Investor Summary

Founded in 1955 by John F. Donahue, Richard B. Fisher, and Thomas J. Donnelly, Federated Hermes has evolved into one of the largest U.S. investment managers with over $902 billion in assets under management as of Q4 2025. The company went public in 1998 and is traded on NYSE under ticker FHI as a component of the S&P 400 index. In July 2018, Federated acquired a 60 percent interest in Hermes Fund Managers Limited, a pioneer of integrated ESG investing, and changed its name to Federated Hermes, Inc. in February 2020. Led by President and CEO J. Christopher Donahue, the company employs over 1,900 staff across offices worldwide and serves more than 11,000 institutional and intermediary clients. The firm generates approximately $1.8 billion in annual revenue with strong profitability metrics and has received multiple industry awards including 2026 LSEG Lipper Fund Awards for category-leading risk-adjusted performance.

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Fund Strategy

Federated Hermes is guided by the conviction that responsible investing is the best way to create wealth over the long term. From day one to the present, enduring, responsible wealth creation has been their sole purpose. The company integrates Environmental, Social and Governance (ESG) factors into investment processes through collaboration with EOS, the Federated Hermes group's Stewardship and Engagement business. Since 1983, Federated Hermes has driven the evolution of best-practice stewardship and is one of the world's largest providers of engagement and stewardship services today. The investment approach combines quantitative bottom-up analysis through The Alpha Model, which evaluates over 5,000 companies globally on six fundamental factors: valuation, sentiment, profitability, growth, corporate behavior, and capital structure to identify companies likely to outperform over a three-year period. This is integrated with an ESG scoring system assessing company exposure and management of industry-specific environmental, social, and governance risks. Portfolio construction optimizes the combined scores while considering constraints and risk/return trade-offs, resulting in portfolios typically holding 70 to 100 stocks.

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FUND PERFORMANCE AS OF 31st December 2024

ANNUALIZED SINCE INCEPTION QUARTERLY YTD
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