Global equity markets endured a volatile year amid uncertainty around interest rates, inflation, COVID-19 developments and energy shortages. Growth stocks, which had led the market in 2020, saw several periods of weakness on the back of concerns about higher interest rates. Value stocks, meanwhile, and companies expected to benefit from a post-pandemic reopening generally outperformed during the period.
All of the fund’s holdings fit into one or more of nine themes aligned with the UN Sustainable Development Goals (SDGs). In the report Federated Hermes delve into each of their nine impact investment themes, offering updates relevant to the companies in their portfolio, and outline the purchase of several new holdings.
Other highlights include:
- Case studies: they provide three case studies that showcase the work they have done with portfolio companies over the last year.
- Impact and performance metrics: they provide data highlighting the impact companies within their portfolio have delivered over the course of 2021, as per the proprietary Federated Hermes Impact Database. Federated Hermes also compare the performance of their portfolio relative to the MSCI All Country World index.
- Engagement update: the firm describe their progress in this area and highlight the letter they wrote to every company in their portfolio in September 2021 to request that boards start, or accelerate, the development of sustainability targets for integration into compensation plans.
To the extent that anything on this website constitutes a financial promotion it is exempt from the general prohibition in S21 of FSMA on the basis that the site is only intended for investment professionals as such term is defined in S19 of the Financial Promotions Order. Please note that Pensions for Purpose does not provide consultancy services, advice or personal recommendations on any of the investment opportunities mentioned on the platform. We curate content written by Influencer members and do not endorse any underlying funds.
Learn more here
