Slides
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1 Federated Hermes, Inc. Analyst Update Data as of September 30, 2026 52344 (10/26)
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2 Forward-looking information This presentation is provided as of the date on the cover and contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. Statements that do not relate strictly to historical or current facts are forward-looking, including those related to product performance, the potential for business growth, stability, and sustainability, and the ability to complete and successfully integrate complementary acquisitions. Forward-looking statements, and Federated Hermes, Inc.’s (“Federated Hermes’”) level of business activity and financial results, are inherently subject to significant business, market, economic, competitive, regulatory and other risks and uncertainties, many of which are difficult to predict and beyond Federated Hermes’ control. Other risks and uncertainties include the ability of Federated Hermes to predict the level of fee waivers and expenses in the future, predict whether performance fees or carried interest will be earned and retained, the ability of Federated Hermes to sustain product demand, the timing and level of product sales and redemptions, market appreciation or depreciation, revenues, and asset levels, flows and mix, which could vary significantly depending on various factors, such as market conditions, investment performance and investor behavior. Other risks and uncertainties also include the risk factors discussed in Federated Hermes’ annual and quarterly reports as filed with the Securities and Exchange Commission. For a discussion of such risk factors, see Item 1A – Risk Factors in Federated Hermes’ Annual Report on Form 10-K and other reports on file with the Securities and Exchange Commission. As a result, no assurance can be given as to future results, levels of activity, performance or achievements, and neither Federated Hermes nor any other person assumes responsibility for the accuracy and completeness of such statements in the future. Federated Hermes does not undertake any obligation to update the statements in this presentation. This presentation also includes a non-GAAP financial measure, Revenue less Distribution Expense. This non-GAAP measure is not an alternative to GAAP measures and should not be considered in isolation or as an alternative for analysis of Federated Hermes’ results as reported under GAAP. For additional disclosures regarding this non-GAAP measure, including definition of the term and reconciliations to the most directly comparable GAAP measure, please refer to slide 28 below. Analyst Update, September 30, 2026
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3 Federated Hermes Investment considerations *Data as of 9/30/2026 Analyst Update, September 30, 2026 Member of S&P 400 MidCap Index Pure play asset management company; financial strength and flexibility Active management across $884.4 billion* including: $234.5 billion in long-term managed assets: equity ($110.5 billion), fixed income ($99.4 billion), alternative/private markets ($21.7 billion) and multi-asset ($2.9 billion); and $649.9 billion in liquidity Mix of asset classes provide organic growth potential across cycles complemented by selective acquisitions Business mix offers potential for growth, stability and sustainability Federated Hermes offers world-class active management and engagement services that target financial outperformance across a wide range of asset classes for investors around the world
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4 Overview of Federated Hermes Global, active, responsible investment management and stewardship Data as of 9/30/2026 1Source: Morningstar 9/30/2026 – based on AUM. Open end funds. 2Assets under administration by EOS at Federated Hermes subsidiary – 9/30/2026. Analyst Update, September 30, 2026 Top-tier liquidity management business with $649.9 billion in assets under management $234.5 billion combined equity, fixed income, alternative/private markets and multi-asset $110.5 billion in equity assets $99.4 billion in fixed income assets $21.7 billion in alternative/private markets $2.9 billion in multi-asset assets Develop high-quality actively and responsibly managed investment strategies and offer them through an extensive global network of financial intermediaries and institutions Assets under management $884.4 billion Total revenue (Q3 ’26) $507.3 million Founded 1955 Global headquarters Pittsburgh, Pa. Employees 2,172 Strategy Top 10 U.S. mutual fund managers1 ~11,000 intermediary firms and institutional clients 247 sales professionals Leading stewardship service provider $2.4 trillion assets under advice2
