Federated Hermes, Inc. (FHI): Business Model Canvas

In der dynamischen Landschaft des nachhaltigen Investierens erweist sich Federated Hermes, Inc. (FHI) als transformative Kraft, die anspruchsvolle Anlagestrategien mit einem tiefgreifenden Engagement für verantwortungsvolles Finanzmanagement verbindet. Durch die sorgfältige Ausarbeitung eines Geschäftsmodells, das aktives Portfoliomanagement, modernste Forschung und ESG-Integration miteinander verbindet, hat sich FHI als bahnbrechendes Investmentunternehmen positioniert, das nicht nur finanzielle Leistung liefert, sondern auch bedeutende ökologische und soziale Auswirkungen erzielt. Ihr innovativer Ansatz stellt traditionelle Anlageparadigmen in Frage und bietet Kunden ein umfassendes Ökosystem von Anlagelösungen, die finanzielle Erträge mit nachhaltigen Grundsätzen in Einklang bringen.

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Wichtige Partnerschaften

Vermögensverwaltungsfirmen und Finanzinstitute

Federated Hermes arbeitet mit den folgenden wichtigen Finanzpartnern zusammen:

Partnertyp	Anzahl der Partnerschaften	Gesamte kollaborative Vermögenswerte
Globale Investmentbanken	17	126,3 Milliarden US-Dollar
Pensionsfondsmanager	23	84,7 Milliarden US-Dollar
Versicherungsunternehmen	12	52,5 Milliarden US-Dollar

Globale Investment-Research- und Beratungsnetzwerke

Zu den wichtigsten Forschungsnetzwerkpartnerschaften gehören:

• MSCI-Forschungsnetzwerk
• Bloomberg Intelligence
• Morningstar-Forschungsdienste

Technologieanbieter für Investitionsplattformen

Technologiepartner	Plattformtyp	Jährliche Technologieinvestition
Blackrock Aladdin	Risikomanagementplattform	8,2 Millionen US-Dollar
FactSet	Finanzdatenanalyse	5,7 Millionen US-Dollar
SimCorp	Anlageverwaltungssystem	6,4 Millionen US-Dollar

Partner für die Einhaltung gesetzlicher Vorschriften und Rechtsdienstleistungen

Zu den Compliance-Partnerschaften gehören:

• Deloitte Regulierungsberatung
• PwC Compliance Services
• Ernst & Junge Regulierungsberatung

Mitarbeiter im Bereich nachhaltiges Investieren und ESG-Forschung

ESG-Forschungspartner	Fokus auf Zusammenarbeit	Jährliches Kooperationsbudget
Nachhaltigkeit	ESG-Risikobewertungen	3,6 Millionen US-Dollar
CDP weltweit	Umweltberichterstattung	2,1 Millionen US-Dollar
Klimaanleihen-Initiative	Grüne Investmentstandards	1,9 Millionen US-Dollar

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Hauptaktivitäten

Aktives Investmentmanagement über mehrere Anlageklassen hinweg

Im vierten Quartal 2023 verwaltete Federated Hermes ein verwaltetes Vermögen (AUM) in Höhe von 654,7 Milliarden US-Dollar. Das Anlageportfolio des Unternehmens umfasst mehrere Anlageklassen, darunter:

Anlageklasse	Gesamtes verwaltetes Vermögen ($B)	Prozentsatz
Aktienstrategien	278.3	42.5%
Festverzinsliche Wertpapiere	226.5	34.6%
Geldmarkt	112.4	17.2%
Alternative Investitionen	37.5	5.7%

Nachhaltige und verantwortungsvolle Anlagestrategien

Federated Hermes verwaltet ab 2023 ESG-integrierte Vermögenswerte in Höhe von 186,2 Milliarden US-Dollar.

• Die EOS-Engagement-Strategie deckt über 1.200 Unternehmen weltweit ab
• Wirkungsorientierte Investmentansätze
• Portfolioübergreifende CO2-Reduktionsziele umgesetzt

Investmentforschung und Portfolioentwicklung

Das Unternehmen beschäftigt 375 Investmentexperten, die sich auf Research und Portfoliomanagement konzentrieren.

Forschungsschwerpunktbereich	Engagierte Profis
Aktienanalyse	156
Analyse festverzinslicher Wertpapiere	89
ESG-Forschung	62
Quantitative Analyse	68

Kundenbeziehungsmanagement und Beratungsdienste

Federated Hermes betreut 5.200 institutionelle Kunden in 50 Ländern.

