Federated Hermes, a global leader in active investment management, today announced its entry into Australia’s wholesale investor market with the launch of the Federated Hermes Global Trade Finance Fund, a distinctive uncorrelated income strategy offering the potential for low volatility of return, with negligible interest rate and short credit duration risks1.
The Federated Hermes Global Trade Finance Fund is a feeder that invests in an AUD-denominated share class of the Federated Hermes Project and Trade Finance Master Fund (the “Underlying Fund”). This new feeder fund offers Australian wholesale investors, especially those seeking diversification, access for the first time to the trade finance asset class which Federated Hermes has offered to global institutional investors for more than 15 years. Positioned between public and private markets, trade finance can serve as a diversifier in investors’ portfolios due to its limited reliance on traditional return drivers, while providing quarterly liquidity2.
The Fund is managed by Chris McGinley, Head of Trade Finance, supported by portfolio managers Maarten Offeringa and Kazaur Rahman. It is registered for sale in Australia, available only to wholesale investors and those advised by their Financial Advisers.
Trade finance has traditionally been the sole domain of large international banks. Federated Hermes gives investors access to this alternative asset class by co-investing with these banks to provide relatively short-term loans used to finance the physical flow of essential goods around the world. These goods are used as the primary source of collateral within the loan, and their essential nature underpins the continued demand for trade finance, even in times of market volatility.
Federated Hermes has established itself over the past several years as a leading provider of active investment strategies for local institutional investors and a trusted partner in delivering stewardship services to Australia’s major superannuation funds, including several of the top 10. Building on its global segment expertise and scale, the firm is now accelerating its expansion into the Australian wealth management market, positioning itself to become a major player in the segment.
The defensive power of trade finance during periods of public market turbulence is well recognized by our institutional clients, who value its diversification benefits. Federated Hermes Trade Finance strategy, now accessible to a wider range of investors in Australia, invests across a broad spectrum of loan types, sectors, and regions, aiming to deliver risk-adjusted returns for investors.
Chris McGinley, Head of Trade Finance
This fund launch marks the first step in rolling out a broader investment strategy for wholesale investors in Australia. While Federated Hermes is best known in Australia as a strategic adviser and provider to institutional investors, we are now leaning on our rich wealth management heritage across the United States and Europe to expand into the wholesale segment with a tailored product that historically has been limited to institutional-grade investors. This move not only paves the way for future offerings, but also demonstrates our understanding of the specific needs of wholesale investors and commitment to building a stronger presence in the market.
Liz White, Associate Director, Business Development, Australia
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1 Returns are not guaranteed. Negligible interest rate risk through a floating rate structure and self liquidating transactions. All investments contain risk and may lose value.
2 Federated Hermes’ Trade Finance Strategy provides quarterly redemptions and daily mark-to- market information
Disclaimer
This communication 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 for free 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. Past performance is not indicative of future performance.
Neither Federated Investors Australia Services Ltd nor any 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. Neither Federated Investors Australia Services Ltd nor Perpetual give any representation or warranty as to the reliability or accuracy of the information contained in this press release.
The fund is not being marketed outside Australia.
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