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5 Q3 2026 Highlights *Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of basic earnings per share under the "two-class method." As such, total net income of $5.1 million available to unvested restricted Federated shareholders for the quarterly period ended September 30, 2026 was excluded from the computation of earnings per share. Numbers may not be exact due to rounding. Data as of 9/30/2026. Managed Assets, Equity Assets, Fixed Income Assets and Liquidity Assets blue box values reflect AUM. Analyst Update, September 30, 2026 Earnings per share* Managed assets at Q3 period end Declared dividend of $0.38 Equity assets up $0.9 billion or 1% from $109.6 billion at 6/30/2026 Liquidity assets down $27.0 billion or 4% from $676.9 billion at 6/30/2026 Fixed-income assets down $1.1 billion or 1% from $100.5 billion at 6/30/2026 $884.4 B $1.50 $0.38 $99.4 B $110.5B $649.9 B
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6 Diversified mix of revenue from managed assets *Revenue less distribution expense is a non-GAAP measure. See slide 28 for reconciliation. *Excludes immaterial revenue from other sources. See slide 28 for reconciliation. **Prior to Q4 2018, Equity included some assets that are now classified as Alternatives/Private Markets or Multi-asset. Analyst Update, September 30, 2026 Total revenue less distribution expense was $196M in Q3 2016 and $385M in Q3 2026 Money Market Average 32% High 44% Low 13% Fixed Income Equity** Alt/Private Market & Multi-asset Average 16% High 22% Low 12% Average 43% High 56% Low 33% Average 9% High 19% Low 6% Percentage of revenue less distribution expense by asset type*
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7 Total may not equal the sum of the parts due to rounding. Diversified multi-channel distribution Total assets under management: $884.4 billion as of September 30, 2026 ($ in billions) Analyst Update, September 30, 2026 U.S. Financial Intermediaries – Domestic Broker Dealers, Bank Trust, Private Banks, Capital Markets, RIAs & Other U.S. Institutional – Domestic Corporations, Government Entities, Pension Plan/Defined Contribution Sponsors, & Insurance Companies International – Non-US entities including Insurance Companies, Pension Funds, Banks, Sovereign Wealth Funds, Corporations, Broker Dealers & Local Governments U.S. Financial Intermediaries 68% U.S. Institutional 26% International 7%
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8 Data as of 9/30/2026. All numbers are in $ Billions ($B), Sum of parts may not equal total due to rounding. *In July of 2024, Federated Hermes launched 4 actively managed equity ETF’s. Their assets are included in “MDT Small Cap Core”, “MDT Large Cap Value”, “MDT Large Cap Growth” and “Quantitative Equity/MDT All Other” *In October of 2025, launched Enhanced Income ETF, included in “Global/International All Other”. *In June of 2026, launched International Leaders ETF, included in “Global/International All Other”. Equity strategies Total equity AUM: $110.5 billion Global/International $21.4 Asia ex-Japan Fund $6.0 Global Equity ESG $1.9 Global Emerging Markets Strategies $1.8 International Leaders $1.4 International Strategic Value Dividend $1.2 SDG Engagement Equity $0.6 International Equity $0.1 All Other $8.4 Value/Income & Clover $0.4 Clover All Cap Value $0.2 All Other $0.2 Growth/Kaufmann $8.9 Kaufmann Fund $4.9 Kaufmann Small Cap $2.7 Kaufmann Large Cap $1.1 Kaufmann Fund II $0.1 All Other $0.1 Quantitative Equity/MDT $40.9 MDT All Cap Core $10.7 MDT Mid Cap Growth $9.7 MDT Large Cap Growth $8.1 MDT Large Cap Value $4.6 MDT Small Cap Core $2.8 MDT Small Cap Growth $1.7 MDT Small Cap Value $0.2 All Other $3.3 Index Funds $0.5 Mid-Cap Index $0.3 Max-Cap Index $0.3 Strategic Value Dividend (Domestic) $38.4 Strategic Value Dividend $37.5 U.S. Strategic Dividend ETF $0.9 Actively Managed ETFs* Launch Date $2.4B U.S. Strategic Dividend ETF 11/22 $890.9M MDT Large Cap Growth ETF 7/24 $658.5M MDT Small Cap Core ETF 7/24 $419.9M MDT Large Cap Core ETF 7/24 $174.0M MDT Large Cap Value ETF 7/24 $168.0M Enhanced Income ETF 10/25 $74.8M International Leaders ETF 6/26 $3.0M Analyst Update, September 30, 2026