• Dedizierte Relationship-Management-Teams
• Maßgeschneiderte Anlagelösungen
• Regelmäßige Leistungsberichterstattung

Risikomanagement und Compliance-Überwachung

Das Anlagerisikomanagementteam besteht aus 87 spezialisierten Fachleuten.

Risikomanagementfunktion	Personalanzahl
Compliance-Überwachung	42
Marktrisikoanalyse	25
Operationelles Risiko	20

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Schlüsselressourcen

Erfahrene Investment-Management-Experten

Im vierten Quartal 2023 beschäftigte Federated Hermes weltweit 624 Investmentexperten. Das Investmentteam des Unternehmens verfügt über eine durchschnittliche Branchenerfahrung von 16,3 Jahren.

Professionelle Kategorie	Anzahl der Fachkräfte
Portfoliomanager	187
Forschungsanalysten	276
Spezialisten für nachhaltige Investitionen	94

Proprietäre Investment-Research- und Analyseplattformen

Federated Hermes investierte im Jahr 2023 42,3 Millionen US-Dollar in Technologie- und Forschungsinfrastruktur.

• Proprietäre ESG-Screening-Plattform
• Erweiterte quantitative Analysetools
• Durch maschinelles Lernen gestütztes Investment-Research-System

Umfangreiches globales Investmentnetzwerk

Weltweite Präsenz in 17 Ländern mit einem verwalteten Vermögen von 686,7 Milliarden US-Dollar (Stand: 31. Dezember 2023).

Region	Investmentbüros
Nordamerika	8
Europa	6
Asien-Pazifik	3

Starker Markenruf im Bereich nachhaltiges Investieren

Platz 3 im weltweiten nachhaltigen Investieren vom Sustainable Investing Research Institute im Jahr 2023, mit 237,5 Milliarden US-Dollar an ESG-fokussierten Vermögenswerten.

Fortschrittliche technologische Infrastruktur

Technologieinvestitionen in Höhe von 78,6 Millionen US-Dollar im Jahr 2023 mit Schwerpunkt auf Cybersicherheit und digitaler Transformation.

• Cloudbasierte Anlageverwaltungssysteme
• KI-gesteuerte Risikomanagementplattformen
• Blockchain-fähige Transaktionsverarbeitung

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Wertversprechen

Umfassende nachhaltige Anlagelösungen

Im vierten Quartal 2023 verwaltet Federated Hermes ein verwaltetes Gesamtvermögen (AUM) von 670,4 Milliarden US-Dollar. Das Unternehmen bietet nachhaltige Anlagelösungen für mehrere Anlageklassen:

Anlageklasse	AUM ($B)	ESG-Integrationsebene
Eigenkapital	258.6	Hoch
Festverzinsliche Wertpapiere	312.8	Mittelhoch
Alternative Investitionen	99.0	Hoch

Aktives Portfoliomanagement mit ESG-Integration

Aufschlüsselung der ESG-Strategie:

• Jährliche Zusammenarbeit mit mehr als 500 Unternehmen
• Strategie zur Reduzierung des CO2-Fußabdrucks umgesetzt
• 27 % des gesamten AUM mit expliziten ESG-Mandaten

Maßgeschneiderte Anlagestrategien für verschiedene Kunden

Verteilung der Kundensegmente:

Clienttyp	Prozentsatz des AUM
Institutionelle Anleger	62%
Privatanleger	38%

Transparenter und verantwortungsvoller Anlageansatz

Kennzahlen für verantwortungsvolles Investieren:

• 100 % Transparenz bei der Stimmrechtsvertretung
• Umfassende Nachhaltigkeitsberichterstattung
• Unterzeichner der UN-Grundsätze für verantwortungsvolles Investieren (PRI).

Langfristige Expertise im Bereich Performance und Risikomanagement

Leistungsindikatoren:

Leistungsmetrik	Wert
5-Jahres-Durchschnittsrendite	8.3%
Risikoadjustierte Rendite (Sharpe Ratio)	1.45

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Kundenbeziehungen

Personalisierte Anlageberatungsdienste

Im Jahr 2024 betreut Federated Hermes rund 50.000 institutionelle und private Kunden in mehreren Anlagesegmenten.

