Federated Hermes appoints global fixed income investment chief

Yasmine Raso

Senior Journalist, Financial Newswire

14 January 2026

Federated Hermes has confirmed some changes to its global fixed income leadership team, with current deputy CIO R.J. Gallo to succeed outgoing executive vice president and current CIO, Robert Otrowski.

Gallo will spearhead Federated Hermes’ global fixed income investment approach, process and teams, covering multisector, low duration, high-yield, municipal, US government, US corporate bond, international, global and mortgage-backed strategies to total $101.8 billion in assets.

Having first joined the active manager in 2000 Gallo boasts over 31 years of investment experience, and will continue to act as senior portfolio manager and head of the duration committee.

“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 closedend funds,” 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. 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.”

As a result of Gallo taking on new responsibilities, his current role as co-head of the Municipal Bond Group will be absorbed by fellow co-head Ann Ferentino, who will assume full responsibility for the firm’s municipal managed assets totalling approximately $7.1 billion.

“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.”

Ostrowski’s planned retirement as of 1 May this year caps off a 38-year career spent at Federated Hermes, having grown the firm’s fixed income assets under management (AUM) by $72.3 billion since his appointment as CIO in 2004.

“We thank Bobby for his outstanding contributions during his 38 years with the firm,” Fisher said.

“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.”