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9 Data as of 9/30/2026. All numbers are in $ Billions ($B), Sum of parts may not equal total due to rounding. *In December of 2021, Federated Hermes launched 2 actively managed fixed-income ETF’s. Their assets are included in “Multi-Sector and Corporate All Other” and “High Yield All Other”. *In January of 2024, launched the Total Return Bond ETF, included in “Total Return/Core Plus”. *In June of 2026, launched the Ultrashort Bond ETF, included in “Multi Sector and Corporate”. Fixed-income strategies Total fixed-income $99.4 billion and liquidity $649.9 billion AUM: $749.3 billion Liquidity $649.9 Government $390.5 Prime $239.3 Tax-Free $20.0 Multi-Sector and Corporate $75.3 Multi-Sector Fixed Income Accounts $28.5 Total Return/Core Plus $21.5 Ultrashort Bond $4.6 Inst. Fixed Income $2.9 Capital preservation $1.9 Short-Term Income $1.8 Corporate Bond $0.9 Sterling Cash Plus $0.6 Floating Rate Strategic Income $0.3 All Other $12.2 High Yield $10.3 Inst. High Yield Bond $4.7 SDG Engagement High Yield Credit $0.9 High Income Bond $0.5 Opportunistic High Yield Bond $0.4 Global High Yield Credit $0.3 High Income Bond Fund II $0.1 All Other $3.4 Municipal $7.4 CWH Intermediate $3.4 Muni Ultrashort $1.5 Muni High Yield Advantage $0.4 Short Intrm. Muni Fund $0.4 Muni Bond $0.2 CWH Long Muni SMA $0.2 Premier Muni Income $0.1 All Other $1.2 Government and Mortgage Backed $5.0 Gov. Ultrashort $2.2 Total Return Gov. Bond $0.2 Gov. Income Trust $0.1 Short-Intermediate. Gov. $0.1 Fund for U.S. Gov. Sec. $0.1 All Other $2.3 Global/International FI $1.4 LVM Funds $0.6 All Other $0.8 Actively Managed ETFs* Launch Date $793.8M Total Return Bond ETF 1/24 $681.6 Short Duration High Yield ETF 12/21 $59.9M Ultrashort Bond ETF 6/26 $35.9M Short Duration Corporate ETF 12/21 $16.4M Analyst Update, September 30, 2026
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10 Data as of 9/30/2026. All numbers are in $ Billions ($B), Sum of parts may not equal total due to rounding. *Excludes approx. $2.0B from other Federated Hermes funds investing in Trade Finance; Total Trade Finance managed assets $3.1B. **In September of 2025 Federated Hermes launched one actively managed Alternative ETF “MDT Market Neutral” Alternative/private markets and multi-asset strategies Total alternative/private markets $21.7 billion and multi-asset $2.9 billion AUM: $24.6 billion Private Equity And Infrastructure $7.6 HGPE – Private Equity Advisory $4.9 HGPE – Infrastructure Advisory $2.7 Real Estate $8.0 UK Real Estate $3.2 FCP Realty Funds $2.6 U.K. Property $1.3 International Property $0.4 All Other $0.6 Multi-asset $2.9 Muni and Stock Advantage $1.4 Capital Income $0.7 Global Allocation $0.3 Managed Volatility II $0.2 All Other $0.3 Private Credit $3.3 Private Credit/Direct Lending $1.5 Trade Finance* $1.1 Hermes Absolute Return Credit $0.5 Unconstrained Credit $0.2 Other Alternative $2.9 MDT Market Neutral $2.8 Prudent Bear $0.1 Actively Managed ETFs** Launch Date $144.4M MDT Market Neutral ETF 9/25 $144.4M Analyst Update, September 30, 2026
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11 EOS at Federated Hermes Limited Assets under advisement (AUA) as of September 30, 2026 For illustrative purposes only | Past performance is no guarantee of future results 22 years of stewardship leadership Analyst Update, September 30, 2026
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12 *CAGR – Compound annual growth rate. Alternative/Private Markets products are not illustrated. Monthly average mutual fund & SMA gross sales Equity and multi-asset, fixed income and ultrashort ($ in millions) Analyst Update, September 30, 2026
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13 Equity 2023 2024 2025 2026 YTD Total Gross sales $17,876 $16,370 $31,378 $26,824 $92,448 Net sales ($7,414) ($10,902) $4,373 $2,839 ($11,104) Fixed Income 2023 2024 2025 2026 YTD Total Gross sales $26,809 $25,590 $24,647 $20,699 $97,745 Net sales $2,917 $209 ($3,867) $101 ($640) Equity* and fixed-income sales Fund and separate accounts ($ in millions) Analyst Update, September 30, 2026 Fixed Income Equity *Multi-asset products are included in Equity. Alternative/Private Markets products are not illustrated.