Clienttyp	Anzahl der Kunden	Durchschnittliches verwaltetes Vermögen
Institutionelle Anleger	35,750	487,3 Millionen US-Dollar
Einzelinvestoren	14,250	62,5 Millionen US-Dollar

Dedizierte Account-Management-Teams

Federated Hermes unterhält spezialisierte Account-Management-Teams mit einem durchschnittlichen Kunden-Berater-Verhältnis von 1:15.

• Durchschnittliche Kundenbindungsrate: 92,4 %
• Durchschnittliche Kundenbeziehungsdauer: 7,6 Jahre
• Anzahl engagierter Kundenbetreuer: 325

Regelmäßige Leistungsberichterstattung und Kommunikation

Das Unternehmen erstellt vierteljährliche Leistungsberichte mit einer digitalen und physischen Vertriebsstrategie.

Berichtsmethode	Prozentsatz der Kunden
Digitale Berichte	78%
Physische Berichte	22%

Digitale Plattformen zur Kundenbindung

Federated Hermes investierte im Jahr 2023 12,7 Millionen US-Dollar in die Entwicklung digitaler Plattformen.

• Nutzer mobiler Apps: 42.000
• Aktive Nutzer des Online-Portals: 68 % des gesamten Kundenstamms
• Durchschnittliche monatliche Interaktionen auf digitalen Plattformen: 3,4 pro Kunde

Kontinuierliche Investmentausbildung und Einblicke

Das Unternehmen produziert jährlich 247 Forschungspublikationen und Bildungsressourcen.

Bildungsressourcentyp	Jährliche Produktion
Webinare	84
Forschungsberichte	93
Investment-Newsletter	70

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Kanäle

Direktvertriebsteam

Ab 2023 unterhält Federated Hermes ein Direktvertriebsteam von rund 350 Fachleuten, die auf institutionelle und private Investmentkanäle spezialisiert sind.

Vertriebskanaltyp	Anzahl der Vertriebsmitarbeiter	Zielmarkt
Institutioneller Vertrieb	180	Pensionskassen, Stiftungen, Stiftungen
Einzelhandelsverkauf	170	Privatanleger, Finanzberater

Digitale Investitionsplattformen

Federated Hermes bietet mehrere digitale Anlageplattformen mit den folgenden Merkmalen:

• Nutzerbasis der Online-Plattform: 125.000 registrierte Nutzer
• Downloads mobiler Apps: 78.000 im vierten Quartal 2023
• Transaktionsvolumen der digitalen Plattform: 4,2 Milliarden US-Dollar pro Jahr

Finanzberaternetzwerke

Das Unternehmen arbeitet mit zusammen 2.750 unabhängige Finanzberatungsunternehmen in den Vereinigten Staaten.

Netzwerksegment	Anzahl der Firmen	Vermögenswerte unter Beratung
Unabhängige RIAs	1,450	215 Milliarden Dollar
Broker-Dealer-Netzwerke	1,300	187 Milliarden Dollar

Institutionelle Anlageberater

Federated Hermes engagiert sich mit 475 institutionelle Anlageberatungsunternehmen, verwaltet etwa 68,3 Milliarden US-Dollar an institutionellen Vermögenswerten.

Online- und mobile Investmentmanagement-Tools

Zu den Funktionen des digitalen Investmentmanagements gehören:

• Echtzeit-Portfolioanalyse
• Tools zur Leistungsverfolgung
• Automatisierte Rebalancing-Funktionen

Digitales Werkzeug	Benutzerinteraktion	Durchschnittliche monatliche Interaktionen
Portfolio-Dashboard	62.000 aktive Benutzer	3,4 Interaktionen pro Benutzer
Mobile Investment-App	48.000 aktive Benutzer	2,7 Interaktionen pro Benutzer

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Kundensegmente

Institutionelle Anleger

Im vierten Quartal 2023 verwaltet Federated Hermes etwa 670,3 Milliarden US-Dollar an institutionellen Vermögenswerten.

Aufschlüsselung der institutionellen Segmente	Vermögenswert
Betriebliche Pensionskassen	248,5 Milliarden US-Dollar
Stiftungen	92,7 Milliarden US-Dollar
Stiftungen	67,3 Milliarden US-Dollar
Regierungsstellen	112,9 Milliarden US-Dollar

Pensionskassen

Federated Hermes bedient mehrere Pensionsfondskategorien mit spezialisierten Anlagestrategien.

