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FEDERATED HERMES US SMID EQUITY F GBP

Bestinvest LogoInvests in small and mid-cap companies either domiciled or deriving a large proportion of their income in the USA.

PRICE (INC)

288.88p

PRICE (ACC)

360p

INITIAL CHARGE

5.25%

0%

ANNUAL MANAGEMENT CHARGE

0.75%

ONGOING CHARGE

0.85%

YIELD

0%

1 YEAR
-4.45%
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Prices as at 01 Dec 2023.

Fund commentary last updated 30 Nov 2022.

Past performance is not an indication of future performance.

Capital at risk.

The investment objective of the Fund is to provide long-term capital appreciation. The Fund will seek to achieve its objective over a rolling period of any five years, by investing at least 80% in equity and/or equity-related securities of, or relating to, small and midcapitalisation companies domiciled in the US, or companies that derive a large proportion of their income from US activities, and that the Investment Manager has identified as being, in its view, undervalued. These companies will be listed or traded on a Regulated Market worldwide (primarily in the US or Canada).

Fund summary

SectorNorth American Smaller Companies
StructureOFFSHORE FUND
LaunchedNovember 2012
Size£510m
Yield0%
Dividends paidJuly

Charges

Standard Initial Charge5.25%
Initial Charge Via BestInvest0%
Additional Bid/Offer Spread0%
Annual Management Charge0.75%
Ongoing Charges Figure0.85%

Investment Process

Manager Mark Sherlock’s process involves looking for companies with a durable competitive advantage, a strong balance sheet, cash generation, and capital discipline. Healthy ESG metrics and a talented and visionary management team are other prized assets. Sherlock believes that over the long-term, companies with these characteristics outperform with less risk. As such he takes a bottom-up investment approach rather than being driven by what is happening in the economy. The management team has an investable universe of 2,500 names, which is slimmed down to 800 using quality and financial stability screens. They then carry out a fundamental and qualitative assessment of a company - including visiting them in the US - to see if they have the traits they desire. Stocks that have these strengths then join a watchlist of about 200 companies. A detailed company report and cash flow model is drawn up for each stock and an investment is made once they are trading below intrinsic value. The team then perform a composition review, an optimisation tool run monthly incorporating quantitative and qualitative data on each of its companies, to effectively manage position sizes. The portfolio typically contains around 60 stocks.

The information on this website is not intended to be advice or a recommendation to buy, sell or hold any investment mentioned. The value of investments and the income from them can go down as well as up and you may not get back the amount invested.

Past performance is not a guide to future performance. View full risk warning