Federated Hermes, Inc. (FHI): Modelo de Negócios Canvas [Jan-2025 Atualizado]

No cenário dinâmico do investimento sustentável, a Federated Hermes, Inc. (FHI) surge como uma força transformadora, misturando estratégias sofisticadas de investimento com um profundo compromisso com a gestão financeira responsável. Ao elaborar meticulosamente um modelo de negócios que entrelaça o gerenciamento de portfólio ativo, a pesquisa de ponta e a integração da ESG, a FHI se posicionou como uma empresa de investimento pioneira que não apenas oferece desempenho financeiro, mas também gera um impacto social e social significativo. Sua abordagem inovadora desafia os paradigmas de investimento tradicionais, oferecendo aos clientes um ecossistema abrangente de soluções de investimento que equilibram retornos financeiros com princípios sustentáveis.

Federated Hermes, Inc. (FHI) - Modelo de negócios: Parcerias -chave

Empresas de gerenciamento de ativos e instituições financeiras

Federated Hermes colabora com os seguintes parceiros financeiros seguintes:

Tipo de parceiro	Número de parcerias	Total de ativos colaborativos
Bancos de investimento globais	17	US $ 126,3 bilhões
Gerentes de fundos de pensão	23	US $ 84,7 bilhões
Companhias de seguros	12	US $ 52,5 bilhões

Pesquisa global de investimento e redes consultivas

As principais parcerias da rede de pesquisa incluem:

• Rede de Pesquisa MSCI
• Bloomberg Intelligence
• Serviços de Pesquisa Morningstar

Provedores de tecnologia para plataformas de investimento

Parceiro de tecnologia	Tipo de plataforma	Investimento de tecnologia anual
Blackrock Aladdin	Plataforma de gerenciamento de riscos	US $ 8,2 milhões
FACTSET	Análise de dados financeiros	US $ 5,7 milhões
SimCorp	Sistema de Gerenciamento de Investimentos	US $ 6,4 milhões

Parceiros de conformidade regulatória e serviço jurídico

As parcerias de conformidade incluem:

• Deloitte Advisory Regulatório
• Serviços de conformidade da PWC
• Ernst & Jovem consultoria regulatória

Colaboradores de Pesquisa de Investimento Sustentável e Esg

Esg parceiro de pesquisa	Foco de colaboração	Orçamento anual de colaboração
Sustentalytics	Classificações de risco ESG	US $ 3,6 milhões
CDP em todo o mundo	Relatórios ambientais	US $ 2,1 milhões
Iniciativa de títulos climáticos	Padrões de investimento verde	US $ 1,9 milhão

Federated Hermes, Inc. (FHI) - Modelo de negócios: Atividades -chave

Gerenciamento de investimentos ativo em várias classes de ativos

A partir do quarto trimestre de 2023, a Federated Hermes administrou US $ 654,7 bilhões em ativos sob gestão (AUM). O portfólio de investimentos da empresa abrange várias classes de ativos, incluindo:

Classe de ativos	Total AUM ($ B)	Percentagem
Estratégias de patrimônio	278.3	42.5%
Renda fixa	226.5	34.6%
Mercado monetário	112.4	17.2%
Investimentos alternativos	37.5	5.7%

Estratégias de investimento sustentáveis ​​e responsáveis

A Federated Hermes gerencia US $ 186,2 bilhões em ativos integrados à ESG a partir de 2023.

• Estratégia de engajamento de EOS, cobrindo mais de 1.200 empresas em todo o mundo
• Abordagens de investimento orientadas por impacto
• Metas de redução de carbono implementadas em portfólios

Pesquisa de investimento e desenvolvimento de portfólio

A empresa emprega 375 profissionais de investimento dedicados à pesquisa e gerenciamento de portfólio.

Área de foco de pesquisa	Profissionais dedicados
Pesquisa de ações	156
Análise de renda fixa	89
Pesquisa ESG	62
Análise quantitativa	68

Gerenciamento de relacionamento com o cliente e serviços de consultoria

A Federated Hermes atende a 5.200 clientes institucionais em 50 países.

