Core Viewpoint - Federated Hermes reported quarterly earnings of $1.10 per share, exceeding the Zacks Consensus Estimate of $0.91 per share, and showing an increase from $0.89 per share a year ago [1][2] Financial Performance - The company achieved revenues of $423.54 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.88%, and up from $396.37 million year-over-year [3] - The earnings surprise for the quarter was 20.88%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] Market Position and Outlook - Federated Hermes shares have declined approximately 8% since the beginning of the year, slightly better than the S&P 500's decline of 8.6% [4] - The current consensus EPS estimate for the upcoming quarter is $0.93 on revenues of $422.77 million, and for the current fiscal year, it is $3.81 on revenues of $1.7 billion [8] Industry Context - The Financial - Investment Management industry, to which Federated Hermes belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, indicating potential challenges ahead [9] - Another company in the same industry, GCM Grosvenor Inc., is expected to report quarterly earnings of $0.20 per share, reflecting a year-over-year increase of 42.9% [10]

Exhibit 99.1 Federated Hermes, Inc. reports record assets under management with first quarter 2025 earnings (PITTSBURGH, Pa., April 24, 2025) — Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.25 for Q1 2025, compared to $0.89 for the same quarter last year, on net income of $101.1 million for Q1 2025, compared to $75.0 million for Q1 2024. Federated Hermes' Q1 2025 results include a $12.9 million decrease in Other operating expen ...

Core Insights - Federated Hermes, Inc. reported Q1 2025 earnings per diluted share (EPS) of $1.25, a significant increase from $0.89 in Q1 2024, with net income rising to $101.1 million from $75.0 million year-over-year [1][15][19] - The company achieved record total managed assets of $839.8 billion as of March 31, 2025, reflecting an 8% increase from $778.7 billion a year earlier [2][15] - The board declared a quarterly dividend of $0.34 per share, marking a 9.7% increase from the previous quarter [3][15] Financial Performance - Revenue for Q1 2025 increased by $27.2 million or 7% compared to Q1 2024, driven by higher average money market assets and increased performance fees [8][19] - Operating expenses decreased by $6.0 million or 2% primarily due to a VAT refund and fluctuations in foreign currency exchange rates [10][19] - Nonoperating income decreased by $1.2 million, attributed to a smaller increase in the market value of investments compared to the previous year [11] Asset Management - Total average managed assets for Q1 2025 were $843.2 billion, up 9% from $776.5 billion in Q1 2024 [2] - Money market assets reached a record $637.1 billion, up 10% from $578.8 billion year-over-year [7][15] - Equity assets increased to $80.9 billion, a 1% rise from $80.2 billion in Q1 2024, while fixed-income assets rose to $99.5 billion, up 3% from $96.3 billion [4][5] Investment Strategies - The company noted strong inflows into money market funds and separate accounts as investors sought stability amid market volatility [3] - Demand for MDT products, particularly the MDT Market Neutral Fund, was robust, aiming for long-term capital appreciation with limited stock market risk exposure [3] Shareholder Actions - During Q1 2025, Federated Hermes repurchased 3,057,542 shares of its class B common stock for $120.1 million [3] - The company ranks in the top 7% of equity fund managers and the top 8% of money market fund managers in the industry [17]

Core Points - Federated Hermes, Inc. will report financial and operating results for Q1 2025 on April 24, 2025, after market close [1] - A conference call for investors and analysts is scheduled for April 25, 2025, at 9 a.m. Eastern [1] - The company manages $829.6 billion in assets as of December 31, 2024, providing a range of investment solutions [5] Company Information - Federated Hermes is a global leader in active investment management, serving over 10,000 institutions and intermediaries worldwide [5] - The company offers various investment strategies, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management [5] - Headquartered in Pittsburgh, Federated Hermes has more than 2,000 employees across multiple global offices [5]

