Large-scale amassment of assets under management reaches an unprecedented $845.7 billion, as reported by Federated Hermes
In Q2 2025, Federated Hermes' asset management business showed impressive growth and performance. The company reported record-high assets under management (AuM) of $845.7 billion as of June 30, 2025, marking an 8% increase compared to $782.7 billion a year ago[1][3].
The strong growth was driven by a 14% year-over-year increase in equity assets to $89 billion, a 4% rise in fixed-income assets to $98.7 billion, and a 3% increase in alternative/private market assets to $20.7 billion[1][2]. Money market assets also saw significant growth, reaching a record $468 billion, up 10% from Q2 2024 and slightly higher than the $464.9 billion recorded at the end of March[1][3].
The company's strong performance was reflected in its financial results. Net income for Q2 2025 was $91 million, a substantial increase from $21 million in the same period last year[1][2][3]. Earnings per share (EPS) were $1.16, a significant rise from $0.20 in Q2 2024[1][3]. Total revenue grew 6% year over year to $424.8 million[1][2][3][4].
Operating expenses declined by 15% to $307.8 million, primarily due to reduced intangible asset-related expenses and lower other expenses related to foreign currency fluctuations[1][2]. Quarterly net investment advisory fees rose 6% to $287.4 million.
In addition to the strong financial results, Federated Hermes also announced a new share repurchase programme. The programme allows the company to buy back up to 5 million additional shares, with no expiration date[5]. During Q2, the firm repurchased 1,547,182 shares of class B common stock for $64.5 million[5].
The board of directors also declared a dividend of $0.34 per share, payable on August 15 to shareholders of record as of August 8[6]. For the year to date, Federated Hermes said revenue was up $49.4 million, or 6%[5]. Nonoperating income also increased by $10.6 million over the same period[5].
In terms of strategic initiatives, the strong growth in diverse asset classes alongside expense management suggests an ongoing focus on active investment management and operational efficiency[4]. However, no explicit information about new programs or changes was found in the provided search results.
In conclusion, Federated Hermes delivered record AUM growth, strong earnings improvement, revenue growth, and expense reductions, underscoring robust Q2 2025 business performance and effective management[1][2][3]. The new share repurchase programme and dividend announcement are further indicators of the company's commitment to shareholder value.
[1] https://www.federatedhermes.com/news-and-insights/press-releases/federated-hermes-reports-record-high-assets-under-management-for-q2-2025 [2] https://www.marketwatch.com/story/federated-hermes-q2-earnings-surge-on-record-assets-under-management-2025-07-28 [3] https://www.nasdaq.com/articles/federated-hermes-reports-q2-2025-earnings-record-high-assets-under-management-2025-07-28 [4] https://www.federatedhermes.com/news-and-insights/research-and-insights/quarterly-results-july-2025 [5] https://www.federatedhermes.com/news-and-insights/press-releases/federated-hermes-announces-new-share-repurchase-program [6] https://www.federatedhermes.com/news-and-insights/press-releases/federated-hermes-declares-august-2025-dividend
- In Q2 2025, Federated Hermes' focus on active investment management and operational efficiency led to an impressive growth in assets under management, contributing to a 14% year-over-year increase in equity assets, a 4% rise in fixed-income assets, a 3% increase in alternative/private market assets, and significant growth in money market assets.
- The robust Q2 2025 business performance of Federated Hermes was further reflected in its financial results, with a substantial net income increase, significant rise in EPS, and 6% year-over-year growth in total revenue, all while operating expenses declined by 15%.
