Unconstrained Credit

A flexible and dynamic multi-sector credit solution throughout market cycles.

Reasons to invest


With the ability to invest across the full spectrum of liquid credit globally, we aim to achieve a high level of income and capital growth.

Combining top-down/bottom-up

We seek to generate alpha by combining top-down asset allocation with bottom-up issuer and security selection.

Downside defence

We employ a dynamic hedge overlay which seeks to protect against down markets.

Experienced team

A skilled, integrated team with a strong record of implementing relative-value credit strategies since 2004.

ESG integration

Our investment process incorporates Federated Hermes’ leading ESG integration and engagement insights.

Why Unconstrained Credit?

Lower volatility credit can offer superior risk-adjusted returns against equities. Although high economic growth is desirable, credit can thrive in a low-growth environment given companies’ focus on balance-sheet health, leading to excellent fundamentals and low default rates.
Order with a leaf

Approaching credit in the right way is more important than ever. Through our global and unconstrained approach, we aim to achieve a high level of income and capital growth.

Order with a leaf

The process incorporates a dynamic option overlay which seeks to hedge against down markets and manage risk. It is intended to allow us to adjust the portfolio risk depending on prevailing market conditions while limiting turnover of our best ideas. The reduced volatility also contributes to the potential for strong risk-adjusted returns.


How we invest

Identifying sources of risk and opportunity
Disciplined bottom-up research
ESG integration and engagement

Investment philosophy

Active, high-conviction global relative value across capital structures

We believe:

  • Seamless integration of ESG and sustainability considerations, coupled with active engagement, is critical to sustainable long-term performance.
  • A high-conviction, active credit-selection process, guided by top-down analysis is essential to outperforming in both bull and bear markets.
  • Issuer selection universe beyond the US and Europe, including emerging markets, can create more opportunities and diversified sources of return.
  • Security selection is as important as company selection, searching capital structures for optimal instruments opens opportunities.
  • Downside defence improves risk-adjusted returns – we seek to preserve capital in down market environments.

Investment process

Investment process


Nachu Chockalingam, CFA

Senior Credit Portfolio Manager, Federated Hermes Limited

Vincent Benguigui

Vincent Benguigui

Senior Credit Portfolio Manager, Federated Hermes Limited

Andre Lennox

Andrew Lennox

Senior Portfolio Manager, Federated Hermes Limited

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