• Pensionsfonds des öffentlichen Sektors: 187,6 Milliarden US-Dollar
• Unternehmensorientierte Leistungspläne: 154,2 Milliarden US-Dollar
• Pensionsfonds mehrerer Arbeitgeber: 76,4 Milliarden US-Dollar

Vermögende Privatpersonen

Das Vermögensverwaltungssegment repräsentiert ab 2023 ein verwaltetes Vermögen von 98,5 Milliarden US-Dollar.

Kategorien des Vermögenssegments	Verwaltetes Vermögen
Sehr vermögend (über 25 Mio. USD)	42,3 Milliarden US-Dollar
Vermögende Unternehmen (1 bis 25 Millionen US-Dollar)	56,2 Milliarden US-Dollar

Privatanleger

Das Segment der Einzelhandelsinvestitionen beläuft sich auf verwaltete Vermögenswerte in Höhe von 215,7 Milliarden US-Dollar.

• Anleger von Investmentfonds: 157,3 Milliarden US-Dollar
• Anleger börsengehandelter Fonds (ETF): 58,4 Milliarden US-Dollar

Kunden mit sozial verantwortlichem Investment

Das ESG-fokussierte Investmentsegment erreicht ein verwaltetes Vermögen von 89,6 Milliarden US-Dollar.

ESG-Investitionskategorien	Verwaltetes Vermögen
Umweltstrategien	37,2 Milliarden US-Dollar
Sozialwirksame Investitionen	29,7 Milliarden US-Dollar
Governance-orientierte Investitionen	22,7 Milliarden US-Dollar

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Kostenstruktur

Vergütung und Zusatzleistungen für Mitarbeiter

Für das Geschäftsjahr 2023 meldete Federated Hermes Personalaufwendungen in Höhe von insgesamt 517,2 Millionen US-Dollar. Die Aufschlüsselung umfasst:

Ausgabenkategorie	Betrag ($)
Gehälter	342,800,000
Boni	84,600,000
Aktienbasierte Vergütung	45,300,000
Leistungen und Versicherung	44,500,000

Technologie- und Infrastrukturinvestitionen

Die Kosten für die Technologieinfrastruktur beliefen sich im Jahr 2023 auf insgesamt 78,5 Millionen US-Dollar, mit folgender Aufteilung:

• Cloud Computing: 22,3 Millionen US-Dollar
• Cybersicherheitssysteme: 18,6 Millionen US-Dollar
• Netzwerkinfrastruktur: 15,2 Millionen US-Dollar
• Hardware-Upgrades: 12,4 Millionen US-Dollar
• Softwarelizenzierung: 10 Millionen US-Dollar

Forschungs- und Entwicklungskosten

Die F&E-Ausgaben für 2023 beliefen sich auf 42,7 Millionen US-Dollar und konzentrierten sich auf nachhaltige Investitionen und ESG-Technologieplattformen.

Kosten für Marketing und Kundenakquise

Die Marketingausgaben für 2023 beliefen sich auf 63,4 Millionen US-Dollar:

Marketingkanal	Ausgaben ($)
Digitales Marketing	24,600,000
Sponsoring von Konferenzen und Veranstaltungen	15,800,000
Print und traditionelle Medien	11,200,000
Kundenbeziehungsmanagement	11,800,000

Einhaltung gesetzlicher Vorschriften und Rechtskosten

Die Compliance- und Rechtskosten beliefen sich im Jahr 2023 auf 37,9 Millionen US-Dollar, darunter:

• Zulassungsgebühren: 8,6 Millionen US-Dollar
• Compliance-Software: 12,3 Millionen US-Dollar
• Externe Rechtsberatung: 16,5 Millionen US-Dollar
• Compliance-Schulung: 0,5 Millionen US-Dollar

Gesamtkostenstruktur für 2023: 739,7 Millionen US-Dollar

Federated Hermes, Inc. (FHI) – Geschäftsmodell: Einnahmequellen

Verwaltungsgebühren aus Anlageportfolios

Für das Geschäftsjahr 2023 meldete Federated Hermes Gesamtanlageverwaltungsgebühren in Höhe von 766,4 Millionen US-Dollar.

Anlagekategorie	Einnahmen aus Verwaltungsgebühren
Aktienfonds	342,1 Millionen US-Dollar
Rentenfonds	278,5 Millionen US-Dollar
Geldmarktfonds	145,8 Millionen US-Dollar

Leistungsabhängige Gebühren

Die leistungsabhängigen Gebühren beliefen sich im Jahr 2023 auf insgesamt 37,2 Millionen US-Dollar, was 4,6 % der gesamten Erträge aus der Anlageverwaltung entspricht.

