Federated Hermes, Inc. reports record assets under management with second quarter 2026 earnings

Federated Hermes, Inc. reports record assets under management with second quarter 2026 earnings

PR Newswire

PITTSBURGH, July 30, 2026

Total assets under management reach a record $911.6 billionEquity assets reach a record $109.6 billionQ2 2026 earnings per diluted share of $1.38Board declares $0.38 per share dividendPITTSBURGH, July 30, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today reported earnings per diluted share (EPS) of $1.38 for Q2 2026, compared to $1.16 for the same quarter last year, on net income of $104.3 million for Q2 2026, compared to $91.0 million for Q2 2025.

Federated Hermes' total managed assets were a record $911.6 billion at June 30, 2026, up $65.9 billion or 8% from $845.7 billion at June 30, 2025 and up $4.5 billion from $907.1 billion at March 31, 2026. Total average managed assets for Q2 2026 were $910.0 billion, up $72.7 billion or 9% from $837.3 billion for Q2 2025 and down $5.6 billion or 1% from $915.6 billion for Q1 2026."In addition to reaching record high equity assets in the second quarter, we achieved record gross sales across the range of our MDT suite of quantitative investment solutions, reaching all-time highs in MDT institutional separate accounts and SMAs (separately managed accounts). We also saw net positive MDT sales for the 14th consecutive quarter," said J. Christopher Donahue, president and chief executive officer."We continued to broaden our investment offerings by launching two new exchange-traded funds (ETFs) and introducing our first fund designed for use by participants in the blockchain ecosystem. We also expanded our private markets business by acquiring a majority interest in U.S. real estate manager FCP Fund Manager, L.P.," he said.Federated Hermes' board of directors declared a dividend of $0.38 per share. The dividend is payable on Aug 14, 2026 to shareholders of record as of Aug 7, 2026. During Q2 2026, Federated Hermes purchased 1,119,805 shares of Federated Hermes class B common stock for $58.9 million.Equity assets were a record $109.6 billion at June 30, 2026, up $20.6 billion or 23% from $89.0 billion at June 30, 2025 and up $8.8 billion or 9% from $100.8 billion at March 31, 2026. Top-selling equity funds during Q2 2026 on a net basis were Federated Hermes MDT Large Cap Growth Fund, Federated Hermes MDT Mid Cap Growth Fund, Federated Hermes MDT US Equity Fund, Federated Hermes MDT All Cap Core Fund and Federated Hermes MDT Small Cap Core Fund.Fixed-income assets were $100.5 billion at June 30, 2026, up $1.8 billion or 2% from $98.7 billion at June 30, 2025 and up $0.7 billion or 1% from $99.8 billion at March 31, 2026. Top-selling fixed-income funds during Q2 2026 on a net basis were Federated Hermes Ultrashort Bond Fund, Federated Hermes Total Return Bond ETF, Federated Hermes Conservative Municipal Microshort Fund, Federated Hermes Adjustable Rate Fund and Federated Hermes Conservative Microshort Fund.Alternative/private markets assets were $21.6 billion at June 30, 2026, up $0.9 billion or 4% from $20.7 billion at June 30, 2025 and up $2.6 billion or 14% from $19.0 billion at March 31, 2026. The increase was primarily due to $3.2 billion of assets acquired through the FCP Fund Manager, L.P. (FCP) transaction.Money market assets were $676.9 billion at June 30, 2026, up $42.5 billion or 7% from $634.4 billion at June 30, 2025 and down $7.8 billion or 1% from $684.7 billion at March 31, 2026. Money market fund assets were $499.9 billion at June 30, 2026, up $31.9 billion or 7% from $468.0 billion at June 30, 2025 and down $2.9 billion or 1% from $502.8 billion at March 31, 2026.Financial SummaryQ2 2026 vs. Q2 2025 Revenue increased $77.9 million or 18% primarily due to an increase from higher average equity and money market assets as well as due to the FCP acquisition in Q2 2026 ($13.9 million).During Q2 2026, Federated Hermes derived 50% of its revenue from money market assets, 48% from long-term assets (30% from equity, 10% from fixed-income, and 8% from alternative/private markets and multi-asset) and 2% from sources other than managed assets.Operating expenses increased $62.1 million or 20% primarily due to a $22.4 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $16.7 million increase in compensation and related expense, including $6.5 million of FCP-acquisition-related expenses, a $9.2 million increase in other expense primarily due to fluctuations in foreign currency exchange rates, and a $7.0 million increase in professional service fees including $4.7 million of FCP-acquisition-related expenses. Intangible asset related expenses increased $2.9 million, including $3.0 million of amortization of intangible assets associated with the FCP acquisition.Nonoperating income (expenses), net for Q2 2026 decreased $2.6 million or 19% primarily due to a decrease in interest and dividend income.Q2 2026 vs. Q1 2026 Revenue increased $23.8 million or 5% primarily due to the FCP acquisition in Q2 2026 ($13.9 million) and higher average equity assets.Operating expenses increased $17.3 million or 5% primarily due to a $7.4 million increase in compensation and related expense including $6.5 million of FCP-acquisition-related expenses and a $4.3 million increase in professional service fees primarily due to the increase of FCP-acquisition-related expenses of $3.2 million. Intangible asset related expenses increased $3.0 million due to the amortization of intangible assets associated with the FCP acquisition.Nonoperating income (expenses), net increased $7.7 million primarily due to a larger increase in the market value of investments in Q2 2026 as compared to the increase in the market value of the investments in Q1 2026.YTD 2026 vs. YTD 2025Revenue increased $133.3 million or 16% primarily due to an increase from higher average money market and equity assets and due to the FCP acquisition in Q2 2026 ($13.9 million).For the first half of 2026, Federated Hermes derived 52% of its revenue from money market assets, 47% from long-term assets (30% from equity, 10% from fixed-income, and 7% from alternative/private markets and multi-asset) and 1% from sources other than managed assets.Operating expenses increased $123.0 million or 21% primarily due to a $49.0 million increase in distribution expenses resulting primarily from higher average money market fund assets, a $27.5 million increase in compensation and related expense primarily due to higher incentive compensation and $6.5 million of FCP-acquisition-related expenses, a $27.4 million increase in other expense primarily due to a value added tax (VAT) refund received in Q1 2025 related to amended VAT filings in the U.K. and fluctuations in foreign currency exchange rates, and a $9.8 million increase in professional service fees primarily due to $6.2 million in FCP-acquisition-related expenses and costs related to global technology projects. Intangible asset related expenses increased $3.1 million due primarily to $3.0 million related to the amortization of intangible assets associated with the FCP acquisition.Nonoperating income (expenses), net decreased $3.4 million primarily due to a decrease in interest and dividend income.Earnings call informationFederated Hermes will host an earnings conference call at 9 a.m. Eastern on Friday, July 31, 2026. Investors are invited to listen to the earnings teleconference by calling 877-545-0523 (domestic) or 973-528-0016 (international) prior to the 9 a.m. start time. To listen online, go to the About section of FederatedHermes.com/us to register and join the call. A replay will be available at approximately 12:30 p.m. Eastern on July 31, 2026. To access the telephone replay, dial 877-481-4010 (domestic) or 919-882-2331 (international) and enter access code 54241. The online replay will be available via FederatedHermes.com/us for one year.About Federated HermesFederated Hermes, Inc. is a global leader in active investment management, with $911.6 billion in assets under management1. We deliver investment solutions that help investors target a broad range of outcomes and provide equity, fixed-income, alternative/private markets, multi-asset and liquidity management strategies to more than 11,000 institutions and intermediaries worldwide. Our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated Hermes has more than 2,200 employees in London, New York, Boston and offices worldwide.Federated Hermes ranks in the top 5% of equity fund managers, the top 8% of money market fund managers and the top 11% of fixed-income fund managers2 in the industry. Federated Hermes also ranks as the 9th-largest manager of model-delivered separately managed accounts3. For more information, including an analyst presentation, which is updated periodically, visit FederatedHermes.com/us.