10 unchanged sentences
At December 31, 2025, management considered a hypothetical 250-basis-point fluctuation in interest rates.
−Removed: Management determined that the impact of such a fluctuation on these investments could impact Federated Hermes’ results of operations and financial condition by approximately $2 million.
+Added: Management determined that the impact of
+Added: such a fluctuation on these investments could impact Federated Hermes’ results of operations and financial condition by approximately $2 million.
At December 31, 2025, these investments and additional investments in money market accounts ($558.3 million) exposed Federated Hermes to credit risk.
2 unchanged sentences
Price risk is the risk that the market price of an investment will decline and ultimately result in the recognition of a loss.
−Removed: Federated Hermes was exposed to price risk as a result of its $65.3 million investment primarily in equity Federated Hermes
−Removed: Funds and Separate Accounts at December 31, 2024.
+Added: Federated Hermes was exposed to price risk as a result of its $63.2 million investment primarily in equity Federated Hermes Funds and Separate Accounts at December 31, 2025.
Federated Hermes’ investment in these offerings represents its maximum exposure to loss.
3 unchanged sentences
Of these investments, cash accounts and receivables held at December 31, 2025, management considered a hypothetical 20% fluctuation in applicable foreign exchange rates and determined that such a fluctuation could impact Federated Hermes’ results of operations and financial condition by approximately $15 million.
−Removed: Federated Hermes also has certain investments in foreign operations, whose net assets and results of operations are exposed to foreign currency risk when translated into USD upon consolidation .
−Removed: During 2024, Federated Hermes entered into foreign currency forward transactions in order to hedge against foreign exchange rate fluctuations related to FHL, a British Pound Sterling-denominated subsidiary (combined notional amount of £92.6 million as of December 31, 2024).
−Removed: Management considered a hypothetical 20% fluctuation in the currency exchange rate and determined that such a fluctuation could impact Federated Hermes’ results of operations and financial condition by approximately $5 million.
In addition to market risks attributable to Federated Hermes’ investments, nearly all of Federated Hermes’ revenue is calculated based on AUM.
6 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.