Federated Hermes Introduces Active ETF Aiming for High Monthly Payouts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 08 2025
0mins
Should l Buy FHI?
Source: Newsfilter
Introduction of Enhanced Income ETF: Federated Hermes has launched the Enhanced Income ETF (CBOE: PAYR), aimed at providing consistent monthly cash flow and capital appreciation through high-dividend-paying stocks and an options overlay strategy.
Target Audience and Management Team: The ETF is designed for income-oriented investors, particularly those nearing retirement, and is managed by experienced investment teams from Federated Hermes, emphasizing risk management and diversification.
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Analyst Views on FHI
Wall Street analysts forecast FHI stock price to fall
4 Analyst Rating
1 Buy
3 Hold
0 Sell
Hold
Current: 58.000
Low
51.00
Averages
53.75
High
56.00
Current: 58.000
Low
51.00
Averages
53.75
High
56.00
About FHI
Federated Hermes, Inc. is an investment management company. The Company operates through a single segment, being the investment management business. It sponsors, markets, and provides investment-related services to various investment products, including sponsored investment companies and other funds (Federated Hermes Funds); and Separate Accounts, which include separately managed accounts (SMAs), institutional accounts, sub-advised funds and other managed products in both domestic and international markets. In addition, it markets and provides stewardship and real estate development services to various domestic and international companies. The Company provides investment advisory services to approximately 176 Federated Hermes Funds. It markets these funds to institutional customers and banks, broker/dealers and other financial intermediaries who use them to meet the needs of customers and/or clients, including, among others, retail investors, corporations, and retirement plans.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, aimed at providing investors with transparent information to support their investment decisions.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages a total of $902.6 billion in assets, demonstrating its strong capabilities and market position in active investment management.
- Diverse Client Base: The company provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, insurance companies, foundations, and banks, reflecting its significant influence in the global market.
- Global Employee Network: Federated Hermes has multiple offices worldwide, including London, New York, and Boston, with a workforce exceeding 2,000 employees, indicating its extensive presence and resource allocation in the global investment management industry.
See More
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, available on their website, enhancing transparency and client trust.
- Asset Management Scale: As of December 31, 2025, Federated Hermes managed assets totaling $902.6 billion, underscoring its leadership in active investment management and attracting more institutional investor interest.
- Diverse Client Base: The firm provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, indicating its strong influence in a diversified market.
- Global Employee Network: With over 2,000 employees across multiple offices worldwide, Federated Hermes ensures efficient service and support for clients, further solidifying its market position.
See More
Federated Hermes Declares Tax-Free Dividend
- Dividend Declaration: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of April 23, 2026, and a payable date of May 1, 2026, aimed at providing investors with current income exempt from federal income tax, enhancing its investment appeal.
- Tax Exemption Benefits: The fund's income is exempt not only from regular federal income tax but also from the federal alternative minimum tax (AMT), which holds significant strategic importance in tax planning and attracts high-net-worth investors.
- Leverage Reduction: On April 2, 2026, the fund redeemed 200 Variable Municipal Term Preferred Shares (VMTPS), effectively reducing its outstanding leverage, which enhances financial stability and lowers risk exposure.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, demonstrating its leadership position in global active investment management and further solidifying its competitive edge in the market.
See More
Federated Hermes Declares Tax-Free Dividend
- Dividend Declaration: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of April 23, 2026, and a payable date of May 1, 2026, aimed at providing investors with current income exempt from federal income tax, enhancing its investment appeal.
- Tax Exemption Benefits: The fund's income is exempt not only from regular federal income tax but also from the federal alternative minimum tax (AMT), providing significant advantages in tax planning and attracting high-net-worth investors.
- Redemption of Preferred Shares: On April 2, 2026, the fund redeemed 200 Variable Municipal Term Preferred Shares (VMTPS), reducing its outstanding leverage, which further optimizes its capital structure and lowers financial risk.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, demonstrating its leadership in global active investment management and attracting over 11,000 institutional clients.
See More
Federated Hermes Completes Acquisition of FCP
- Acquisition Completed: Federated Hermes has successfully completed the acquisition of an 80% stake in FCP Fund Manager, L.P. for a total purchase price of up to $331 million, including $215.8 million in cash and $23.2 million in common stock, which is expected to significantly enhance its influence in the U.S. real estate market.
- Market Expansion Strategy: This acquisition allows Federated Hermes to accelerate its entry into the U.S. multifamily market, where FCP has invested over $14.8 billion and manages more than 75,000 multifamily units, which is anticipated to provide stable revenue growth for the company.
- Portfolio Enhancement: The addition of FCP complements Federated Hermes' existing $191 billion alternatives platform, further enriching its private markets and alternatives capabilities, aligning with the company's long-term diversification strategy.
- Team Continuity: FCP's 75-member team will continue to operate from existing locations, ensuring that its deep market knowledge and client relationships are preserved, thereby laying a solid foundation for future growth.
See More
Federated Hermes Completes Acquisition of FCP Fund Manager
- Acquisition Completed: Federated Hermes has successfully acquired an 80% majority stake in FCP Fund Manager for a total purchase price of up to $331 million, including $215.8 million in cash and $23.2 million in common stock, which is expected to significantly enhance its influence in the U.S. real estate market.
