Investment strategies described on this site are not necessarily available through every sponsor program. Please check with your Federated Hermes representative or your home office to ascertain accessibility.
Terminology such as “ESG integrated,” “sustainable” or “impact,” among other terms, is not uniformly defined across the industry. Investment managers may understand and apply ESG factors in different ways, and that the role those factors play in investment decisions also varies. Therefore, we recommend investors understand the role of ESG factors in a strategy to ensure that approach is consistent with their investment objectives. Like any aspect of investment analysis, there is no guarantee that an investment strategy that considers ESG factors will result in performance better than or equal to products that do not consider such factors. Investing and making buy-and-sell decisions that emphasize ESG factors carries the risk that, under certain market conditions, the fund or strategy may underperform those that do not incorporate such factors explicitly into the decision-making process. The application of ESG criteria may affect exposure to certain sectors or securities and may impact relative investment performance depending on whether such sectors or securities are generally in or out of favor in the market.
Investing in equities is speculative and involves substantial risk.
EPS growth: The estimated average annual growth rate of fiscal year earnings per share for a given corporation.
Price-to-earnings ratio (P/E): A ratio comparing the company’s current share price, as compared to its earnings-per-share, for the last twelve months (LTM), or estimated for the next 12 months (NTM), current fiscal year (FY1), or next (forward) fiscal year.
Price/cash flow ratio: A stock valuation measure calculated by dividing a firm’s cash flow per share into the current stock price.
Price/book value ratio: A ratio used to compare a stock’s market value to its book value. It is calculated by dividing the current closing price of the stock by the latest quarter’s book value per share.
For a detailed discussion of Managed Account strategies or to receive additional information, please Contact Us.
Issues discussed within this communication represent the investment manager's explanation of factors that were considered when executing transactions or holding specific securities on the prior date indicated. Because this is a managed portfolio, the investment mix will change and the holdings are not indicative of future portfolio composition. Marketplace conditions fluctuate suddenly and frequently, and investment manager's opinions may change. These comments are not intended to be and do not constitute recommendations that others buy, sell or hold any of the securities discussed.
ESG investments may be viewed as “sustainable,” “responsible” or “socially conscious,” among other names. ESG factors may be utilized and evaluated differently by different investment managers and may mean different things to different people. Investing based in part on ESG factors carries the risk that, under certain market conditions, the investment strategy may underperform strategies that do not utilize such factors. The application of responsible investment criteria may affect exposure to certain sectors or types of investments and may impact relative investment performance depending on whether such sectors or investments are in or out of favor in the market. An investment’s ESG performance or an investment manager’s assessment of such performance may change over time. The successful application of ESG factors is dependent on an investment manager’s skill in properly identifying and analyzing material ESG issues, and the suitability of ESG investments may change over time.
Refer to the GIPS report found on this website in the Performance Profile found in the Documents section.
The characteristics are based on a portfolio which is used as a guide for cloning (or managing) underlying accounts to a particular strategy. Taking into consideration individual investor circumstances could cause deviation from this guide (e.g. restrictions, tax requests, etc.). Portfolio characteristics are as of the date shown above and are based on individual securities in the portfolio on that date. Securities in the portfolio are subject to change.
Risk statistics are based on gross performance. Statistics shown are not indicative of future statistics and are not representative of future portfolio performance.
Past performance is no guarantee of future results.
For additional information, including definitions of related terms and indexes, see the Financial Glossary and Benchmark Index Glossary.
Hermes Investment Management Limited.