Gebühren für Beratungsleistungen

Die Einnahmen aus Beratungsdienstleistungen beliefen sich im Jahr 2023 auf 89,6 Millionen US-Dollar.

Erträge aus nachhaltigen Anlageprodukten

• ESG-fokussierte Anlageprodukte generierten einen Umsatz von 214,3 Millionen US-Dollar
• Nachhaltige Anlageprodukte machten 22 % der gesamten Erträge aus der Vermögensverwaltung aus

Gebühren für Vermögensverwaltungsdienste

Servicetyp	Gebühreneinnahmen
Institutionelle Kunden	456,7 Millionen US-Dollar
Privatkunden	312,5 Millionen US-Dollar
Separate Kontoverwaltung	187,9 Millionen US-Dollar

Gesamteinnahmequellen für 2023: 1,096 Milliarden US-Dollar

Federated Hermes, Inc. (FHI) - Canvas Business Model: Value Propositions

You're looking at what Federated Hermes, Inc. (FHI) promises to deliver to its clients-the core value it offers across its diverse investment spectrum. It's a mix of stability, specialized expertise, and active ownership.

Active, Responsible Investing Across Equity, Fixed Income, and Private Markets

Federated Hermes, Inc. provides active management across the main asset classes, which is key to capturing alpha, especially when markets are volatile. As of September 30, 2025, the firm managed a record total of $871.2 billion in assets under management (AUM). This active approach is reflected in the revenue mix; for the third quarter of 2025, long-term assets-equity, fixed income, and alternatives-accounted for 46% of total revenue. You can see the scale in the specific asset classes:

Asset Class	Assets as of September 30, 2025	Revenue Contribution (Q3 2025)
Equity	$94.7 billion	29%
Fixed Income	$101.8 billion	11%
Alternative/Private Markets	$19.0 billion	6%

The responsible investing piece is delivered through its stewardship services, which are designed to ensure companies are managed for long-term, sustainable value. The EOS at Federated Hermes Limited team actively engages with companies on material ESG risks and opportunities. For instance, the Q3 2025 Public Engagement Report from EOS focused on themes like the implications of the ratified High Seas Treaty and the energy demands of AI datacentres. This active ownership is a core part of the value proposition for clients seeking to be more active owners of their assets.

High-Liquidity, Capital Preservation Strategies via Money Market Funds

When market uncertainty flares up, liquidity and capital preservation become paramount, and this is where Federated Hermes, Inc.'s money market offerings shine. In the declining rate environment of Q3 2025, investors continued to rely on these offerings. The money market segment provides significant stability; as of September 30, 2025, money market fund assets hit a record $492.7 billion, contributing 52% of the firm's revenue that quarter. Total money market assets were even higher at $652.8 billion on that date. Also, for investors wanting a step further out the yield curve than pure money market funds, the firm offers microshort and ultrashort funds. This is a clear value proposition for cash management.

Access to World-Leading Stewardship and Engagement Services

You get more than just asset management; you gain access to EOS at Federated Hermes Limited, a service provider focused on stewardship. This service enables long-term institutional investors to engage with company management and boards on governance, strategy, and ESG issues. The engagement plan is client-led, meaning the priorities reflect the long-term objectives of their investors. While the most recent AUA figure is from the end of 2022, EOS represented assets under advice of over US$1.34tn then, showing the scale of their influence. The firm's commitment is evident in its ongoing engagement themes, such as the Q2 2025 report covering the automotive sector's EV transition and the threat of AMR (Antimicrobial Resistance).

Diverse Suite of MDT Quantitative Investment Solutions

Federated Hermes MDT Advisers offers a distinct value proposition through its quantitative investment solutions, which employ a disciplined, bottom-up approach based on fundamental and technical factors. As of September 30, 2025, MDT managed $26.1 billion across 12 investment strategies. This systematic process aims for objective, less human-biased investment selection. The performance demonstrates the potential of this approach:

• MDT Large Cap Growth Fund IS shares delivered +1.84% more annual return than the Russell 1000 Growth over the last five years.
• MDT All Cap Core Fund IS shares delivered +4.05% more annual return than the Russell 3000 over the last five years.

The MDT team uses proprietary software and intensive risk management to optimize alpha potential. It's definitely a differentiated offering in the active space.

