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Here are 1-3 brief analogies to describe Federated Hermes (FHI):

• Like BlackRock for active investment strategies and responsible investing.
• Like T. Rowe Price for diverse actively managed funds, including money markets and ESG strategies.

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• Money Market Funds: Provides short-term, highly liquid cash management solutions for institutional and individual investors.
• Equity Strategies: Offers actively managed investment portfolios focused on stocks across various market capitalizations and geographies.
• Fixed Income Strategies: Manages investment portfolios centered on bonds and other debt instruments to generate income and manage risk.
• Alternative Investments: Provides strategies offering exposure to less traditional assets such as private equity, private debt, real estate, and infrastructure.
• Multi-Asset Strategies: Delivers diversified investment solutions combining multiple asset classes to meet specific risk and return objectives.
• ESG and Responsible Investing Solutions: Integrates environmental, social, and governance factors into investment products and services for clients.

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Federated Hermes (symbol: FHI) primarily sells its investment management and related services to other companies and institutional clients.

Due to the nature of its diversified asset management business and client confidentiality agreements, Federated Hermes does not publicly disclose a list of specific "major customer companies" with their respective symbols. Its client base is broad and consists of a wide array of institutional investors and financial intermediaries rather than a few dominant named clients.

However, Federated Hermes serves the following categories of institutional and intermediary clients (which are themselves companies or corporate entities):

• Institutional Investors: This category includes a wide range of organizations such as corporate and public pension funds, endowments, foundations, sovereign wealth funds, and other financial institutions (e.g., insurance companies, government entities, and corporations). These entities entrust Federated Hermes with significant assets for professional investment management across various strategies.
• Financial Intermediaries: These are financial service firms that act as distribution partners for Federated Hermes' investment products, including mutual funds, exchange-traded funds (ETFs), and separately managed accounts. This category comprises broker-dealers, independent financial advisory firms, wealth management platforms, and other financial institutions that offer Federated Hermes' products to their own individual and institutional clients.
• Pooled Investment Vehicles: Federated Hermes also provides investment management services to various pooled funds, including collective investment trusts and other investment companies, often as a sub-advisor. These pooled vehicles serve as conduits for investing on behalf of their underlying clients.

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• State Street Corporation (STT)
• The Bank of New York Mellon Corporation (BK)

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

J. Christopher Donahue has served as the President and Chief Executive Officer of Federated Hermes, Inc. since April 1998, and also as Chairman of the Board since 2016. He joined Federated in 1972 as a law clerk and has held various executive positions within the company, including Associate Corporate Counsel, head of the bank proprietary marketing effort, Internal Audit Department, and Federated Insurance Operations. From 1990 to 1993, he was president of Federated Administrative Services, and from 1993 until his current appointment, he served as President and Chief Operating Officer. His father, John F. Donahue, was a co-founder of Federated Investors (now Federated Hermes) in 1955.

Thomas Donahue Chief Financial Officer, Vice President, Director, and Treasurer

Thomas Donahue serves as the Chief Financial Officer, Vice President, Director, and Treasurer of Federated Hermes, Inc., a position he has held since 1998. He also serves as President of FII Holdings, Inc. Mr. Donahue joined Federated Hermes in 1993 as a Vice President. Before joining the firm, he was involved in the venture capital business and worked in the Investment Banking division of PNC Bank from 1983 to 1987.

Saker Nusseibeh, CBE Chief Executive Officer, Federated Hermes Limited

Saker Nusseibeh is the Chief Executive Officer of Federated Hermes Limited and is a member of the Federated Hermes, Inc. Executive team. He was appointed CEO of Federated Hermes Limited in November 2011, having joined the firm in June 2009 as CIO. Prior to Federated Hermes, Mr. Nusseibeh was Global Head of Equities at Fortis Investments, where he initially served as CIO Global Equities starting in 2005. He previously held the role of CIO of Global Equities and Head of Marketing for SGAM UK and began his career at Mercury Asset Management in 1987. He was awarded a CBE (Commander of the Order of the British Empire) in the Queen's 2020 New Year's Honours list for services to Responsible Business and Finance.

Deborah Cunningham, CFA Chief Investment Officer, Global Liquidity Markets, Senior Portfolio Manager, Executive Vice President

Deborah Cunningham is the Chief Investment Officer of Global Liquidity Markets, Senior Portfolio Manager, and Executive Vice President at Federated Hermes, Inc. She joined Federated Hermes in 1981 as a performance analyst and possesses over 30 years of investment experience. Since 1990, she has been a portfolio manager for all government and prime liquidity products. In 1994, she assumed management of the taxable liquidity group and also oversees domestic tax-exempt and offshore liquidity products.

Peter J. Germain Executive Vice President, Chief Legal Officer, and Secretary

Peter J. Germain serves as the Executive Vice President, Chief Legal Officer, and Secretary of Federated Hermes, Inc., a position he has held since 2017. Before this role, he was the General Counsel and Vice President at the company. Mr. Germain also serves as a Director, Trustee, or Officer for various subsidiaries of Federated Hermes and is the Chief Legal Officer, Executive Vice President, and Secretary for 33 investment companies managed by Federated Hermes' subsidiaries.

