Hermes UK Small & Mid Cap Fund Awarded Top Star Rating By Morningstar

The Morningstar rating is a risk-adjusted, cost adjusted comparison of fund performance within fund categories.  Funds are rated on a curve achievement, with only the top 10% receiving the top rating of five stars. The UK Small & Mid Cap Fund joins Hermes Quantitative Global Equities Fund and Hermes Emerging Markets Fund in gaining Morningstar ratings, both five and four stars respectively.

The £173 million small and mid cap UCITS fund has been managed since its inception by John Leahy and David Stormont, who both have more than 20 years of experience in the Small Cap universe.  The fund has delivered top quartile performance since inception.

Harriet Steel, Global Head of Sales & Marketing, Hermes Fund Managers, said:

“The UK Small & Mid Cap Fund has been under the radar until now, but with the UCITS fund hitting its three-year track record, it is gratifying to see recognition of its stellar performance. This top rating of 5 stars by Morningstar is testament to John and David’s stock picking ability in selecting high-quality stocks in a world where growth is scarce.”

John Leahy, Co Portfolio Manager, Hermes UK Small & Mid Cap Fund, commented:
“The smaller companies universe consists of hundreds of dynamic businesses, with exposure to all areas of the economy and at different stages of their development. These stocks have a greater potential for growth than their larger, more mature counterparts. Such broad choice represents a great opportunity for managers who can identify companies currently undervalued by the market. Over the past decade, UK Small & Mid Cap companies have outperformed large caps by 93% or 4.6% year on year.”

Mr. Leahy continued:
“Small and mid cap stocks offer long-term investors a compelling blend of targeted exposure to growing companies at share prices that are frequently below intrinsic value.”

John Leahy and  David Stormont,  are part of a specialist Small & Mid Cap team of nine investment professionals, who have average industry experience of more than 19 years. Their investment approach is long-term with fundamental, bottom-up research conducted on a regional basis. Hermes Small & Mid Cap has managed smaller company equities since 1987. The team manages a global capability as well as small and mid cap capabilities in the US and UK markets.