Federated Hermes Reports Record AUM and Strong Performance in Q2 2026
Federated Hermes, Inc. reported record assets under management of $912 billion for the second quarter of 2026, driven by strong market gains despite a $3 billion sub-advisory redemption. The firm's fundamental quant MDT strategies were key contributors to growth with record gross sales of $6 billion and top-quartile performance across most strategies. The acquisition of an 80% stake in FCP Fund Manager added $3.2 billion in U.S. multifamily real estate assets, significantly expanding the company's private markets presence. Management expressed optimism about the current interest rate environment, calling it an 'entrepreneurial delight,' and noted that money market fund managed assets have more than doubled over 7.5 years. Looking ahead, Federated Hermes expects $3.4 billion in unfunded institutional wins across equity and private markets strategies. The company plans to launch two active ETFs annually and anticipates continued demand for money market funds as long-term rates remain between 3.5% and 4.5%. Transaction costs from the FCP acquisition were partially offset by gains from property sales.
Tickers: $FHI
Topics: assets under management digital initiatives ETFs private markets