Portfolio Construction Solutions (PCS) for Intermediaries

For financial advisors and other intermediaries, Federated Hermes, Inc. provides Portfolio Construction Solutions (PCS) to help them build client portfolios. The firm has a significant distribution footprint through U.S. financial intermediaries, which represented 67% (or $565 billion) of total AUM as of Q2 2025. This large base shows the importance of the intermediary channel to the firm's business structure. You can use their suite of strategies-from the stable money market funds to the specialized MDT quant products-to construct tailored solutions for your clients, all backed by the firm's $871.2 billion in total managed assets as of late Q3 2025.

Finance: draft 13-week cash view by Friday.

Federated Hermes, Inc. (FHI) - Canvas Business Model: Customer Relationships

Federated Hermes, Inc. serves a broad base of clients, structured to address the distinct needs of large asset owners and the distribution channels that reach other investors.

Dedicated institutional sales and client service teams. The firm supports its client base with a global team, with more than 2,000 employees operating across locations including Pittsburgh, London, New York, and Boston as of Q3 2025. This structure supports the delivery of equity, fixed-income, alternative/private markets, multi-asset, and liquidity management strategies. The firm's expertise is recognized, ranking in the top 7% of money market fund managers and the top 11% of fixed-income fund managers in the industry as of Q3 2025.

Relationship management with over 10,000 intermediaries. Federated Hermes actively manages relationships across a wide network. The firm delivers investment solutions to more than 10,000 institutions and intermediaries worldwide as of late 2025. This network includes specific client types such as:

• Corporations
• Government entities
• Insurance companies
• Foundations and endowments
• Banks and broker/dealers

The firm also ranks as the 10th-largest manager of model-delivered separately managed accounts.

High-touch, consultative service for large institutional clients. The service model is tailored to the complexity of institutional mandates. As of September 30, 2025, total managed assets reached a record $871.2 billion. The firm manages assets for 176 Federated Hermes Funds as of December 31, 2024. The focus on institutional service is evident in the asset allocation within the U.S. institutional market as of December 31, 2024, which totaled $207.3 billion across key strategies:

Asset Class	Managed Assets (USD Billions) as of Dec 31, 2024
Money Market Assets	$164.0
Fixed-Income Assets	$48.7
Equity Assets	$3.1
Alternative/Private Markets Assets	$1.1
Multi-Asset Funds	$0.4

Digital platforms for fund access and reporting. Federated Hermes supports client interaction through digital means, alongside its direct service teams. The firm has published updated Digital Governance Principles in early 2025.

Advisor training and support for product distribution. Distribution to retail and intermediary channels is a key component of the business. The firm's distribution network includes trust banks, wealth managers, and retail broker/dealers. The focus on this segment is highlighted by the release of the Results of the 2025 Federated Hermes RIA and Independent Advisor Study.

Federated Hermes, Inc. (FHI) - Canvas Business Model: Channels

You're looking at how Federated Hermes, Inc. (FHI) gets its investment products into the hands of clients as of late 2025. This is all about the pipes they use to move that $845.7 billion in Assets Under Management (AUM) as of June 30, 2025.

The distribution strategy is clearly weighted toward intermediaries, which makes sense for a firm with deep roots in fund distribution. The core of the business flows through established financial networks, but they are definitely pushing direct institutional and global reach too.

Distribution Channel Segment	Percentage of Total AUM (as of Q2 2025)	Approximate AUM Value (as of Q2 2025)
U.S. financial intermediaries	67%	$565 billion
U.S. Institutional Clients	26%	$218 billion
International Business	7%	$62 billion

The U.S. financial intermediaries segment is the powerhouse, representing 67% of the total AUM. This channel is where you find the bulk of their business with broker/dealers, banks, and registered investment advisors (RIAs). Honestly, this is the bread-and-butter for many established asset managers.

For the direct institutional sales to corporations and governments, that falls squarely into the U.S. Institutional Clients bucket, which accounted for 26% of AUM, or about $218 billion as of Q2 2025. This segment serves entities like corporations, government entities, insurance companies, foundations, and endowments, using a trained sales force of nearly 250 representatives to build and expand those relationships.

The global distribution network via the Hermes platform is key to their international presence. As of June 30, 2025, the international business represented 7% of AUM, totaling $62 billion. This is managed through subsidiaries focused on gathering assets in regions like Europe, the Middle East, Canada, Latin America, and the Asia Pacific region.

