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: 53.870
Low
51.00
Averages
53.75
High
56.00
Current: 53.870
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 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 February 23, 2026, and a payable date of March 2, 2026, indicating the company's commitment to providing stable income for investors.
- Tax Benefits: The fund's dividend income is exempt from both regular federal income tax and the federal alternative minimum tax (AMT), making it attractive for investors seeking tax optimization, thereby enhancing its competitive position in the market.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, underscoring its leadership in the global active investment management sector and its ability to offer diverse investment solutions to clients.
- Global Client Base: Federated Hermes serves over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, demonstrating its extensive market influence and the trust it has built among clients.
See More
Federated Hermes Declares Tax-Free Dividend
- Dividend Announcement: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of February 23, 2026, and a payable date of March 2, 2026, indicating the company's commitment to providing stable income for investors.
- Tax Benefits: The fund's dividend income is exempt from both regular federal income tax and the federal alternative minimum tax (AMT), making it particularly attractive to high-income investors, which could lead to increased capital inflows.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, underscoring its leadership in active investment management and its ability to offer diverse investment solutions to clients.
- Global Client Base: Federated Hermes serves over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, reflecting its extensive influence and trust in the global market.
See More
Federated Hermes Appoints New Head of Prime Liquidity Group
- Executive Appointment: Federated Hermes has promoted Mark Weiss to head of the Prime Liquidity Group, effective July 1, 2026, marking a continuation of leadership in liquidity management within the firm.
- Asset Management Scale: As of December 31, 2025, the company's prime money market investment strategies manage $242.7 billion in assets, demonstrating its strong position in high-quality fixed-income securities investment.
- Experienced Leadership: Mark Weiss brings over 28 years of trading and portfolio management experience, having managed multiple portfolios including the $103.5 billion Prime Cash Obligations Fund, which is expected to enhance the team's professionalism and market insights.
- Contributions of Predecessor: Paige Wilhelm retires after 41 years, having successfully driven the growth of prime money market funds, establishing Federated Hermes as a key player in cash management, reflecting the company's commitment to talent development.
See More
Federated Hermes Q4 2025 Earnings Call Highlights
- Record Assets Under Management: Federated Hermes reported a record $903 billion in assets under management at the end of 2025, driven by growth in money market and equity strategies, highlighting the company's strong market position and competitiveness.
- Significant Improvement in Net Sales: The company achieved $4.6 billion in net equity sales for 2025, a substantial recovery from net redemptions of $10.7 billion in 2004, indicating successful investor attraction and enhancing future inflow expectations.
- Strategic Expansion Plans: Federated Hermes aims to close the FCP acquisition in the first half of 2026, which will add expertise in U.S. multifamily housing, while also planning to open a new office in Hong Kong to capitalize on the rapidly growing wealth market in the Asia-Pacific region, further solidifying its global business strategy.
- Revenue Growth Amid Cost Pressures: Although total revenue increased by $13.4 million, or 3%, in Q4 compared to the prior quarter, management expressed caution regarding future revenues and expenses due to rising distribution costs and other operational expenses, indicating potential financial pressures ahead.
See More
FEDERATED HERMES INC REFUTES PLAINTIFF'S CLAIMS IN SEC FILING
Denial of Allegations: Hermès has denied the allegations made by the plaintiff in a recent legal filing.
Legal Proceedings: The case involves a dispute that is currently being addressed in court, with Hermès formally responding to the claims.
See More
FEDERATED HERMES INC: LAWSUIT CLAIMS HGPE WAS NEGLIGENT IN 2019 VENTUS PORTFOLIO INVESTMENT
- Allegations of Negligence: The plaintiff alleges that HGP was negligent in managing a 2019 investment in the Ventus Sport portfolio.
- Legal Proceedings: The case is currently being addressed in a federal court, focusing on the claims made by the plaintiff against HGP.
