Gary Greenberg, lead manager of the Hermes Global Emerging Markets and Hermes Global Emerging Markets SMID Equity funds, will step back from day-to-day portfolio management duties from September 2020 and hand over the reins to colleague Kunjal Gala, who has co-run both funds alongside Greenberg since 2016 and 2018 respectively.
Greenberg will remain global head of emerging markets at Federated Hermes and will oversee asset allocation, stock selection and team management duties until he retires in 2022 - a date that was first announced at the end of last year.
Eoin Murray, head of investment for the international business of Federated Hermes, said: "Gary and Kunjal have created an industry-leading approach to emerging markets investment which has delivered consistent returns for our clients.
"The appointment of Kunjal is a natural evolution within our emerging markets team and we are delighted to have such strong capabilities in place to deliver on our successful approach. Kunjal is an exceptionally talented portfolio manager and we are confident that he will continue to deliver for our clients.
He added: "I would like to thank Gary for his contribution to Federated Hermes in his portfolio management role and am pleased that he will be closely supporting Kunjal over the next two years."
Gala has worked closely with Federated Hermes' global emerging markets team for more than eight years and has helped to implement and develop the funds' investment philosophy and processes.
He has previously worked in the portfolio management team at UK Government Investments, at Morgan Stanley investment bank and at PwC Assurance and Business Advisory Services in India.
Gala said: "Over the past eight years, we have built an exceptional emerging markets team and I am delighted to take on this role. Gary has instituted a highly successful investment process and built a strong team of experienced professionals.
"We are all grateful for his dedication to the company and look forward to having his continued support."
The $4.6bn Hermes Global Emerging Markets fund, which Greenberg has managed since 2011, has been the second best-performing fund within the IA Global Emerging Markets sector over his tenure according to data from FE fundinfo, having returned 77.8% compared to its average peer and FTSE Emerging Markets benchmark's respective gains of 24.4% and 31%.
The fund has a relatively concentrated portfolio of 53 stocks, with its top ten holdings accounting for approximately 48% of the overall portfolio. Its largest sector weighting is information technology at 25% - and eight percentage point overweight compared to its benchmark - while its regional overweights relative to the index include China, Taiwan, Korea and India.