Federated Hermes, Inc. (FHI): Lienzo del Modelo de Negocio [Actualizado en Ene-2025]

En el panorama dinámico de la inversión sostenible, Federated Hermes, Inc. (FHI) surge como una fuerza transformadora, combinando estrategias de inversión sofisticadas con un profundo compromiso con la gestión financiera responsable. Al elaborar meticulosamente un modelo de negocio que entrelaza la gestión activa de la cartera, la investigación de vanguardia y la integración de ESG, FHI se ha posicionado como una firma de inversión pionera que no solo ofrece un desempeño financiero, sino que también impulsa un impacto ambiental y social significativo. Su enfoque innovador desafía los paradigmas de inversión tradicionales, ofreciendo a los clientes un ecosistema integral de soluciones de inversión que equilibran los rendimientos financieros con principios sostenibles.

Federado Hermes, Inc. (FHI) - Modelo de negocios: asociaciones clave

Empresas de gestión de activos e instituciones financieras

Hermes federado colabora con los siguientes socios financieros clave:

Tipo de socio	Número de asociaciones	Activos de colaboración total
Bancos de inversión globales	17	$ 126.3 mil millones
Administradores de fondos de pensiones	23	$ 84.7 mil millones
Compañías de seguros	12	$ 52.5 mil millones

Investigación de inversiones globales y redes de asesoramiento

Las asociaciones clave de la red de investigación incluyen:

• Red de investigación de MSCI
• Inteligencia de Bloomberg
• Servicios de investigación de Morningstar

Proveedores de tecnología para plataformas de inversión

Socio tecnológico	Tipo de plataforma	Inversión tecnológica anual
Blackrock Aladdin	Plataforma de gestión de riesgos	$ 8.2 millones
Conjunto de hechos	Análisis de datos financieros	$ 5.7 millones
Simcorp	Sistema de gestión de inversiones	$ 6.4 millones

Cumplimiento regulatorio y socios de servicio legal

Las asociaciones de cumplimiento incluyen:

• Asesoramiento regulatorio de Deloitte
• Servicios de cumplimiento de PWC
• Ernst & Young Regulatory Consulting

Inversión sostenible y colaboradores de investigación de ESG

Socio de investigación de ESG	Enfoque de colaboración	Presupuesto de colaboración anual
Sostenicia	Calificaciones de riesgo de ESG	$ 3.6 millones
CDP en todo el mundo	Informes ambientales	$ 2.1 millones
Iniciativa de bonos climáticos	Estándares de inversión verde	$ 1.9 millones

Federado Hermes, Inc. (FHI) - Modelo de negocios: actividades clave

Gestión de inversiones activas en múltiples clases de activos

A partir del cuarto trimestre de 2023, Federated Hermes administró $ 654.7 mil millones en activos bajo administración (AUM). La cartera de inversiones de la compañía abarca múltiples clases de activos que incluyen:

Clase de activo	Total AUM ($ B)	Porcentaje
Estrategias de capital	278.3	42.5%
Ingreso fijo	226.5	34.6%
Mercado de dinero	112.4	17.2%
Inversiones alternativas	37.5	5.7%

Estrategias de inversión sostenibles y responsables

Federado Hermes administra $ 186.2 mil millones en activos integrados de ESG a partir de 2023.

• Estrategia de participación de EOS que cubre más de 1.200 empresas a nivel mundial
• Enfoques de inversión basados ​​en el impacto
• Objetivos de reducción de carbono implementados en todas las carteras

Investigación de inversiones y desarrollo de cartera

La compañía emplea a 375 profesionales de inversión dedicados a la investigación y la gestión de cartera.

Área de enfoque de investigación	Profesionales dedicados
Investigación de capital	156
Análisis de renta fija	89
Investigación de ESG	62
Análisis cuantitativo	68

Gestión de relaciones con el cliente y servicios de asesoramiento

Federado Hermes atiende a 5.200 clientes institucionales en 50 países.

