We permit the publication of our auditors’ report, provided the report is published in full only and is accompanied by the full financial statements to which our auditors’ report relates, and is only published on an access-controlled page on your website, to enable users to verify that an auditors’ report by independent accountants has been commissioned by the directors and issued. Such permission to publish is given by us without accepting or assuming any responsibility or liability to any third party users save where we have agreed terms with them in writing.

Our consent is given on condition that before any third party accesses our auditors’ report via the webpage they first document their agreement to the following terms of access to our report via a click-through webpage with an 'I accept' button. The terms to be included on your website are as follows:

I accept and agree for and on behalf of myself and the Trust I represent (each a "recipient") that:

  1. PricewaterhouseCoopers LLP (“PwC”) accepts no liability (including liability for negligence) to each recipient in relation to PwC’s report. The report is provided to each recipient for information purposes only. If a recipient relies on PwC’s report, it does so entirely at its own risk;
  2. No recipient will bring a claim against PwC which relates to the access to the report by a recipient;
  3. Neither PwC’s report, nor information obtained from it, may be made available to anyone else without PwC’s prior written consent, except where required by law or regulation; and
  4. PwC’s report was prepared with Hermes Property Unit Trust's interests in mind. It was not prepared with any recipient's interests in mind or for its use. PwC’s report is not a substitute for any enquiries that a recipient should make. The financial statements are as at 25 March 2017, and thus PwC’s auditors’ report is based on historical information. Any projection of such information or PwC’s opinion thereon to future periods is subject to the risk that changes may occur after the reports are issued and the description of controls may no longer accurately portray the system of internal control. For these reasons, such projection of information to future periods would be inappropriate.
  5. PwC will be entitled to the benefit of and to enforce these terms.
I accept

1. Select your country

  • United Kingdom
  • Austria
  • Australia
  • Belgium
  • Denmark
  • Finland
  • France
  • Germany
  • Iceland
  • Ireland
  • Italy
  • Luxembourg
  • Netherlands
  • Norway
  • Singapore
  • Spain
  • Sweden
  • Switzerland
  • USA
  • Other

2. Select your investor type

  • Financial Advisor
  • Discretionary Investment Manager
  • Wealth Manager
  • Family Office
  • Institutional Investor
  • Investment Consultant
  • Charity, Foundation & Endowment Investor
  • Retail Investor
  • Press
  • None of the above

3. Accept our terms and conditions

By clicking Proceed I confirm I have read the important information and agree to the terms of use.


The Hermes Investment Management website uses cookies to remember your preferences and help us improve the site.
By proceeding, you agree to cookies being placed on your computer.
Read our privacy and cookie policy.

UK Equities

Home / UK Equities

Active management of high-conviction investments within the UK

Hermes UK Small and Mid Cap Companiesstormont-quote

Risk managers in a high-return potential asset class

Objective: aiming to provide long-term capital appreciation by investing primarily in equity securities of small and mid-cap companies (excluding investment companies), which the Investment Manager has identified as undervalued.

Why Hermes Small & Mid Cap Companies?

  • Risk management is at the core of the investment process: investment risks are considered constantly throughout stock
    appraisal, portfolio construction and monitoring with the aim to deliver high returns with lower risk to capital.
  • Analysing stocks, not the market: the managers focus on stock selection and do not attempt to time the market. The overwhelming majority of active risk is intentionally derived from stock selection.
  • Active management with conviction: David and John run a concentrated portfolio of no more than 70 stocks, with a high active share. Each stock has earned its place – they only hold stocks they have thoroughly researched and believe can outperform over the long term.
  • Capitalising on pricing anomalies: the managers identify companies capable of delivering sustainable, growing cash flows, which has not been reflected in share prices.
  • Investing like owners, not traders: the managers are long-term investors. Companies are typically held for more than three years, to benefit from re-pricing.

Philosophy and process
The Hermes UK Small Cap Team seeks to invest in companies that are able to deliver long-term, sustainable and growing cash flows, as they believe these characteristics are essential to creating value for

The managers are looking for evidence of durable competitive advantage, reinforced by capital discipline, and management teams that have the skills required to strengthen and defend their business models amid changes in the competitive environment.

Risk management is integral to the investment process and is considered in investment analysis and the construction and regular monitoring of the portfolio. Returns and risks are the results of stock selection rather than market beta, sector tilts or macro positioning. Capital is preserved through buying stocks at prices below the managers estimate of their intrinsic value.