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Sustainable
Global Equity

Investing in attractive companies whose products, operations and activities help create a more sustainable future.

Reasons to invest

Connect performance with positive outcomes for people, the planet and investors

Focus on companies leading the global sustainability transition

Target profitable businesses capitalising on underappreciated long-term change

Access skilled stock-picking, thematic investing and world-leading engagement teams

Benefit from innovative, proprietary ESG analysis that delves deeper than mainstream ratings

Quick links

Strategy overview

By investing with high conviction in companies leading the sustainability transition, we target financial outperformance and positive outcomes.

Martin Todd, CFA - Portfolio Manager

Why Sustainable Global Equity?

Businesses driving the sustainable transition operate on the right side of social and environmental change and are usually built on strong foundations. They are purposeful, resilient, innovative companies in control of their own destinies – consistently generating cash flow and profits through products, services and activities that help create a better world.

Sustainable investing seeks long-term financial outperformance and social and environment change benefiting current and future generations. By focusing on companies whose activities are aligned with clear themes – including health and wellbeing, inclusivity, efficient and circular production and a thriving natural environment – investors can make a real difference.

Markets can be relatively efficient over the short term, but they struggle to discount positive change over the medium and long term. This means quality businesses helping to improve society and the environment often have better long-term performance prospects than many of the largest stocks in the index today.

How we invest

We apply exclusions to the global equity universe to ensure that companies restricting sustainable outcomes are omitted from the portfolio, and then identify potential investment opportunities aligned with our four key themes of environment, social inclusion, efficiency, and health and wellbeing.

With a fusion of fundamental analysis seeking evidence of business strength, ESG and engagement integration and product impact. We construct proprietary and comprehensive sustainability scores for companies which we believe have greater depth than third-party ESG ratings.

We seek attractive companies where the share price does not reflect the sustainable growth of the business. And with a combination of investment analysis and engagement insights – in collaboration with our stewardship business, EOS at Federated Hermes (‘EOS’) – we ensure that portfolio companies continue to deliver on their financial and sustainability targets.

Investment philosophy

The beliefs driving our investment approach

Investment process

  • Apply exclusions to the global equity universe
  • Exclusions include weapons, fossil fuels, alcohol, gambling and tobacco
  • Ensures that companies in industries restricting sustainable outcomes are omitted from the portfolio

  • Searching the filtered universe through four thematic lenses which are aligned to the UN Sustainable Development Goals: environmental preservation, social inclusion, health and wellbeing and efficient production and resource usage

  • Fundamental analysis of companies aligned with one or more of these themes for evidence of the durability of the business model, financial resilience, investment for growth, robust governance and sound capital allocation

  • Combining these findings with sustainability factors to generate a proprietary Sustainability Score for each business
  • Sustainability factors include companies’ alignment with the UN Sustainable Development Goals (SDGs), balance of positive and negative externalities and risk of regulatory interference

  • Assess fair value on a variety of metrics, explore the bull, bear and base case and seek to identify mispricing

  • Allows time for companies to realise their growth potential
  • Engaging with companies – in collaboration with our stewardship business, EOS at Federated Hermes – to sustain or improve their positive influence on society and the environment

Team

Martin Todd, CFA

Lead Portfolio Manager

16 years' industry experience

Ingrid Kukuljan

Co-Portfolio Manager

23 years' industry experience

Henry Biddle, CFA, FCA

Deputy Portfolio Manager

15 years' industry experience

Supported by

5

Investment Office professionals

13

Responsibility Office professionals

38

EOS at Federated Hermes professionals

Our Purpose

To deliver Sustainable Wealth Creation

Like all our investment capabilities, Federated Hermes Sustainable Global Equity aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.

Our business provides three equally powerful pathways to achieving this aim. Sustainable Global Equity features in the Sustainable route.