Core Viewpoint - Federated Hermes, Inc. will report its financial and operating results for the quarter and year ended December 31, 2025, on January 29, 2026, after market close [1] Group 1: Financial Reporting - The financial results will be discussed in a conference call on January 30, 2026, at 9 a.m. Eastern, hosted by President and CEO J. Christopher Donahue and CFO Thomas R. Donahue [1] - Investors can access the conference call by dialing specific numbers for domestic and international calls or through the company's website [2] Group 2: Company Overview - Federated Hermes, Inc. is a global leader in active investment management, managing $871.2 billion in assets as of September 30, 2025 [4] - The company provides a wide range of investment solutions, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies to over 10,000 institutions and intermediaries globally [4] - The client base includes corporations, government entities, insurance companies, foundations, endowments, banks, and broker/dealers, with headquarters in Pittsburgh and over 2,000 employees in various global offices [4]

Core Insights - The Fixed Income Clearing Corp. (FICC) has launched a new Collateral-in-Lieu (CIL) service aimed at enhancing the efficiency of repo transaction clearing while complying with SEC regulations [2][3][5] Group 1: Service Overview - The CIL service is designed to be margin and capital-efficient, facilitating repo transactions through BNY's Global Collateral Platform [2][3] - The first repo trade using the CIL service was executed by BNY Securities Finance and Federated Hermes, indicating initial market adoption [3] - The service maintains the typical haircut for dealers while implementing a CCP lien, which reduces double-margining for some sponsored members [4] Group 2: Benefits and Compliance - The CIL service reduces duplicative margin requirements for sponsors and their clients, streamlining operational processes [5] - It supports compliance with the SEC's U.S. Treasury clearing rule, enhancing market liquidity [5] - The service leverages BNY's triparty infrastructure for collateral management and settlement, accommodating various trade execution styles [5]

Core Insights - The S&P 500 has reached a new all-time closing high, driven by improved sentiment following a decline in new applications for U.S. unemployment benefits and strong economic growth of 4.3% in Q3 2025, surpassing expectations of 3.2% [1][2] Economic Outlook - The resilient economy and consumer demand are expected to support healthy corporate earnings, with a positive growth outlook and anticipated interest rate cuts from the Federal Reserve for 2026 enhancing investor optimism [2] Asset Management Sector - Affiliated Managers Group, Inc. (AMG) and Federated Hermes, Inc. (FHI) have reached new highs, reflecting bullish investor sentiment influenced by the overall economic health [3][8] - AMG's shares hit a 52-week high of $293.74, closing at $291.13, following strong Q3 results and positive Q4 guidance, with expected economic earnings between $8.10 and $9.26 per share, up from $6.53 in Q4 2024 [5][6] - AMG's pivot towards private markets and liquid alternatives has driven strong inflows, with $17 billion in net client cash flows in the first nine months of 2025, and alternatives now account for 55% of earnings [10][11] Federated Hermes Performance - Federated Hermes shares reached a 52-week high of $54.48, closing at $54.33, supported by positive market sentiment [13] - The company reported record AUM of $871.2 billion as of September 30, 2025, with a 7.4% CAGR in AUM over the past four years, driven by strong money market and equity asset growth [14] - Money market AUM was $652.8 billion, with favorable conditions expected to continue as yields remain attractive [15] Financial Flexibility - Federated Hermes maintains solid financial flexibility with $647.4 million in cash against $348.3 million in long-term debt, supporting shareholder returns through regular dividends and a share repurchase program [17] Growth Strategies - AMG's new partnerships are projected to add nearly $24 billion in AUM, while Federated Hermes has strengthened its platform through acquisitions, enhancing its operational capabilities [9][16]

Core Insights - The Depository Trust & Clearing Corporation (DTCC) and BNY have launched the Collateral-in-Lieu (CIL) service under DTCC's Fixed Income Clearing Corporation (FICC) subsidiary, enhancing the clearing model offerings for the financial services industry [1][2] Group 1: Service Overview - The CIL service provides significant margin and capital efficiencies, facilitating the market's transition to central clearing as mandated by the SEC for U.S. Treasury [2] - The service maintains the haircut posted by dealers to money market funds while implementing a CCP lien in lieu of a Sponsor guaranty and margin posting [2] - This approach eliminates double-margining for some Sponsored members and streamlines operational processes, leveraging triparty benefits [2] Group 2: Industry Impact and Adoption - DTCC anticipates increased adoption of the CIL service as the industry prepares for full implementation of SEC's clearing requirements by the end of 2026 and June 2027 [3] - DTCC has over 50 years of experience as the post-trade market infrastructure for the global financial services industry [3] Group 3: DTCC Operations and Scale - DTCC automates, centralizes, and standardizes financial transaction processing from 20 locations worldwide, enhancing risk mitigation, transparency, and efficiency for market participants [4] - In 2024, DTCC processed securities transactions valued at $3.7 quadrillion and provided custody and asset servicing for securities valued at $99 trillion [4] - The Global Trade Repository service processes over 25 billion messages annually through locally registered trade repositories [4]

Core Viewpoint - Federated Hermes (FHI) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][3]. - A strong correlation exists between earnings estimate revisions and stock price movements, with institutional investors using these estimates to determine fair value [3]. Business Improvement Indicators - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Federated Hermes' underlying business, indicating potential for stock price appreciation [4]. Importance of Earnings Estimate Revisions - Tracking earnings estimate revisions can be beneficial for investment decisions, and the Zacks Rank system effectively utilizes this data [5][6]. - The Zacks Rank system has a strong track record, with Zacks Rank 1 stocks averaging an annual return of +25% since 1988 [6]. Specific Earnings Estimates for Federated Hermes - For the fiscal year ending December 2025, Federated Hermes is expected to earn $4.92 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 9.6% over the past three months [7]. Zacks Rating System Overview - The Zacks rating system maintains a balanced distribution of ratings, with only the top 5% of stocks receiving a "Strong Buy" rating, indicating superior earnings estimate revisions [8][9]. - The upgrade of Federated Hermes to Zacks Rank 1 places it in the top 5% of stocks, suggesting potential for higher stock movement in the near term [9].

