Reasons to invest
The value of investments, and income from them, may go down as well as up, and you may not get back the original amount invested.
1ESG Investing: A social uprising, by Federated Hermes, published November 2018
A disciplined investment process with environmental, social and governance factors at its core does not just provide a ‘feel-good factor’: it can improve returns.
Why Global Equity ESG?
The Strategy is designed to generate consistent excess returns and to outperform its benchmark in any market environment. Consistency is achieved by investing in a diverse range of companies with strong, long-term fundamentals and ESG characteristics. This helps defend against swings in style and means clients are not required to time their entry point to benefit from a particular style tailwind.
The team joined Federated Hermes in 2007 with the specific aim of conducting ESG research and integration. The result of these efforts was pioneering research that linked ESG to investment performance and led to the creation of leading-edge proprietary tools, such as the QESG Score and ESG Dashboard. It also underscores our belief that companies less exposed to ESG risks will outperform over the long term, while those that are improving their ESG profile can unlock significant shareholder value. To learn more about our approach to ESG integration, click here.
How we invest
We believe companies less exposed to ESG risks will outperform over the long term and that companies improving their ESG profiles can unlock significant shareholder value.
We use a systematic approach, our Alpha Model, which seeks to identify companies with an attractive combination of fundamental and ESG characteristics. This is combined with a disciplined subjective analysis that interrogates the model’s efficacy and assesses the ESG characteristics of a company to identify potential weaknesses not captured by the model. The Axioma Optimiser combines stocks in an optimal portfolio to favour stock-specific risks and diversify top-down exposures.
For the latest performance and vital information – including prices, key facts, identifiers and ratings
Read our latest portfolio perspectives