Global asset manager Federated Hermes has announced two senior appointments to its fixed income team.
R.J. Gallo has been promoted from deputy chief investment officer (CIO) for fixed income to CIO for fixed income, having worked at the fund manager for more than 20 years.
This will see him oversee all aspects of the firm’s fixed income investment process across US$101.8 billion ($151 billion) in assets under management across multi-sector, low duration, high yield, US government, corporate bonds, international, global and mortgage-backed securities.
He also will be responsible for developing investment teams and overseeing portfolios and risk management.
He will succeed Rob Ostrowski who holds the role currently but is due to step down at the start of May 2026. Ostrowski has worked at Federated Hermes for 38 years and was named fixed income CIO in 2004 with fixed income assets having grown from US$29.5 billion to $101.8 billion over his tenure.
Additionally Ann Ferentino will become senior portfolio manager and head of the Municipal Bond Group, having previously been co-head of the group alongside Gallo. This will see her assume oversight of the firm’s municipal managed assets which total US$7.1 billion.
She will also continue her role managing seven mutual funds and other client portfolios.
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, said: “R.J. 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.
“He 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.
“Ann Ferentino brings a vast knowledge of municipal bond markets to her new role. 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.
“During his tenure in investment management, Bobby established and grew our reputation for strong, risk-adjusted results in our multisector products throughout business cycles. Federated Hermes’ clients can be assured that we will continue to offer the same strategies and processes that have earned our well-deserved reputation as a strong fixed-income manager.”
