Federated Hermes Reports Record AUM and Equity Sales in Q1 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 01 2026
0mins
Should l Buy FHI?
Source: seekingalpha
- Asset Management Innovation: Federated Hermes achieved a record $907 billion in assets under management in Q1 2026, with equity assets at $101 billion and money market assets at $685 billion, demonstrating the company's strong performance and growth potential in the market.
- Sales Performance Breakthrough: The firm reported gross equity sales of $9.1 billion in Q1, a record high, with MDT equity and market-neutral strategies generating $5.8 billion in gross sales and over $3.5 billion in net sales, indicating robust demand and market recognition for its investment products.
- Future Outlook: The company anticipates approximately $1.4 billion in net equity redemptions in Q2, primarily due to a client's decision to internalize management of these assets, which is not performance-driven, highlighting the complexities of market dynamics and client behavior changes.
- Capital Return Strategy: In Q1, the firm repurchased 1.2 million shares for $66 million and declared a dividend of $0.38, an increase of nearly 12% from the previous quarter, reflecting the company's commitment to shareholders and ongoing financial health.
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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: 55.950
Low
51.00
Averages
53.75
High
56.00
Current: 55.950
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 Announcement: Federated Hermes Premier Municipal Income Fund has declared a tax-free dividend of $0.0450 per share, with a record date of May 22, 2026, and a payable date of June 1, 2026, aimed at providing investors with current income exempt from federal income tax, enhancing its investment appeal.
- Tax Benefits: The fund's income is exempt not only from regular federal income tax but also from the federal alternative minimum tax (AMT), making it an ideal choice for investors seeking tax optimization, thereby increasing its market competitiveness.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, demonstrating its leadership in the global investment management sector and attracting trust from over 11,000 institutions and intermediaries.
- Global Business Presence: With offices in London, New York, and Boston, and over 2,000 employees worldwide, Federated Hermes showcases its capability to provide diverse investment solutions globally, 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 May 22, 2026, and a payable date of June 1, 2026, demonstrating 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-tax investors, which could lead to increased investor interest and capital inflows.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, showcasing its leadership in the global investment management sector and its ability to offer a diverse range of investment solutions to clients.
- Global Reach: With over 2,000 employees across London, New York, Boston, and other global locations, Federated Hermes serves more than 11,000 institutions and intermediaries, further solidifying its influence and client base in the global market.
See More
Federated Hermes Appoints New Chief Investment Officer
- Executive Transition: Federated Hermes announced that Steve Chiavarone will become Chief Investment Officer for Global Equities effective September 1, 2026, succeeding Steve Auth, who managed $100.8 billion in client assets during his 26-year tenure, reflecting the firm's stability and continuity in executive succession.
- Investment Management Responsibilities: As CIO for Global Equities, Chiavarone will oversee investment processes and portfolio performance, ensuring consistency and efficiency across diverse investment products, thereby enhancing client trust and improving market competitiveness.
- Rich Team Experience: With 19 years in Federated Hermes' Global Equities Group and 21 years of investment experience, Chiavarone's extensive background will help maintain the firm's commitment to investment discipline and long-term outperformance, further solidifying its market position.
- Strategic Continuity: Under Chiavarone's leadership, the Global Equities team will continue to uphold existing investment principles and collaborative culture, ensuring that client and intermediary expectations are met, thus driving the firm's sustained growth in the global market.
See More
Federated Hermes Reports Record AUM and Equity Sales in Q1 2026
- Asset Management Innovation: Federated Hermes achieved a record $907 billion in assets under management in Q1 2026, with equity assets at $101 billion and money market assets at $685 billion, demonstrating the company's strong performance and growth potential in the market.
- Sales Performance Breakthrough: The firm reported gross equity sales of $9.1 billion in Q1, a record high, with MDT equity and market-neutral strategies generating $5.8 billion in gross sales and over $3.5 billion in net sales, indicating robust demand and market recognition for its investment products.
- Future Outlook: The company anticipates approximately $1.4 billion in net equity redemptions in Q2, primarily due to a client's decision to internalize management of these assets, which is not performance-driven, highlighting the complexities of market dynamics and client behavior changes.
- Capital Return Strategy: In Q1, the firm repurchased 1.2 million shares for $66 million and declared a dividend of $0.38, an increase of nearly 12% from the previous quarter, reflecting the company's commitment to shareholders and ongoing financial health.
See More
Vista Investment Partners Acquires Stake in Federated Hermes
- New Position: Vista Investment Partners II initiated a new stake in Federated Hermes by acquiring 54,815 shares in Q1 2026, with an estimated transaction value of $3 million, indicating strong confidence in the company's prospects.
- Value Appreciation: As of March 31, 2026, the value of Federated Hermes' stake reached $3.11 million, reflecting both the impact of share acquisition and price appreciation, suggesting optimistic expectations from investors regarding future performance.
- Strong Market Performance: As of April 22, 2026, Federated Hermes shares were priced at $57.37, marking a 58.5% increase year-over-year, outperforming the S&P 500 by 23.5 percentage points, highlighting its robust growth potential in the asset management sector.
- Earnings Outlook: Analysts predict that Federated Hermes' upcoming earnings report will show higher revenue and earnings per share (EPS), which could further attract investors and strengthen its market position.
See More
Federated Hermes Expected to Announce Dividend Increase
- Dividend Growth Trend: Federated Hermes is expected to announce a dividend increase, continuing its three-year streak of regular growth, with analysts forecasting an annual dividend of approximately $1.39 per share, translating to a quarterly dividend of about $0.3475, which represents a 2.2% increase from the current $0.34 payout.
