Federated Hermes (FHI) investor relations material

Business overview and growth strategy

• Assets under management reached $924 billion, with $698 billion in money markets, $103 billion in equities, $101 billion in fixed income, and $22 billion in alternatives and multi-sector.

• Year-to-date net flows are positive at $2.1 billion, driven by $1.6 billion in equities and $333 million in fixed income.

• Product wrappers are expanding, including SMAs ($40B+), ETFs ($2B), and CITs ($4B), with international growth through new offices in Hong Kong and existing presence in Singapore, Australia, Japan, and Europe.

• UCITS funds are being launched in Europe, with the MDT All Cap Core fund reaching $600 million.

• Barron's ranked the firm 11th out of 50 mutual fund companies, and 6th over five years.

Product innovation and digital assets

• Tokenization initiatives include partnerships with Superstate, BNY, Goldman, and Archax, enabling tokenized access to money market funds.

• Regulatory and client adoption of tokenization is still developing, with use cases and demand expected to grow as blockchain solutions mature.

• Digital asset investments are ongoing, with a focus on readiness for future client demand and operational efficiency.

Investment performance and client solutions

• MDT funds stand out for strong performance and a unique, data-driven quant approach, with institutional traction and growth in SMAs.

• Emphasis on providing client solutions and integrating products into advisor-led projects.

• Fixed income offerings, including total return and ultra-short funds, are positioned for growth regardless of Fed actions.