HGPE LLP Remuneration Policy

Introduction

Our remuneration policy is designed to attract, motivate, retain, and reward staff, regardless of each individual’s protected characteristics (as per the Equality Act 2010), including gender, ethnicity, age, disability, socio-economic status, gender reassignment, race, marital or civil partnership status, pregnancy or maternity, religion or belief, or sexual orientation.

Our philosophy is to reward individual contribution, as demonstrated by the delivery of results that are aligned with our business strategy, values and, behaviours and which serve the best interests of our clients, their investors and our shareholders while enabling the business to profitably grow to its potential.

Through focusing on long-term awards (including co-investment of deferred bonuses in funds managed by FHL Group), our remuneration strategies are designed to: encourage all staff to act like long term stakeholders; create enduring, responsible wealth for our clients and their investors; support our responsible performance culture to create a sustainable business; discourage excessive or concentrated risk taking; and avoid conflicts of interest.

Individual and organisational performance is transparently and rigorously assessed against a combination of financial (multi-year) and non-financial targets and criteria to determine appropriate total compensation that will attract and retain our talent.

Reward Strategy Principles

Our policies, procedures and practices are guided by our principles, which form the basis of our approach to performance and behaviour-linked total compensation. Our reward principles are:

• to encourage employees to deliver on the business purpose of enduring, responsible wealth creation that enriches investors, society, and the environment;
• to be aligned with business strategy, objectives, values and long-term interests of the LLP, its clients and their investors as reflected in the Federated Hermes Pledge;
• to provide competitive total remuneration potential, designed to attract, retain, motivate, and reward employees that deliver outstanding long-term performance and corporate behaviours;
• to promote sound and effective risk management;
• to ensure remuneration is linked to investment, business, personal performance, and corporate behaviours for all employees, and where appropriate measured over the short, medium, and long term;
• to differentiate and reward strong performance and demonstration of behaviours and to proactively manage poor performance and behaviours not aligned to our values;
• to deliver reward programs which are transparent, simple to administer and affordable; and
• to deliver compensation and benefit strategies consistent with the ethos and strategy set by the LLP’s ultimate parent undertaking, Federated Hermes, Inc. (“FHI”).

Categories of Staff (Material Risk Takers, Code Staff and Identified Staff)

Regulations on remuneration impose particular requirements on personnel identified as Material Risk Takers (“MRTs”) under the MIFIDPRU remuneration code and/or Code Staff under other applicable remuneration codes. For convenience, the remainder of this section used the term “MRT” to refer to personnel identified as an MRT and/or Code Staff.

Material Risk Takers may be employed by or considered employees of other entities, including other entities within the group headed by FHI.

The LLP has undertaken a comprehensive review to identify those persons which it considers to be MRTs for the purposes of the remuneration requirements. In doing so, the LLP considered and reviewed all employees who have a material impact on the LLP’s risk profile, including any employee who performs a significant influence function, or a Senior Manager Function under the Senior Managers & Certification Regime (“SMCR”) for the LLP, senior managers, and risk takers. In seeking to identify MRTs, the LLP considered those employees that might exercise significant influence in relation to any material risks to both the LLP and to the assets under its management, including those identified in the LLP’s ICARA. This review is undertaken periodically. The MRT list is used for assigning SMCR Certification Significant Harm Functions, including MRT and Significant Management functions.

Governance

The governing body of the LLP (“Governing Body”) sits as the remuneration committee of the LLP (“RemCo”). The Governing Body is responsible for the remuneration policies and practices of the LLP. The RemCo oversees the implementation of the Policy. Certain decisions are taken by the Governing Body sitting as the RemCo.

Annual Review

On an annual basis, the HGPE LLP Governing Body review this Policy and assess whether its overall remuneration framework operates as intended and is compliant with the obligations on remuneration policy as set out in the Alternative Investment Fund Managers Directive (“AIFMD”), the Investment Firms Prudential Regime (“IFPR”) and the Markets in Financial Instruments Directive (“MiFID II”). The Remuneration Policy will be updated by the HGPE LLP Governing Body as and when required.

Effective Date

The effective date of this Policy is 2025.