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14 Numbers may not be exact due to rounding. Liquidity management Money market funds & separate accounts Analyst Update, September 30, 2026 Total Period End AUM Average Separate Acct AUM Average MMF AUM International U.S. Institutional U.S. Financial Intermediaries MMF & Separate Accounts Assets ($B) MMF & Separate Accounts Assets by Channel ($B) Broad product line Value-added services Strength in large banks Barriers to entry Hedge in periods of volatility Total Average AUM Q3 ‘06 – Q3 ’26 CAGR: 7.2%
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15 *Beginning in Q1 ‘17 – Includes money market fund subadvised accounts. Industry MMF Source: Investment Company Institute. **FHI MMF Assets, the S&P 500 Index, the Money Stock, and Industry MMF Assets were each indexed to a value of 100 on 12/31/93. Money Stock is M2 plus Institutional Money Funds, which were formerly reported in M3 (M3 was discontinued on 3/23/06). Money Stock M1 is a measure of the money supply which includes currency in circulation plus demand deposits or checking account balances; M2 is M1 plus net time deposits and retail money funds; Source: Federal Reserve. S&P 500® is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Federated Securities Corp. S&P 500® Index is an unmanaged capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries. Money market fund* assets Analyst Update, September 30, 2026 Indexed Growth** vs. Money Stock, S&P 500, and Industry MMF CAGR (12/93 – 09/26) FHI MMF 9% Industry MMF 8% S&P 500 9% Money Stock 6%
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16 Total may not equal the sum of the parts due to rounding. Separate accounts Total assets under management: $272.1 billion as of September 30, 2026 ($ in billions) Analyst Update, September 30, 2026 Asset TypeProduct Type Alternative/Private Market
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17 Acquisitions and alliances Timeline of key historical transactions Analyst Update, September 30, 2026 Distribution strength attractive to sellers Enhance centers of excellence Liquidity management consolidation 2001-2006 2007-2012 2013-2018 2019-2024 2025-2026 Centers of ExcellenceRoll-ups • Acquired cash management business • $19.0B in money market assets at closing AllianceBernstein L.P. • $12.0B institutional money market fund assets transitioned to Federated from Putnam Prime Money Market Fund Putnam Prime Money Market Fund SunTrust Bank • Completed transition of $14.0B in money market assets from SunTrust Banks, Inc. Trustmark Investment Advisors Fifth Third Bank • Reorganized $4.4B in assets from Fifth Third money market funds into Federated money market funds • Reorganized $929M in assets from Trustmark Investment Advisors into Federated equity, fixed income and money market funds • Completed transition of ~$4.0B in assets from Reich & Tang’s domestic and