Federated Hermes, Inc. has recently released its 10-Q report, providing an in-depth look into the company's financial condition and results of operations. The firm is a publicly owned investment manager that offers its services to a wide range of clients, including high net worth individuals, banking institutions, investment companies, pension and profit sharing plans, charitable organizations, and government entities. With $845.7 billion in managed assets as of June 30, 2025, Federated Hermes primarily generates revenue from advising Federated Hermes Funds and Separate Accounts in domestic and international public and private markets, as well as providing administrative and other fund-related services.
The report outlines that the majority of Federated Hermes' revenue is derived from investment advisory fees, administrative service fees, and certain fees for other services, which are generally calculated as a percentage of the average net assets of managed investment portfolios. The firm's revenue is primarily dependent upon factors that affect the value of managed/serviced assets, including market conditions and the ability to attract and retain assets. Additionally, the report highlights that Federated Hermes' most significant operating expenses are Compensation and Related expense and Distribution expense, which include base salary and wages, incentive compensation, and other employee expenses.
Furthermore, the 10-Q report details a recent business development where Federated Hermes acquired a majority (60%) equity interest in Rivington, a U.K.-based renewable energy project development business. The company also addresses the current regulatory environment in which it operates, emphasizing the extensive regulation it is subject to both within and outside of the U.S., including various laws, rules, and regulations that impose restrictions, limitations, registration, reporting, and disclosure requirements on its business. This includes federal securities laws such as the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940, and the Investment Advisers Act of 1940, among others.
The report also discusses the impact of the new Presidential administration on U.S. regulatory matters, with specific attention to the SEC's enforcement trends and examination priorities, as well as the potential implications of the new administration's emphasis on deregulation. It highlights the SEC's extension of effective and compliance dates for certain regulatory requirements, as well as Federated Hermes' advocacy for the elimination or modification of specific regulatory requirements.
As a result of these announcements, the company's shares have moved -0.69% on the market, and are now trading at a price of $49.23. If you want to know more, read the company's complete 10-Q report here.
