Federated Investors and Hermes Investment Management have combined their names to become Federated Hermes.
The name change follows the 2018 acquisition by New York’s Federated Investors of a controlling stake in Hermes Investment Management, an asset manager of the British Telecom Pension Scheme and led by Saker Nusseibeh.
The managers have formed a $576 billion global asset manager and say they are “unveiling an updated corporate identity, focused on a commitment to responsible investing to achieve financial outperformance”.
Nusseibeh is still chief executive officer of Hermes Fund Managers.
The company offers regional and global equities, fixed income, liquidity, real estate, infrastructure, private equity and private debt.
Beyond investment management, Federated Hermes provides stewardship services through its EOS business, including engagement with equity and bond issuers, proxy voting and policy advocacy.
Since 2018, Federated has launched five mutual funds for US investors modeled after Hermes products. It is also integrating Hermes environmental, social and governance factors into investment processes.
Federated Investors has also changed its New York Stock Exchange ticker symbol from FII to FHI, with the firm’s common stock trading under the FHI ticker symbol.
“More than a new name or ticker symbol, our company brings together the best of both Federated and Hermes,” said J. Christopher Donahue, president and chief executive officer of Federated Hermes. “We now have all the components together to take advantage of opportunities across the globe while enhancing two successful business cultures. And our new corporate identity is a tangible expression of our conviction that responsible investing is the best way to create wealth over the long term.”
The BT Pension Scheme has retained a 29.5% share in Hermes and still invests in Hermes as a client, while some Hermes managers hold a 10.5% shareholding in Hermes.
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