Federated Hermes is building on its strengths as it enters its next chapter. It earns an Average Parent rating.
Founded in 1955 as Federated Investors, the firm is in the midst of its second significant generational transition. In May 2026, Paul Uhlman succeeded John Fisher, longtime executive and son of co-founder Richard Fisher, as president and CEO of the advisory companies, assuming responsibility for business management of those entities, while Fisher remains as chairman. Leadership transitions are also underway within the investment groups, as longtime CIOs Bob Ostrowski (fixed income) and Steve Auth (equities and multi-asset) retire in 2026. Their successors, RJ Gallo and Steve Chiavarone, respectively, were announced in 2025 and have been portfolio managers at Federated Hermes for roughly 20 years each, smoothing the transition. Through it all, Chris Donahue continues as CEO of the overall firm since taking the helm from his father and company co-founder John Donahue nearly 30 years ago. He remains firmly in place and has built infrastructure to support the firm’s long-term stability.
The firm’s next chapter is taking shape through international expansion, continued investment in sustainability, and growth in private markets. Since acquiring London-based Hermes Investment Management in 2021, the firm has been integrating investment and distribution teams across the US, UK, and Europe, in addition to expanding its Asian footprint with an office in Hong Kong. Sustainability is a key differentiator outside the US, strengthened by legacy Hermes’ expertise and a newly patented framework on the financial materiality of sustainability themes. In 2026, it furthered its private markets strategy with the acquisition of an 80% stake in Maryland-based FCP, which manages nearly USD 4 billion in private real estate assets.
Federated Hermes is best known for the money market business that accounts for three-fourths of its USD 900 billion in assets under management. It also maintains solid capabilities across high-yield fixed income, dividend equities, and quantitative investing. While its growth-equity franchise has lagged over the past five years, recent performance shows signs of improvement.
Although these initiatives are still developing, the firm is taking measured steps to position itself for the future.
Note: This share class' Parent Pillar rating is analyst-driven, as its Branding Name, Federated Hermes (Branding Name ID: BN00000P7N), is covered by Morningstar Manager Research.
United States