offshore money market funds Reich & Tang Huntington Asset Advisors • Completed transition of $932M in money market assets from Huntington Asset Advisors, Inc. Horizon Advisers • Completed transition of $435M in fixed income & equity assets from Horizon Advisers • Completed the transition of $560M in fixed income & equity assets from Horizon Advisers Horizon Advisers • Quantitative equity assets • $6.7B at closing • $44.0B at 9/30/2026 • Growth equity assets • $3.2 at closing • $8.9B at 9/30/2026 • Money market platform • $4.3B USD at closing • $12.9B USD at 9/30/2026 • Value equity expansion • $2.1B at closing • $518.7M at 9/30/2026 • Alternative/fixed- income strategies • $1.0B assets at closing • $80.0M at 9/30/2026 • ESG/international platform • $46B of assets at closing • $36.3B at 9/30/2026 • Broad asset expansion • $13.9B of total assets • $1.6B of international + equity • Purchased 29.5% remaining stake • Full integration complete • Municipal bond expansion • $3.5B at closing • $3.8B assets 9/30/2026 • Private markets expansion • Full ownership • $7.6B assets already reported 9/30/2026 • U.K. real estate platform • $452M additional AUM at closing Completed the acquisition of 60% equity interest in Rivington Energy Management expanding infrastructure investment capabilities Completed the acquisition of 80% equity interest in FCP Fund Manager, L.P., expanding private markets/alternatives investment capabilities 2001 2006 2005 2006 2008 2008 2012 2010 2012 2012 2018 2015 2017 2015 2020 2021 20202019 2021 2022 2025 2026
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18 Global footprint Assets by region ($ in billions) Data as of 9/30/2026. Dollars showing Assets Under Management (AUM). Numbers may not be exact due to rounding. North America: $828.2 billion Europe: $48.3 billion • U.K. & Ireland: $28.4 billion • CEMEA: $20.0 billion Asia Pacific: $2.7 billion Americas (non-U.S.): $5.2 billion • Canada: $3.5 billion • Central/South America: $1.7 billion Analyst Update, September 30, 2026 Client locations Federated Hermes offices SINGAPORE FRANKFURT TOKYO DUBLIN NEW YORK BOSTON TORONTO CLEVELAND HOUSTON PITTSBURGH LONDON SYDNEY MADRID COPENHAGEN CHICAGO MILAN ZURICH AMSTERDAM
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19 Data as of 9/30/2026. Numbers may not be exact due to rounding. Value delivered to shareholders Historical uses of cash ($ in billions) Analyst Update, September 30, 2026 Uses of cash Uses of cash over time ($m) Total Share Repurchase/Acquisition/Dividend since IPO 1998: $7.3 billion Dividends 44% Share Repurchases 34% Acquisitions 22%
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20 Dividend history and weighted average shares outstanding Since IPO in 1998 Analyst Update, September 30, 2026 CAGR: 10%* Total Regular Dividends: $23.41 Total Special Dividends: $8.53 Data as of 9/30/2026. *CAGR ‘98 – ’25, special dividends not included.
