Federated Hermes earns two LSEG Lipper Fund Awards
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Insights
The recognition of Federated Hermes Muni & Stock Advantage Fund and Federated Hermes SDG Engagement Equity Fund by the 2024 LSEG Lipper Fund Awards is indicative of the funds' strong risk-adjusted performance over a three-year period. This not only serves as a testament to the funds' management strategies but also potentially influences investor perception and trust in the Federated Hermes brand.
For investors, such awards can be seen as a quality marker, often leading to increased inflows as both retail and institutional investors look for funds with proven track records. The funds' strategies, one focusing on tax-advantaged income and capital appreciation and the other on long-term capital appreciation with a societal impact, cater to diverse investor goals, broadening their appeal.
However, it's important to note that past performance is not indicative of future results. Award-winning funds can attract attention, but investors should also consider the current economic climate, interest rate forecasts and market volatility when evaluating potential investments.
From a financial analysis perspective, the performance of the Federated Hermes funds, particularly in a risk-adjusted context, suggests strong portfolio management and an effective investment strategy. The outperformance of 308 fund share classes and 76 portfolios within their respective categories highlights the funds' competitive position in the market.
Investors and analysts often look for consistency in fund performance as an indicator of the fund managers' ability to navigate different market conditions. The integration of views on interest rate and credit cycles in a diversified portfolio, as seen with the Federated Hermes Muni & Stock Advantage Fund, is a strategy that can help mitigate risks associated with market volatility. The emphasis on high-quality companies and alignment with the Sustainable Development Goals (SDGs) by the Federated Hermes SDG Engagement Equity Fund may also resonate with socially conscious investors, potentially influencing their investment decisions.
It is worth noting that the assets under management (AUM) of $757.6 billion as of the end of 2023 reflect the scale of Federated Hermes' operations, which can affect market sentiment and investor confidence.
The alignment of the Federated Hermes SDG Engagement Equity Fund with the Sustainable Development Goals (SDGs) is particularly noteworthy. This strategy not only targets financial returns but also aims to generate positive societal impacts, which is increasingly important to a segment of investors who are focused on environmental, social and governance (ESG) criteria.
Investing in small- and mid-cap companies can offer growth potential, but it also comes with higher risks and volatility. The fund's strategy to engage with these companies on SDG goals can lead to improved practices and potentially better long-term performance, but it may also result in periods of underperformance compared to funds without such a focus.
As sustainable investing becomes more mainstream, funds that successfully integrate ESG factors into their investment process and demonstrate strong risk-adjusted returns are likely to gain a competitive advantage. The recognition by the LSEG Lipper Fund Awards could thus enhance the visibility and attractiveness of the Federated Hermes SDG Engagement Equity Fund to both current and prospective investors who prioritize impact alongside returns.
- Federated Hermes Muni & Stock Advantage Fund and Federated Hermes SDG Engagement Equity Fund recognized for three-year performance.
Federated Hermes Muni & Stock Advantage Fund (IS class) outperformed 308 fund share classes and 76 portfolios in the Mixed-Asset Target Allocation Conservative Funds category for the three-year period ended Nov. 30, 2023. The fund pursues tax-advantaged income with a secondary objective of capital appreciation through a diversified portfolio of municipal bonds and primarily dividend-paying stocks that are intended to qualify for tax-advantaged treatment. The balance of an equity strategy that targets higher-quality companies and a bond strategy that integrates views on both interest rate and credit cycles can also help to reduce portfolio volatility. The fund is led by Michael Jura and Ann Ferentino, with support from Steven Chiavarone, R.J. Gallo and Stephen Gutch. With an average 22 years of investment experience, the investment team is equipped with a diverse range of equity, fixed-income and asset-allocation knowledge and perspectives.
Federated Hermes SDG Engagement Equity Fund (IS class) outperformed 119 fund share classes and 37 portfolios in the Global Small-/Mid-Cap Funds category for the three-year period ended Nov. 30, 2023. The fund seeks to provide long-term capital appreciation alongside positive societal impact by investing primarily in equity securities of small- and mid-cap companies in
"The 2024 LSEG Lipper Awards underscore the impact of our skilled, independent investment teams' ruthless vetting process, emphasis on collaboration and flexibility to leverage distinct insights in a manner believed to be best suited to their respective opportunity set and mandate," said John B. Fisher, president and chief executive officer, Federated Advisory Companies. "With a 65-year heritage of active management and the drive to pursue strong and consistent risk-adjusted returns, Federated Hermes continues to build client trust through its solutions-based approach that targets a broad range of outcomes for a volatile world."
Federated Hermes, Inc. is a global leader in active, responsible investment management, with
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The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers.
The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG makes reasonable efforts to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by LSEG Lipper.
Past performance is no guarantee of future results.
Bond prices are sensitive to changes in interest rates, and a rise in interest rates can cause a decline in their prices.
Other classes of shares are available whose performance will vary due to different charges and expenses.
Mutual funds are subject to risks and fluctuate in value.
Diversification does not assure a profit nor protect against loss.
As indicated in its name, Federated Hermes Muni and Stock Advantage Fund invests in both municipal (muni) securities and equity securities (stock) as described in the fund's prospectus. Thus, the fund is not entirely a "tax-exempt" or "municipal" fund, and a portion of the income derived from the fund's portfolio (or dividend distributions) will be subject to federal income tax and most distributions will be subject to applicable state and local personal income tax.
There are no guarantees that dividend-paying stocks will continue to pay dividends. In addition, dividend-paying stocks may not experience the same capital appreciation potential as non-dividend-paying stocks.
Federated Hermes SDG Engagement Equity Fund may invest in small capitalization (or "small-cap") companies. Small-cap companies may have less liquid stock, a more volatile share price, unproven track records, a limited product or service base and limited access to capital. The above factors could make small-cap companies more likely to fail than larger companies and increase the volatility of the fund's portfolio, performance and price. Suitable securities of small-cap companies also can have limited availability and cause capacity constraints on investment strategies for funds that invest in them.
The SDG Engagement Fund's strategy is to target companies that the adviser or sub-adviser believes will contribute positive societal impact aligned to the SDGs. The fund may underperform funds that do not have such a strategy.
International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards.
Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or visit FederatedHermes.com/us. Please carefully read the summary prospectus or prospectus before investing.
Federated Securities Corp., Distributor
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SOURCE Federated Hermes, Inc.
FAQ
What funds were recognized by the 2024 LSEG Lipper Fund Awards for their performance?
How did Federated Hermes Muni & Stock Advantage Fund perform in the Mixed-Asset Target Allocation Conservative Funds category?
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Who leads the investment team of Federated Hermes Muni & Stock Advantage Fund?
How did Federated Hermes SDG Engagement Equity Fund perform in the Global Small-/Mid-Cap Funds category?
What is the investment strategy of Federated Hermes SDG Engagement Equity Fund?
