Federated Hermes Posts Record Assets Under Management, Outperforms Peers in Equity and Fixed Income
Federated Hermes, a leading global investment manager, has reported record-breaking assets under management (AUM) of $912 billion as of the second quarter of 2026. The company's equity assets closed the quarter at a new high of $110 billion, with growth driven by solid market value gains and strong sales performance.
According to CEO Chris Donahue, Federated Hermes' equity AUM increased by $8.8 billion or 9% from the first quarter, reflecting robust demand for the company's investment strategies. Notably, the company's MDT fundamental quant strategies led equity sales, with gross sales of $6 billion and net sales of over $3.5 billion in the second quarter.
The company's fund performance rankings at the end of the second quarter also showed impressive results, with six out of nine MDT fund strategies in the top performance quartile of their Morningstar categories for the trailing three years. Federated Hermes' equity funds and SMAs had net sales of $61 million in Q3 through July 24th.
In addition to its strong equity performance, Federated Hermes also reported growth in its fixed income AUM, which ended Q2 at just over $100 billion, up $689 million. The company's fixed income funds and SMAs had net sales of $362 million in Q3 through July 24th.
The acquisition of an 80% interest in FCP Fund Manager, L.P. early in the quarter added $3.2 billion of U.S. multifamily real estate managed assets to Federated Hermes' alternative private markets category, which increased by $2.6 billion in Q2 to reach $21.6 billion.
Chris Donahue noted that the company's long-term investment platform began Q3 with approximately $3.4 billion in net institutional wins yet to fund into both funds and separate accounts. This promising start sets the stage for continued growth and success for Federated Hermes in the second half of 2026.
Federated Hermes' strong performance in both equity and fixed income, as well as its growing alternative private markets business, demonstrate the company's ability to adapt to changing market conditions and deliver value to investors. As the company continues to grow and evolve, it remains a leader in the global investment management industry.
