Stewardship – The 2020 vision

At the international business of Federated Hermes, we believe that the investment management industry could be a potent force in building a better world; but today that potential is largely unfulfilled.

Here, we set out our vision for how investment management can deliver on that promise through active stewardship of the businesses it owns. This is vital. Success means delivering better, sustainable returns for investors while helping
solve some of the world’s most intractable problems.

We believe the purpose of investment is to create wealth sustainably over the longterm. That’s why focusing on wealth creation at the expense of the planet and society, the very future for which investors are saving, is counterproductive.

Our world faces multiple challenges – from climate change to inequality to Artificial Intelligence. Investment management has a key role in addressing those challenges. It must behave in a way that is consistent with solving the world’s problems rather than compounding them. This will have notable positive financial implications for investors and society, guarding against significant risks to the long-term health of the economy.

Click here to read our vision for how stewardship can create that change.

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