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 February 23, 2026, and a payable date of March 2, 2026, indicating the company's commitment to providing stable income for investors.
- Tax Benefits: The fund's dividend income is exempt from both regular federal income tax and the federal alternative minimum tax (AMT), making it attractive for investors seeking tax optimization, thereby enhancing its competitive position in the market.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, underscoring its leadership in the global active investment management sector and its ability to offer diverse investment solutions to clients.
- Global Client Base: Federated Hermes serves over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, demonstrating its extensive market influence and the trust it has built among clients.
See More
Federated Hermes Declares Tax-Free Dividend
- Dividend Announcement: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of February 23, 2026, and a payable date of March 2, 2026, indicating the company's commitment to providing stable income for investors.
- Tax Benefits: The fund's dividend income is exempt from both regular federal income tax and the federal alternative minimum tax (AMT), making it particularly attractive to high-income investors, which could lead to increased capital inflows.
- Asset Management Scale: As of December 31, 2025, Federated Hermes manages $902.6 billion in assets, underscoring its leadership in active investment management and its ability to offer diverse investment solutions to clients.
- Global Client Base: Federated Hermes serves over 11,000 institutions and intermediaries, including corporations, government entities, and insurance companies, reflecting its extensive influence and trust in the global market.
See More
Federated Hermes Appoints New Head of Prime Liquidity Group
- Executive Appointment: Federated Hermes has promoted Mark Weiss to head of the Prime Liquidity Group, effective July 1, 2026, marking a continuation of leadership in liquidity management within the firm.
- Asset Management Scale: As of December 31, 2025, the company's prime money market investment strategies manage $242.7 billion in assets, demonstrating its strong position in high-quality fixed-income securities investment.
- Experienced Leadership: Mark Weiss brings over 28 years of trading and portfolio management experience, having managed multiple portfolios including the $103.5 billion Prime Cash Obligations Fund, which is expected to enhance the team's professionalism and market insights.
- Contributions of Predecessor: Paige Wilhelm retires after 41 years, having successfully driven the growth of prime money market funds, establishing Federated Hermes as a key player in cash management, reflecting the company's commitment to talent development.
See More
Federated Hermes Q4 2025 Earnings Call Highlights
- Record Assets Under Management: Federated Hermes reported a record $903 billion in assets under management at the end of 2025, driven by growth in money market and equity strategies, highlighting the company's strong market position and competitiveness.
- Significant Improvement in Net Sales: The company achieved $4.6 billion in net equity sales for 2025, a substantial recovery from net redemptions of $10.7 billion in 2004, indicating successful investor attraction and enhancing future inflow expectations.
- Strategic Expansion Plans: Federated Hermes aims to close the FCP acquisition in the first half of 2026, which will add expertise in U.S. multifamily housing, while also planning to open a new office in Hong Kong to capitalize on the rapidly growing wealth market in the Asia-Pacific region, further solidifying its global business strategy.
- Revenue Growth Amid Cost Pressures: Although total revenue increased by $13.4 million, or 3%, in Q4 compared to the prior quarter, management expressed caution regarding future revenues and expenses due to rising distribution costs and other operational expenses, indicating potential financial pressures ahead.
See More
FEDERATED HERMES INC REFUTES PLAINTIFF'S CLAIMS IN SEC FILING
Denial of Allegations: Hermès has denied the allegations made by the plaintiff in a recent legal filing.
Legal Proceedings: The case involves a dispute that is currently being addressed in court, with Hermès formally responding to the claims.
See More
FEDERATED HERMES INC: LAWSUIT CLAIMS HGPE WAS NEGLIGENT IN 2019 VENTUS PORTFOLIO INVESTMENT
- Allegations of Negligence: The plaintiff alleges that HGP was negligent in managing a 2019 investment in the Ventus Sport portfolio.
- Legal Proceedings: The case is currently being addressed in a federal court, focusing on the claims made by the plaintiff against HGP.
See More
