Introduction
Hermes’ corporate governance and responsible investment programme is founded on a fundamental belief that companies with interested and involved shareholders are more likely to achieve superior long-term financial performance than those without.

Hermes places great emphasis on exercising its clients’ ownership rights and responsibilities at all the companies in which they invest, with the objective of adding long tem value to their shareholdings. In our engagement, voting and public policy work, we aim to ensure that companies are run by managers and directors in the best interests of their long-term investors. A pioneer in corporate governance and shareholder engagement, Hermes is a leader of the debate in the UK and abroad.

Furthermore, Hermes has taken its corporate governance and responsible investment programme to the next level by advising and acting for other institutional investors through its Equity Ownership Service and being the first major investment institution to establish shareholder engagement funds. These Focus Funds invest in underperforming companies which are fundamentally sound but are undervalued due to a variety of strategic, financial or governance issues.

Hermes believes that good stewardship contributes to superior corporate performance. Its vigilance and involvement as a long-term shareholder is thus intended to enhance returns on its clients’ assets.