- Asset Management Expansion: This acquisition increases Federated Hermes' alternatives platform assets to $191 billion, further solidifying its position in the global private markets while providing FCP with stronger resource support to drive its growth.
- Optimistic Market Outlook: FCP has invested over $14.8 billion in the U.S. multifamily sector, managing more than 75,000 multifamily units, and is expected to leverage Federated Hermes' market knowledge and resources for long-term growth.
- Strategic Synergy: This acquisition not only strengthens Federated Hermes' footprint in the U.S. market but also complements its longstanding operations in the UK, further advancing its global real estate investment strategy.
See More
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, aimed at providing investors with transparent information to support their investment decisions.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages a total of $902.6 billion in assets, demonstrating its strong capabilities and market position in active investment management.
- Diverse Client Base: The company provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, insurance companies, foundations, and banks, reflecting its significant influence in the global market.
- Global Employee Network: Federated Hermes has multiple offices worldwide, including London, New York, and Boston, with a workforce exceeding 2,000 employees, indicating its extensive presence and resource allocation in the global investment management industry.
See More
Federated Hermes Releases Fund Data
- Fund Performance Data Released: Federated Hermes announced the monthly fund composition and performance data for the Premier Municipal Income Fund as of March 30, 2026, available on their website, enhancing transparency and client trust.
- Asset Management Scale: As of December 31, 2025, Federated Hermes managed assets totaling $902.6 billion, underscoring its leadership in active investment management and attracting more institutional investor interest.
- Diverse Client Base: The firm provides investment solutions to over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, indicating its strong influence in a diversified market.
- Global Employee Network: With over 2,000 employees across multiple offices worldwide, Federated Hermes ensures efficient service and support for clients, further solidifying its market position.
See More
Federated Hermes Declares Tax-Free Dividend
- Dividend Declaration: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of April 23, 2026, and a payable date of May 1, 2026, aimed at providing investors with current income exempt from federal income tax, enhancing its investment appeal.
- Tax Exemption Benefits: The fund's income is exempt not only from regular federal income tax but also from the federal alternative minimum tax (AMT), which holds significant strategic importance in tax planning and attracts high-net-worth investors.
- Leverage Reduction: On April 2, 2026, the fund redeemed 200 Variable Municipal Term Preferred Shares (VMTPS), effectively reducing its outstanding leverage, which enhances financial stability and lowers risk exposure.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, demonstrating its leadership position in global active investment management and further solidifying its competitive edge in the market.
See More
Federated Hermes Declares Tax-Free Dividend
- Dividend Declaration: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of April 23, 2026, and a payable date of May 1, 2026, aimed at providing investors with current income exempt from federal income tax, enhancing its investment appeal.
- Tax Exemption Benefits: The fund's income is exempt not only from regular federal income tax but also from the federal alternative minimum tax (AMT), providing significant advantages in tax planning and attracting high-net-worth investors.
- Redemption of Preferred Shares: On April 2, 2026, the fund redeemed 200 Variable Municipal Term Preferred Shares (VMTPS), reducing its outstanding leverage, which further optimizes its capital structure and lowers financial risk.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, demonstrating its leadership in global active investment management and attracting over 11,000 institutional clients.
See More
Federated Hermes Completes Acquisition of FCP
- Acquisition Completed: Federated Hermes has successfully completed the acquisition of an 80% stake in FCP Fund Manager, L.P. for a total purchase price of up to $331 million, including $215.8 million in cash and $23.2 million in common stock, which is expected to significantly enhance its influence in the U.S. real estate market.
- Market Expansion Strategy: This acquisition allows Federated Hermes to accelerate its entry into the U.S. multifamily market, where FCP has invested over $14.8 billion and manages more than 75,000 multifamily units, which is anticipated to provide stable revenue growth for the company.
- Portfolio Enhancement: The addition of FCP complements Federated Hermes' existing $191 billion alternatives platform, further enriching its private markets and alternatives capabilities, aligning with the company's long-term diversification strategy.
- Team Continuity: FCP's 75-member team will continue to operate from existing locations, ensuring that its deep market knowledge and client relationships are preserved, thereby laying a solid foundation for future growth.
See More
Federated Hermes Completes Acquisition of FCP Fund Manager
- Acquisition Completed: Federated Hermes has successfully acquired an 80% majority stake in FCP Fund Manager for a total purchase price of up to $331 million, including $215.8 million in cash and $23.2 million in common stock, which is expected to significantly enhance its influence in the U.S. real estate market.
- Asset Management Expansion: This acquisition increases Federated Hermes' alternatives platform assets to $191 billion, further solidifying its position in the global private markets while providing FCP with stronger resource support to drive its growth.
- Optimistic Market Outlook: FCP has invested over $14.8 billion in the U.S. multifamily sector, managing more than 75,000 multifamily units, and is expected to leverage Federated Hermes' market knowledge and resources for long-term growth.
- Strategic Synergy: This acquisition not only strengthens Federated Hermes' footprint in the U.S. market but also complements its longstanding operations in the UK, further advancing its global real estate investment strategy.
See More
