Alongside our equity, fixed income and stewardship capabilities, Federated Hermes provides a range of liquidity solutions. Liquidity is one of our core capabilities, developed over 40 years of managing cash assets for our clients.* We manage over US$420bn globally and over £7bn in the UK.**1
* Federated Hermes Inc. (FHI) has been running institutional money market portfolios since 1974. ** Federated Hermes (UK) LLP is responsible for our GBP money market fund range. 1 US$669bn as at 31 December 2022.
Overview and investment approach
We offer a range of sterling-, euro- and dollar-denominated short-term and standard money market funds as well as bespoke solutions for institutional investors. Our clients include multi-national corporates, pension funds, local government organisations and wealth managers.
We seek to provide liquidity, the stability of principal and a competitive yield – driven by a relative value approach across the yield curve, across different sectors and across different security types.
We seek to:
Why Federated Hermes liquidity management?
A unique offering.
Our UK sterling-denominated funds are the only IMMFA UK-domiciled money market funds.
Expertise at scale.
We are one of the industry’s largest liquidity managers. Cash management is a core focus, fuelled by our commitment to the innovation of liquidity products.
A tried-and tested investment process.
We have an established and thorough credit process that includes ESG analysis to compile a select approved credit list.
In-depth industry experience.
The UK portfolio management team has over 20 years’ average experience managing and trading liquidity assets.
Liquidity solutions at-a-glance
Short Duration Bond
3 These strategies are run by our Pittsburgh based Liquidity Management Team. 4 This strategy is run by our Pittsburgh-based International Fixed Income Group. Targets cannot be guaranteed.
ESG in liquidity
Integrating environmental, social and governance (ESG) issues into the investment management process has evolved with the market’s recognition of how a company’s long-term strategic focus on corporate sustainability can enhance its risk-return profile. Lessons learned from the recent past also underline the importance of identifying and avoiding risky corporate management structures and/or ill-focused strategic priorities.
Despite the relevance of ESG considerations for investors, the money market space is particularly challenging when it comes to integrating ESG data into the investment process.
Federated Hermes believes the combination of deep ESG analysis and impactful engagement can make genuine ESG integration possible. We combine ESG analysis on an issuer level with direct engagement with corporate issuers and global banks. By doing so, we seek to achieve our objective of principal stability and liquidity while maximising the risk-adjusted return.
- ’ESG in Money Markets – long-term perspectives in a short-term world’ (available on liquidity management centre)