Federated Hermes appoints Steve Chiavarone as Chief Investment Officer, Global Equities

Rhea-AI Summary

Federated Hermes (NYSE: FHI) named Steve Chiavarone as Chief Investment Officer for Global Equities, effective Sept. 1, 2026, succeeding Steve Auth, who will retire after 26 years. Chiavarone, Deputy CIO since August 2025, has 21 years of investment experience and will transition away from his Multi‑Asset role ahead of the change.

The Global Equities franchise manages $100.8 billion of client assets and comprises 156 professionals with an average of 19 years' investment experience.

Positive

• Internal succession: Deputy CIO promoted to CIO effective Sept. 1, 2026
• Continuity: Global Equities will maintain existing investment principles and culture
• Scale: Equities franchise manages $100.8 billion of client assets
• Experienced team: 156 professionals averaging 19 years' investment experience

Negative

• Transition period: orderly handover runs through Sept. 1, 2026
• Role gap: replacement for head of Multi‑Asset Group has not been announced

News Market Reaction – FHI

+2.96%

+2.96% Session close to close

In the May 8 session, FHI gained 2.96%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement outlines a planned CIO transition in Global Equities, with Steve Chiavarone assumi...

Analysis

This announcement outlines a planned CIO transition in Global Equities, with Steve Chiavarone assuming the role on Sept. 1, 2026 after long-tenured leadership by Steve Auth. The unit manages $100.8 billion with a team of 156 professionals averaging 19 years’ experience. Investors may track execution continuity, performance across equity and multi‑asset strategies, and how the new CIO’s responsibilities intersect with existing macro and asset‑allocation committee roles.

Key Figures

Equity AUM: $100.8 billion Experience - Chiavarone: 21 years Years at Federated Hermes: 19 years +5 more

8 metrics

Equity AUM $100.8 billion Global Equities client assets as of March 31, 2026

Experience - Chiavarone 21 years Total investment experience cited in appointment release

Years at Federated Hermes 19 years Chiavarone’s tenure in Global Equities Group

Auth tenure CIO 24 years Years served as global equity CIO

Auth tenure firm 26 years Total years with Federated Hermes

Team size 156 professionals Global equity investment organization headcount

Avg experience 19 years Average investment experience of Global Equities professionals

Avg tenure at firm 12 years Average years at Federated Hermes for team members

Historical Context

5 past events · Latest: Apr 30 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 30	Q1 2026 earnings	Positive	-6.8%	Record AUM and strong earnings metrics for Q1 2026.
Apr 15	Fund data update	Neutral	-0.5%	Availability of month-end portfolio data for FMN fund.
Apr 10	Dividend declaration	Positive	-2.9%	Tax-free dividend and preferred share redemption reducing leverage.
Apr 09	Majority stake acquisition	Positive	-2.9%	Acquisition of 80% interest in FCP Fund Manager expanding alternatives.
Apr 07	Earnings call notice	Neutral	-1.3%	Announcement of Q1 earnings release and conference call schedule.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent history shows FHI often trading lower following generally positive or neutral announcements, including record AUM, acquisitions, and dividends.

Recent Company History

Over the past month, Federated Hermes reported record AUM of $907.1 billion and strong Q1 2026 metrics, yet the stock fell 6.83% after earnings. It completed an 80% stake acquisition in FCP Fund Manager with up to $331 million in consideration, and its municipal income fund declared tax‑free dividends and reduced leverage. Despite these constructive updates, price reactions were negative, suggesting investors have been cautious even on favorable news; today’s CIO succession fits into an already active strategic period.

Key Terms

exchange-traded funds (etfs), collective investment funds (cits), separately managed accounts (smas), ucits funds

4 terms

exchange-traded funds (etfs) financial

"offered through mutual funds, exchange‑traded funds (ETFs), collective investment"

Exchange-traded funds (ETFs) are investment funds that pool money from many investors to buy a diverse mix of stocks, bonds, or other assets, all managed as a single package. They are traded on stock exchanges like individual stocks, allowing investors to buy or sell shares easily throughout the trading day. ETFs offer a simple way to diversify investments and access different markets or sectors without needing to buy many individual assets.

collective investment funds (cits) financial

"exchange‑traded funds (ETFs), collective investment funds (CITs), institutional"

Collective investment funds (CITs) are pooled accounts run by banks or trust companies that combine money from multiple investors—often retirement plans—so the group can buy a diversified mix of stocks, bonds or other assets. Think of them as a group-buying club for investments: pooling money can lower costs and allow custom portfolios, but CITs typically have less public disclosure and different withdrawal rules than retail mutual funds, which matters for cost, transparency and liquidity.

separately managed accounts (smas) financial

"institutional separate accounts, separately managed accounts (SMAs), and UCITS funds."