###1) As of June 30, 2026.2) Morningstar, June 30, 2026. Based on U.S. fund flows rankings.3) Money Management Institute/Cerulli Q1 2026.Federated Securities Corp. is distributor of the Federated Hermes funds.Separately managed accounts are made available through Federated Global Investment Management Corp., Federated Investment Counseling, Federated MDTA LLC, Hermes Fund Managers Ireland Limited, Hermes Investment Management Limited, Hermes GPE LLP, and Federated Hermes FCP Manager, LLC, each a registered investment advisor in one or more of the U.S., U.K. or Ireland.Cautionary statementsCertain statements in this press release, such as those related to performance, investment strategies, opportunities to meet client needs, investment offerings, investor preferences and demand, asset flows and asset mix constitute or may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance or achievements of the company, or industry results, to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements can include statements that do not relate strictly to historical or current facts and are typically identified by words or phrases such as "trend," "forecast," "project," "predict," "potential," "approximate," "opportunity," "believe," "expect," "anticipate," "current," "intention," "estimate," "position," "projection," "plan," "assume," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "can," "may," and similar expressions. Any forward-looking statement, and 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 the company to predict the level of fee waivers and expenses in future quarters, predict whether performance fees or carried interest will be earned and retained, the ability of the company 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 include the risk factors discussed in the company's annual and quarterly reports as filed 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 the company nor any other person assumes responsibility for the accuracy and completeness, or updating, of such statements in the future.Unaudited Condensed Consolidated Statements of Income(in thousands, except per share data)Quarter Ended% Change Q2 2025 to Q2 2026Quarter Ended% Change Q1 2026 to Q2 2026June 30, 2026June 30, 2025March 31, 2026RevenueInvestment advisory fees, net$ 337,721$ 287,43517 %$ 319,4086 %Administrative service fees, net—affiliates110,117101,6578110,2850Other service fees, net54,93835,7525449,26412Total Revenue502,776424,84418478,9575Operating ExpensesCompensation and related161,528144,87211154,1195Distribution121,76699,39923125,745(3)Systems and communications25,95023,4811126,463(2)Professional service fees25,61018,6283721,33620Office and occupancy9,8369,910(1)10,062(2)Advertising and promotional7,3296,146194,09879Intangible asset related6,3843,503823,42287Travel and related4,5584,117113,85018Other6,934(2,296)4023,53196Total Operating Expenses369,895307,76020352,6265Operating Income132,881117,08413126,3315Nonoperating Income (Expenses)Investment income (loss), net14,33016,947(15)6,653115Debt expense(3,159)(3,170)0(3,185)(1)Other, net(22)(35)(37)(30)(27)Total Nonoperating Income (Expenses), net11,14913,742(19)3,438224Income before income taxes144,030130,82610129,76911Income tax provision37,21634,135933,82310Net income including the noncontrolling interests in subsidiaries106,81496,6911095,94611Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries2,4965,691(56)(432)NMNet Income$ 104,318$ 91,00015 %$ 96,3788 %Amounts Attributable to Federated Hermes, Inc.Earnings Per Share1Basic and diluted$ 1.38$ 1.1619 %$ 1.279 %Weighted-Average Shares OutstandingBasic71,94475,06472,648Diluted71,94775,07272,650Dividends Declared Per Share$ 0.38$ 0.34$ 0.341)Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $4.8 million, $4.1 million and $4.4 million available to unvested restricted Federated Hermes shareholders for the quarterly periods ended June 30, 2026, June 30, 2025 and March 31, 2026, respectively, was excluded from the computation of earnings per share.Unaudited Condensed Consolidated Statements of Income(in thousands, except per share data)Six Months EndedJune 30, 2026June 30, 2025% ChangeRevenueInvestment advisory fees, net$ 657,129$ 574,89514 %Administrative service fees, net—affiliates220,402202,7669Other service fees, net104,20270,72347Total Revenue981,733848,38416Operating ExpensesCompensation and related315,647288,14310Distribution247,510198,48425Systems and communications52,41347,70710Professional service fees46,94637,17626Office and occupancy19,89819,8620Advertising and promotional11,42710,7227Intangible asset related9,8056,69946Travel and related8,4087,67010Other10,467(16,935)162Total Operating Expenses722,521599,52821Operating Income259,212248,8564Nonoperating Income (Expenses) Investment income (loss), net20,98424,422(14)Debt expense(6,344)(6,349)0Other, net(53)(62)(15)Total Nonoperating Income (Expenses), net14,58718,011(19)Income before income taxes273,799266,8673Income tax provision71,03966,3007Net income including the noncontrolling interests in subsidiaries202,760200,5671Less: Net income (loss) attributable to the noncontrolling interests in subsidiaries2,0648,433(76)Net Income$ 200,696$ 192,1344 %Amounts Attributable to Federated Hermes, Inc.Earnings Per Share1Basic and diluted$ 2.65$ 2.4010 %Weighted-Average Shares OutstandingBasic72,29476,296Diluted72,29776,300Dividends Declared Per Share$ 0.72$ 0.651)Unvested share-based awards that receive non-forfeitable dividend rights are deemed participating securities and are required to be considered in the computation of earnings per share under the "two-class method." As such, total net income of $9.1 million and $8.7 million available to unvested restricted Federated Hermes shareholders for the six months ended June 30, 2026 and June 30, 2025, respectively, was excluded from the computation of earnings per share. Unaudited Condensed Consolidated Balance Sheets(in thousands)June 30, 2026Dec. 31, 2025Assets Cash and other investments$ 480,710$ 724,297 Other current assets179,795139,495 Intangible assets, net, including goodwill1,502,8751,183,612 Other long-term assets166,774181,933 Total Assets$ 2,330,154$ 2,229,337Liabilities, Redeemable Noncontrolling Interests and Equity Current liabilities$ 254,800$ 314,141 Long-term debt348,499348,369 Other long-term liabilities330,001303,350 Redeemable noncontrolling interests144,16466,529Equity excluding treasury stock2,226,5262,070,162Treasury stock(973,836)(873,214) Total Liabilities, Redeemable Noncontrolling Interests and Equity$ 2,330,154$ 2,229,337Unaudited Changes in Long-Term Assets - By Asset Class(in millions)Quarter EndedSix Months EndedJune 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025EquityBeginning assets$ 100,832$ 97,898$ 80,913$ 97,898$ 79,423Sales19,0629,0917,96118,15315,373Redemptions1(10,202)(6,878)(6,180)(17,080)(12,173)Net sales (redemptions)1(1,140)2,2131,7811,0733,200Net exchanges134(139)0(5)(114)Impact of foreign exchange2(37)(287)1,023(324)1,777Market gains and (losses)39,8011,1475,27710,9484,708Ending assets$ 109,590$ 100,832$ 88,994$ 109,590$ 88,994Fixed IncomeBeginning assets$ 99,798$ 100,127$ 99,486$ 100,127$ 98,059Sales17,6875,9275,26713,61411,211Redemptions1(7,864)(6,349)(7,652)(14,213)(13,940)Net sales (redemptions)1(177)(422)(2,385)(599)(2,729)Net exchanges(153)1485(5)106Impact of foreign exchange2(12)(40)208(52)293Market gains and (losses)31,031(15)1,3731,0162,958Ending assets$ 100,487$ 99,798$ 98,687$ 100,487$ 98,687Alternative/Private MarketsBeginning assets$ 18,991$ 19,101$ 19,426$ 19,101$ 18,864Sales16506297821,2791,867Redemptions1(1,002)(547)(551)(1,549)(1,575)Net sales (redemptions)1(352)82231(270)292Net exchanges80(1)80Acquisitions/(dispositions)3,23701093,237109Impact of foreign exchange226(275)1,091(249)1,623Market gains and (losses)3(263)83(118)(180)(150)Ending assets$ 21,647$ 18,991$ 20,738$ 21,647$ 20,738Multi-assetBeginning assets$ 2,778$ 2,854$ 2,826$ 2,854$ 2,883Sales141584499107Redemptions1(102)(94)(137)(196)(242)Net