Core Insights - Federated Hermes MDT funds received recognition at the 2025 LSEG Lipper Fund Awards for strong risk-adjusted performance across multiple categories [1][9] - The investment team managing these funds has over 80 years of combined experience and oversees $14.2 billion in assets [2] - The funds employ a disciplined, bottom-up, quantitative investment approach, utilizing sophisticated modeling techniques [2] Fund Performance Highlights - The Federated Hermes MDT Mid Cap Growth Fund outperformed 334 share classes and 97 portfolios over three years, and 305 share classes and 88 portfolios over five years [3][11] - The Federated Hermes MDT All Cap Core Fund outperformed 476 share classes and 179 portfolios over five years [4][11] - The Federated Hermes Conservative Municipal Microshort Fund outperformed 114 share classes and 37 portfolios over three years [5][12] - The Federated Hermes Corporate Bond Strategy Portfolio outperformed 126 share classes and 46 portfolios over ten years [6][12] Company Overview - Federated Hermes, Inc. is a global leader in active investment management with $829.6 billion in assets under management as of December 31, 2024 [7] - The company provides a wide range of investment solutions, including equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies [7] - Federated Hermes has a workforce of over 2,000 employees across various global offices [7]

Assets Under Management - Federated Hermes has $829.6 billion in assets under management (AUM) as of December 31, 2024, representing a 9% increase from $757.6 billion in 2023[20]. - The total managed assets include $630.3 billion in money market funds, $79.4 billion in equity funds, $98.1 billion in fixed-income funds, and $21.7 billion in alternative/private markets and multi-asset funds[16][23][26]. - Average managed assets increased by 12% year-over-year to $788.5 billion in 2024, compared to $706.0 billion in 2023[20]. - Federated Hermes managed $264.3 billion in Separate Account assets, which include assets from government entities, high-net-worth individuals, and pension plans[17]. - Approximately 51% of Federated Hermes' total revenue for 2024 was attributable to money market assets[133]. Revenue and Financial Performance - Revenue for 2024 was $1.632 billion, a 1% increase from $1.610 billion in 2023, with investment advisory fees decreasing by 2% to $1.098 billion[21]. - A significant portion of Federated Hermes' revenue is derived from investment advisory fees, which vary with the type of asset managed, with higher fees generally earned on multi-asset and equity offerings[141]. - Federated Hermes' financial condition can be materially adversely affected by significant declines in assets under management (AUM) due to market changes or regulatory developments[131]. - Poor investment performance can lead to decreased sales and increased redemptions, adversely affecting Federated Hermes' financial condition[153]. - Rising interest rates can adversely affect revenue from money market and fixed-income offerings, impacting overall financial condition[147]. Regulatory Environment - The SEC filed 583 total enforcement actions during its 2024 fiscal year, a 26% decrease compared to the 2023 fiscal year[50]. - The SEC's 2025 examination priorities include investment advisor fiduciary duties, compliance with new regulatory requirements, and cybersecurity[51]. - The SEC's climate change rule has faced legal challenges and may be further contested under the new administration[46]. - The SEC announced a regulatory freeze pending review of existing proposed regulations as of January 20, 2025[47]. - Federated Hermes intends to discuss with the SEC the repeal of the mandatory redemption fee requirement for certain money market funds[43]. Cybersecurity and Operational Risks - The company has established a robust cybersecurity program to manage material risks from cybersecurity threats[203]. - Federated Hermes employs various measures to mitigate cyber risks, including firewalls, system monitoring, and employee cybersecurity training[189]. - The company has experienced daily cyber incidents, but as of December 31, 2024, these incidents have not materially affected its financial condition[187]. - Hybrid work arrangements may increase risks related to cybersecurity and operational processes[199]. - The reliance on third-party service providers for technology and data management increases the risk of cyber incidents and operational disruptions[185]. Employee and Workforce Management - As of December 31, 2024, Federated Hermes had 2,072 employees, with 1,228 in Pittsburgh, 509 in London, and 59 in New York[97]. - Female representation among Federated Hermes' employees is 39%, with 33% on the board of directors and 10% among executive officers[110]. - Recruiting and retaining key personnel remains a challenge due to competitive market conditions and hybrid work environments[194]. - The investment management business is highly competitive, and employee turnover is tracked, with exit interviews conducted to improve retention strategies[98]. - The company has made a long-term commitment to enhancing its workforce diversity and providing an inclusive environment[111]. Strategic Initiatives and Future Outlook - Federated Hermes plans to continue efforts to introduce legislation allowing the use of amortized cost valuation by money market funds[43]. - The company continues to monitor the impact of the interest rate environment and instability in the banking sector on asset values and fund asset flows[92]. - Federated Hermes' business strategy includes seeking acquisitions of investment management companies, but there is no assurance of successful integration or collaboration[195]. - The introduction of new offerings requires significant time and resources, with risks including shifting customer preferences and regulatory compliance[138]. - Federated Hermes acknowledges potential reputational harm from regulatory proceedings, market downturns, and cyber incidents, which could adversely affect its financial condition[196]. Regulatory Compliance and Challenges - The difficulty and cost of complying with regulatory requirements increase with the complexity and number of new regulations[93]. - Federated Hermes has experienced increased operating expenses due to regulatory examinations and compliance costs, impacting its financial condition[169]. - The company is subject to various regulatory claims and litigation, which could impact its financial condition and operational focus[178]. - Changes in tax laws could materially impact Federated Hermes' offerings and financial condition, particularly if favorable treatment for ETFs is repealed[177]. - The Dodd-Frank Act may subject Federated Hermes to additional banking regulations if designated as a systemically important financial institution (SIFI), adversely affecting its business[172].

