Investment manager Federated Hermes has rolled out the Federated Hermes U.S. SMID Fund, along with a model-delivery separately managed account (SMA) having the same investment strategy.
The new vehicle will identify high-quality companies with a durable competitive advantage, aimed at long-term capital appreciation.
It will offer exposure to growth-and value-oriented equity securities. The focus will be on small- and mid-capitalisation US companies.
It will also incorporate ESG factors and utilise the Russell 2500 Index as its benchmark.
Mark Sherlock, portfolio manager and head of the U.S. equities team at Hermes Investment Management in London, will run the new strategy.
Henry Biddle, Alex Knox, and Michael Russell will serve as co-managers on the fund.
Federated Advisory Companies president and CEO John Fisher said: “We are seeing growing interest from our U.S. clients in actively managed equity strategies, and this new fund complements our existing products while expanding the availability of the fully ESG-integrated investment processes of our London office.
“The strategy’s investment approach provides investors with the opportunity for strong long-term, risk-adjusted performance.”
Pittsburgh-based Federated Hermes managed $605.8bn in assets at the end of March 2020.
It serves corporations, government entities, insurance companies, foundations and endowments, as well as banks and broker/dealers. The firm’s staff headcount is over 1,900.