• Equipes de gerenciamento de relacionamento dedicadas
• Soluções de investimento personalizadas
• Relatórios de desempenho regulares

Gerenciamento de riscos e monitoramento de conformidade

A equipe de gerenciamento de riscos de investimento consiste em 87 profissionais especializados.

Função de gerenciamento de riscos	Contagem de funcionários
Monitoramento de conformidade	42
Análise de risco de mercado	25
Risco operacional	20

Federated Hermes, Inc. (FHI) - Modelo de negócios: Recursos -chave

Profissionais experientes de gerenciamento de investimentos

A partir do quarto trimestre de 2023, a Federated Hermes empregou 624 profissionais de investimento em todo o mundo. A equipe de investimentos da empresa tem uma experiência média do setor de 16,3 anos.

Categoria profissional	Número de profissionais
Gerentes de portfólio	187
Analistas de pesquisa	276
Especialistas em investimentos sustentáveis	94

Plataformas proprietárias de pesquisa e análise de investimento

A Federated Hermes investiu US $ 42,3 milhões em infraestrutura de tecnologia e pesquisa em 2023.

• Plataforma de triagem ESG proprietária
• Ferramentas de análise quantitativa avançada
• Sistema de pesquisa de investimento habilitado para aprendizado de máquina

Extensa rede de investimentos globais

Presença global em 17 países, com US $ 686,7 bilhões em ativos sob administração em 31 de dezembro de 2023.

Região	Escritórios de investimento
América do Norte	8
Europa	6
Ásia-Pacífico	3

Forte reputação da marca em investimentos sustentáveis

Classificado como o número 3 no investimento global sustentável pelo Instituto de Pesquisa de Investimentos Sustentáveis ​​em 2023, com US $ 237,5 bilhões em ativos focados em ESG.

Infraestrutura tecnológica avançada

Investimento tecnológico de US $ 78,6 milhões em 2023, com foco na segurança cibernética e na transformação digital.

• Sistemas de gerenciamento de investimentos baseados em nuvem
• Plataformas de gerenciamento de risco orientadas pela IA
• Processamento de transações habilitado para blockchain

Federated Hermes, Inc. (FHI) - Modelo de negócios: proposições de valor

Soluções abrangentes de investimento sustentável

No quarto trimestre 2023, Federated Hermes gerencia US $ 670,4 bilhões em ativos totais sob gestão (AUM). A empresa oferece soluções de investimento sustentável em várias classes de ativos:

Classe de ativos	AUM ($ B)	Nível de integração ESG
Equidade	258.6	Alto
Renda fixa	312.8	Médio-alto
Investimentos alternativos	99.0	Alto

Gerenciamento de portfólio ativo com integração ESG

ESG REMISTRA ESTRATÉGIA:

• Engajamento com mais de 500 empresas anualmente
• Estratégia de redução da pegada de carbono implementada
• 27% do total de AUM com mandatos de ESG explícitos

Estratégias de investimento personalizadas para diversos clientes

Distribuição do segmento de clientes:

Tipo de cliente	Porcentagem de AUM
Investidores institucionais	62%
Investidores de varejo	38%

Abordagem de investimento transparente e responsável

Métricas de investimento responsáveis:

• 100% de transparência de votação por procuração
• Relatórios abrangentes de sustentabilidade
• Princípios da ONU para investimento responsável (PRI)

Desempenho de longo prazo e experiência em gerenciamento de riscos

Indicadores de desempenho:

Métrica de desempenho	Valor
Retorno médio de 5 anos	8.3%
Retorno ajustado ao risco (relação Sharpe)	1.45

Federated Hermes, Inc. (FHI) - Modelo de Negócios: Relacionamentos do Cliente

Serviços de consultoria de investimento personalizados

Em 2024, a Federated Hermes atende a aproximadamente 50.000 clientes institucionais e individuais em vários segmentos de investimento.

Tipo de cliente	Número de clientes	Ativos médios sob gerenciamento
Investidores institucionais	35,750	US $ 487,3 milhões
Investidores individuais	14,250	US $ 62,5 milhões

Equipes de gerenciamento de contas dedicadas

A Federated Hermes mantém as equipes especializadas de gerenciamento de contas com uma taxa média de cliente / consultor de 1:15.

