10 Feb 2020
Every month we study the universe of funds in the investment marketplace to assess whether they meet our exacting standards and should be given the RSMR seal of approval.
Hermes Multi Strategy Credit Fund |
This fund has a differentiated investment process which combines top down macro and fundamental company analysis to search for relative value opportunities across optimal bond issuers and their capital structures.
This is an actively managed, high conviction fund that sits broadly in the Libor + 3-5% type return profile, with low volatility, which has performed well since its launch in 2013. The fund has lower drawdown compared to other credit funds as it invests across the full suite of available credit securities. They invest in loans, convertibles, preference shares, investment grade and high yield bonds, hybrids, EM credit and EM sovereigns.
Where Federated Hermes differs from many funds in the market is that they do not rely on duration to manage risk, therefore, this fund should offer some protection in conditions where both safe haven assets are jittery and where there is volatility in rates. The fund has an excellent risk reward profile and can be used as a core credit fund.
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This information is for UK Professional Advisers only and should not be given to retail clients.The value of investments and the income from them may go down as well as up and investors may not get back the amounts originally invested.
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