sales (redemptions)1(61)(36)(93)(97)(135)Net exchanges01(2)10Market gains and (losses)3222(41)125181108Ending assets$ 2,939$ 2,778$ 2,856$ 2,939$ 2,856Total Long-term AssetsBeginning assets$ 222,399$ 219,980$ 202,651$ 219,980$ 199,229Sales117,44015,70514,05433,14528,558Redemptions1(19,170)(13,868)(14,520)(33,038)(27,930)Net sales (redemptions)1(1,730)1,837(466)107628Net exchanges(11)102(1)(8)Acquisitions/(dispositions)3,23701093,237109Impact of foreign exchange2(23)(602)2,322(625)3,693Market gains and (losses)310,7911,1746,65711,9657,624Ending assets$ 234,663$ 222,399$ 211,275$ 234,663$ 211,2751)For certain accounts, including separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.2)Reflects the impact of translating non-U.S. dollar denominated assets under management (AUM) into U.S. dollars for reporting purposes.3)Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.Unaudited Changes in Long-Term Assets - By Asset Class and Offering Type(in millions) Quarter EndedJune 30, 2026EquityFixed IncomeAlternative / Private MarketsMulti-assetTotalFundsSeparate Accounts1FundsSeparate Accounts1FundsSeparate Accounts1FundsSeparate Accounts1Funds.Separate Accounts1Beginning assets$ 55,188$ 45,644$ 45,921$ 53,877$ 12,339$ 6,652$ 2,774$ 4$ 116,222$ 106,177Sales5,4433,6193,8673,820576744109,9277,513Redemptions(4,080)(6,122)(3,994)(3,870)(661)(341)(102)0(8,837)(10,333)Net sales (redemptions)1,363(2,503)(127)(50)(85)(267)(61)01,090(2,820)Net exchanges144(10)(153)08000(1)(10)Acquisitions/(dispositions)00002,788449002,788449Impact of foreign exchange2(68)31(3)(9)121400(59)36Market gains and (losses)37,4422,359551480(144)(119)22208,0712,720Ending assets$ 64,069$ 45,521$ 46,189$ 54,298$ 14,918$ 6,729$ 2,935$ 4$ 128,111$ 106,552Six Months EndedJune 30, 2026EquityFixed IncomeAlternative / Private MarketsMulti-assetTotalFundsSeparate Accounts1FundsSeparate Accounts1FundsSeparate Accounts1FundsSeparate Accounts1FundsSeparate Accounts1Beginning assets$ 54,988$ 42,910$ 45,973$ 54,154$ 12,085$ 7,016$ 2,850$ 4$ 115,896$ 104,084Sales11,2986,8557,8525,7621,1859499020,43412,711Redemptions(8,641)(8,439)(7,987)(6,226)(979)(570)(196)0(17,803)(15,235)Net sales (redemptions) 2,657(1,584)(135)(464)206(476)(97)02,631(2,524)Net exchanges(25)20(5)08010(21)20Acquisition/(dispositions)00002,788449002,788449Impact of foreign exchange2(226)(98)(29)(23)(147)(102)00(402)(223)Market gains and (losses)36,6754,273385631(22)(158)18107,2194,746Ending assets$ 64,069$ 45,521$ 46,189$ 54,298$ 14,918$ 6,729$ 2,935$ 4$ 128,111$ 106,5521)Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings. For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.2)Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.3)Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.Unaudited Changes in Long-Term Assets - By Offering Type(in millions) Quarter EndedSix Months EndedJune 30, 2026March 31, 2026June 30, 2025June 30, 2026June 30, 2025Total Fund AssetsBeginning assets$ 116,222$ 115,896$ 104,289$ 115,896$ 103,567Sales9,92710,5078,75320,43418,032Redemptions(8,837)(8,966)(9,166)(17,803)(17,929)Net sales (redemptions)1,0901,541(413)2,631103Net exchanges(1)(20)3(21)3Acquisitions/(dispositions)2,78801092,788109Impact of foreign exchange1(59)(343)1,313(402)1,998Market gains and (losses)28,071(852)5,1087,2194,629Ending assets$ 128,111$ 116,222$ 110,409$ 128,111$ 110,409Total Separate Account Assets3Beginning assets$ 106,177$ 104,084$ 98,362$ 104,084$ 95,662Sales47,5135,1985,30112,71110,526Redemptions4(10,333)(4,902)(5,354)(15,235)(10,001)Net sales (redemptions)4(2,820)296(53)(2,524)525Net exchanges(10)30(1)20(11)Acquisitions/(dispositions)449004490Impact of foreign exchange136(259)1,009(223)1,695Market gains and (losses)22,7202,0261,5494,7462,995Ending assets$ 106,552$ 106,177$ 100,866$ 106,552$ 100,866Total Long-term Assets3Beginning assets$ 222,399$ 219,980$ 202,651$ 219,980$ 199,229Sales417,44015,70514,05433,14528,558Redemptions4(19,170)(13,868)(14,520)(33,038)(27,930)Net sales (redemptions)4(1,730)1,837(466)107628Net exchanges(11)102(1)(8)Acquisitions/(dispositions)3,23701093,237109Impact of foreign exchange1(23)(602)2,322(625)3,693Market gains and (losses)210,7911,1746,65711,9657,624Ending assets$ 234,663$ 222,399$ 