Hermes takes a responsible and prudent approach to managing the capacity of our strategies. We seek to protect our clients’ interests from two key perspectives by ensuring, to the extent possible, that:
(i) we can continue to maximise the potential to deliver sustainable, risk adjusted performance by actively managing capacity so that our strategies’ portfolio characteristics can be maintained; and
(ii) Hermes’ products can continue to meet their liquidity commitments to investors and the FCA’s good practice guidance for liquidity.
Capacity management is therefore key to safeguarding optimal investor outcomes.
To assist in these efforts, Capacity Management Measures (the “Measures”) may be introduced to manage the size of assets within a particular strategy. The Measures include restricting investment from new investors and imposing a Maximum Subsequent Subscription Amount (the “Daily Limit”, i.e. a limit on the maximum amount a Shareholder can subscribe in a Share Class of a fund per Dealing Day), amongst other Measures as detailed in the relevant fund documentation and this web page from time to time.
Unless the context requires otherwise, any capitalised terms used on this web page shall have the meaning attributed to them in the relevant fund’s governing documentation.
The following Measures are currently in place:
Hermes Investment Funds plc
Federated Hermes Asia ex-Japan Equity Fund (the “Fund”)
On 25 March 2020, the Hermes Investment Funds plc Board of Directors (the “Directors”) issued a shareholder notice to advise Shareholders that, until advised otherwise, the Daily Limit for existing investors is being removed, with immediate effect.
As per the shareholder notice issued on 17 February 2017 the Fund remains closed to new investors.
Exceptions to the Measures
Using the discretion permitted to the Directors within the Fund’s governing documentation, and remaining within the spirit of Hermes’ capacity management philosophy, the Directors have approved existing shareholders to have the ability to invest via additional accounts. As per the shareholder notice issued on 17 February 2017, Shareholders are permitted to make advance requests to Hermes, at least 24 hours prior to the applicable Dealing Deadline of the proposed Dealing Day, to invest into the Fund via a new account not currently on the Shareholder register. Prior approval from Hermes is required and Shareholders need to confirm that they control the additional account. Please note, because of this, requests to add additional accounts may be declined.
For any queries please contact [email protected], or your sales contact.