Group 1: Federated Hermes, Inc. (FHI) - Federated Hermes has a Zacks Rank of 1 and a price-to-earnings ratio (P/E) of 10.19, significantly lower than the industry average of 18.80 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.7% over the last 60 days [1] - The company possesses a Value Score of A, indicating strong value characteristics [1] Group 2: Bunge Global SA (BG) - Bunge Global carries a Zacks Rank of 1 and has a P/E ratio of 12.83, compared to 25.07 for the S&P [2] - The Zacks Consensus Estimate for its next year earnings has also increased by 7.7% over the last 60 days [2] - The company has a Value Score of A, reflecting its strong value characteristics [2] Group 3: ZTO Express (Cayman) Inc. (ZTO) - ZTO Express holds a Zacks Rank of 1 with a P/E ratio of 12.76, lower than the S&P average of 25.07 [3] - The Zacks Consensus Estimate for its current year earnings has risen by 5.9% over the last 60 days [3] - The company possesses a Value Score of B, indicating solid value characteristics [3]

Core Viewpoint - Federated Hermes, Inc. announced significant executive leadership changes effective April 30, 2026, as part of its succession plan following John Fisher's decision to step back from full-time responsibilities [12]. Leadership Changes - Paul Uhlman will become President and CEO of the Federated Advisory Companies, succeeding John Fisher, who will transition to Chairman [2][6]. - Bryan Burke will succeed Uhlman as President of Federated Securities Corp., leading global sales efforts [4][5]. - John Fisher will remain involved in strategic initiatives as Chairman but will no longer serve as an executive officer [6][10]. Background of Executives - Paul Uhlman has been with Federated Hermes since 1990 and has held various leadership roles, including President of Federated Securities Corp. since 2016 [3]. - Bryan Burke joined Federated Hermes in 2002 and has held key leadership roles in distribution, including National Sales Director since April 2023 [5]. Transition and Future Plans - The leadership transitions are designed to ensure an orderly transfer of responsibilities and maintain the company's focus on long-term value creation [12]. - Uhlman and Burke will report to J. Christopher Donahue, the current President and CEO of Federated Hermes, Inc. [6][7]. Company Overview - Federated Hermes, Inc. is a global leader in active investment management, managing $871.2 billion in assets as of September 30, 2025, serving over 10,000 institutions and intermediaries worldwide [13].

Core Insights - Schneider Downs Wealth Management Advisors significantly increased its position in Federated Hermes, acquiring 2,577,442 shares, bringing its total stake to 2,657,263 shares valued at $137.99 million, which constitutes 16.37% of the fund's total assets under management (AUM) [1][7] - Federated Hermes has demonstrated strong financial performance with a total revenue of $1.74 billion and a net income of $380.98 million over the trailing twelve months (TTM) [3] - The company has a consistent dividend policy, having raised its dividend payout by 25.9% over the past five years, with a current yield of 2.77% [6] Company Overview - Federated Hermes, Inc. is a prominent asset management holding company based in Pittsburgh, Pennsylvania, with additional offices in New York and London, managing a diverse range of investment products across global equity and fixed income markets [4] - The firm employs both fundamental and quantitative investment strategies, catering to a wide array of clients, including individuals, high net worth investors, financial institutions, and government entities [8] Recent Developments - Schneider Downs Wealth Management Advisors' portfolio has grown by 92.6% since the end of Q3 2023, reaching a total size of $843 million [5] - The asset manager's stock has outperformed the S&P 500 by 9.02 percentage points over the past year, with a share price increase of 20.49% [7]

Core Insights - The article compares Federated Hermes (FHI) and TPG Inc. (TPG) to determine which stock offers better value opportunities for investors [1] Valuation Metrics - FHI has a Zacks Rank of 1 (Strong Buy), indicating a stronger earnings outlook compared to TPG, which has a Zacks Rank of 3 (Hold) [3] - FHI's forward P/E ratio is 10.32, significantly lower than TPG's forward P/E of 23.88 [5] - FHI's PEG ratio is 0.52, while TPG's PEG ratio is 1.04, suggesting FHI is more undervalued relative to its expected earnings growth [5] - FHI has a P/B ratio of 3.26 compared to TPG's P/B of 5.71, further indicating FHI's relative undervaluation [6] - FHI earns a Value grade of B, while TPG receives a Value grade of D, reinforcing FHI's position as the more attractive investment option [6]

Core Viewpoint - The article highlights the expertise of an Asian equity market specialist who focuses on identifying investment opportunities in the Hong Kong market, particularly in deep value balance sheet bargains and wide moat stocks [1]. Group 1 - The specialist has over a decade of experience on both the buy and sell sides of the market [1]. - The investing group, Asia Value & Moat Stocks, provides ideas for value investors seeking opportunities in Asia [1]. - Monthly updates and a range of watch lists are offered to keep investors informed about potential investments [1].