Federated Investors, Inc. (NYSE: FII), one of the world's largest investment managers, today announced the launch of the Federated Hermes Global Equity Fund and the Federated Hermes Global Small Cap Fund. The two new funds expand Federated's global equity lineup and build upon Federated's 2018 acquisition of a controlling interest in London-based Hermes Fund Managers Limited.
The actively managed Federated Hermes Global Equity Fund pursues long-term capital appreciation through Hermes' proprietary quantitative stock-selection process. The fund invests primarily in equity and equity-related securities of companies that derive a large proportion of their revenue from global developed and emerging markets. The disciplined investment strategy aims to identify robust companies with good or improving environmental, social and governance (ESG) track records. The Federated Hermes Global Equity Fund follows the investment strategy of the $2.5 billion1Hermes Global Equity ESG strategy, launched in May 2013. The Federated Hermes Global Equity Fund is advised by Federated Global Investment Management Corp. and sub-advised by Hermes Investment Management Limited. The fund is managed by Geir Lode, head of global equities at Hermes Investment Management Limited, along with Lewis Grant, senior portfolio manager, and Louise Dudley, portfolio manager. They bring nearly 50 years of combined industry experience to the fund.
The Federated Hermes Global Small Cap Fund pursues long-term capital appreciation by investing primarily in equity and equity-related securities of small-capitalization companies that derive a large proportion of their income from developed markets. The new fund follows the investment strategy of the $1.3 billion1 Hermes Global Small Cap Equity strategy, launched in July 2011. The Federated Hermes Global Small Cap Fund is advised by Federated Global Investment Management Corp. and sub-advised by Hermes Investment Management Limited. The fund is managed by Hamish Galpin, who has led the Small & Mid Cap team at Hermes Investment Management Limited since the team's creation in 2007. Galpin, who has 30 years of industry experience, also manages the Federated Hermes SDG Engagement Equity Fund, launched in December 2018.
"With growing U.S. client interest in global equity strategies, these new funds expand the availability of Hermes' differentiating investment processes," said John B. Fisher, president and chief executive officer of Federated Advisory Companies. "Hermes' investment approach provides investors with the opportunity for strong risk-adjusted long-term performance."
The Federated Hermes Global Equity Fund uses the MSCI All Country World Index as its benchmark, while the Federated Hermes Global Small Cap Fund has the MSCI World Small Cap Index as its benchmark. Both new funds are initially being marketed in IS shares, with A, C and R6 share classes to follow.
Federated Investors, Inc. is a leading global investment manager with $459.9 billion in assets under management as of Dec. 31, 2018. Our investment solutions span 130 equity, fixed-income, alternative/private markets, multi-asset and money market funds and a range of separately managed account strategies. Providing comprehensive investment management to more than 9,500 institutions and intermediaries, our clients include corporations, government entities, insurance companies, foundations and endowments, banks and broker/dealers. Headquartered in Pittsburgh, Federated's nearly 1,900 employees include those in New York, Boston, London and several other offices worldwide. In 2018, Federated acquired a majority interest in Hermes Investment Management, which provides world-class active management and stewardship services. For more information, visit FederatedInvestors.com.