• Taxa média de retenção de clientes: 92,4%
• Duração média do relacionamento do cliente: 7,6 anos
• Número de gerentes de relacionamento dedicados: 325

Relatórios de desempenho regulares e comunicação

A empresa fornece relatórios trimestrais de desempenho com uma estratégia de distribuição digital e física.

Método de relatório	Porcentagem de clientes
Relatórios digitais	78%
Relatórios físicos	22%

Plataformas de engajamento de clientes digitais

A Federated Hermes investiu US $ 12,7 milhões em desenvolvimento de plataformas digitais em 2023.

• Usuários de aplicativos móveis: 42.000
• Usuários ativos do portal online: 68% da base total de clientes
• Interações mensais da plataforma digital mensal: 3,4 por cliente

Educação contínua de investimentos e insights

A empresa produz 247 publicações de pesquisa e recursos educacionais anualmente.

Tipo de recurso educacional	Produção anual
Webinars	84
Relatórios de pesquisa	93
Boletins de investimento	70

Federated Hermes, Inc. (FHI) - Modelo de Negócios: Canais

Equipe de vendas diretas

Em 2023, a Federated Hermes mantém uma equipe de vendas direta de aproximadamente 350 profissionais especializados em canais de investimento institucional e de varejo.

Tipo de canal de vendas	Número de representantes de vendas	Mercado -alvo
Vendas institucionais	180	Fundos de pensão, doações, fundações
Vendas no varejo	170	Investidores individuais, consultores financeiros

Plataformas de investimento digital

Federated Hermes oferece várias plataformas de investimento digital com as seguintes características:

• Base de usuário da plataforma on -line: 125.000 usuários registrados
• Downloads de aplicativos móveis: 78.000 a partir do quarto trimestre 2023
• Volume da transação da plataforma digital: US $ 4,2 bilhões anualmente

Redes de consultores financeiros

A empresa colabora com 2.750 empresas de consultoria financeira independentes nos Estados Unidos.

Segmento de rede	Número de empresas	Ativos sob consultoria
RIAS independente	1,450	US $ 215 bilhões
Redes de corretores	1,300	US $ 187 bilhões

Consultores de investimento institucional

Hermes federado se envolve com 475 empresas de consultoria de investimento institucional, Gerenciando aproximadamente US $ 68,3 bilhões em ativos institucionais.

Ferramentas de gerenciamento de investimentos online e móveis

Os recursos de gerenciamento de investimentos digitais incluem:

• Análise de portfólio em tempo real
• Ferramentas de rastreamento de desempenho
• Recursos de reequilíbrio automatizados

Ferramenta digital	Engajamento do usuário	Interações mensais médias
Painel de portfólio	62.000 usuários ativos	3.4 Interações por usuário
Aplicativo de investimento móvel	48.000 usuários ativos	2.7 Interações por usuário

Federated Hermes, Inc. (FHI) - Modelo de negócios: segmentos de clientes

Investidores institucionais

A partir do quarto trimestre de 2023, Federated Hermes gerencia aproximadamente US $ 670,3 bilhões em ativos institucionais.

A quebra do segmento institucional	Valor do ativo
Fundos de pensão corporativa	US $ 248,5 bilhões
Doações	US $ 92,7 bilhões
Fundações	US $ 67,3 bilhões
Entidades governamentais	US $ 112,9 bilhões

Fundos de pensão

A Federated Hermes atende a várias categorias de fundos de pensão com estratégias de investimento especializadas.

• Fundos de pensão do setor público: US $ 187,6 bilhões
• Planos de benefícios definidos corporativos: US $ 154,2 bilhões
• Fundos de pensão multi-empregadores: US $ 76,4 bilhões

Indivíduos de alta rede

O segmento de gerenciamento de patrimônio representa US $ 98,5 bilhões em ativos gerenciados a partir de 2023.

