Federated Hermes reported assets under management of $912 billion [2] during its second quarter earnings call for 2026.
The record assets under management signal a strong shift toward equity and private-market assets as the firm seeks to diversify its portfolio beyond traditional money markets.
During the call, the global investment manager outlined $3.4 billion [1] of net institutional wins that have not yet been funded. These pending funds represent committed capital from institutional clients that will increase the firm's total assets once the transfers are complete.
The growth in assets was primarily driven by an increase in equity and private-market holdings. Equity assets reached $110 billion [2] by the end of the quarter. While these sectors saw significant growth, the firm said that inflows into money-market funds remained modest [3].
Federated Hermes said the current performance reflects an ability to outperform peers in both equity and fixed-income sectors [2]. The firm continues to focus on institutional growth to sustain its upward trajectory in total assets.
This financial snapshot comes as the firm navigates a changing interest rate environment that influences how institutional investors allocate capital between liquid money markets, and long-term equity investments.
“Federated Hermes reported assets under management of $912 billion.”
The record AUM and significant unfunded institutional wins suggest a strong appetite for Federated Hermes' active management strategies. By pivoting growth toward equity and private markets while money-market inflows stall, the firm is reducing its reliance on short-term liquidity vehicles and positioning itself for long-term capital appreciation in a volatile market.
