The Hermes Impact Opportunities Equity fund approach is driven by the recognition that finding companies addressing the unmet needs in society represents a structural, secular growth opportunity that can bring wider benefits. Whilst the UN Sustainable Development Goals provide an important reference point for identifying, assessing and measuring companies with net positive impact, the Hermes Impact team has defined 8 actionable investable themes such as energy transition, financial inclusion and circular economy.
The Hermes Impact Opportunities strategy takes an unconstrained and high-conviction approach to equity management. Stocks are held as a result of the belief in both their financial return potential and their impact and sustainability credentials. Stocks are selected for the long term, with a holding period that is intended to be over five years. The team believes that the longer a position is held, the more the price reflects the merits of the business and less the noise of distracting short-term price movements.