Federated Hermes names R.J. Gallo global fixed-income CIO, Ann Ferentino heads $7.1B Municipal Bond Group
R.J. Gallo will become Federated Hermes' fixed-income CIO May 1, 2026, succeeding Robert Ostrowski and overseeing $101.8 billion in assets, while Ann Ferentino will take sole leadership of its $7.1 billion Municipal Bond Group. Q4 and 2025 results will be released January 29, with a January 30 conference call.
1. Global Fixed Income CIO Succession
Federated Hermes has named R.J. Gallo, CFA, senior vice president and deputy chief investment officer for global fixed income, as its next CIO for global fixed income. Gallo will succeed Robert Ostrowski, CFA, who will retire on May 1, 2026, after 38 years with the firm. Since Ostrowski’s appointment as CIO in April 2004, fixed-income assets under management have risen from $29.5 billion to $101.8 billion as of September 30, 2025. Gallo, who joined Federated Hermes in 2000, brings 31 years of investment experience and will oversee all fixed-income strategies, including multisector, high-yield, municipal, US government and mortgage-backed securities, as well as risk management and team development across 107 investment professionals.
2. Fixed-Income Platform and Team Metrics
The global fixed-income platform managed by the incoming CIO comprises $101.8 billion in assets as of September 30, 2025, across a spectrum of strategies: low duration, corporate bonds, international and global mandates. Gallo currently leads the duration committee—tasked with tactical duration positioning based on macroeconomic cycle analysis and valuation indicators—and collaborates with chairs overseeing sector allocation, yield curve strategy, currency management and security selection. The wider team averages 19 years of industry experience and 14 years at Federated Hermes, underscoring a deep bench for top-down and bottom-up portfolio construction and performance attribution.
3. Municipal Bond Group Leadership Transition
Ann Ferentino, CFA, senior portfolio manager and co-head of the Municipal Bond Group, will assume full leadership of the municipal platform, which manages $7.1 billion in assets as of September 30, 2025. With 30 years at Federated Hermes, Ferentino oversees eight mutual funds and separate client portfolios. She will report to the new fixed-income CIO, while Matthew Andrews, senior portfolio manager, will continue to lead an eight-member municipal SMA team averaging 26 years of industry experience. Under Ferentino’s sole leadership, the group aims to build on its track record of risk-adjusted performance in the municipal market.