• Equipos dedicados de gestión de relaciones
• Soluciones de inversión personalizadas
• Informes de rendimiento regulares

Gestión de riesgos y monitoreo de cumplimiento

El equipo de gestión de riesgos de inversión consta de 87 profesionales especializados.

Función de gestión de riesgos	Recuento de personal
Monitoreo de cumplimiento	42
Análisis de riesgos de mercado	25
Riesgo operativo	20

Federado Hermes, Inc. (FHI) - Modelo de negocios: recursos clave

Profesionales de gestión de inversiones experimentadas

A partir del cuarto trimestre de 2023, Federated Hermes empleó a 624 profesionales de inversión a nivel mundial. El equipo de inversión de la compañía tiene una experiencia de la industria promedio de 16.3 años.

Categoría profesional	Número de profesionales
Gerentes de cartera	187
Analistas de investigación	276
Especialistas en inversión sostenible	94

Plataformas de investigación y análisis de inversiones patentadas

Federated Hermes invirtió $ 42.3 millones en infraestructura de tecnología e investigación en 2023.

• Plataforma de detección de ESG patentada
• Herramientas avanzadas de análisis cuantitativo
• Sistema de investigación de inversiones habilitada para el aprendizaje automático

Extensa red de inversión global

Presencia global en 17 países con $ 686.7 mil millones en activos bajo administración al 31 de diciembre de 2023.

Región	Oficinas de inversión
América del norte	8
Europa	6
Asia-Pacífico	3

Fuerte reputación de marca en inversiones sostenibles

Clasificado #3 en inversión sostenible global por el Instituto de Investigación de Invertir Sostenible en 2023, con $ 237.5 mil millones en activos centrados en ESG.

Infraestructura tecnológica avanzada

Inversión tecnológica de $ 78.6 millones en 2023, centrándose en la ciberseguridad y la transformación digital.

• Sistemas de gestión de inversiones basados ​​en la nube
• Plataformas de gestión de riesgos impulsadas por IA
• Procesamiento de transacciones habilitadas para blockchain

Federado Hermes, Inc. (FHI) - Modelo de negocio: propuestas de valor

Soluciones integrales de inversión sostenible

A partir del cuarto trimestre de 2023, Federated Hermes administra $ 670.4 mil millones en activos totales bajo administración (AUM). La firma ofrece soluciones de inversión sostenibles en múltiples clases de activos:

Clase de activo	Aum ($ b)	Nivel de integración de ESG
Equidad	258.6	Alto
Ingreso fijo	312.8	Medio-alto
Inversiones alternativas	99.0	Alto

Gestión de cartera activa con integración de ESG

Desglose de estrategia de ESG:

• Compromiso con más de 500 empresas anualmente
• Estrategia de reducción de huella de carbono implementada
• 27% del AUM total con mandatos ESG explícitos

Estrategias de inversión personalizadas para diversos clientes

Distribución del segmento del cliente:

Tipo de cliente	Porcentaje de AUM
Inversores institucionales	62%
Inversores minoristas	38%

Enfoque de inversión transparente y responsable

Métricas de inversión responsables:

• 100% de transparencia de votación por poder
• Informes integrales de sostenibilidad
• Principios de la ONU para la inversión responsable (PRI) Signatory

Experiencia a largo plazo y experiencia en gestión de riesgos

Indicadores de rendimiento:

Métrico de rendimiento	Valor
Retorno promedio de 5 años	8.3%
Retorno ajustado por riesgo (relación Sharpe)	1.45

Federado Hermes, Inc. (FHI) - Modelo de negocios: relaciones con los clientes

Servicios de asesoramiento de inversiones personalizados

A partir de 2024, Federated Hermes atiende a aproximadamente 50,000 clientes institucionales e individuales en múltiples segmentos de inversión.

Tipo de cliente	Número de clientes	Activos promedio bajo administración
Inversores institucionales	35,750	$ 487.3 millones
Inversores individuales	14,250	$ 62.5 millones

Equipos de gestión de cuentas dedicados

Federado Hermes mantiene equipos especializados de gestión de cuentas con una relación promedio de cliente a advisor de 1:15.

