Federated Hermes is an investment manager headquartered in

Pittsburgh Pittsburgh ( ) is a city in the Commonwealth (U.S. state), Commonwealth of Pennsylvania, United States, and the county seat of Allegheny County, Pennsylvania, Allegheny County. It is the most populous city in both Allegheny County and Wester ...

Pennsylvania Pennsylvania (; (Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, Ma ...

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...

. Founded in 1955 and incorporated on October 18, 1957, the company manages $624 billion of customer assets, as of Sept. 30, 2022. The company offers investments spanning equity,

fixed-income Fixed income refers to any type of investment under which the borrower or issuer is obliged to make payments of a fixed amount on a fixed schedule. For example, the borrower may have to pay interest at a fixed rate once a year and repay the pri ...

, alternative/private markets, multi-asset and

liquidity Liquidity is a concept in economics involving the convertibility of assets and obligations. It can include: * Market liquidity, the ease with which an asset can be sold * Accounting liquidity, the ability to meet cash obligations when due * Liqu ...

management strategies, including

mutual funds A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. The term is typically used in the United States, Canada, and India, while similar structures across the globe include the SICAV ...

exchange-traded funds An exchange-traded fund (ETF) is a type of investment fund and exchange-traded product, i.e. they are traded on stock exchanges. ETFs are similar in many ways to mutual funds, except that ETFs are bought and sold from other owners throughout the d ...

(ETFs), separate accounts, closed-end funds and collective investment funds. Clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers.

History

Federated Investors was founded in 1955 by high school classmates John F. Donahue, Richard B. Fisher, and Thomas J. Donnelly.

Aetna Aetna Inc. () is an American managed health care company that sells traditional and consumer directed health care insurance and related services, such as medical, pharmaceutical, dental, behavioral health, long-term care, and disability plans ...

acquired a majority ownership stake in Federated Investors in 1982; at the time Federated had nearly $30 billion in assets under management. In 1989, Federated management purchased Aetna's stake for $345 million, reestablishing majority control of the company. In 1996, Federated management paid $100 million to acquire the remaining 25% stock ownership still held by Aetna. Federated completed an

initial public offering An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investme ...

on the NYSE on May 14, 1998. In 1991 Federated established Federated International Management Limited, a wholly owned subsidiary in

Dublin, Ireland Dublin (; , or ) is the capital and largest city of Ireland. On a bay at the mouth of the River Liffey, it is in the province of Leinster, bordered on the south by the Dublin Mountains, a part of the Wicklow Mountains range. At the 2016 c ...

, becoming the first U.S. company whose registered money market funds were approved for distribution to the European community. In 1998, Federated launched a venture with insurer LVM-Versicherungen Münster to offer Federated funds in Germany. In April 2012 Federated Investors, Inc. completed its acquisition of Prime Rate Capital Management LLP (PRCM), a

London, United Kingdom London is the capital and largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary down to the North Sea, and has been a major se ...

-based provider of institutional liquidity and fixed income products, from Matrix Group Limited. Federated Prime Rate Capital Management's AAA-rated liquidity funds, known as Qualifying Money Market Funds, serve the corporate and institutional market. The funds, totaling approximately US$4.0 billion (GBP 2.5 billion) in assets, are rated AAA by both

Standard & Poor's S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is co ...

and

Fitch Ratings Fitch Ratings Inc. is an American credit rating agency and is one of the " Big Three credit rating agencies", the other two being Moody's and Standard & Poor's. It is one of the three nationally recognized statistical rating organizations ( NRS ...

. In September 2019, Federated Investors announced that it had bought around $4.4 billion in assets from Fifth Third Asset Management Inc. In July 2018, Federated Investors, Inc., completed its acquisition of a 60 percent interest in Hermes Fund Managers Limited (Hermes), which operated as Hermes Investment Management, a pioneer of integrated ESG investing, from BT Pension Scheme (BTPS). Hermes had recently acquired

MEPC plc MEPC is a British-based property investment and development business. It is headquartered in Milton Park, Oxfordshire. It used to be listed on the London Stock Exchange and was once a constituent of the FTSE 100 Index. It is however now owned ...

. In February 2020, Federated Investors, Inc. changed its name to Federated Hermes, Inc. and unveiled an updated corporate identity focused on a commitment to responsible investing to achieve financial performance. The company also changed its New York Stock Exchange (NYSE) ticker symbol from FII to FHI, with the firm's common stock trading under the FHI ticker symbol for the first time on Feb. 3, 2020.

References

External links

{{authority control Investment management companies of the United States Companies listed on the New York Stock Exchange Financial services companies established in 1955 1955 establishments in Pennsylvania Companies based in Pittsburgh 1998 initial public offerings