Federated Hermes, Inc. reports record assets under management with third quarter 2025 earnings

Financial Performance - Federated Hermes reported earnings per diluted share (EPS) of $1.34 for Q3 2025, an increase from $1.06 in Q3 2024, with net income rising to $104.1 million from $87.5 million year-over-year [1][21]. - Revenue for Q3 2025 increased by $61.0 million or 15% compared to Q3 2024, primarily due to higher average money market and equity assets [8][11]. - Operating expenses rose by $43.3 million or 15% in Q3 2025, driven by increased distribution expenses and fluctuations in foreign currency exchange rates [9][11]. Asset Management - Total managed assets reached a record $871.2 billion as of September 30, 2025, up $70.7 billion or 9% from $800.5 billion a year earlier [2][16]. - Money market assets also hit a record of $652.8 billion, increasing by $59.8 billion or 10% from $593.0 billion year-over-year [7][16]. - Equity assets grew to $94.7 billion, up $11.1 billion or 13% from the previous year, while fixed-income assets reached a record $101.8 billion, up $1.6 billion or 2% [4][5][16]. Fund Performance - The company experienced record net sales of equity funds in Q3 2025, with strong interest in its MDT equity and alternative quantitative investment offerings [3][16]. - Top-selling equity funds included the Federated Hermes MDT Mid Cap Growth Fund and the Federated Hermes MDT Large Cap Growth Fund [4]. - Fixed-income funds that performed well included the Federated Hermes Ultrashort Bond Fund and the Federated Hermes Sustainable Global Investment Grade Credit Fund [5]. Dividends and Shareholder Returns - The board of directors declared a dividend of $0.34 per share, payable on November 14, 2025, to shareholders of record as of November 7, 2025 [3][21]. - The company repurchased 20,808 shares of its class B common stock during Q3 2025 due to employee restricted stock forfeitures [3].