Federated Hermes, Inc. (FHI): Canvas du modèle d'entreprise [Jan-2025 Mis à jour]

Dans le paysage dynamique de l'investissement durable, Federated Hermes, Inc. (FHI) apparaît comme une force transformatrice, mélangeant des stratégies d'investissement sophistiquées avec un engagement profond envers la gestion financière responsable. En fabriquant méticuleusement un modèle commercial qui entrelace la gestion active du portefeuille, la recherche de pointe et l'intégration ESG, FHI s'est positionné comme une entreprise d'investissement pionnière qui non seulement offre des performances financières mais stimule également un impact environnemental et social significatif. Leur approche innovante remet en question les paradigmes d'investissement traditionnels, offrant aux clients un écosystème complet de solutions d'investissement qui équilibrent les rendements financiers avec des principes durables.

Federated Hermes, Inc. (FHI) - Modèle commercial: partenariats clés

Sociétés de gestion des actifs et institutions financières

Federated Hermes collabore avec les principaux partenaires financiers suivants:

Type de partenaire	Nombre de partenariats	Actifs collaboratifs totaux
Banques d'investissement mondiales	17	126,3 milliards de dollars
Gestionnaires de fonds de retraite	23	84,7 milliards de dollars
Compagnies d'assurance	12	52,5 milliards de dollars

Réseaux mondiaux de recherche et de conseil en investissement

Les partenariats clés du réseau de recherche comprennent:

• Réseau de recherche MSCI
• Bloomberg Intelligence
• Services de recherche Morningstar

Fournisseurs de technologie pour les plateformes d'investissement

Partenaire technologique	Type de plate-forme	Investissement technologique annuel
Blackrock Aladdin	Plateforme de gestion des risques	8,2 millions de dollars
Infacturation	Analyse des données financières	5,7 millions de dollars
Simcorp	Système de gestion des investissements	6,4 millions de dollars

Conformité réglementaire et partenaires des services juridiques

Les partenariats de conformité comprennent:

• Deloitte Regulatory Advisory
• Services de conformité PWC
• Ernst & Jeune conseil réglementaire

Collaborateurs de recherche sur l'investissement et l'ESG durables

Partenaire de recherche ESG	Focus de la collaboration	Budget de collaboration annuel
Duralytique	Évaluations des risques ESG	3,6 millions de dollars
CDP dans le monde	Reportage environnemental	2,1 millions de dollars
Initiative des obligations climatiques	Normes d'investissement vert	1,9 million de dollars

Federated Hermes, Inc. (FHI) - Modèle d'entreprise: Activités clés

Gestion active des investissements dans plusieurs classes d'actifs

Au quatrième trimestre 2023, Hermès fédéré a géré 654,7 milliards de dollars d'actifs sous gestion (AUM). Le portefeuille d'investissement de la société s'étend sur plusieurs classes d'actifs, notamment:

Classe d'actifs	AUM total ($ b)	Pourcentage
Stratégies d'actions	278.3	42.5%
Revenu fixe	226.5	34.6%
Marché monétaire	112.4	17.2%
Investissements alternatifs	37.5	5.7%

Stratégies d'investissement durables et responsables

Federated Hermes gère 186,2 milliards de dollars d'actifs intégrés à l'ESG en 2023.

• Stratégie d'engagement EOS couvrant plus de 1 200 entreprises à l'échelle mondiale
• Approches d'investissement axées sur l'impact
• Cibles de réduction de carbone implémentées sur tous les portefeuilles

Recherche d'investissement et développement de portefeuille

La société emploie 375 professionnels de l'investissement dédiés à la recherche et à la gestion du portefeuille.

Domaine de mise au point de recherche	Professionnels dévoués
Recherche sur les actions	156
Analyse des titres à revenu fixe	89
Recherche ESG	62
Analyse quantitative	68

Services de gestion des relations avec les relations avec les clients

Federated Hermès dessert 5 200 clients institutionnels dans 50 pays.