A separately managed account (SMA) is an investment account owned by a single investor and run by a professional manager who picks and holds individual stocks or bonds just for that investor, rather than pooling money with others. Think of it like hiring a personal chef who prepares meals to your exact tastes instead of eating from a shared buffet; SMAs offer customized holdings, clearer tax control, and transparency, which can matter to investors seeking tailored risk, tax efficiency, or specific exclusions in their portfolios.

ucits funds regulatory

"separately managed accounts (SMAs), and UCITS funds. The global equity"

UCITS funds are professionally managed investment funds regulated under a European framework designed to protect everyday investors; think of them as pooled savings accounts that must follow strict rules on transparency, diversification and liquidity. They matter to investors because those rules aim to reduce risk and make it easier to buy or sell the fund across many countries, so investors can access a wide range of assets with clearer safeguards and easier cross-border availability.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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PITTSBURGH, May 7, 2026 /PRNewswire/ -- Federated Hermes, Inc. (NYSE: FHI), a global leader in active investing, today announced that Steve Chiavarone, CFA, will become Chief Investment Officer (CIO) for Global Equities effective Sept. 1, 2026, following Steve Auth's decision to retire after 26 years with the firm, including 24 years as global equity CIO. Chiavarone currently serves as Deputy CIO for Global Equities.

As CIO for Global Equities, Chiavarone will be responsible for supervising investment processes, overseeing portfolio performance and attribution across the firm's Global Equities platform and the continued development of the investment teams. He will also help oversee all aspects of the investment process across a diverse range of offerings and play a central role in articulating Federated Hermes' macro‑investment positioning to clients, intermediary customers and other stakeholders.

Chiavarone brings 21 years of investment experience, including 19 years in Federated Hermes' Global Equities Group, and has served as Deputy CIO since August 2025. He is head of the firm's Multi‑Asset Group and Senior Equity Strategist, responsible for portfolio management and research across global asset allocation strategies, a role he will transition off ahead of becoming global equity CIO. A replacement will be announced in due course. He will remain a member of the Federated Hermes Macro Economic Policy and PRISM^® Asset Allocation committees.

"Steve brings deep experience across our equity and multi‑asset capabilities and a strong understanding of our investment platform," said John Fisher, Chairman of Federated Advisory Companies, the Federated Hermes business unit that oversees the firm's investment management areas. "His appointment reflects successful execution of our long-established succession plan, the strength of our internal talent and our continued focus on investment discipline and seeking long‑term outperformance for our clients."

Steve Auth's tenure as CIO was marked by the development of the firm's equities investment structure, including the establishment of centers of excellence across strategies and geographies, enhanced proprietary research and portfolio risk management, and the continued growth of the platform. Under his leadership, the equities franchise expanded significantly in scale and global reach, managing $100.8 billion of client assets as of March 31, 2026.

Auth and Chiavarone will undertake an orderly transition of responsibilities between today and Sept. 1, 2026. Under Steve Chiavarone's leadership, the Global Equities group will continue to operate with the same investment principles, collaborative culture and long‑term focus that clients and intermediary customers have come to expect.

Federated Hermes' Global Equities group manages investor assets across equity, alternative, and multi‑asset strategies offered through mutual funds, exchange‑traded funds (ETFs), collective investment funds (CITs), institutional separate accounts, separately managed accounts (SMAs), and UCITS funds. The global equity investment organization comprises 156 professionals, with an average of 19 years of investment experience and 12 years at Federated Hermes.

About Federated Hermes

Federated Hermes, Inc. (NYSE: FHI) is a global leader in active, responsible investment management, with $907.1 billion in assets under management, as of March 31, 2026. 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 2,000 employees in London, New York, Boston and offices worldwide. For more information, visit FederatedHermes.com/us.

# # #

Certain statements in this press release, such as those relating to succession plans, retirement date, effective dates, and the ability to maintain investment processes, 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. 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 and in each fund's registration statement (e.g., prospectus and statement of additional information). 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.

View original content:https://www.prnewswire.com/news-releases/federated-hermes-appoints-steve-chiavarone-as-chief-investment-officer-global-equities-302766175.html

SOURCE Federated Hermes, Inc.

FAQ

When does Steve Chiavarone become CIO of Federated Hermes Global Equities (FHI)?

He becomes CIO effective Sept. 1, 2026. According to Federated Hermes, an orderly transition from current CIO Steve Auth will occur between now and that date, with Chiavarone shifting from his Multi‑Asset role beforehand.

What experience does Steve Chiavarone bring to the CIO role at Federated Hermes (FHI)?

Chiavarone brings 21 years of investment experience, including 19 years in Global Equities. According to Federated Hermes, he has served as Deputy CIO since August 2025 and leads the Multi‑Asset Group and equity strategy work.

How large is Federated Hermes' Global Equities business (FHI)?

The Global Equities franchise manages $100.8 billion of client assets as of March 31, 2026. According to Federated Hermes, the global equity organization includes 156 professionals averaging 19 years of investment experience.

Will Federated Hermes change investment strategy after the FHI CIO appointment?

The Global Equities group will continue to operate with the same investment principles and long‑term focus. According to Federated Hermes, Chiavarone will supervise investment processes and portfolio performance across the platform.