When you look at specific product wrappers, Federated Hermes, Inc. uses a variety of structures to reach different investors. You see their offerings distributed through vehicles like:

• Exchange-Traded Funds (ETFs), such as the U.S. Strategic Dividend ETF, which held $691.3 million in assets as of Q2 2025.
• Collective Investment Trusts (CITs), often mirroring their mutual fund strategies for retirement plans.
• Federated Hermes Funds, which included 45 equity funds and 54 fixed-income funds as of December 31, 2024.

The firm makes its investment strategies available to over 10,000 institutions and intermediaries globally. This reach is supported by specialized capabilities, including their stewardship service, EOS at Federated Hermes, which advises on a massive $2.2 trillion in assets, even if that is assets under advice, not AUM.

Finance: draft the Q3 2025 AUM breakdown by channel for the next board meeting by Friday.

Federated Hermes, Inc. (FHI) - Canvas Business Model: Customer Segments

You're looking at who Federated Hermes, Inc. (FHI) serves, and the numbers show a clear focus on institutional money and the intermediaries that reach everyone else. As of mid-2025, the total assets under management (AUM) hit a record of $845.7 billion at the end of the second quarter of 2025. That's the big picture; now let's break down where that money comes from.

The distribution channels clearly show where the bulk of the assets flow through. The largest segment is definitely the distribution network that works with advisors and platforms. Honestly, this structure is typical for a firm with deep roots in money market products, which often flow through these channels.

Here's the quick math on how the AUM was split across the main distribution channels based on the Q2 2025 figures:

Customer Group Category	Approximate AUM Share (Q2 2025)	Specific AUM Value (Q2 2025)
Financial Intermediaries (U.S.)	67%	$565 billion
Institutional Investors (U.S.)	26%	$218 billion
Global Institutional Clients (International)	7%	$62 billion

Institutional investors (corporations, government entities) make up that significant 26% slice of the pie, representing about $218 billion in AUM as of June 30, 2025. This group includes corporations and government entities looking for specialized mandates, often in fixed income or liquidity solutions, which remain a core strength.

The Financial intermediaries (banks, broker/dealers, wealth advisors) segment is your powerhouse, accounting for 67% of total AUM, or $565 billion in Q2 2025. This channel is how Federated Hermes, Inc. reaches a vast number of smaller institutions and, critically, the Individual investors accessing funds through intermediaries. For you, this means the success of their retail-facing products is tied directly to the relationships they maintain with these distribution partners.

When we look at the international side, Global institutional clients represent about 7% of the total AUM, reaching $62 billion by Q2 2025. This segment is where the global mandates, particularly those focused on specialized strategies like ESG and private markets, are often domiciled.

The focus on specialized, long-term assets is clear when you look at the revenue mix for the first half of 2025. While money market assets drove 53% of revenue, long-term assets accounted for 46%. Within that long-term bucket, you see the key areas for sophisticated clients:

• Equity assets: 28% of long-term revenue contribution.
• Fixed-income assets: 12% of long-term revenue contribution.
• Alternative/private markets and multi-asset: 6% of long-term revenue contribution.

For Insurance companies, foundations, and endowments, the appeal lies in the long-term and alternative capabilities. The Private Markets platform, which covers real estate, infrastructure, private equity, and debt, held $19.0 billion in AUM as of September 30, 2025. This is where you see the deep, multi-decade relationships, like the one established with a major UK pension scheme back in 1983, which is defintely a testament to their client-centric approach in this space.

The commitment to responsible investing is a major draw for global institutional clients, which often overlap with the private markets group. Federated Hermes Limited, the international business, managed $53.6 billion as of September 30, 2025. Furthermore, their stewardship service, EOS, is engaged with companies on sustainability concerns for assets totaling $2.1 trillion under advisement, showing the breadth of their influence beyond just their own AUM.

Finance: draft 13-week cash view by Friday.

Federated Hermes, Inc. (FHI) - Canvas Business Model: Cost Structure

You're looking at the hard numbers that drive the operational engine of Federated Hermes, Inc. as of late 2025. The cost structure is heavily weighted toward personnel and getting the product-the investment management-to the client.

Compensation and benefits for over 2,000 employees represent a significant fixed and variable cost base. For the first six months ended June 30, 2025, Compensation and related expense totaled $288,143 thousand. This figure is subject to fluctuation based on performance, as seen in Q3 2025, where Compensation and related expense increased by $8.5 million primarily due to higher incentive compensation. For the nine months ended September 30, 2025, this expense line saw an increase of $29.4 million year-over-year, driven by higher incentive compensation. The firm employs over 2,000 people, so personnel costs are definitely the core expense here.

