FEDERATED HERMES Business Summary

Federated Hermes, Inc. (FHI) is a premier global asset manager that generates revenue primarily through investment advisory fees calculated as a percentage of its assets under management (AUM), which reached a record $902.6 billion as of December 31, 2025. The firm operates a single-segment business model focused on active investment management, with a revenue profile heavily weighted toward liquidity management (53%), followed by equity (28%), fixed-income (11%), and alternative/private markets (6%). Its competitive edge lies in its massive distribution reach, serving over 11,000 global institutions and intermediaries, and its market-leading position in the money market sector, where it holds a record $682.6 billion in assets. Positioned as a specialized active manager against larger-scale competitors like BlackRock, T. Rowe Price, Invesco, and Ameriprise Financial, Federated Hermes differentiates itself through its deep integration of environmental, social, and governance (ESG) factors and its historical role as a pioneer in institutional liquidity solutions. Established in 1955 by John F. Donahue, Richard B. Fisher, and Thomas J. Donnelly, the company continues to be led by a tenured executive team with significant founding-family representation. J. Christopher Donahue serves as President and CEO, a role he has held since 1998, while Thomas R. Donahue acts as Chief Financial Officer and Treasurer. Other key leadership figures include Saker Nusseibeh, CEO of Federated Hermes Limited, and Deborah Cunningham, CIO of Global Liquidity Markets. As of March 2026, the firm is undergoing a planned leadership transition, with Paul A. Uhlman set to become CEO of the Federated Advisory Companies in late April 2026, succeeding John B. Fisher. The company’s governance is overseen by a Board of Directors that includes Chairman J. Christopher Donahue and independent directors such as Joseph Bartolacci (CEO of Matthews International) and Karen Hanlon (COO of Highmark Health), ensuring a blend of institutional pedigree and strategic oversight.