Search this website. You can use fund codes to locate specific funds

The Why Question

At Hermes we have long held the belief that the financial system should operate in the interests of its ultimate asset owners, not its various agents. We also recognise that the decisions financial practitioners make on how to invest beneficiaries’ money entrusted to them shapes the society they will live in. Further, we argue that the differentiation between ‘shareholders’ and ‘stakeholders’ which is often produced to justify the status quo is inherently false. Today, the majority of shares are owned (through savings and pensions) by the very people who make up what we think of as societal stakeholders. That the majority of these same stakeholders perceive the ‘system’  to have failed them is becoming increasingly clear around the developed world and has been noted by many, most recently here by the Prime Minister.

I propose in my paper entitled “The Why Question”, that the current  ‘professional’ understanding of investment theory which seems to frame the financial world almost as entirely separate from the real world that ordinary investors and beneficiaries live and work in was a main contributory factor to the crises in 2008 and the increasing level of public distrust towards business and finance that resulted from it, and which is threatening the sustainability of the free market model.

More Insights

Credit: Industry Insights
This week, Ilana Elbim, Senior Credit Analyst, asks: has the coronavirus crisis simply accelerated trends already in motion in the retail sector?
Monthly Fund Commentary, April 2020
Please read on for more information and a summary of performance, activity and our investment outlook, from our Portfolio Managers.
Weekly Credit Insight
In an atmosphere of uncertainty, dispersion between high and low-quality credit has risen.
Building back better: why climate action is key to a resilient recovery
Why stimulus measures should be combined with efforts to tackle climate change
Fiorino: in this pandemic, asset quality is key to banks' health
In this launch issue of our Fiorino blog, we assess how banks are preparing for corporate defaults resulting from lockdowns across economies worldwide.
Gemologist: can we adapt to a new climate normal?
Climate change will test our ability to avoid mortal danger more than ever before. Humanity’s ability to adapt, something we have excelled at, must again come to the fore.