Federated Hermes: Shifting To Higher Fee Products
Federated Hermes is up 20% year-to-date with a 2.4% yield, supported by strong fund inflows and earnings. The company is strategically shifting toward higher-fee equity and alternative assets, with equity AUM growing 23% year-over-year and record inflows into its MDT quant funds, while M&A and alliances are expanding its non-money-market capabilities.
Why it matters — FHI watchers would care because the firm's deliberate pivot toward higher-fee products and alternatives could reshape its revenue mix and growth trajectory.