Celebrating its 20th anniversary, EOS at Federated Hermes Limited (EOS) has passed US$2 trillion in assets on which it advises on behalf of its asset owner clients. Through its corporate engagement and proxy voting services, EOS enables its clients to be more active owners of their equity and fixed-income assets, with the aim of enhancing financial performance over the long-term including through better outcomes for society and the environment.
Year to date, EOS has welcomed six new asset owner-clients representing a collective portfolio of US$330bn. Clients come from the insurance sector, local government and private pension schemes in Australia, Denmark, Sweden and the United States, where EOS established its presence in 2018 and has since doubled its client base.
We are privileged to serve over 70 institutional investor clients representing over US$2 trillion of assets, engaging with companies and policymakers on key business performance themes such as corporate governance, business purpose, climate change, human capital and human rights. Since EOS was established, our multi-disciplinary and internationally diverse team has grown to over 40 people in Europe and the US.
The purpose of our service remains fundamentally about stewarding clients’ investments as an active, engaged owner as a way to add financial value. However, our approach has significantly developed both through the sophisticated techniques employed by our engagers and our introduction of systematic engagement and tracking tools to measure progress and outcomes. This evolution has come against the backdrop of a greater understanding and enthusiasm for active ownership which we have seen through the growing demand for EOS services.
Leon Kamhi, Head of Responsibility and EOS at Federated Hermes Limited
Looking ahead to the next 20 years, a survey of EOS clients revealed a clear consensus that our stewardship approach should continue to focus on enhancing financial performance of issuers and value of clients’ portfolios by achieving positive real-world outcomes. Examples include the strong recovery of the natural world, real decarbonisation, reduction in inequality within and between nations and significant progress on workforce conditions.
Clients also emphasized the need for all stakeholders, including investors, businesses, and policymakers to give greater attention to how the new global economy will develop. They highlighted the importance of policymakers setting longer time horizons for policy to allow companies to better align their longer-term capital expenditure decisions and strategic planning with the transition.
Mike Wills, Head of EOS Business Development & Client Management at EOS at Federated Hermes Limited
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