FHI Federated Hermes (FHI) Q1 FY26 earnings call
Federated Hermes achieved record AUM in Q1 FY26, primarily fueled by strong equity sales, particularly from its MDT quant strategies, and continued growth in money market assets. The firm is actively pursuing digital initiatives to enhance distribution and efficiency across its product offerings, including tokenized funds. While fixed income saw redemptions and a significant institutional equity mandate is internalizing, management remains focused on strategic acquisitions and capital returns, including a recent dividend increase and share repurchases.
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FHI operating KPIs by quarter
| KPI | This call Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | Change vs prior quarter |
|---|---|---|---|
| Assets under management (AUM) | $907BWe ended Q1 with record assets under management of $907 billion led by gains in equity and money market strategies.Source: earnings call transcript | $912BWe ended the second quarter with record assets under management of $912 billion, led by growth in equity and private market assets.Source: earnings call transcript | +0.6% |
| Assets under management (AUM) Equity | $101BEquity assets closed Q1 at a record high of $101 billion.Source: earnings call transcript | $110BEquity assets closed the second quarter at a record high of $110 billion.Source: earnings call transcript | +8.9% |
| Long-term net inflows Equity | $2.2BDuring Q1, equity assets increased by $2.9 billion or 3% from year-end driven by $2.2 billion in net sales.Source: earnings call transcript | -$1.1BEquity net redemptions in the second quarter were $1.1 billion, which included the expected global equity sub-advisory redemption of $3 billion that we discussed last quarter.Source: earnings call transcript | — |
| Long-term net inflows MDT Equity and Market-Neutral Strategies | $3.5B+Equity sales results continue to be led by our MDT fundamental quant strategies, MDT equity and market-neutral strategies together had a record $5.8 billion of gross sales and over $3.5 billion in net sales in Q1.Source: earnings call transcript | $3.5B+MDT equity and market-neutral strategies had a record $6 billion of gross sales and over $3.5 billion in net sales in the second quarter.Source: earnings call transcript | — |
| Assets under management (AUM) Fixed Income | <$100BAssets ended Q1 at just under $100 billion, down $329 million from year-end.Source: earnings call transcript | $100B+Assets ended Q2 at just over $100 billion, up $689 million.Source: earnings call transcript | — |
| Long-term net inflows MDT Market Neutral Fund and ETF | $341MThe M2 MDT Market Neutral Fund and recently launched ETF combined for $341 million in net sales.Source: earnings call transcript | $150MThe MB2 Market Neutral Fund and its ETF combined for $150 million in net sales.Source: earnings call transcript | -56% |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
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