Hermes Focus Asset Management Europe (HFAME) is the manager of the Hermes European Focus Funds which invest in Continental European based publicly quoted companies. It meets with executive and non-executive directors and with other shareholders and stakeholders as appropriate, and uses its influence as owner to help resolve concerns and create value for all long term shareholders.

Frequently institutional investors which together own a significant share of publicly quoted companies, do not become involved in the direction of the companies in which they invest. If a company is doing well, they buy the shares. If it is doing badly, they sell. HFAME as active shareowner does not follow this speculative, "absentee landlord" approach where investors 'walk away' from problem companies.

We believe value can be created if shareowners engage actively with the boards of the companies they own, especially when things are not going well.

HFAME is owned by Hermes Fund Managers. HFAM supports the marketing of HFAME and that of similar investment products in the USA, managed by Relational Investors LLC.

HFAME launched the European Focus Funds on 25 February 2002 with committed funds under management of c.EUR 300 million. As at 30 September 2008 it had committed funds under management of c.EUR1.3 billion (c.£1 billion) from 24 institutional investors, including some of the World's largest pension funds, together representing several million pension fund members.