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Hermes and Guggenheim rebrand

Two years after buying a controlling interest in the UK-based asset manager, Federated Investors has combined its name with Hermes Investment Management.

The entity, which manages $576bn of assets worldwide, is now called Federated Hermes and represents a focus on “a commitment to responsible investing to achieve financial outperformance,” according to a media statement.

Federated Investors has changed its corporate name and now trades under a new ticker symbol on the New York Stock Exchange. It has also adopted a new company logo, which includes a beacon as its symbol.

“We now have all the components together to take advantage of opportunities across the globe while enhancing two successful business cultures. And our new corporate identity is a tangible expression of our conviction that responsible investing is the best way to create wealth over the long term,” said J. Christopher Donahue, president and CEO of Federated Hermes, in the statement.

Hermes has been an active promoter of funds with ESG and responsible investment themes in recent years.

These include the $360m SDG Engagement Equity Fund managed by Hamish Galpin, which invests in companies that are at an early stage of implementing SDG practices within their own operations and in their relationships across their value chains.

The $240m Hermes Impact Opportunities Equity Fund has a more explicit objective of looking for companies that aim to create a positive social or environmental effect through their products or services, and eventually become market leaders in their sectors. However, the founder and lead manager of fund Tim Crockford left with his team to join JO Hambro in December 2019.

Nevertheless, Federated Investors has launched five mutual funds for US investors modelled after Hermes products, has integrated Hermes’ ESG factors into the liquidity fund investment decision process, and is in the process of incorporating the same into Federated equity and fixed-income strategies, according to the statement.

In addition, last September, Hermes launched an SDG Engagement High Yield Credit Fund, offered to non-US investors as a Ucits product managed by Hermes Investment Management, and available as a mutual fund in the US, advised by Federated Investment Management — but both with Hermes head of research Mitch Reznick as lead manager.

What’s in a name?

Separately, Hong Kong-based Guggenheim Investment Advisors has officially rebranded as Alvarium, a year after it announced it intended to do so.

The wealth management firm was bought by London-headquartered investment firm LJ Partnership in 2016, and this rebranding is part of a larger rebranding exercise of LJ Partnership as Alvarium Investments, according to a media statement today.

“‘Alvarium’ is Latin for beehive. Honey bees have developed a highly effective approach to cooperation and a complex consultation process, allowing them to make better decisions,” according to the group’s CEO Alexander de Meyer, adding that the group “shares these qualities”.

The old LJ Partnership appointed Neill O’Brian as managing director for its wholly-owned Guggenheim Investment Advisors in November 2018, when it said that it was looking to manage a greater share of the growing pool of Asian wealth.

The group has expanded its operations further in Asia-Pacific, opening offices in Australia and Singapore. It has also bought five wealth management firms, including in France, Switzerland and New Zealand, where it purchased Auckland-based companies New Zealand Assets Management and Pathfinder Asset Management in 2018.

“Asia is a crucial growth priority for our firm and as we add headcount and acquire businesses in the region, it is important to unify all our group companies under a single brand,” said Joshua Green, an Alvarium partner said in the statement.

The group relocated co-founder and co-chairman Andrew Williams to New Zealand from London two years ago.

Globally, Alvarium advises around $18bn of assets owned by individuals, families, charities, foundations, institutions and sovereigns, according to its website, and provides multifamily office services in investment advisory, merchant banking and co-investment.

Part of the Mark Allen Group.