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21 Federated Hermes Investment considerations *Data as of 9/30/2026 Analyst Update, September 30, 2026 Member of S&P 400 MidCap Index Pure play asset management company; financial strength and flexibility Active management across $884.4 billion* including: $234.5 billion in long-term managed assets: equity ($110.5 billion), fixed income ($99.4 billion), alternative/private markets ($21.7 billion) and multi-asset ($2.9 billion); and $649.9 billion in liquidity Mix of asset classes provide organic growth potential across cycles complemented by selective acquisitions Business mix offers potential for growth, stability and sustainability Federated Hermes offers world-class active management and engagement services that target financial outperformance across a wide range of asset classes for investors around the world
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Appendix
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23 Appendix Analyst Update, September 30, 2026 Managed assets by asset class Managed assets by product type Equity, Fixed Income Separate Account sales Revenue & distribution expense by asset type Financial highlights Equity & Fixed Income fund sales
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24 $ 649.9 $ 77.1 8% $ 649.9 $ 652.8 0% 110.5 16.4 7% 110.5 94.7 17% 99.4 18.1 6% 99.4 101.8 -2% 21.7 NA NA 21.7 19.0 14% 2.9 NA NA 2.9 2.9 -3% $ 884.4 $ 111.6 8% $ 884.4 $ 871.2 2% Q3 ‘26 1998** CAGR* `98 -`26 Q3 ‘26 Q3 ’25 YoY % Chg. Money market Equity Fixed income Alternative/private market Multi-asset Total managed assets Managed assets by asset class $ in billions *Compound Annual Growth Rate. **In 1998 Multi-asset and certain Alternative/Private Market products were categorized as Equity. Total may not equal the sum of the parts due to rounding. Analyst Update, September 30, 2026
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25 Q3 ‘26 1998** CAGR* `98 -`26 Q3 ‘26 Q3 ’25 YoY % Chg. $ 486.3 $ 77.1 7% $ 486.3 $492.7 -1% 63.1 15.5 5% 63.1 54.1 17% 45.0 16.4 4% 45.0 46.5 -3% 15.1 NA NA 15.1 11.8 28% 2.8 NA NA 2.8 2.8 1% $ 612.3 $ 109.0 6% $ 612.3 $ 607.9 1% $163.6 NA NA $163.6 $160.1 2% 47.4 0.9 15% 47.4 40.5 17% 54.4 1.7 13% 54.4 55.3 -2% 6.7 NA NA 6.7 7.2 -8% 0.0 NA NA 0.0 0.1 -95% $ 272.1 $ 2.6 18% $ 272.1 $ 263.3 3% $ 884.4 $ 111.6 8% $ 884.4 $ 871.2 2% Managed assets by product type $ in billions *Compound Annual Growth Rate. **In 1998 Multi-asset and certain Alternative/Private Market products were categorized as Equity. Totals may not equal sum of parts due to rounding. Analyst Update, September 30, 2026 Funds Money market Equity Fixed income Alternative/private markets Multi-asset Total Fund Assets Separate Accounts Money market Equity Fixed income Alternative/private markets Multi-asset Total sep. accts. Total managed assets
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26 Equity* and fixed-income fund sales $ in millions Analyst Update, September 30, 2026 Fixed Income Equity Fixed Income 2023 2024 2025 2026 YTD Total Gross sales Net sales Equity 2023 2024 2025 2026 YTD Total Gross sales Net sales *Multi-asset products are included in Equity. Alternative/Private Markets products are not illustrated. $14,739 $15,307 $14,289 $11,693 $56,028 ($1,869) $547 ($2,344) ($334) ($4,000) $9,180 $10,383 $20,148 $15,774 $55,485 ($5,337) ($3,992) $3,245 $2,530 ($3,554)