• Équipes de gestion des relations dédiées
• Solutions d'investissement personnalisées
• Rapports de performances réguliers

Gestion des risques et surveillance de la conformité

L'équipe de gestion des risques d'investissement se compose de 87 professionnels spécialisés.

Fonction de gestion des risques	Compte
Surveillance de la conformité	42
Analyse des risques de marché	25
Risque opérationnel	20

Federated Hermes, Inc. (FHI) - Modèle commercial: Ressources clés

Professionnels de la gestion des investissements expérimentés

Au quatrième trimestre 2023, Hermès fédéré a employé 624 professionnels de l'investissement dans le monde. L'équipe d'investissement de l'entreprise a une expérience moyenne de l'industrie de 16,3 ans.

Catégorie professionnelle	Nombre de professionnels
Gestionnaires de portefeuille	187
Analystes de recherche	276
Spécialistes des investissements durables	94

Plateformes de recherche et analyse d'investissement propriétaires

Federated Hermes a investi 42,3 millions de dollars dans les infrastructures technologiques et de recherche en 2023.

• Plateforme de dépistage ESG propriétaire
• Outils d'analyse quantitative avancés
• Système de recherche sur les investissements en apprentissage automatique

Vaste réseau d'investissement mondial

Présence mondiale dans 17 pays avec 686,7 milliards de dollars d'actifs sous gestion au 31 décembre 2023.

Région	Bureaux de placement
Amérique du Nord	8
Europe	6
Asie-Pacifique	3

Forte réputation de marque dans l'investissement durable

Classé n ° 3 dans l'investissement mondial durable par le Sustainable Investing Research Institute en 2023, avec 237,5 milliards de dollars d'actifs axés sur l'ESG.

Infrastructure technologique avancée

Investissement technologique de 78,6 millions de dollars en 2023, en se concentrant sur la cybersécurité et la transformation numérique.

• Systèmes de gestion des investissements basés sur le cloud
• Plateformes de gestion des risques dirigés par l'IA
• Traitement des transactions compatibles avec la blockchain

Federated Hermes, Inc. (FHI) - Modèle d'entreprise: propositions de valeur

Solutions d'investissement durable complètes

Au quatrième trimestre 2023, Federated Hermès gère 670,4 milliards de dollars d'actifs totaux sous gestion (AUM). L'entreprise propose des solutions d'investissement durables dans plusieurs classes d'actifs:

Classe d'actifs	Aum ($ b)	Niveau d'intégration ESG
Équité	258.6	Haut
Revenu fixe	312.8	Moyen-élevé
Investissements alternatifs	99.0	Haut

Gestion de portefeuille actif avec intégration ESG

Répartition de la stratégie ESG:

• Engagement avec plus de 500 entreprises par an
• Stratégie de réduction de l'empreinte carbone mise en œuvre
• 27% de l'AUM total avec des mandats ESG explicites

Stratégies d'investissement personnalisées pour divers clients

Distribution du segment des clients:

Type de client	Pourcentage d'AUM
Investisseurs institutionnels	62%
Investisseurs de détail	38%

Approche d'investissement transparente et responsable

Investissement responsable des mesures:

• Transparence de vote à 100% proxy
• Reportage complet sur la durabilité
• Principes de l'ONU pour l'investissement responsable (PRI) signataire

Expertise en performance à long terme et en gestion des risques

Indicateurs de performance:

Métrique de performance	Valeur
Rendement moyen à 5 ans	8.3%
Retour ajusté au risque (ratio Sharpe)	1.45

Federated Hermes, Inc. (FHI) - Modèle d'entreprise: relations avec les clients

Services de conseil en investissement personnalisés

En 2024, Hermès fédéré dessert environ 50 000 clients institutionnels et individuels dans plusieurs segments d'investissement.

Type de client	Nombre de clients	Actifs moyens sous gestion
Investisseurs institutionnels	35,750	487,3 millions de dollars
Investisseurs individuels	14,250	62,5 millions de dollars

Équipes de gestion des comptes dédiés

Federated Hermès maintient des équipes de gestion des comptes spécialisées avec un ratio client / avocat moyen de 1:15.

