Following news that Gary Greenberg will be stepping back from running the £3.9bn Hermes Global Emerging Markets and Global Emerging Markets SMID Equity funds and passing on lead portfolio manager duties to co-portfolio manager Kunjal Gala, Lauren Mason speaks to the duo about their experience working together and what the future holds for both of them.
Aside from the funds' outperformance over the years, a key differentiator relative to many of their peers is their focus on investing in sustainable and responsible companies - a process that has been integral to the running of the portfolios since they launched.
Greenberg said this was one of the main reasons Gala was promoted to co-portfolio manager and will become the lead portfolio manager after he steps back in September.
"Kunjal and I share a strong moral and ethical approach to life and business. This happily coincides with Federated Hermes' approach well, but we have this personally, and it extends to our professional conduct, including how we invest.
"And so we found a very happy meeting of the minds in terms of what the right thing to do is, even if it is at the risk of sacrificing short-term gains," he said.
Gala said one of the main reasons he was attracted to working with Greenberg at Federated Hermes was the manager - and the firm's - "culture of responsibility".
"Sustainability is something that is very powerful for me because it resonates very well with my own philosophy in life, which is to live as sustainably and as compassionately as possible," he added.
In addition, the co-portfolio manager said the diversity and experience of the ten-strong emerging markets team at Federated Hermes was particularly appealing.
He also decided that investing in emerging markets as opposed to other asset classes "made sense".
"At first I was looking at private equity investing from a developed market perspective, but this didn't really fit culturally for me because in Europe, private equity is a lot more regional.
"So for me, it made sense to do what I have the most knowledge of because I'm from India - one of the large emerging market countries."