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

Viral volatility: how Covid-19 is infecting sentiment
What does the latest reading of our complacency indicator show?
Pandemic panic: making sense of investor behaviour
The COVID-19 crisis has revealed consumer behaviour at its most extreme, as shortage fears have resulted in people stockpiling toilet paper and food.
Weekly Credit Insight
Credit quality within the global high-yield market is currently much higher than during previous drawdowns.
Sharpe Thinking
The past week has seen sporadic bursts of positive market sentiment, amid a constant volley of new data.
Monthly Fund Commentary, February 2020
Please read on for more information and a summary of performance, activity and our investment outlook, from our Portfolio Managers.
Fixed income: a focus on fundamentals favours the brave
Are there opportunities for investors to find securities that have become dislocated from their intrinsic value?