Categorias de segmento de riqueza	Ativos sob gestão
Ultra de alta rede (US $ 25 milhões)	US $ 42,3 bilhões
Alta rede (US $ 1 milhão a US $ 25 milhões)	US $ 56,2 bilhões

Investidores de varejo

O segmento de investimento no varejo totaliza US $ 215,7 bilhões em ativos gerenciados.

• Investidores de fundos mútuos: US $ 157,3 bilhões
• Investidores de fundos negociados em câmbio (ETF): US $ 58,4 bilhões

Clientes de investimento socialmente responsáveis

O segmento de investimento focado em ESG atinge US $ 89,6 bilhões em ativos gerenciados.

Categorias de investimento ESG	Ativos sob gestão
Estratégias ambientais	US $ 37,2 bilhões
Investimentos de impacto social	US $ 29,7 bilhões
Investimentos focados em governança	US $ 22,7 bilhões

Federated Hermes, Inc. (FHI) - Modelo de negócios: estrutura de custos

Compensação e benefícios dos funcionários

Para o ano fiscal de 2023, a Federated Hermes registrou despesas totais de pessoal de US $ 517,2 milhões. O colapso inclui:

Categoria de despesa	Valor ($)
Salários	342,800,000
Bônus	84,600,000
Remuneração baseada em ações	45,300,000
Benefícios e seguro	44,500,000

Investimentos de tecnologia e infraestrutura

Os custos de infraestrutura de tecnologia para 2023 totalizaram US $ 78,5 milhões, com a seguinte alocação:

• Computação em nuvem: US $ 22,3 milhões
• Sistemas de segurança cibernética: US $ 18,6 milhões
• Infraestrutura de rede: US $ 15,2 milhões
• Atualizações de hardware: US $ 12,4 milhões
• Licenciamento de software: US $ 10 milhões

Despesas de pesquisa e desenvolvimento

As despesas de P&D para 2023 foram de US $ 42,7 milhões, focadas em plataformas de investimento e tecnologia ESG sustentáveis.

Custos de marketing e aquisição de clientes

As despesas de marketing de 2023 totalizaram US $ 63,4 milhões:

Canal de marketing	Despesas ($)
Marketing digital	24,600,000
Patrocínios de conferência e evento	15,800,000
Mídia impressa e tradicional	11,200,000
Gerenciamento de relacionamento com o cliente	11,800,000

Conformidade regulatória e despesas legais

A conformidade e os custos legais de 2023 foram de US $ 37,9 milhões, incluindo:

• Taxas de arquivamento regulatório: US $ 8,6 milhões
• Software de conformidade: US $ 12,3 milhões
• Consultas legais externas: US $ 16,5 milhões
• Treinamento de conformidade: US $ 0,5 milhão

Estrutura de custo total para 2023: US $ 739,7 milhões

Federated Hermes, Inc. (FHI) - Modelo de negócios: fluxos de receita

Taxas de gerenciamento de portfólios de investimento

Para o ano fiscal de 2023, a Federated Hermes registrou taxas totais de gerenciamento de investimentos de US $ 766,4 milhões.

Categoria de investimento	Receita da taxa de gerenciamento
Fundos de ações	US $ 342,1 milhões
Fundos de renda fixa	US $ 278,5 milhões
Fundos do mercado monetário	US $ 145,8 milhões

Taxas baseadas em desempenho

As taxas baseadas em desempenho para 2023 totalizaram US $ 37,2 milhões, representando 4,6% da receita total de gerenciamento de investimentos.

Cobranças de serviço de consultoria

As receitas de serviços de consultoria em 2023 totalizaram US $ 89,6 milhões.

Receita de produtos de investimento sustentável

• Produtos de investimento focados em ESG geraram US $ 214,3 milhões em receitas
• Produtos de investimento sustentável representaram 22% da receita total de gerenciamento de investimentos

Taxas de serviço de gerenciamento de ativos

Tipo de serviço	Receita de taxas
Clientes institucionais	US $ 456,7 milhões
Clientes de varejo	US $ 312,5 milhões
Gerenciamento de contas separado	US $ 187,9 milhões

Fluxos de receita total para 2023: US $ 1,096 bilhão

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.