Federated Hermes, Inc. (FHI): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a global investment manager navigates today's complex financial landscape? With a heritage dating back to 1955, Federated Hermes managed a staggering $829.6 billion in customer assets as of December 2024, offering a wide array of investment strategies from equities to alternative markets.

How did they grow to this size, and what exactly do they do? Read on to discover the history, ownership structure, and operational framework that drives this financial powerhouse, plus how they generate revenue and stay relevant in an ever-evolving market.

Federated Hermes, Inc. (FHI) History

Federated Hermes, Inc.'s Founding Timeline

Year established

The company was initially established in 1955.

Original location

The company’s original location was in Pittsburgh, Pennsylvania.

Founding team members

The founding team members included:

• John F. Donahue
• Thomas J. Donnelly
• Richard B. Fisher
• And others

Initial capital/funding

The initial capital was $100,000, which was used to start the investment advisory firm.

Federated Hermes, Inc.'s Evolution Milestones

Federated Hermes, Inc.'s Transformative Moments

Federated Hermes has undergone several transformative moments that have shaped its trajectory:

• Strategic Acquisitions: The acquisition of Hermes Investment Management in 2018 was a pivotal moment, enhancing the company’s ESG capabilities and international footprint.
• Focus on Responsible Investing: The company's commitment to responsible investing and ESG factors has become a core part of its identity, influencing investment strategies and product development.
• Rebranding: The rebranding to Federated Hermes in 2020 symbolized the full integration of Hermes and a unified vision for the future.
• Product Diversification: Over the years, Federated Hermes has continuously diversified its product offerings to meet the evolving needs of its clients, including mutual funds, separate accounts, and alternative investments.

To gain more insight into the values that drive this firm, explore: Mission Statement, Vision, & Core Values of Federated Hermes, Inc. (FHI).

As of the fiscal year 2024, Federated Hermes continues to evolve, adapting to market dynamics and client needs while staying true to its core principles.

Federated Hermes, Inc. (FHI) Ownership Structure

Federated Hermes, Inc. operates under a corporate structure where ownership is distributed among various shareholders, including institutional investors, mutual fund holders, and individual investors. This structure is typical of publicly traded asset management firms.

Federated Hermes, Inc.'s Current Status

Federated Hermes, Inc. is a publicly traded company, meaning its shares are available for purchase on the open market. It is listed on the New York Stock Exchange (NYSE) under the ticker symbol FHI. Being a public entity, the company is subject to regulatory oversight and is required to disclose financial information regularly.

Federated Hermes, Inc.'s Ownership Breakdown

The ownership of Federated Hermes is distributed among various entities, including institutional and retail investors. Here is a general overview, based on the latest available data for the fiscal year 2024:

Federated Hermes, Inc.'s Leadership

The leadership team at Federated Hermes, Inc. is responsible for setting the strategic direction of the company and overseeing its day-to-day operations. Key members of the leadership team as of April 2025 include:

• J. Christopher Donahue: President and Chief Executive Officer
• Thomas R. Donahue: Chairman

Additional key executives and board members contribute to the governance and strategic oversight of Federated Hermes. To gain more insights into the company's financial standing, explore Breaking Down Federated Hermes, Inc. (FHI) Financial Health: Key Insights for Investors.

Federated Hermes, Inc. (FHI) Mission and Values

Federated Hermes strives to deliver superior investment solutions and provide exceptional client service, guided by principles of responsible stewardship and a commitment to excellence.

Federated Hermes' Core Purpose

Official mission statement

Federated Hermes' mission statement is: 'To help people invest and retire well.' This encapsulates the firm's dedication to providing investment solutions and services that enable individuals and institutions to achieve their financial goals.

Vision statement

While a specific, distinct vision statement may not be explicitly publicized, Federated Hermes' vision can be inferred from its actions and long-term goals. The company aims to be a leader in the investment management industry, recognized for:

• Investment Excellence: Delivering consistent, long-term investment performance across various asset classes.
• Client Focus: Building strong, lasting relationships with clients by understanding their needs and providing tailored solutions.
• Responsible Stewardship: Integrating environmental, social, and governance (ESG) factors into investment processes and promoting sustainable business practices.
• Innovation: Continuously seeking new and better ways to serve clients and improve investment outcomes.

Company slogan/tagline

Federated Hermes uses the tagline 'Expertise. Elevated.' This slogan reflects the company's commitment to providing clients with a high level of investment expertise and service.