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27 Equity* and fixed-income separate account sales $ in millions Analyst Update, September 30, 2026 Fixed Income Equity Fixed Income 2023 2024 2025 2026 YTD Total Gross sales Net sales Equity 2023 2024 2025 2026 YTD Total Gross sales Net sales *Multi-asset products are included in Equity. Alternative/Private Markets products are not illustrated. $12,070 $10,283 $10,358 $9,006 $41,717 $4,786 ($338) ($1,523) $435 $3,360 $8,696 $5,987 $11,230 $11,050 $36,963 ($2,077) ($6,910) $1,128 $309 ($7,550)
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28 Q3 2010 Q3 2011 Q3 2012 Q3 2013 Q3 2014 Q3 2015 Q3 2016 Q3 2017 Q3 2018 Q3 2019 Q3 2020 Q3 2021 Q3 2022 Q3 2023 Q3 2024 Q3 2025 Q3 2026 Revenue By Asset Type Money Markets $124.1 $93.2 $111.5 $75.9 $65.0 $78.3 $131.8 $112.6 $101.3 $138.2 $143.4 $55.7 $170.5 $186.8 $208.4 $245.3 $251.9 Equity 71.0 71.8 73.3 83.3 100.1 107.7 115.3 118.7 138.6 136.7 138.6 172.3 127.2 123.5 117.8 135.0 161.8 Fixed Income 44.4 46.2 51.2 49.4 49.2 48.1 47.3 46.9 45.9 45.0 49.4 60.6 49.2 47.1 49.5 49.6 49.5 Alternative/Private Market 10.5 9.1 22.2 26.6 24.4 36.1 23.1 24.3 35.4 Multi-asset 9.7 8.4 7.5 7.1 5.6 4.8 4.8 4.7 4.9 Other 1.9 2.2 2.0 2.9 2.4 0.2 0.2 0.1 2.7 2.9 3.4 4.1 4.2 4.4 4.8 10.5 3.8 Total $241.4 $213.4 $238.0 $211.5 $216.7 $234.3 $294.6 $278.2 $308.6 $340.3 $364.5 $326.6 $381.1 $402.7 $408.5 $469.4 $507.3 Distribution Expense By Asset Type Money Markets $50.6 $34.9 $44.2 $30.5 $25.8 $30.9 $67.9 $55.2 $47.7 $64.4 $51.6 $13.5 $72.8 $72.1 $78.1 $93.6 $100.4 Equity 10.2 9.9 9.3 11.7 17.2 19.0 21.8 20.1 14.9 14.4 13.7 16.0 11.0 10.8 10.9 12.7 14.9 Fixed Income 10.6 10.4 11.8 10.6 9.7 8.7 9.1 9.5 6.0 6.5 6.1 6.9 5.7 5.5 5.7 5.8 5.1 Alternative/Private Market 0.1 0.1 0.1 0.1 0.2 0.4 0.2 0.5 0.6 Multi-asset 3.4 2.7 2.2 1.9 1.2 1.0 0.9 0.9 1.0 Other 0.4 0.6 0.8 0.6 0.8 0.2 - - - - 0.0 0.1 0.0 0.0 0.1 0.0 0.0 Total $71.8 $55.8 $66.1 $53.4 $53.5 $58.8 $98.8 $84.8 $72.1 $88.1 $73.7 $38.5 $91.0 $89.8 $95.9 $113.6 $122.0 Revenue Less Distribution By Asset Type Money Markets $73.5 $58.3 $67.3 $45.4 $39.2 $47.4 $63.9 $57.4 $53.6 $73.8 $91.8 $42.2 $97.7 $114.6 $130.3 $151.7 $151.5 Equity 60.8 61.9 64.0 71.6 82.9 88.7 93.5 98.6 123.7 122.3 124.9 156.3 116.1 112.7 107.0 122.3 146.8 Fixed Income 33.8 35.8 39.4 38.8 39.5 39.4 38.2 37.4 39.9 38.5 43.3 53.7 43.5 41.7 43.8 43.8 44.5 Alternative/Private Market 10.4 9.1 22.1 26.5 24.2 35.6 22.8 23.8 34.7 Multi-asset 6.3 5.7 5.3 5.3 4.4 3.9 3.9 3.8 3.9 Other 1.5 1.6 1.2 2.3 1.6 0.0 0.2 0.1 2.7 2.9 3.4 4.1 4.2 4.3 4.7 10.5 3.8 Total $169.6 $157.6 $171.9 $158.1 $163.2 $175.5 $195.8 $193.4 $236.5 $252.3 $290.7 $288.1 $290.1 $312.8 $312.6 $355.9 $385.3 Revenue Less Distribution By Asset Type (As a % of Total) Money Markets 43% 37% 39% 29% 24% 27% 33% 30% 23% 29% 32% 15% 34% 37% 42% 43% 39% Equity 36% 39% 37% 45% 51% 51% 48% 51% 52% 48% 43% 54% 40% 36% 34% 34% 38% Fixed Income 20% 23% 23% 25% 24% 22% 20% 19% 17% 15% 15% 19% 15% 13% 14% 12% 12% Alternative/Private Market 4% 4% 8% 9% 8% 11% 7% 7% 9% Multi-asset 3% 2% 2% 2% 2% 1% 1% 1% 1% Other 1% 1% 1% 1% 1% 0% 0% 0% 1% 1% 1% 1% 1% 1% 2% 3% 1% Total 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%Prior to Q4 2018 Multi-asset and certain Alternative/Private Market products