Authors

New research from the Global Equities team at the international business of Federated Hermes shows that companies with good or improving social practices can potentially add up to 17bps each month to returns.

Looking at the extreme market events of the past 12 months can provide some valuable insights for investors.

We examine how ESG factors have behaved during the ongoing coronavirus pandemic.

Combining attractive fundamentals and good or improving ESG characteristics

We explore our Global Equities team’s unique investment style and whether their philosophy has changed during the coronavirus pandemic.

Our Global Equities team explain the benefit of being a global investor in turbulent times.

We explain why we adopt an integrated investment approach and how it shapes our research agenda.

We examine how ESG investing has powered into the mainstream since 2014.

Today, we look back on six years of Global Equity ESG.

Our seminal paper, ESG investing: does it just make you feel good, or is it actually good for your portfolio?, published in 2014, demonstrated the performance benefits of integrating environmental, social and governance (ESG) factors into investment decisions. 

In this podcast, Lewis Grant, Senior Portfolio Manager in the Global Equities team, discusses the Hermes Global Equity ESG Fund, in particular covering the following topics:

Market behaviour can be extremely erratic which can create a huge amount of uncertainty when predicting the future. In this insight, Lewis Grant, Global Equities Senior Portfolio Manager at Hermes Investment Management, explains why he therefore favours a consistent, boring approach over one that is fuelled by sentiment and hype. Excitement in investment is rarely a good thing. It can create hype which in turn can lead to irrational behaviour. If we take Bitcoin as an example, hype around investment in the cryptocurrency drove the asset class to grow at a phenomenal rate and for a while, this sentiment-led growth may have left investors feeling excited about potential returns. Price momentum can act as an incredibly effective investment signal but it can also be a dangerous one. We believe it is important to remain emotionally unbiased as euphoria should not be the goal of investing. That is not to say such hyper-growth investments need to be avoided altogether, but instead understood in a risk controlled portfolio and as part of a disciplined, diversified approach.