Company Overview - Federated Hermes, Inc. is a global leader in active investment management with $829.6 billion in assets under management as of December 31, 2024 [3] - 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 worldwide [3] - Federated Hermes serves a diverse client base that includes corporations, government entities, insurance companies, foundations and endowments, banks, and broker/dealers [3] - The company is headquartered in Pittsburgh and employs more than 2,000 people across offices in London, New York, Boston, and other locations globally [3] Upcoming Events - President and CEO J. Christopher Donahue is scheduled to present at the 2025 RBC Capital Markets Global Financial Institutions Conference on March 4, 2025, from approximately 10:40 to 11:10 a.m. ET [1] - Investors and interested parties can access a live webcast of the presentation through the company's website, with registration required at least 15 minutes prior to the event [2]

Core Viewpoint - Federated Hermes has announced significant organizational changes within its fixed-income group, including the appointment of Kathryn Glass as co-head of the Domestic High Yield Group and the upcoming retirement of Jeff Kozemchak, which will lead to several portfolio manager changes [1][4]. Group 1: Leadership Changes - Kathryn Glass, with 27 years of investment experience, has been appointed as co-head of the Domestic High Yield Group, working alongside Mark Durbiano, who has been with the firm for 42 years [2][1]. - Glass has been a key member of the high-yield fixed-income team for 26 years and will take on more administrative and investment oversight responsibilities [2][1]. Group 2: Team Experience and Management - The high-yield fixed-income team at Federated Hermes consists of 16 members, averaging 20 years of industry experience and managing approximately $13 billion in US high-yield fixed income strategies [3]. - The firm manages a total of $98 billion in fixed-income assets as of December 31, 2024 [3]. Group 3: Retirement and Succession - Jeff Kozemchak, a senior portfolio manager for municipal liquidity and short-intermediate strategies, will retire after 38 years with Federated Hermes [4]. - In anticipation of Kozemchak's retirement, several portfolio manager changes have been announced, including the addition of Ann Ferentino and Michael Sirianni Jr. to various funds [7][5]. Group 4: Municipal Fixed-Income Management - Federated Hermes has a strong municipal portfolio management team with 28 investment professionals managing approximately $23 billion in municipal strategies as of December 31, 2024 [5]. - The municipal fixed-income team averages 23 years of industry experience, contributing to the firm's reputation for strong, risk-adjusted results in municipal strategies [4][5].