For more in-depth information, you can explore: Mission Statement, Vision, & Core Values of Federated Hermes, Inc. (FHI).

Federated Hermes, Inc. (FHI) How It Works

Federated Hermes operates as a global investment manager, providing a wide array of investment strategies and services to institutions, financial intermediaries, and individual investors.

Federated Hermes, Inc.'s Product/Service Portfolio

Federated Hermes, Inc.'s Operational Framework

Federated Hermes' operational framework is built around delivering consistent investment performance and client service. Key aspects include:

• Investment Management: Employs a team of experienced investment professionals who conduct in-depth research and analysis to make informed investment decisions.
• Risk Management: Integrates a robust risk management framework to monitor and manage investment risks across all strategies.
• Distribution: Distributes its products and services through a network of financial intermediaries, direct sales, and strategic partnerships.
• Client Service: Provides dedicated client service teams to support and address the needs of its diverse client base.
• Technology: Invests in technology to enhance investment processes, risk management, and client reporting.

Federated Hermes, Inc.'s Strategic Advantages

Federated Hermes possesses several strategic advantages that contribute to its market success:

• Diversified Product Line: Offers a broad range of investment strategies across asset classes, catering to various client needs and market conditions.
• Strong Distribution Network: Maintains a well-established distribution network that provides access to a wide range of clients.
• Experienced Investment Professionals: Employs a team of seasoned investment professionals with deep expertise in their respective areas.
• Commitment to Sustainable Investing: Has a long-standing commitment to sustainable investing, which is increasingly important to investors.
• Robust Risk Management: Employs a comprehensive risk management framework that helps protect client assets.

To gain more insights into the company's financial stability, consider reading: Breaking Down Federated Hermes, Inc. (FHI) Financial Health: Key Insights for Investors

Federated Hermes, Inc. (FHI) How It Makes Money

Federated Hermes primarily generates revenue by providing investment management services to a diverse range of clients.

Federated Hermes, Inc.'s Revenue Breakdown

The company's revenue streams include managing assets for institutional and individual clients across various investment strategies.

Federated Hermes, Inc.'s Business Economics

Federated Hermes' business economics are influenced by several key factors:

• Assets Under Management (AUM): The total value of assets managed directly impacts revenue. Higher AUM generally translates to higher management fees.
• Investment Performance: Strong investment performance can attract new clients and increase AUM, while also enabling the company to charge performance-based fees.
• Market Conditions: Fluctuations in the financial markets affect AUM and investor sentiment, influencing both inflows and outflows of capital.
• Pricing Strategy: Management fees are typically a percentage of AUM, varying based on the type of assets managed and the specific investment strategy.

Federated Hermes, Inc.'s Financial Performance

Key aspects of Federated Hermes' financial performance include:

• Revenue: For the fiscal year 2024, Federated Hermes reported total revenue of approximately $1.48 billion.
• Operating Income: The company's operating income for 2024 was around $413 million.
• Net Income: Federated Hermes' net income attributable to controlling interest was about $307.7 million in 2024.
• Assets Under Management (AUM): As of December 31, 2024, Federated Hermes' AUM stood at $668.7 billion.
• Profit Margin: The firm maintains a healthy profit margin, reflecting efficient cost management and strong revenue generation capabilities.

For more insights into Federated Hermes, Inc., check out: Exploring Federated Hermes, Inc. (FHI) Investor Profile: Who’s Buying and Why?

Federated Hermes, Inc. (FHI) Market Position & Future Outlook

Federated Hermes stands as a prominent player in the investment management sector, navigating a landscape characterized by evolving investor preferences and technological advancements. The company's future hinges on its ability to capitalize on emerging market opportunities while mitigating potential risks associated with economic volatility and regulatory changes. To learn more, check out: Exploring Federated Hermes, Inc. (FHI) Investor Profile: Who’s Buying and Why?

Competitive Landscape

Opportunities & Challenges

Industry Position

Federated Hermes maintains a solid position within the investment management industry, characterized by:

• A diverse range of investment products, including equity, fixed income, and alternative strategies.
• A strong distribution network, reaching both institutional and retail investors.
• A commitment to responsible investing, with a growing focus on ESG factors.

The company's success depends on its ability to adapt to changing market conditions, innovate its product offerings, and maintain strong relationships with its clients.