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  • Saker Nusseibeh
    This year, US and Asian markets have so far bounced back – but that is where the similarity ends.
  • March 5, 2018
    Corporate News
    Harriet Steel
    Hermes Investment Management, the £33.0 billion manager, has today published its Gender Pay Report in accordance with the UK Government Equalities Office reporting regulation, requiring employers with more than 250 or more employees to disclose annually on their Gender Pay Gap.
  • November 8, 2017
    Corporate News
    Saker Nusseibeh
    2018 is likely to be an unusual year for markets. So far in 2017, the MSCI world index is up some 18% and stands on a P/E of just over 21x. We are now in the 9th year of the bull run since the trough of 2008. By all traditional measures, market participants would expect a correction at some stage, and the question would be whether it would be what we in Hermes term a black bear (traditionally the less aggressive of the species) of circa 25% as in 1957, 1962, and in 1978; a brown bear (the more aggressive of the species) of circa 45% as in 1973, 2001 and 2008 or a mere correction of anywhere between 5% and 17% as in 1956, 60, 66, 77, 81, 90, 2008 and 2011.
  • March 29, 2017
    Corporate News
    Saker Nusseibeh
    Saker Nusseibeh, Chief Executive: One of the main flaws of this entire process, indulged in by both sides, is to talk as if the effects of Brexit would be instantaneous or clear-cut once it is triggered. To restate the obvious, Brexit is a long, complicated and arduous set of negotiations, of which the commercial outcomes and their long-term effects on the economy are unlikely to be clear for many years to come. The most immediate effect of the Brexit vote (a 20% devaluation of our currency) was not about the outcome of Brexit per se, but merely a logical hike in the risk premium for UK assets while we wait to see whether the effects of whatever can be negotiated are good or bad for the country in the long term. Triggering Article 50 can therefore be likened to embarking in a raft or canoe down a very windy and dangerous set of rapids. All we know at present is that the journey is long, the path of the rapids will likely take unusual twists and turns, and that the ride will be turbulent. Whether we arrive at the end of the rapids in a wide tranquil lake, under glorious sunshine with strains of Elgar’s Nimrod playing in the background, or whether we sail over a waterfall with the sound of Colonel Bogey is anyone’s guess at present. However, I rather hope and pray it will be the former, and not the latter scenario that transpires.
  • March 6, 2017
    Outcomes
    Saker Nusseibeh
    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.
  • January 27, 2017
    Private Markets
    Saker Nusseibeh
    Saker Nusseibeh, Chief Executive: With the vote decided yesterday, we now have to move away from the rhetoric that typified this campaign. Prior to the referendum, we ran several scenarios on our strategies, and we are reasonably confident that they were well positioned for a Brexit vote in the short term. However, we are watching market moves very carefully to assess the degree of contagion, if any, to global markets.
  • November 21, 2016
    Corporate News
    Saker Nusseibeh
    Saker Nusseibeh, Chief Executive, Hermes Investment Management responds to the FCA interim report. We welcome the FCA’s efforts to seek a better deal for savers, which is overdue. As a business, our mission is to help savers and beneficiaries retire better. We believe this can only be achieved by looking at long-term holistic returns that go beyond the narrow short-term financial metrics pursued by many. It is this reason, we believe, that explains our track record over the past three years and five years, with 88.9% and 92.3% of our strategies outperforming the benchmark respectively. Hermes has delivered this with an active share of 87%, that at least indicates that we are delivering active, as opposed to closet index, management.
  • September 19, 2016
    Stewardship
    Saker Nusseibeh
    Hermes Investment Management, the £26 billion manager focused on delivering superior, sustainable, risk adjusted returns to its clients – responsibly, has today published the first paper from its annual Responsible Capitalism survey[1], Many rivers to cross – Slow progress towards responsible capitalism. The survey reveals a number of emerging trends that have worrying consequences for responsible capitalism advocates. The survey of 102 leading UK & European institutional investors found that 7% fewer investors believe significant environmental,