211,275$ 234,663$ 211,2751)Reflects the impact of translating non-U.S. dollar denominated AUM into U.S. dollars for reporting purposes.2)Reflects the approximate changes in the fair value of the securities held by the portfolios and, to a lesser extent, reinvested dividends, distributions and net investment income.3)Includes separately managed accounts, institutional accounts, certain sub-advised funds and other managed offerings.4)For certain accounts, Sales and Redemptions are calculated as the remaining difference between beginning and ending assets after the calculation of total investment return.Unaudited Managed Assets(in millions)June 30, 2026March 31, 2026Dec. 31, 2025Sept. 30, 2025June 30, 2025By Asset ClassEquity1$ 109,590$ 100,832$ 97,898$ 94,656$ 88,994Fixed-Income100,48799,798100,127101,81398,687Alternative / Private Markets21,64718,99119,10119,02420,738Multi-Asset12,9392,7782,8542,9402,856Total Long-Term Assets234,663222,399219,980218,433211,275Money Market676,897684,748682,604652,767634,400Total Managed Assets$ 911,560$ 907,147$ 902,584$ 871,200$ 845,675By Offering TypeFunds:Equity$ 64,069$ 55,188$ 54,988$ 54,110$ 49,359Fixed-Income46,18945,92145,97346,47845,415Alternative / Private Markets14,91812,33912,08511,81412,905Multi-Asset2,9352,7742,8502,8132,730Total Long-Term Assets128,111116,222115,896115,215110,409Money Market499,927502,775508,403492,701468,044Total Fund Assets$ 628,038$ 618,997$ 624,299$ 607,916$ 578,453Separate Accounts:Equity1$ 45,521$ 45,644$ 42,910$ 40,546$ 39,635Fixed-Income54,29853,87754,15455,33553,272Alternative / Private Markets6,7296,6527,0167,2107,833Multi-Asset1444127126Total Long-Term Assets106,552106,177104,084103,218100,866Money Market176,970181,973174,201160,066166,356Total Separate Account Assets$ 283,522$ 288,150$ 278,285$ 263,284$ 267,222Total Managed Assets$ 911,560$ 907,147$ 902,584$ 871,200$ 845,6751) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.Unaudited Average Managed AssetsQuarter Ended(in millions)June 30, 2026March 31, 2026Dec. 31, 2025Sept. 30, 2025June 30, 2025By Asset ClassEquity1$ 107,031$ 102,037$ 96,404$ 92,436$ 83,564Fixed-Income100,041100,996100,85599,20698,365Alternative / Private Markets22,35919,23218,97119,86220,053Multi-Asset12,8982,8592,8362,8952,779Total Long-Term Assets232,329225,124219,066214,399204,761Money Market677,685690,450654,635645,092632,543Total Avg. Managed Assets$ 910,014$ 915,574$ 873,701$ 859,491$ 837,304By Offering TypeFunds:Equity$ 60,933$ 56,987$ 55,101$ 51,828$ 45,965Fixed-Income45,82746,09646,11645,74344,972Alternative / Private Markets15,25312,25411,87112,34712,370Multi-Asset2,8932,8552,8332,7702,654Total Long-Term Assets124,906118,192115,921112,688105,961Money Market498,338507,752493,355482,237462,683Total Avg. Fund Assets$ 623,244$ 625,944$ 609,276$ 594,925$ 568,644Separate Accounts:Equity1$ 46,098$ 45,050$ 41,303$ 40,608$ 37,599Fixed-Income54,21454,90054,73953,46353,393Alternative / Private Markets7,1066,9787,1007,5157,683Multi-Asset1543125125Total Long-Term Assets107,423106,932103,145101,71198,800Money Market179,347182,698161,280162,855169,860Total Avg. Separate Account Assets$ 286,770$ 289,630$ 264,425$ 264,566$ 268,660Total Avg. Managed Assets$ 910,014$ 915,574$ 873,701$ 859,491$ 837,3041) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.Unaudited Average Managed AssetsSix Months Ended(in millions)June 30, 2026June 30, 2025By Asset ClassEquity1$ 104,534$ 82,834Fixed-Income100,51998,862Alternative / Private Markets20,79619,533Multi-Asset12,8782,840Total Long-Term Assets228,727204,069Money Market684,067636,185Total Avg. Managed Assets$ 912,794$ 840,254By Offering TypeFunds:Equity$ 58,960$ 45,612Fixed-Income45,96245,344Alternative / Private Markets13,75411,990Multi-Asset2,8732,714Total Long-Term Assets121,549105,660Money Market503,045463,205Total Avg. Fund Assets$ 624,594$ 568,865Separate Accounts:Equity1$ 45,574$ 37,222Fixed-Income54,55753,518Alternative / Private Markets7,0427,543Multi-Asset15126Total Long-Term Assets107,17898,409Money Market181,022172,980Total Avg. Separate Account Assets$ 288,200$ 271,389Total Avg. Managed Assets$ 912,794$ 840,2541) A Separate Account was reclassified from Multi-Asset to Equity effective October 1, 2025.