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The public company Federated Hermes (FHI) faces several key risks to its business operations and financial performance.

The most significant risk stems from its substantial reliance on money market funds, which constitute a large portion of its revenue. Approximately 51% of Federated Hermes' total revenue in 2024 was attributed to money market assets. A shift in the interest rate environment, particularly a Federal Reserve easing cycle that leads to reduced yields, could trigger outflows from these massive money market segments. This would directly pressure revenue growth and could erode profit margins.

Another major risk is the ongoing fee compression and intense competition within the active asset management industry. Asset managers with predominantly active portfolios, like Federated Hermes, are finding it increasingly challenging to generate positive organic growth in assets under management due to factors such as poor relative active investment performance and the rising popularity of low-cost, index-based products. To maintain its competitive standing, Federated Hermes must consistently demonstrate strong performance in its active strategies or expand its offerings in passive and alternative products.

Finally, Federated Hermes is exposed to regulatory risks. The company has recently disclosed a new risk in the regulation category, and its Annual Report on Form 10-K indicates that the SEC and Congress may modify regulations concerning money market funds. Past regulatory setbacks and the loss of key compliance credentials have also hinted at unresolved regulatory issues and broader governance concerns, which can limit business access and amplify investor skepticism.

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Federated Hermes (FHI) provides a range of investment products and services across several key asset classes. The addressable markets for their main offerings are substantial globally and within the U.S.

• Money Market Funds / Liquidity Management: The global money market fund market size was valued at approximately $12.3 trillion in the second quarter of 2025. The U.S. alone accounted for $7.024 trillion of this global total during the same period.
• Equity: The global equity market capitalization reached an estimated $127 trillion in 2025. Nearly half of this value, $62.2 trillion, is concentrated in the U.S.
• Fixed-Income: The global fixed income market is estimated to be $153.39 trillion in 2025 and is projected to grow to $198.58 trillion by 2030. The United States represents the largest bond market, valued at over $51 trillion in 2024, which is approximately 40% of the total global market.
• Alternative/Private Markets: The global alternative investment market is projected to reach $26.4 trillion in 2025. This market is also expected to exceed $30 trillion in assets under management by 2030.

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Federated Hermes (FHI) is poised for future revenue growth over the next two to three years, driven by several strategic initiatives and favorable market dynamics.

• Global Expansion of MDT Strategies: Federated Hermes expects growth to be propelled by the international expansion of its Multi-Dimensional Team (MDT) equity strategies. The company is actively focusing on leveraging client demand in Europe, Asia, and the Middle East, with a strong pipeline of new institutional mandates anticipated to be funded across various geographies and client types in the coming quarters.
• Digital Product Innovation and Asset Tokenization: The firm is investing significantly in digital asset infrastructure, including the development and launch of tokenized money market funds. Federated Hermes has already made two of its UCITS money market funds available in tokenized form through Archax in the U.K. and is collaborating with major financial institutions on blockchain-based recordkeeping for money market funds. These initiatives aim to capture future demand for digital investment products and differentiate the company.
• Strategic Acquisitions: Acquisitions are a key component of Federated Hermes' growth strategy. The company is focused on the integration of new acquisitions, such as the planned acquisition of FCP, a U.S.-focused real estate manager, which is expected to be accretive after transaction costs.
• Growth in Money Market Assets: Favorable market conditions and opportunities for attractive yields have led to record highs in Federated Hermes' money market assets, which have been a significant contributor to recent revenue increases and are expected to continue driving growth.
• Strong Institutional Pipeline and Fixed Income Recovery: The company boasts a robust institutional pipeline, with a substantial portion of mandates expected to be funded in the near future. Additionally, an improvement in fixed income net sales has reversed previous redemptions, with growth supported by inflows from large public entities and strong performance in certain fixed income funds.

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Share Repurchases

• During Q2 2025, Federated Hermes repurchased 1,547,182 shares of its Class B common stock for $64.5 million.
• In October 2024, the board of directors authorized a new share repurchase program for up to an additional 5 million shares of Federated Hermes Class B common stock, with approximately 1.1 million shares remaining from a prior program.
• In 2021, the company repurchased 7,145,838 shares of Class B common stock.

Share Issuance

• During Q3 2025, Federated Hermes purchased 20,808 shares of Class B common stock due to employee restricted stock forfeitures.
• As of October 24, 2025, Federated Hermes had 77,537,867 shares of Class B common stock outstanding.

Outbound Investments

• In October 2025, Federated Hermes, Inc. agreed to acquire a majority interest in FCP Fund Manager, L.P., a privately held real estate investment manager with client assets of $3.8 billion as of June 30, 2025.
• On April 7, 2025, Federated Hermes Limited acquired a majority (60%) equity interest in Rivington Energy Management Limited, a U.K.-based renewable energy project development business, with an upfront cash payment of £23.6 million ($30.0 million).
• In 2021, Federated Hermes acquired the remaining 29.5% interest in Hermes Fund Managers Limited held by BT Pension Scheme. The company also acquired the Argent Birmingham business in 2021, integrating it into its MEPC team.