Why international?

Global markets are constantly evolving. Federated Hermes believes active international equity strategies are essential to any portfolio that seeks the robust growth and diversification opportunities offered by the global markets.

Three-quarters of the world's GDP is generated outside of the U.S. — an investment opportunity too big to ignore.

Share of global GDP (%)
  • U.S. 24.4
  • Non-U.S. developed markets 39.5
  • Emerging markets 36.1

Sources: Worldbank, MSCI and FactSet

As of Dec. 31, 2019, the latest annual data available as of Feb. 1, 2021. Pie chart shows the percent of regional share of Gross Domestic Product (GDP), Emerging markets GDP uses the MSCI EM Universe and excludes Taiwan as data was not provided.

Federated Hermes international opportunities

FOREIGN SMALL/MID CAP
International Small-Mid Company Fund
FOREIGN LARGE CAP
International Equity Fund
FOREIGN LARGE CAP
International Leaders Fund
International resources
With more than 50 investment professionals specializing in non-U.S. equities, Federated Hermes managed approximately $35 billion in globally focused equity strategies, as of Dec. 31, 2020.
Distinctive global lens
Our non-U.S. equities investment professionals represent a diverse set of backgrounds and cultures, bringing complementary viewpoints, a distinct global lens and the skill sets to identify compelling opportunities around the world.
Long-term outcomes
Federated Hermes offers international investing strategies that target long-term outcomes for a wide range of clients, including customized portfolios focused on specific goals.

Where are the opportunities?

Skilled active managers are looking outside the U.S.

Global Market Cap

43%

57%

Publicly Listed Companies

74%

26%

Co's Valued >
$1B Market Cap

64%

36%

100%

80%

60%

40%

20%

0%

  • Rest of the world
  • United States
  Global Market Cap Publicly Listed Companies Co's Valued > $1B Market Cap
Rest of the world 43% 74% 64%
United States 57% 26% 36%

Source: MSCI ACW IMI (All-Cap World Investable Market Index) as of 3/17/21

No stone unturned

Views are as of March 12, 2021 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector.

“Over the last year or so, our analyst team has been able to find quite a few new opportunities as a result of the market volatility.”
Thomas Banks, portfolio manager

Innovation and investment opportunity have no boundaries

  • Despite a history of innovation, the U.S. by no means corners the market on companies destined to become global market leaders and drivers of shareholder value.
  • Regulations and economic structures abroad have helped international companies address some of the most significant issues of our time, including Covid-19, climate mitigation, e-commerce and digital transformation.
  • It's increasingly important that investors seek the most attractive companies in growing industries, wherever in the world they are located.

DISCLOSURES

The MSCI ACWI Investable Market Index captures large, mid and small cap representation across 23 developed markets countries and 27 emerging markets countries.

International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Prices of emerging-market and frontier-market securities can be significantly more volatile than the prices of securities in developed countries, and currency risk and political risks are accentuated in emerging markets.

There is no guarantee that considering ESG risks will be a successful investment approach.

Diversification does not assure a profit nor protect against loss.

The MSCI Emerging Markets (EM) Index was created by Morgan Stanley Capital International (MSCI) to measure equity market performance in global emerging markets.

Separately managed accounts are available through Federated Investment Counseling, a registered investment adviser.

Investors should carefully consider the fund's investment objectives, risks, charges and expenses before investing. To obtain a summary prospectus or prospectus containing this and other information, contact us or view the prospectus provided on this website. Please carefully read the summary prospectus or prospectus before investing.

Federated Securities Corp., Distributor

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