Core Viewpoint - Federated Hermes, Inc. reported strong fourth-quarter 2024 earnings, with adjusted earnings per share of $1.04, exceeding the Zacks Consensus Estimate of 96 cents, marking an 8% increase from the previous year [1][2] Financial Performance - The company's net income on a GAAP basis was $84.7 million, reflecting a 3% increase year over year [2] - Total revenues for the quarter rose 8% year over year to $424.7 million, surpassing the Zacks Consensus Estimate by 1.2% [4] - For the full year 2024, operating revenue was $1.63 billion, meeting the Zacks Consensus Estimate, with a 1% year-over-year increase [4] - Quarterly net investment advisory fees increased by 9% year over year to $288.3 million, exceeding estimates [4] - Total operating expenses rose 9% year over year to $314.3 million, which was below expectations [5] Asset Management - As of December 31, 2024, total managed assets reached a record level of $829.6 billion, up 9.5% year over year, exceeding estimates [7] - Money-market assets increased by 12.6% year over year to $630.3 billion, while fixed-income assets rose by 3.3% to $98 billion [7] - Equity assets were reported at $79.4 billion, a 1.1% increase from the prior year, while alternative/private market assets fell by 8.2% to $18.9 billion [8] - Average managed assets totaled $805.4 billion, reflecting a 10.5% year-over-year increase [8] Capital Distribution - The company declared a quarterly cash dividend of 31 cents per share, payable on February 14, 2025 [10] - In the reported quarter, Federated Hermes repurchased 552,533 shares of its class B common stock for $22.1 million [10] Market Position - Federated Hermes demonstrates substantial growth potential, supported by a diverse asset and product mix and a solid liquidity position [11]

Core Insights - Federated Hermes reported revenue of $424.68 million for the quarter ended December 2024, reflecting an 8.5% increase year-over-year and surpassing the Zacks Consensus Estimate of $419.71 million by 1.19% [1] - The company's EPS for the quarter was $1.04, up from $0.96 in the same quarter last year, resulting in an EPS surprise of 8.33% compared to the consensus estimate of $0.96 [1] Financial Performance Metrics - Managed Assets in Alternative/Private Markets were reported at $18.86 billion, below the average estimate of $21.19 billion [4] - Managed Assets in Multi-Asset were reported at $2.88 billion, slightly below the average estimate of $2.96 billion [4] - Money Market Managed Assets were reported at $630.35 billion, exceeding the average estimate of $618.29 billion [4] - Long-term Fund Assets in Alternative/Private Markets were reported at $11.50 billion, below the average estimate of $12.89 billion [4] - Long-term Fund Assets in Multi-Asset were reported at $2.76 billion, below the average estimate of $2.83 billion [4] - Long-term Fixed-Income Managed Assets were reported at $98.06 billion, below the average estimate of $100.46 billion [4] - Separate Accounts in Alternative/Private Markets were reported at $7.36 billion, below the average estimate of $8.30 billion [4] - Separate Accounts in Multi-Asset were reported at $119 million, below the average estimate of $139.35 million [4] - Money Market Separate Accounts were reported at $168.63 billion, exceeding the average estimate of $164.62 billion [4] Revenue Breakdown - Administrative service fees, net-affiliates were reported at $99.71 million, above the average estimate of $98.52 million, representing a year-over-year change of 9.7% [4] - Other service fees, net were reported at $36.64 million, below the average estimate of $38.69 million, with a year-over-year change of 2.1% [4] - Investment advisory fees, net were reported at $288.33 million, exceeding the average estimate of $279.62 million, reflecting an 8.9% increase year-over-year [4] Stock Performance - Shares of Federated Hermes have returned -4% over the past month, while the Zacks S&P 500 composite has increased by 1.2% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]