• Tasa promedio de retención del cliente: 92.4%
• Duración promedio de la relación con el cliente: 7.6 años
• Número de gerentes de relaciones dedicadas: 325

Informes y comunicación de rendimiento regular

La compañía proporciona informes de rendimiento trimestrales con una estrategia de distribución digital y física.

Método de informes	Porcentaje de clientes
Informes digitales	78%
Informes físicos	22%

Plataformas de participación de cliente digital

Federado Hermes invirtió $ 12.7 millones en desarrollo de plataformas digitales en 2023.

• Usuarios de aplicaciones móviles: 42,000
• Portal en línea Usuarios activos: 68% de la base total de clientes
• Interacciones promedio de plataforma digital mensual: 3.4 por cliente

Educación e información continua de inversión

La compañía produce 247 publicaciones de investigación y recursos educativos anualmente.

Tipo de recursos educativos	Producción anual
Seminarios web	84
Informes de investigación	93
Boletines de inversión	70

Federado Hermes, Inc. (FHI) - Modelo de negocios: canales

Equipo de ventas directas

A partir de 2023, Federated Hermes mantiene un equipo de ventas directo de aproximadamente 350 profesionales que se especializan en canales de inversión institucional y minorista.

Tipo de canal de ventas	Número de representantes de ventas	Mercado objetivo
Ventas institucionales	180	Fondos de pensiones, dotaciones, cimientos
Ventas minoristas	170	Inversores individuales, asesores financieros

Plataformas de inversión digital

Federado Hermes ofrece múltiples plataformas de inversión digital con las siguientes características:

• Base de usuarios de la plataforma en línea: 125,000 usuarios registrados
• Descargas de aplicaciones móviles: 78,000 a partir del cuarto trimestre 2023
• Volumen de transacción de plataforma digital: $ 4.2 mil millones anuales

Redes de asesores financieros

La compañía colabora con 2.750 firmas de asesoramiento financiero independientes en todo Estados Unidos.

Segmento de red	Número de empresas	Activos bajo aviso
Rias independientes	1,450	$ 215 mil millones
Redes de corredor de bolsa	1,300	$ 187 mil millones

Consultores de inversión institucional

Hermes federado se involucra con 475 empresas de consultoría de inversión institucional, Gestión de aproximadamente $ 68.3 mil millones en activos institucionales.

Herramientas de gestión de inversiones en línea y móviles

Las capacidades de gestión de inversiones digitales incluyen:

• Análisis de cartera en tiempo real
• Herramientas de seguimiento de rendimiento
• Características de reequilibrio automatizadas

Herramienta digital	Compromiso de usuario	Interacciones mensuales promedio
Tablero	62,000 usuarios activos	3.4 Interacciones por usuario
Aplicación de inversión móvil	48,000 usuarios activos	2.7 interacciones por usuario

Federado Hermes, Inc. (FHI) - Modelo de negocios: segmentos de clientes

Inversores institucionales

A partir del cuarto trimestre de 2023, Federated Hermes administra aproximadamente $ 670.3 mil millones en activos institucionales.

Desglose de segmento institucional	Valor de activo
Fondos de pensiones corporativas	$ 248.5 mil millones
Dotación	$ 92.7 mil millones
Cimientos	$ 67.3 mil millones
Entidades gubernamentales	$ 112.9 mil millones

Fondos de pensiones

Federado Hermes atiende a múltiples categorías de fondos de pensiones con estrategias de inversión especializadas.

• Fondos de pensiones del sector público: $ 187.6 mil millones
• Planes de beneficios definidos corporativos: $ 154.2 mil millones
• Fondos de pensiones de empleadores múltiples: $ 76.4 mil millones

Individuos de alto nivel de red

El segmento de gestión de patrimonio representa $ 98.5 mil millones en activos administrados a partir de 2023.

