Hermes launches US equities Ucits fund
Hermes Fund Managers, the London based fund manager with almost £25bn of assets under management, has launched its latest Ucits fund, focused on US small and mid-cap equities.
The Hermes US SMID Equity Fund is managed by a team of four investment professionals, led by Robert Anstey, who has been managing the strategy for Hermes since inception in 2001.
The fund invests in companies over the long term, with an average holding period of three to five years, and is benchmarked against the Russell 2500 Index.
Hermes says the fund has enjoyed growth of 10.7% per annum since inception, versus the benchmark of 8.7% per annum.
“Importantly, these returns have been achieved with relatively low risk for the asset class, with the portfolio generating an information ratio of 0.88 over the past five years.”
Anstey, lead portfolio manager of the Hermes US SMID Equity Fund, said: “The US offers a number of compelling reasons to invest over the next several years. The country has better relative demographics than other developed markets, as well as the potential for energy self-sufficiency, a manufacturing renaissance and strong technological innovation.
“Small and mid-caps offer an excellent way to invest in the US and have outperformed large caps over the long term. As one of the largest US SMID cap equity managers based in London, our scale gives us good corporate access.
“The European market is poorly served in terms of Ucits funds offering accessibility to US small and mid-caps at present. This investment strategy is designed to offer investors a relatively low risk way of investing in the asset class. Hermes is committed to delivering sustainable risk-adjusted alpha over the longer term for all its clients.”