over three years.

Share Issuance

• As part of the acquisition of an 80% interest in FCP Fund Manager, L.P. in October 2025, Federated Hermes planned to issue $23.2 million in Class B common stock at closing.

Outbound Investments

• In October 2025, Federated Hermes agreed to acquire an 80% interest in FCP Fund Manager, L.P., a U.S. real estate investment manager, for up to $331 million. This includes $215.8 million in cash and $23.2 million in Federated Hermes Class B common stock at closing, with opportunities for up to $92 million in contingent consideration over multiple years. This acquisition aims to expand Federated Hermes' private markets/alternatives investment capabilities, particularly in U.S. real estate.
• In 2022, the company completed the acquisition of substantially all assets of C.W. Henderson and Associates, Inc., enhancing its separately managed accounts (SMA) business.
• In 2021, Federated Hermes acquired certain investment management-related assets of Horizon Advisers and purchased the remaining 29.5% interest in London-based Hermes Fund Managers Limited from BT Pension Scheme (BTPS), consolidating its international investment operations. Earlier in 2025, Federated Hermes also acquired Rivington Energy Management Limited, a U.K.-based infrastructure developer.

Capital Expenditures

• Capital expenditures in the last 12 months (as of late 2025/early 2026) amounted to -$2.76 million.
• In Q4 2025, Federated Hermes invested -$426K in capital expenditures, which are focused on funding long-term assets and infrastructure.