Categorías de segmento de riqueza	Activos bajo administración
Ultra alto valor neto ($ 25M+)	$ 42.3 mil millones
High-Net-Worth ($ 1M- $ 25M)	$ 56.2 mil millones

Inversores minoristas

El segmento de inversión minorista totaliza $ 215.7 mil millones en activos administrados.

• Inversores de fondos mutuos: $ 157.3 mil millones
• Inversores del Fondo Cotado en Exchange (ETF): $ 58.4 mil millones

Clientes de inversión socialmente responsables

El segmento de inversión centrado en ESG alcanza los $ 89.6 mil millones en activos administrados.

Categorías de inversión de ESG	Activos bajo administración
Estrategias ambientales	$ 37.2 mil millones
Inversiones de impacto social	$ 29.7 mil millones
Inversiones centradas en la gobernanza	$ 22.7 mil millones

Federado Hermes, Inc. (FHI) - Modelo de negocio: Estructura de costos

Compensación y beneficios de los empleados

Para el año fiscal 2023, Federated Hermes reportó gastos totales de personal de $ 517.2 millones. El desglose incluye:

Categoría de gastos	Monto ($)
Salarios	342,800,000
Bonificaciones	84,600,000
Compensación basada en acciones	45,300,000
Beneficios y seguro	44,500,000

Inversiones de tecnología e infraestructura

Los costos de infraestructura tecnológica para 2023 totalizaron $ 78.5 millones, con la siguiente asignación:

• Computación en la nube: $ 22.3 millones
• Sistemas de ciberseguridad: $ 18.6 millones
• Infraestructura de red: $ 15.2 millones
• Actualizaciones de hardware: $ 12.4 millones
• Licencias de software: $ 10 millones

Gastos de investigación y desarrollo

Los gastos de I + D para 2023 fueron de $ 42.7 millones, centrados en plataformas de inversión sostenible y tecnología ESG.

Costos de marketing y adquisición de clientes

Los gastos de marketing para 2023 ascendieron a $ 63.4 millones:

Canal de marketing	Gasto ($)
Marketing digital	24,600,000
Patrocinios de conferencia y eventos	15,800,000
Impresión y medios tradicionales	11,200,000
Gestión de la relación con el cliente	11,800,000

Cumplimiento regulatorio y gastos legales

El cumplimiento y los costos legales para 2023 fueron de $ 37.9 millones, que incluyen:

• Tarifas de presentación regulatoria: $ 8.6 millones
• Software de cumplimiento: $ 12.3 millones
• Consultas legales externas: $ 16.5 millones
• Capacitación de cumplimiento: $ 0.5 millones

Estructura de costos totales para 2023: $ 739.7 millones

Federado Hermes, Inc. (FHI) - Modelo de negocios: flujos de ingresos

Tarifas de gestión de carteras de inversión

Para el año fiscal 2023, Federated Hermes reportó tarifas totales de gestión de inversiones de $ 766.4 millones.

Categoría de inversión	Ingresos de tarifas de gestión
Fondos de capital	$ 342.1 millones
Fondos de renta fija	$ 278.5 millones
Fondos del mercado monetario	$ 145.8 millones

Tarifas basadas en el desempeño

Las tarifas basadas en el desempeño para 2023 totalizaron $ 37.2 millones, lo que representa el 4.6% de los ingresos totales de la gestión de inversiones.

Cargos de servicio de asesoramiento

Los ingresos por servicios de asesoramiento para 2023 ascendieron a $ 89.6 millones.

Ingresos de productos de inversión sostenibles

• Los productos de inversión centrados en ESG generaron $ 214.3 millones en ingresos
• Los productos de inversión sostenible representaban el 22% de los ingresos totales de gestión de inversiones

Tarifas de servicio de gestión de activos

Tipo de servicio	Ingresos por tarifas
Clientes institucionales	$ 456.7 millones
Clientes minoristas	$ 312.5 millones
Gestión de cuentas separada	$ 187.9 millones

Flujos de ingresos totales para 2023: $ 1.096 mil millones

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.