Sustainable Global Investment Grade Credit

Through top-down analysis, we determine our risk appetite and the return prospects of different regions, ratings and sectors. Through our bottom-up research, we then identify investment grade corporate issuers that have strong fundamentals. These issuers must also be aligned with the sustainable credentials of the fund.

The strategy takes a flexible and dynamic approach to duration and curve considerations. The aim of our exposure in this space is to protect the portfolio against adverse macro events but, over time, it also constitutes a source of alpha.

We determine overall target duration and curve exposure at our bi-monthly Multi-Asset Credit Strategy Meeting (MACSM), where the investment team debates macroeconomic themes and aims to identify key risks to our outlook.

Given our global approach, we believe it is important to look at duration and macro risks across regions and along the yield curve, with the recognition that not all countries or parts of the yield curve are affected in the same way by central bank policies.

We engage with companies to improve their effect on society and the environment. Our dedicated lead engager manages a team of three engagement specialists, and is responsible for driving the strategy’s impact agenda. He is also supported by EOS at Federated Hermes (EOS), our leading global stewardship team.