Federated Hermes Global Trade Finance Fund
Potential to access uncorrelated alpha with limited reliance on traditional return drivers.
Reasons to invest
Overview
The fund’s investment objective is to provide total return primarily from income. The fund pursues its investment objective primarily by investing in trade finance, structured trade, export finance, import finance, supply chain financing and project finance assets of entities, including sovereign entities (“trade finance related investments”). Trade finance related investments will be located primarily in or have exposure to global emerging markets.
Watch this video to learn about how our approach to trade finance differs from peers and the wider benefits of the strategy.
Trade finance is basically a sub-set of the loan market. It is relatively short-term loans used to finance the physical flow of goods, using those goods as the primary source of collateral within the loan.
Investment philosophy
Federated Hermes’ Trade Finance Strategy offers investors the potential for a source of uncorrelated return, with low volatility and high return that adjusts with inflation. Trade Finance is an asset class that requires specialised experience including intensive legal and operational due diligence, a deep understanding of risk and how to mitigate it, and relationships with the largest global banks. We believe that as the worldwide demand for trade continues to grow, a diversified pool of trade transactions will consistently deliver the ‘pure alpha’ that investors seek.
Investment process
Trade Finance refers to loans that are made to finance a specific trade transaction. The loans are collateralised by the goods being financed and are self-amortising from the proceeds of the transaction. The loan rates float at a spread over a short duration index, allowing for adjustment to inflation and the lenders build risk mitigants into the deals to reduce the chance of loss.
Application Forms
Team
Kazaur Rahman
Portfolio Manager, Senior Investment Analyst
Maarten Offeringa
Sr. Investment Analyst/PM
Chris McGinley
Head of Trade Finance Team
Ihab Salib
Senior Portfolio Manager, Head of International Fixed Income Group, Federated Hermes
Find out more about Trade Finance
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The Federated Hermes Global Trade Finance Fund is only available to Wholesale Investors and those that have been advised by their Financial Adviser. If you are not a Wholesale Investor you should contact your Financial Adviser for further information.
The information on this website has been prepared by Federated Investors Australia Services Ltd ABN 90 161 230 637 AFSL 433 831 and issued by The Trust Company (RE Services) Limited ABN 45 003 278 831 AFSL 235 150 (Perpetual) as responsible entity and the issuer of units in the Federated Hermes Global Trade Finance Fund. It is general information only and is not intended to provide you with financial advice, and has been prepared without taking into account your objectives, financial situation or needs. You should consider the product disclosure statement (PDS), prior to making any investment decisions. The PDS and target market determination (TMD) can be obtained by visiting our website www.federatedhermes.com/au. If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licensed or authorised financial adviser. This information is only as current as the date indicated, and may be superseded by subsequent market events or for other reasons. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. All investments contain risk and may lose value.
No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) guarantees the performance of any fund or the return of an investor’s capital. No company in the Perpetual Group (Perpetual Limited ABN 86 000 431 827 and its subsidiaries) gives any representation or warranty as to the reliability or accuracy of the information contained in this website.
Federated Hermes Trade Finance Strategy won the category of Best Investing Product/Strategy at Insurance Asia News Institutional Asset Management Awards 2025. For more information, please see this link.
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