The fund was designed with Local Government Super (LGS) and has active exposure to global equities while incorporating ESG principles.
"This is another step towards LGS developing and implementing innovative strategies that manage or mitigate our ESG risk across all asset classes, while capitalising on investment opportunities to achieve solid returns for our members," LGS chief executive Peter Lambert said.
Hermes's global quantitative equities ESG strategy does not invest in companies breaching internationally recognised ESG standards or who are unwilling to engage with shareholders on how to improve business practices.
Such companies are held on an exclusion list which clients can change to meet specific requirements.
With client appetites for ESG factors on the rise, Hermes is the latest in a spate of fund managers moving towards RI strategies as another way to assess risk.
LGS has its own ESG framework and does not invest in companies with high ESG risk or who derive significant revenue from armaments, logging, nuclear energy, gambling or tobacco.
Hermes's global quantitative equities ESG strategy will be available to superannuation funds and other institutional investors.