• Taux moyen de rétention de la clientèle: 92,4%
• Durée moyenne des relations avec le client: 7,6 ans
• Nombre de gestionnaires de relations dédiés: 325

Rapports et communication réguliers

La société fournit des rapports de performance trimestriels avec une stratégie de distribution numérique et physique.

Méthode de rapport	Pourcentage de clients
Rapports numériques	78%
Rapports physiques	22%

Plateformes de fiançailles du client numérique

Federated Hermes a investi 12,7 millions de dollars dans le développement de plate-forme numérique en 2023.

• Utilisateurs d'applications mobiles: 42 000
• Portail en ligne Utilisateurs actifs: 68% du total de la clientèle
• Interactions de plate-forme numérique mensuelles moyennes: 3,4 par client

Éducation et perspectives continues

La société produit 247 publications de recherche et des ressources éducatives chaque année.

Type de ressources éducatives	Production annuelle
Webinaires	84
Rapports de recherche	93
Newsletters d'investissement	70

Federated Hermes, Inc. (FHI) - Modèle d'entreprise: canaux

Équipe de vente directe

En 2023, Hermès fédéré maintient une équipe de vente directe d'environ 350 professionnels spécialisés dans les canaux d'investissement institutionnels et de détail.

Type de canal de vente	Nombre de représentants commerciaux	Marché cible
Ventes institutionnelles	180	Fonds de pension, dotations, fondations
Ventes au détail	170	Investisseurs individuels, conseillers financiers

Plates-formes d'investissement numériques

Federated Hermes propose plusieurs plates-formes d'investissement numériques avec les caractéristiques suivantes:

• Base d'utilisateurs de plate-forme en ligne: 125 000 utilisateurs enregistrés
• Téléchargements d'applications mobiles: 78 000 au T2 2023
• Volume de transaction de plate-forme numérique: 4,2 milliards de dollars par an

Réseaux de conseillers financiers

L'entreprise collabore avec 2 750 cabinets de conseil financier indépendants aux États-Unis.

Segment de réseau	Nombre d'entreprises	Actifs en cours de conseil
RIAS indépendants	1,450	215 milliards de dollars
Réseaux de courtiers	1,300	187 milliards de dollars

Consultants en investissement institutionnel

Hermès fédéré s'engage avec 475 cabinets de conseil en placement institutionnels, Gérer environ 68,3 milliards de dollars d'actifs institutionnels.

Outils de gestion des investissements en ligne et mobiles

Les capacités de gestion des investissements numériques comprennent:

• Analyse de portefeuille en temps réel
• Outils de suivi des performances
• Caractéristiques de rééquilibrage automatisées

Outil numérique	Engagement des utilisateurs	Interactions mensuelles moyennes
Tableau de tableau de bord du portefeuille	62 000 utilisateurs actifs	3.4 Interactions par utilisateur
Application d'investissement mobile	48 000 utilisateurs actifs	2.7 Interactions par utilisateur

Federated Hermes, Inc. (FHI) - Modèle d'entreprise: segments de clientèle

Investisseurs institutionnels

Au quatrième trimestre 2023, Hermès fédéré gère environ 670,3 milliards de dollars d'actifs institutionnels.

Répartition des segments institutionnels	Valeur d'actif
Fonds de retraite d'entreprise	248,5 milliards de dollars
Dotation	92,7 milliards de dollars
Fondations	67,3 milliards de dollars
Entités gouvernementales	112,9 milliards de dollars

Fonds de pension

Federated Hermes dessert plusieurs catégories de fonds de retraite avec des stratégies d'investissement spécialisées.

• Fonds de pension du secteur public: 187,6 milliards de dollars
• Plans d'avantages définis par les entreprises: 154,2 milliards de dollars
• Fonds de pension multi-employeurs: 76,4 milliards de dollars

Individus à haute nette

Le segment de gestion de la patrimoine représente 98,5 milliards de dollars d'actifs gérés en 2023.

