Federated Hermes mulls Hong Kong office as US fund manager plots growth in Asia: CEO

Federated Hermes, a New York-listed global fund manager, is considering setting up an office in Hong Kong as it expands its family office and private wealth-management business in China and around Asia-Pacific, CEO Chris Donahue said.

The company is optimistic about markets in Asia and also impressed by Hong Kong’s regulatory environment, including the commitment of market regulators to foster growth in the financial hub in the face of challenges like geopolitical tensions.

“Hong Kong is a wonderful window into China,” he said in an interview earlier this month, adding that the firm is actively engaging with clients in the city. “No matter what happens with all the politics, we get rid of that noise and look at the opportunities.”

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Trump says he is considering 10% tariff on China imports, starting February 1

Trump says he is considering 10% tariff on China imports, starting February 1

Donahue, who is also the firm’s chairman and president, attended the Asia Financial Forum in Hong Kong for the first time earlier this month.

Federated Hermes is based in Pittsburgh with 2,100 employees globally. Singapore is its headquarters in Asia, while it also has offices in Australia and Japan. Formerly known as Federated Investors, the firm bought UK-based Hermes Investment in 2021, giving it a footprint in Asia.

Assets under management rose 5.7 per cent in 2024 to a record US$800.5 billion, according to its annual report. About US$84 billion of that was invested in global equities, including US$3.4 billion in Asia excluding Japan.

Hong Kong has become a highly receptive market following the end of the Covid-19 pandemic and is integral to Federated Hermes’ expansion plans in the region, said Jim Roland, head of Asia-Pacific distribution, who met with several local regulators earlier this month.