- Historical Payment Record: The company last paid a dividend of $0.34 per share, yielding 2.40% annually, and previously increased its dividend from $0.31 to $0.34 in April last year, marking a significant 9.7% growth, showcasing its commitment to returning value to shareholders.
- Dividend Growth Rate: Over the past five years, Federated Hermes has achieved a dividend growth rate of approximately 4.72%, with a current payout ratio of 26.65%, indicating its ability to reward shareholders while maintaining profitability.
- Dividend Quality Ratings: The company holds a B+ rating for dividend safety, an A+ rating for dividend growth, a C- rating for yield, and a B rating for consistency, reflecting its robustness and reliability in dividend payments.
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 May 22, 2026, and a payable date of June 1, 2026, aimed at providing investors with current income exempt from federal income tax, enhancing its investment appeal.
- Tax Benefits: The fund's income is exempt not only from regular federal income tax but also from the federal alternative minimum tax (AMT), making it an ideal choice for investors seeking tax optimization, thereby increasing its market competitiveness.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, demonstrating its leadership in the global investment management sector and attracting trust from over 11,000 institutions and intermediaries.
- Global Business Presence: With offices in London, New York, and Boston, and over 2,000 employees worldwide, Federated Hermes showcases its capability to provide diverse investment solutions globally, 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 May 22, 2026, and a payable date of June 1, 2026, demonstrating 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-tax investors, which could lead to increased investor interest and capital inflows.
- Asset Management Scale: As of March 31, 2026, Federated Hermes manages $907.1 billion in assets, showcasing its leadership in the global investment management sector and its ability to offer a diverse range of investment solutions to clients.
- Global Reach: With over 2,000 employees across London, New York, Boston, and other global locations, Federated Hermes serves more than 11,000 institutions and intermediaries, further solidifying its influence and client base in the global market.
See More
Federated Hermes Appoints New Chief Investment Officer
- Executive Transition: Federated Hermes announced that Steve Chiavarone will become Chief Investment Officer for Global Equities effective September 1, 2026, succeeding Steve Auth, who managed $100.8 billion in client assets during his 26-year tenure, reflecting the firm's stability and continuity in executive succession.
- Investment Management Responsibilities: As CIO for Global Equities, Chiavarone will oversee investment processes and portfolio performance, ensuring consistency and efficiency across diverse investment products, thereby enhancing client trust and improving market competitiveness.
- Rich Team Experience: With 19 years in Federated Hermes' Global Equities Group and 21 years of investment experience, Chiavarone's extensive background will help maintain the firm's commitment to investment discipline and long-term outperformance, further solidifying its market position.
- Strategic Continuity: Under Chiavarone's leadership, the Global Equities team will continue to uphold existing investment principles and collaborative culture, ensuring that client and intermediary expectations are met, thus driving the firm's sustained growth in the global market.
See More
Federated Hermes Reports Record AUM and Equity Sales in Q1 2026
- Asset Management Innovation: Federated Hermes achieved a record $907 billion in assets under management in Q1 2026, with equity assets at $101 billion and money market assets at $685 billion, demonstrating the company's strong performance and growth potential in the market.
- Sales Performance Breakthrough: The firm reported gross equity sales of $9.1 billion in Q1, a record high, with MDT equity and market-neutral strategies generating $5.8 billion in gross sales and over $3.5 billion in net sales, indicating robust demand and market recognition for its investment products.
- Future Outlook: The company anticipates approximately $1.4 billion in net equity redemptions in Q2, primarily due to a client's decision to internalize management of these assets, which is not performance-driven, highlighting the complexities of market dynamics and client behavior changes.
- Capital Return Strategy: In Q1, the firm repurchased 1.2 million shares for $66 million and declared a dividend of $0.38, an increase of nearly 12% from the previous quarter, reflecting the company's commitment to shareholders and ongoing financial health.
See More
Vista Investment Partners Acquires Stake in Federated Hermes
- New Position: Vista Investment Partners II initiated a new stake in Federated Hermes by acquiring 54,815 shares in Q1 2026, with an estimated transaction value of $3 million, indicating strong confidence in the company's prospects.
- Value Appreciation: As of March 31, 2026, the value of Federated Hermes' stake reached $3.11 million, reflecting both the impact of share acquisition and price appreciation, suggesting optimistic expectations from investors regarding future performance.
- Strong Market Performance: As of April 22, 2026, Federated Hermes shares were priced at $57.37, marking a 58.5% increase year-over-year, outperforming the S&P 500 by 23.5 percentage points, highlighting its robust growth potential in the asset management sector.
- Earnings Outlook: Analysts predict that Federated Hermes' upcoming earnings report will show higher revenue and earnings per share (EPS), which could further attract investors and strengthen its market position.
See More
Federated Hermes Expected to Announce Dividend Increase
- Dividend Growth Trend: Federated Hermes is expected to announce a dividend increase, continuing its three-year streak of regular growth, with analysts forecasting an annual dividend of approximately $1.39 per share, translating to a quarterly dividend of about $0.3475, which represents a 2.2% increase from the current $0.34 payout.
- Historical Payment Record: The company last paid a dividend of $0.34 per share, yielding 2.40% annually, and previously increased its dividend from $0.31 to $0.34 in April last year, marking a significant 9.7% growth, showcasing its commitment to returning value to shareholders.
- Dividend Growth Rate: Over the past five years, Federated Hermes has achieved a dividend growth rate of approximately 4.72%, with a current payout ratio of 26.65%, indicating its ability to reward shareholders while maintaining profitability.
- Dividend Quality Ratings: The company holds a B+ rating for dividend safety, an A+ rating for dividend growth, a C- rating for yield, and a B rating for consistency, reflecting its robustness and reliability in dividend payments.
See More