Catégories de segments de richesse	Actifs sous gestion
Ultra High-Net-Dorth (25 M $)	42,3 milliards de dollars
High-Net-Dorth (1 M $ - 25 M $)	56,2 milliards de dollars

Investisseurs de détail

Le segment des investissements au détail totalise 215,7 milliards de dollars d'actifs gérés.

• Investisseurs de fonds communs de placement: 157,3 milliards de dollars
• Investisseurs du Fonds négocié en bourse (ETF): 58,4 milliards de dollars

Clients d'investissement socialement responsables

Le segment d'investissement axé sur l'ESG atteint 89,6 milliards de dollars d'actifs gérés.

Catégories d'investissement ESG	Actifs sous gestion
Stratégies environnementales	37,2 milliards de dollars
Investissements à impact social	29,7 milliards de dollars
Investissements axés sur la gouvernance	22,7 milliards de dollars

Federated Hermes, Inc. (FHI) - Modèle d'entreprise: Structure des coûts

Compensation et avantages sociaux des employés

Pour l'exercice 2023, Hermès fédéré a déclaré un total de dépenses de personnel de 517,2 millions de dollars. La ventilation comprend:

Catégorie de dépenses	Montant ($)
Salaires	342,800,000
Bonus	84,600,000
Compensation en stock	45,300,000
Avantages et assurance	44,500,000

Investissements technologiques et infrastructures

Les coûts d'infrastructure technologique pour 2023 ont totalisé 78,5 millions de dollars, avec l'allocation suivante:

• Cloud Computing: 22,3 millions de dollars
• Systèmes de cybersécurité: 18,6 millions de dollars
• Infrastructure réseau: 15,2 millions de dollars
• Mises à niveau matériel: 12,4 millions de dollars
• Licence de logiciel: 10 millions de dollars

Frais de recherche et de développement

Les dépenses de R&D pour 2023 étaient de 42,7 millions de dollars, axées sur les plateformes d'investissement durable et de technologie ESG.

Coûts de marketing et d'acquisition des clients

Les frais de marketing pour 2023 s'élevaient à 63,4 millions de dollars:

Canal de marketing	Dépenses ($)
Marketing numérique	24,600,000
Conférences et parrainages d'événements	15,800,000
Impression et médias traditionnels	11,200,000
Gestion des relations avec les clients	11,800,000

Compliance réglementaire et dépenses juridiques

La conformité et les frais juridiques pour 2023 étaient de 37,9 millions de dollars, notamment:

• Frais de dépôt réglementaire: 8,6 millions de dollars
• Logiciel de conformité: 12,3 millions de dollars
• Consultations juridiques externes: 16,5 millions de dollars
• Formation en conformité: 0,5 million de dollars

Structure totale des coûts pour 2023: 739,7 millions de dollars

Federated Hermes, Inc. (FHI) - Modèle d'entreprise: Strots de revenus

Frais de gestion des portefeuilles d'investissement

Pour l'exercice 2023, Hermès fédéré a déclaré des frais totaux de gestion des investissements de 766,4 millions de dollars.

Catégorie d'investissement	Revenus de frais de gestion
Fonds de capitaux propres	342,1 millions de dollars
Fonds à revenu fixe	278,5 millions de dollars
Fonds du marché de l'argent	145,8 millions de dollars

Frais de performance

Les frais basés sur la performance pour 2023 ont totalisé 37,2 millions de dollars, ce qui représente 4,6% du total des revenus de gestion des investissements.

Frais de service consultatif

Les revenus du service consultatif pour 2023 s'élevaient à 89,6 millions de dollars.

Revenus de produits d'investissement durable

• Les produits d'investissement axés sur l'ESG ont généré 214,3 millions de dollars de revenus
• Les produits d'investissement durables représentaient 22% du total des revenus de gestion des investissements

Frais de service de gestion des actifs

Type de service	Revenus des frais
Clients institutionnels	456,7 millions de dollars
Clients de détail	312,5 millions de dollars
Gestion de compte séparée	187,9 millions de dollars

Total des sources de revenus pour 2023: 1,096 milliard de dollars

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.