Federated Hermes has named R.J. Gallo, CFA, its current senior vice president and deputy chief investment officer for global fixed income, as the next chief investment officer for the firm’s fixed-income platform. Gallo will succeed Robert Ostrowski, CFA, who will retire on May 1, 2026, after 38 years with the company. Ostrowski’s tenure saw fixed-income assets grow from $29.5 billion in April 2004 to $101.8 billion as of September 30, 2025. This move is the culmination of a long-term succession plan designed to ensure continuity in investment strategy and client engagement.

As incoming CIO, Gallo will oversee all fixed-income strategies, which encompass $101.8 billion in assets under management across multisector, low-duration, high-yield, municipal, U.S. government, U.S. corporate, international, global and mortgage-backed portfolios. He also chairs the duration committee, responsible for tactical positioning based on economic cycle analysis and valuation indicators, and works alongside committee co-chairs for sector allocation, yield-curve strategy, currency management and security selection. The global fixed-income team comprises 107 investment professionals averaging 19 years of industry experience and 14 years at Federated Hermes.

Ann Ferentino, CFA, senior portfolio manager and co-head of the Municipal Bond Group, will become the group’s sole head, assuming responsibility for $7.1 billion in municipal managed assets as of September 30, 2025. Ferentino, with 30 years at Federated Hermes, manages eight mutual funds and multiple client portfolios. Under the new structure, she will report directly to Gallo and oversee a nine-member municipal fixed-income team averaging 18 years of industry experience and 16 years with the firm.