Question · Q4 2025
Dan Fannin asked about Federated Hermes' product development strategy for MDT, focusing on new products and proliferation into different wrappers and markets. He also sought clarification on the Q1 2026 revenue impact from fewer days and the recurrence of Q4 2025 real estate development fees.
Answer
Chris Donahue, President and CEO, explained that MDT product development primarily involves expanding into new wrappers (ETFs, CITs, UCITS) and new markets (e.g., overseas via UCITS), leveraging existing investment expertise. Tom Donahue, CFO, confirmed the $10.2 million lower revenue in Q1 2026 from fewer days impacts management, advisory, and distribution fees. He noted that the $8.2 million real estate development fees from Q4 2025 were unusual but might see a smaller recurrence (around $2 million) in Q1 2026.
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