ESG rigours must be applied to ABS market
While ESG integration has hit the mainstream across multiple asset classes, focus on ESG factors in asset-backed securities (ABS) has been more limited. In the latest ‘Spectrum’ report, Andrew Lennox, ABS Portfolio Manager at Hermes Investment Management, looks at how ESG factors can be considered within the ABS market. Building a framework for assessing ESG within […]
Hermes calls for active stewardship transformation across asset management industry
The investment management industry is today falling short of its duty to create long-term, sustainable wealth and must now put active stewardship at the centre of its activities, operations and purpose. This is the conclusion of a new paper from Hermes Investment Management. The paper, Stewardship: The 2020 Vision, calls for an end to the short-term […]
UBS, Federated Investors, Inc. and Hermes Investment Management Launch Innovative Fixed Income Impact Funds
Federated Investors Inc., Hermes Investment Management and UBS today announced the launch of new SDG Engagement High Yield Credit funds. These pioneering funds1 will seek to achieve a meaningful social and/or environmental impact as well as a compelling return by investing in high yield bonds and engaging with their issuers. The Funds will have a […]
New research highlights correlation between ESG and sovereign spreads
Countries that score highest on environmental, social and governance (ESG) issues benefit from tighter credit default swap (CDS) spreads than those with lower ESG scores, according to new research from the Credit and Responsibility teams at Hermes Investment Management and the Macroeconomic Research team at Beyond Ratings. Pricing ESG risk in sovereign credit, examines the […]
Hermes EOS calls on Alphabet to lead responsible A.I. practice
Ahead of Alphabet’s Annual Meeting of Stockholders on Wednesday 19 June, Dr Christine Chow, Director of Hermes EOS, Hermes Investment Management, highlights the issues she will be raising when she addresses the event, including calling on the company to strengthen Board oversight in its use of artificial intelligence (A.I.). Dr Christine Chow explained: “The power […]
Hermes CEO Saker Nusseibeh signs accords on Carbon Pricing and Carbon
Risk Disclosures
Being good is good business
The world is at a tipping point. Responsible investment, once seen as the preserve of niche green investors, is now mainstream under the rubric of environmental, social and governance (ESG) investing and stewardship. Federated Investors, Inc. (NYSE: FII) and Hermes Investment Management are challenging accepted investment dogma and clarifying the confusion about ESG and fiduciary […]
When China sneezes, will Germany catch a cold?
Despite promising Q1 growth figures, China’s structural slowdown is likely to continue in the medium-term, which leaves one economy feeling the heat more than others: Germany. With demand for its speciality goods falling, Germany finds itself in a compromised position, with its undesirable domestic conditions failing to act as reassurance. Silvia Dall’Angelo, Senior Economist at […]
Fuelling the M&A pipeline in US oil and gas
Two oil and gas companies, Chevron and Occidental, recently submitted proposals to acquire their peer Anadarko. Audra Stundziaite, Deputy Head of Credit Research at Hermes Investment Management, explores the theme of consolidation in the energy sector and asks: will the deal presage a new buying spree in the Permian Basin? A wave of M&A activity has […]
Five misconceptions of company engagement
The role of an investor in addressing and improving a company’s environmental and social impact through engagement, is being increasingly recognised. However, it remains a young phenomenon for most and therefore many myths around approaches to engagement and a company’s willingness to change exist. In this note, Will Pomroy, Lead Engager of the Hermes SDG Engagement […]
