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

Eurovision: why the region’s banks seek dance partners
Economic, regulatory and technological forces are setting a drumbeat for mergers between European financial institutions.
Sustainability-linked bonds get the green light
The European Central Bank announced its support for sustainability-linked bonds this week.
SDG Engagement High Yield Credit Commentary: Enel
We think that Enel is particularly well placed to align its operations with the delivery of the SDGs.
Economic Outlook: Will the debt matter?
Neil Williams examines the impact that various pandemic-related stimulus packages have had on both global government debt and the efficacy of monetary and fiscal tools available to policy-makers.
Credit: Industry Insights
With second-quarter earnings wrapped up for US retailers, all eyes are now on the holiday season. How will retailers fare in the second half of the year?
Launching new carbon-disclosure standards for UK finance
We played a key role in launching the UK coalition of the Partnership for Carbon Accounting Financials this week.