16 February 2021
Federated Hermes International will manage emerging market shares for both expensive and holiday funds at LD Fonde.
LD Fonde has elected Federated Hermes International as its new equity manager. They must manage LD Fonde’s equity investments in the global development markets, the so-called emerging markets equities. Long-term thinking, independent risk monitoring and a huge focus on ESG were all contributing factors to the choice of Federated Hermes International.
LD Fonde was looking for a manager who utilizes his specialist knowledge of specific companies and with a deep knowledge of the companies can predict future growth and take large positions in the companies. Hermes invests in quality companies where the price for the company’s future earnings is not too high.
With Federated Hermes International as manager, LD Fonde also strengthens the integration of ESG in the overall portfolio, which was also crucial for the election. In addition to the investment segment, Federated Hermes International also operates Federated Hermes EOS, a specialized provider of ESG and active ownership. Federated Hermes EOS has been conducting ESG research, dialogue and voting at general meetings on behalf of Federated Hermes International’s portfolios since the 1990s. The investment team works closely with Federated Hermes EOS and a dedicated ESG analyst, and equity analysts place a high value on ESG risks in their stock selection.
“ESG is one of the great risks of the time, but must also be seen as an opportunity. Emerging markets companies are often lagging behind in the ESG area compared to companies in the developed markets. So an integration of ESG risks and opportunities into the decisions of the companies and a follow-up dialogue is extremely important in these markets. That is why we are also pleased with Hermes’ great focus and experience within ESG “, says Kristoffer Birch.
The investment team is based in London, but Federated Hermes International is owned by the US listed financial group, Federated Hermes.
18 Danish and international managers made offers in LD Fonde’s EU offer of the share mandate. Federated Hermes International won the task after 2 rounds of evaluation. Both funds at LD Fonde – Lønmodtagernes Dyrtidsmidler and Lønmodtagernes Feriemidler – will benefit from the upcoming collaboration. The management of LD Fonde’s funds is expected to start in the first quarter of 2021.
With the implementation of emerging markets in the equity portfolio, LD Fonde has completed the past year’s offering of all equity mandates. In 2021, LD Fonde will further complete two EU tenders in the field of credit.
LD Fonde currently manages DKK 32 billion. DKK, which comes from the expensive time payments in the late 1970s. In 2020, LD Fonde has begun the management of holiday funds from the transition year to a new holiday law. These are funds that will partly be invested in securities and will partly stand as receivables from employers.Source: LD Pensions
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