The changes, to take effect when the previous CIO and executive vice president retires on May 1, 2026, are part of Federated Hermes’ long-term succession plan.

Federated Hermes has announced that RJ Gallo (pictured), CFA, senior vice president and deputy chief investment officer (CIO) for global fixed income and co-head of the Municipal Bond Group, will become CIO for global fixed income. He will be succeeding Robert Ostrowski, CFA, executive vice president and current CIO for global fixed income.

Additionally, Ann Ferentino, CFA, senior portfolio manager and co-head of Federated Hermes’ Municipal Bond Group, will become the sole head of the group.

The changes, which will become effective when the previous CIO and executive vice president, Robert Ostrowski, retires on May 1, 2026, are part of Federated Hermes’ long-term succession plan, the firm said in a statement.

As CIO, Gallo will oversee all aspects of Federated Hermes’ investment processes across fixed-income products globally, which represent $101.8 billion in assets as of September 30, 2025, managed in multi-sector, low duration, high-yield, municipal, US government, US corporate bond, international, global and mortgage-backed strategies. He also will be responsible for developing investment teams, and overseeing portfolios and risk management. Gallo will continue to articulate Federated Hermes’ fixed-income positioning to stakeholders, particularly clients, the firm added.

Also serving as senior portfolio manager and head of the duration committee, Gallo will be responsible for tactical portfolio duration positioning grounded in macroeconomic business cycle analysis and valuation indicators. In this capacity, he will work alongside his peer committee chairs responsible for sector allocation, yield curve strategy, currency management and security selection, playing a central role in top-down and bottom-up client portfolio construction and performance attribution decisions.

Gallo, who joined Federated Hermes in 2000, has 31 years of investment experience. Prior to joining Federated Hermes, he was a financial analyst and trader at the Federal Reserve Bank of New York.

“RJ has been an integral member of the Federated Hermes fixed-income team for decades and has served as portfolio manager spanning mutual funds, collective investment funds, SMAs and closed-end funds,” said John Fisher, president and chief executive officer of the Federated Advisory Companies, the Federated Hermes business unit that oversees the firm’s investment management areas. “RJ not only possesses deep expertise in a wide range of areas, but also an ability to clearly articulate Federated Hermes’ fixed-income strategies and how our tactical portfolio allocations reflect the Federated Hermes fixed-income team’s market outlook.”

When Gallo takes up his new responsibilities, Ferentino, who has been with Federated Hermes for 30 years, will continue to manage seven mutual funds and other client portfolios.

“Ann Ferentino brings a vast knowledge of municipal bond markets to her new role,” Fisher said. “She has been integral to the performance of these assets, and we are confident that the team will continue to benefit from her skills, experience and perspective.”

Under Ostrowski’s leadership, Federated Hermes built a deep and experienced fixed-income team and a collaborative process for both its fund and separate account products. Since Ostrowski was named CIO in April 2004, Federated Hermes’ fixed-income assets under management grew from $29.5 billion to $101.8 billion, as of September 30, 2025, an increase of $72.3 billion.

“During his tenure in investment management, Bobby established and grew our reputation for strong, risk-adjusted results in our multisector products throughout business cycles,” Fisher said.

Federated Hermes, Inc is a prominent player in active investment management, with $871.2 billion in assets under management, as of September 30, 2025. Its 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.