Global Equity

Fusing fundamental analysis with systematic rigour

Reasons to invest

Consistency

The Fund has outperformed in the majority of quarterly periods and calendar years since its 2008 inception. Past performance is not a reliable indicator of future performance.

Fundamental focus, systematic execution

We employ systematic analysis to identify companies with the most attractive combinations of fundamental characteristics.

Style agnostic

We believe analysing companies across a broad range of perspectives helps to generate positive returns in various market environments and defend against large swings in style.

ESG integration

Companies with a good or improving ESG track record are favoured. Our leading stewardship team, EOS, provides best-of-breed engagement insights.

Risk management

Proprietary risk management tools enable the team to monitor and neutralise macroeconomic risks before they impact returns.

Strategy overview

Lewis Grant

We assess each stock’s value, growth and quality characteristics, along with market sentiment towards the company, to find those with the optimum combinations.

Lewis Grant
- Senior Portfolio Manager

Why Global Equity?

The Strategy is designed to generate consistent excess returns and to outperform its benchmark in any market environment. We aim to outperform by a small margin each quarter, while generating a high information ratio and maintaining a low turnover. Consistency is achieved by investing in a diverse range of companies with attractive combinations of long-term fundamental and ESG characteristics. This helps defend against swings in style and means clients are not required to time their entry point to benefit from a particular style tailwind.

Assessment of a company’s ESG characteristics is a vital part of the team’s investment approach. We use ESG research in proprietary models and in discussion with our voting and engagement experts, EOS at Federated Hermes. We believe companies less exposed to ESG risks will outperform over the long term. To learn more about our approach to ESG integration, click here.

The team is also highly experienced in delivering bespoke solutions for institutional clients, such as our Low Carbon and Screened ESG strategies. These solutions incorporate sustainability, ESG and clients’ own ethical beliefs, enabling clients to achieve their investment goals without compromising their beliefs.

How we invest

Pragmatism over perfection
Systematic analysis
Risk management

Investment philosophy

Our investment philosophy can be encapsulated in four words: pragmatism, sustainability, responsibility and longevity.

The team takes a pragmatic view of the investment universe to identify stocks with the most attractive combinations of fundamental characteristics. We look for companies with sustainable business models and competitive advantages. In addition, it is important that companies behave responsibly, which leads us to companies that are well governed and treat their responsibilities to society and the environment seriously – such companies are more likely to avoid negative surprises. Choosing companies that demonstrate a combination of these characteristics allows the team to hold stocks over the long-term: it is only in the long term that a company can fulfil its potential.

Investment process

We use a systematic approach, our Alpha Model, which seeks to identify companies with an attractive combination of fundamental characteristics. This is combined with a disciplined subjective analysis that interrogates the model’s efficacy, assesses unquantifiable factors and the ESG characteristics of a company to identify potential weaknesses not captured by the model. The Axioma Optimiser combines stocks in an optimal portfolio to favour stock-specific risks and diversify top-down exposures.

Global equity infographic

We assess macro risks and stress-test the portfolio. We perform a subjective ‘sense check’ to validate the data, assess unquantifiable factors and interrogate ESG before constructing the final portfolio.

Team

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Geir Lode

Geir Lode

Head of Global Equities, Federated Hermes Limited

Louise Dudley

Louise Dudley, CFA

Portfolio Manager, Global Equities, Federated Hermes Limited

Lewis Grant

Lewis Grant

Senior Portfolio Manager, Global Equities, Federated Hermes Limited

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Insights

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