were categorized as Equity. Revenue less Distribution Expense is a non-GAAP financial measure. Federated Hermes believes that this measure provides useful information to investors regarding the relationship between Revenue and Distribution Expense by asset type. The table above provides the components of Revenue and Distribution Expense by asset type, as calculated in accordance with GAAP, along with the calculation of the non-GAAP measures by asset type, as derived from Federated Hermes’ Consolidated Statements of Income included in Federated Hermes’ Form 10-K and 10-Qs filed in prior periods. Revenue and distribution expense by asset type Reconciliation of non-GAAP measure ($ in millions) Analyst Update, September 30, 2026
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29 a) The portion of cash and investments related to consolidated products and noncontrolling interest was $105M, $56M, $60M, $39M, $71m, $27m, $85m, $63m, $46m, $30m, $35m, $13m, $6m, $17m, $10m, $2m, and $3m for the periods ending 9/30/26, 12/31/25, 12/31/24, 12/31/23, 12/31/22, 12/31/21, 12/31/20, 12/31/19, 12/31/18, 12/31/17, 12/31/16, 12/31/15, 12/31/14, 12/31/13, 12/31/12, 12/31/11, and 12/31/10, respectively. (b) The portion of retained earnings related to consolidated products was (-$2m), (-$2m), $2m, and $1m for the periods ending 12/31/16, 12/31/15, 12/31/13, and 12/31/12, respectively. (c) Since the inception of its first share repurchase program in 1999, FHI has bought 83,565,457 (open market – excluding restricted shares) for $2.5B. At September 30, 2026, FHI holds 25,583,774 shares in treasury. Shares outstanding at September 30, 2026 are 73,930,682. (d) During 2022, the board of directors authorized the retirement of 10 million treasury shares, which reduced Treasury stock by $313.8 million. During 2014, the board of directors authorized the retirement of 20 million treasury shares, which reduced Treasury stock by $587.3 million. (e) FHI 2017 results included $70.4 million of net income due to the reduction of the Federal corporate income tax rate from 35 percent to 21 percent resulting from the enactment of the Tax Cuts and Jobs Act of 2017, which was signed into law on December 22, 2017. *Acquisition related Uses of Cash are shown net of cash received. Financial highlights $ in millions Analyst Update, September 30, 2026 BALANCE SHEET HIGHLIGHTS 9/30/26 12/31/25 12/31/24 12/31/23 12/31/22 12/31/21 12/31/20 12/31/19 12/31/18 12/31/17 12/31/16 Cash & Investments (a) $580 $724 $641 $561 $522 $427 $439 $341 $190 $370 $301 Long-Term Debt 349 348 348 348 348 223 75 100 135 170 191 Retained Earnings (b,d) 1,752 1,531 1,257 1,195 1,016 1,187 1,028 930 792 697 530 Treasury Stock (d) (1,032) (873) (633) (521) (365) (538) (325) (281) (287) (279) (255) Permanent Equity 1,291 1,197 1,095 1,128 1,046 1,114 1,137 1,041 857 761 596 USES OF CASH 2026 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Share Repurchase (c) $186 $263 $138 $177 $218 $228 $67 $16 $29 $49 $82 Dividends 83 105 185 98 98 106 208 109 107 102 205 Total $269 $368 $323 $275 $316 $334 $275 $125 $136 $151 $287 As % of Net Income (e) 86% 91% 120% 92% 132% 124% 84% 46% 62% 52% 137% Acquisition Related* $213 $13 $3 $1 $35 $173 ($1) $57 $171 $5 $1 Diluted Weighted Avg. Shares In M for YTD Period Ended 71.9 75.1 79.4 83.9 85.6 93.6 96.4 97.3 96.9 97.4 99.1