HERMES INVESTMENT MANAGEMENT LTD

Hermes Investment Management Ltd, now operating as part of Federated Hermes, is a London-based institutional asset manager with roots in running the assets of the BT Pension Scheme and other large European institutions. From this heritage it has evolved into a multi-boutique platform offering global and regional equity, fixed income, real estate, private markets and multi-asset solutions, with a particular reputation for ESG integration and active ownership. The firm acts as a fiduciary manager for pension funds, insurance companies, sovereign investors and other institutions, implementing mandates that range from high-active-share equity portfolios to outcome-focused fixed income and multi-asset strategies. Stewardship and engagement are central to its identity: Hermes has long operated dedicated engagement and voting teams that interact with portfolio companies on governance, environmental, social and strategic issues on behalf of clients. Under U.S. regulation, HERMES INVESTMENT MANAGEMENT LTD is registered as an investment adviser and appears in the SEC’s institutional investment manager universe under CIK #1013143. It files Form 13F to disclose its reportable long positions in U.S.-listed equities and certain equity-like instruments at each calendar quarter-end. These filings cover only the U.S.-listed component of Hermes’ global portfolios—principally large- and mid-cap stocks and, where used, ETFs and ADRs—and do not include the firm’s extensive non-U.S. holdings, fixed income positions, derivatives, or intra-quarter trading. On an analytics platform, all 13F filings associated with CIK #1013143 can be combined to form a continuous 13F History for Hermes, supporting reconstruction of a U.S.-equity Historical Track Record and detailed analysis of its disclosed 13F Portfolio Composition.

Hermes’ investment strategy is fundamentally driven and research-intensive, with a strong overlay of ESG and stewardship. Across its equity franchises, portfolio managers and analysts focus on: - Business quality, sustainability of competitive advantage, balance-sheet resilience and capital allocation discipline; - Valuation versus normalized earnings, cash flows and asset values, combined with scenario analysis and stress testing; - ESG risks and opportunities, including climate transition, governance quality, labour practices and stakeholder alignment, integrated into fundamental analysis. Equity portfolios are typically concentrated relative to broad benchmarks and run with high active share, but within risk budgets that limit uncompensated factor and sector exposures. Strategies include global and regional developed-market equities, emerging markets, small/mid-cap and thematic approaches. In fixed income, Hermes manages global credit, high yield, unconstrained and sustainable bond strategies. These seek to balance yield and spread opportunities with downside protection and issuer-level ESG risk assessment. Real estate and private markets strategies extend the same responsible-investment toolkit to illiquid assets. The U.S.-listed positions that appear in Form 13F are: - Individual U.S. equities held within global, international and dedicated U.S. equity strategies; - U.S.-listed ADRs providing access to non-U.S. issuers within global portfolios; - Occasionally, ETFs or listed funds used for tactical or transitional exposure. Because these holdings are components of broader global mandates, sector and regional weights in the 13F set are an output of underlying strategy design rather than a standalone U.S.-only model. A longitudinal review of 13F Portfolio Composition reveals how Hermes’ active process translates into U.S.-listed exposures: the degree of diversification, the stability of core names, and persistent tilts toward quality, lower leverage and ESG leaders.

HERMES INVESTMENT MANAGEMENT LTD is a London-based institutional asset manager, now part of Federated Hermes, known for combining fundamental active management with leading-edge stewardship and ESG integration. Its 13F filings under CIK #1013143 offer a recurring, position-level snapshot of the U.S.-listed component of its global equity strategies. By aggregating those filings into a unified dataset, an analytics platform can construct a 13F-based Historical Track Record that mirrors a portfolio holding Hermes’ reported U.S.-listed positions between quarter-ends. Examining this reconstructed capital trajectory alongside evolving 13F Portfolio Composition—sector balance, issuer concentration, and implied style tilts—helps allocators understand how Hermes’ quality- and ESG-aware equity exposures have behaved across different market and factor regimes. Overlaying diagnostics such as Max Drawdown Depth and a holdings-derived Sharpe Ratio adds quantitative depth on the variability and risk-adjusted characteristics of this 13F-implied, long-only stream. Used with a Portfolio Simulator and related Performance Backtests Online, these analytics provide a public-data-driven complement to mandate-level reporting and stewardship disclosures. The key analytical question for asset owners is how the regime sensitivity implied by this 13F-based reconstruction—across growth versus value cycles, ESG-related repricing, and macro shocks—relates to the behavior of Hermes’ full, multi-asset client portfolios, where non-U.S. assets, fixed income, derivatives, and active engagement all play central roles in long-term risk and return outcomes.

At the platform level, Hermes’ risk posture is that of a diversified, multi-asset institutional manager: portfolios are constructed relative to benchmarks and client-specific risk budgets, with controls on tracking error, concentration, liquidity and ESG-related risks. Equity and credit exposures are diversified across sectors and issuers; illiquid strategies are sized and structured to align with clients’ tolerance for liquidity and capital calls. Through the narrower lens of Form 13F, only the firm’s long U.S.-listed equity and ETF holdings can be analyzed quantitatively. When those positions are treated as a stand-alone portfolio, several key risk characteristics emerge: - Equity market sensitivity: The 13F sleeve predominantly consists of common stocks and equity-like instruments, imparting beta to major U.S. indices. The level of beta in a 13F-based replication will depend on the balance between cyclical and defensive holdings, and on any use of ETFs. - Sector and issuer concentration: While diversified across sectors such as technology, healthcare, financials, industrials and consumer, active management leads to overweight positions in core convictions and underweights elsewhere, which drive tracking error. - Style and factor tilts: Hermes’ focus on quality, ESG and valuation typically results in measurable tilts toward quality and moderate value/growth balance compared with pure cap-weighted indexes. By treating each quarter-end 13F as a static portfolio and running Performance Backtests Online, an allocator can build a synthetic, long-only capital path that assumes Hermes’ disclosed positions are held between filings. From this reconstructed series, it is possible to estimate volatility, downside capture, and Max Drawdown Depth for the U.S. long-equity sleeve, and to compute a holdings-derived Sharpe Ratio summarizing the relationship between the reconstructed excess growth rate and its variability. These analytics should be interpreted with clear caveats. Form 13F does not capture non-U.S. equities, fixed income, real estate and private-market investments, currency and interest-rate hedges, or intra-quarter trading and engagement-driven adjustments. It therefore describes only an unhedged, U.S.-equity fragment of Hermes’ full institutional portfolios.