At June 30, 2026 and December 31, 2025, Federated Hermes held investments in non-consolidated fluctuating-value Federated Hermes Funds of $53.5 million and $50.1 million, respectively, primarily in mutual funds which represent equity investments for Federated Hermes, and held investments in Separate Accounts of $6.6 million and $6.2 million at June 30, 2026 and December 31, 2025, respectively, that were included in Investments—Affiliates and Other on the Consolidated Balance Sheets. Federated Hermes’ investments held in Separate Accounts as of June 30, 2026 and December 31, 2025 were primarily composed of stocks of large domestic and foreign companies of $4.3 million and $3.9 million, respectively, and domestic debt securities of $1.7 million at both June 30, 2026 and December 31, 2025.

Federated Hermes consolidates certain Federated Hermes Funds into its Consolidated Financial Statements as a result of its controlling financial interest in these Federated Hermes Funds (see Note (7)). All investments held by these consolidated Federated Hermes Funds were included in Investments—Consolidated Investment Companies on Federated Hermes’ Consolidated Balance Sheets.

The investments held by consolidated Federated Hermes Funds as of June 30, 2026 and December 31, 2025, were composed of foreign and domestic debt securities ($96.2 million and $73.4 million, respectively), stocks of large foreign and domestic companies ($13.2 million and $7.6 million, respectively), stocks of small and mid-sized domestic and foreign companies ($5.4 million and $4.5 million, respectively) and mutual funds ($4.1 million as of June 30, 2026).

The following table presents gains and losses recognized in Gain (Loss) on Securities, net on the Consolidated Statements of Income in connection with Federated Hermes’ investments:


	Three Months Ended				Six Months Ended
	June 30,				June 30,
(in thousands)	2026		2025		2026		2025
Investments—Consolidated Investment Companies
Net Unrealized Gains (Losses)	$	2,514	$	6,380	$	2,227	$	6,753
Net Realized Gains (Losses)1	606		1,445		910		1,951
Net Gains (Losses) on Investments—Consolidated Investment Companies	3,120		7,825		3,137		8,704
Investments—Affiliates and Other
Net Unrealized Gains (Losses)	6,663		3,131		5,089		2,190
Net Realized Gains (Losses)1	822		257		2,793		1,281
Net Gains (Losses) on Investments—Affiliates and Other	7,485		3,388		7,882		3,471
Gain (Loss) on Securities, net	$	10,605	$	11,213	$	11,019	$	12,175