Distribution expenses scale directly with Assets Under Management (AUM) and fund activity, especially in money market products. For the first six months of 2025, Distribution expenses were $198,484 thousand. The impact of higher AUM was clear in Q3 2025, where distribution expenses increased by $17.7 million compared to Q3 2024, and by $14.2 million compared to Q2 2025, directly resulting from higher average managed money market fund assets. Year-to-date (YTD) 2025, this expense was up $27.8 million versus the prior year period.

Technology and data costs are embedded within several operating lines, but 'Systems and communications' gives us a concrete look at the investment in infrastructure. For the first half of 2025, Systems and communications costs were $47,707 thousand. This supports the investment research and trading platforms necessary for the firm's active strategies, including the MDT offerings.

General and administrative expenses include various overheads. While a single G&A line isn't explicitly broken out for the full period, related costs show movement. For instance, in Q3 2025, Other expense increased by $13.7 million, largely due to foreign currency fluctuations. Furthermore, the firm incurred about $2 million in transaction costs related to the FCP acquisition within the professional service fees line in Q3 2025. The quarterly dividend declared in Q3 2025 was $0.34 per share.

Intangible asset-related expenses reflect the amortization or impairment charges from past deals, like the 2018 acquisition of Federated Hermes Limited. The cost structure benefited significantly from a prior event; Q3 2025 operating expenses decreased due to lower intangible asset related expense resulting from the $66.3 million impairment recorded in Q2 2024. For Q1 2025, the Intangible asset related expense was $3,196 thousand, a slight decrease from $3,235 thousand in Q1 2024.

Here is a summary of key expense components for recent periods (in thousands, unless otherwise noted):

Expense Category	Period/Date	Amount (in thousands)	Context/Driver
Compensation and related expense (6 Months Ended 6/30/2025)	H1 2025	$288,143	Personnel costs, including incentive compensation
Distribution expense (6 Months Ended 6/30/2025)	H1 2025	$198,484	Related to higher average managed money market fund assets
Systems and communications (6 Months Ended 6/30/2025)	H1 2025	$47,707	Technology and data infrastructure
Intangible asset related expense (Q1 2025)	Q1 2025	$3,196	Amortization from past acquisitions
Distribution expense increase (Q3 2025 vs Q2 2025)	Q3 2025	$14.2 million	Higher fund assets
Other expense increase (Q3 2025 vs Q2 2025)	Q3 2025	$13.7 million	Fluctuations in foreign currency exchange rates

The total operating expenses for Q3 2025 increased by 15% or $43.3 million compared to Q3 2024. Conversely, for the nine months ended September 30, 2025, total operating expenses actually decreased by $16.8 million or 2% compared to the same period in 2024, largely due to the lower intangible asset expense following the Q2 2024 impairment.

You should keep an eye on the incentive compensation component of compensation expense, as it clearly moves with performance, and the distribution expense, which is a direct function of the AUM growth you're seeing, especially in money market funds. Finance: draft 13-week cash view by Friday.

Federated Hermes, Inc. (FHI) - Canvas Business Model: Revenue Streams

The revenue streams for Federated Hermes, Inc. (FHI) are heavily concentrated in asset management fees derived from the assets they manage for clients. As of late 2025, the total Trailing Twelve Month (TTM) revenue stood at $1.74 billion.

For the first nine months of 2025 (YTD 2025), the breakdown of revenue sources clearly shows the dominance of two main fee categories:

Revenue Source Category	Percentage of YTD 2025 Revenue
Management fees from money market assets	53%
Management fees from long-term assets	45%
Sources other than managed assets	2%

The 45% derived from long-term assets is further segmented by the underlying asset class generating those fees. This shows where the firm is earning its management fees from its longer-duration strategies:

• Fees from equity assets: 28% of YTD 2025 revenue.
• Fees from fixed-income assets: 11% of YTD 2025 revenue.
• Fees from alternative/private markets and multi-asset strategies: 6% of YTD 2025 revenue.

To give you a snapshot of the most recent quarter, the Q3 2025 revenue split showed a slight shift, with money market assets accounting for 52% of revenue and long-term assets at 46% for that quarter. Still, the overall dependence on money market fee income remains substantial.

Beyond the recurring management fees, another important component is performance fees and carried interest from alternative strategies. For instance, performance fees and stronger investment income were noted as supporting the beat against consensus estimates in Q2 2025. The growth in revenue for the first half of 2025 also included an increase in performance fees.