Global Equity ESG
Fusing fundamental analysis with systematic rigour
Reasons to invest
Strong foundation
Disciplined approach, fundamental oversight
ESG can make money
Identifying positive change
Risk management
Strategy overview

A disciplined investment process with environmental, social and governancefactors at its core does not just provide a ‘feel-good factor’: it can improve returns.
Why Global Equity ESG?
The Strategy is designed to generate consistent excess returns and to outperform its benchmark in any market environment. Consistency is achieved by investing in a diverse range of companies with strong, long-term fundamentals 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.

The team joined Federated Hermes in 2007 with the specific aim of conducting ESG research and integration. The result of these efforts was pioneering research that linked ESG to investment performance and led to the creation of leading-edge proprietary tools, such as the QESG Score and ESG Dashboard. It also underscores our belief that companies less exposed to ESG risks will outperform over the long term, while those that are improving their ESG profile can unlock significant shareholder value. To learn more about our approach to ESG integration, click here.


How we invest
Each day, our proprietary systematic model (the Alpha Model) assesses the attractiveness of every stock in the investment universe. The metrics used to select stocks are justified by both economic reasoning and statistical effectiveness, and have a long-term focus that leads to low portfolio turnover. They are grouped by valuation, sentiment, growth, profitability, corporate behaviour and capital structure. This model creates an optimised portfolio that aims to maximise risk-adjusted returns.
There are a number of components to our risk management process:
- We use our proprietary risk-management system, MultiFRAME to manage and diversify macro and factor risks, ensuring that stock selection is the dominant source of relative risk and returns.
- We then perform a bottom-up ‘sense check’ to ensure the model has assessed the nuances of each potential investment.
- The ESG Dashboard, another proprietary tool, alerts us to stock-specific environmental, social and governance risks.
- We also collaborate with EOS, our leading stewardship team, and undertake a regular review of ESG issues and risk within portfolio holdings. EOS provides ESG expertise and company specific insights gained from engagements that we factor into our investment decision making process.
Investment philosophy
We believe companies less exposed to ESG risks will outperform over the long term and that companies improving their ESG profiles can unlock significant shareholder value.


Investment process
We use a systematic approach, our Alpha Model, which seeks to identify companies with an attractive combination of fundamental and ESG characteristics. This is combined with a disciplined subjective analysis that interrogates the model’s efficacy and assesses 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.
Team

Geir Lode
Head of Global Equities, Federated Hermes Limited

Louise Dudley, CFA
Portfolio Manager, Global Equities, Federated Hermes Limited

Lewis Grant
Senior Portfolio Manager, Global Equities, Federated Hermes Limited
Product information
For the latest performance and vital information – including prices, key facts, identifiers and ratings
Our Purpose
To deliver Sustainable Wealth Creation
Like all our investment capabilities, Federated Hermes Global Equity ESG aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.
Responsible, active investing for long-term performance.
- Financial objective
- Best-practice integration of ESG analysis and engagement insights
- Some capabilities may enforce exclusions that reflect Portfolio Managers’ investment views
- Delivery of sustainable outcomes through effective stewardship
Federated Hermes
Global Equity ESG
Mission-led investment strategies to create positive impact.
- Financial and impact objectives
- Best-practice integration of ESG analysis and engagement insights
- Focus on companies generating impact or undergoing positive transformation
- Some capabilities may enforce exclusions that reflect defined sustainability values, impact considerations, or both
- Delivery of sustainable outcomes through effective stewardship
Thematic and values-based approaches for sustainable outcomes.
- Financial and sustainability objectives
- Best-practice integration of ESG analysis and engagement insights
- Exposure to sustainability themes
- Exposure to ESG leaders and industry exclusions that reflect sustainability values
- Delivery of sustainable outcomes through effective stewardship