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Federated Hermes to launch Sustainable Global Equity Fund

by LLP Editor
15th Mar 21 11:02 am

The international business of Federated Hermes has today announced the launch of a new Sustainable Global Equity Fund, the first of a new Sustainable suite of products being developed by the firm to meet strong demand from clients for values-based solutions. The new fund will be managed by Martin Todd and will be available to investors in the second quarter of 2021.

With its long-standing commitment to creating sustainable wealth for its clients, the international business of Federated Hermes has reclassified its product range, creating three distinct and clearly labelled fund categories from which investors can select; Active ESG, Impact and Sustainable. The Sustainable Global Equity Fund and the expansion of the ‘Sustainable’ category in which it sits is a natural extension of the products already offered by the firm.

The Sustainable Global Equity Fund aims to deliver long-term transformative change and financial outperformance by identifying profitable, sustainable companies whose activities help create a more sustainable future. The Fund will have a dual objective of achieving capital growth and a reduced environmental footprint compared to the Benchmark. The investment process will encompass exclusions, proprietary sustainability scores and a clear thematic framework focused on four main areas: environmental preservation, social inclusion, health and wellbeing and efficient production and resource usage.

The Fund will be managed by a team with expertise in global, thematic investing. Lead Manager Martin Todd will work alongside Ingrid Kukuljan, Head of Impact and Sustainable Investing, who will be Co-Manager, and Henry Biddle, US Equities Portfolio Manager as Deputy Manager.

Martin and Ingrid have demonstrated a successful portfolio management approach together in managing the Federated Hermes Impact Opportunities Equity Fund. The Fund has outperformed the benchmark over 1, 2 and 3 years and since inception.

Martin Todd, Lead Manager of the Fund, at the international business of Federated Hermes said, “Companies leading the sustainability transition have more than just excellent ESG profiles. Their activities directly contribute to a more sustainable future. Our high-conviction, bottom-up approach combined with best-in-class ESG and stewardship integration will allow us to identify these investment opportunities and create long-term transformative change and financial outperformance.”

Harriet Steel, Head of Business Development, at the international business of Federated Hermes, said “We have seen a welcome and marked acceleration towards responsible and sustainable investing in the last year, with clients of all types reassessing their long-term objectives.

The proliferation of related products has made it harder for investors to decipher and assess what is available to them. Aligning with EU regulation coming into force this year, the reclassification and expansion of our product range will offer transparency to clients and reflect the sustainable heritage and integrity of our firm.”

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