Doing good and doing well: Our approach to sustainable fixed income

How do you differentiate sustainable investing from ESG integration? In talking about the differences between ESG integration and sustainable investing, there’s clearly an overlap when we talk about environmental and social factors. But with ESG integration, what we look at is how these non-fundamental factors affect a company’s cash flows for enterprise value and credit […]

Sustainable Global Equity, Annual Report 2022-23

Rough waves

Highlights include: Thematic focus #1: How can AI help address the UN SDGs? Thematic focus #2: Circular economy and waste management Market and performance review: One of the defining characteristics of the first half of 2023 was ‘narrowness’ of returns, with the majority of performance being driven by a small number of tech-focused mega cap […]

Spectrum Q3 2023: No robots were harmed in the making of this report

Red light

In a 1962 collection of short stories, sci-fi sage Arthur C Clarke postulated his third law, that “any sufficiently advanced technology is indistinguishable from magic”. Now, as we push through the second decade of the 21st century and into a future seemingly set up for AI, Clarke’s law appears more apt than ever. Through the […]

Sustainable fixed income: Five questions answered

Question one: How does engagement in fixed income work in practice? It’s a myth that engagement in the realm of fixed income is less effective than for equities. Our multi-decade experience of deep engagement with companies issuing debt illustrates this – and we have a solid track record that underlines how effective engagement can be […]

Meet the Manager: Orla Garvey

What’s your role at Federated Hermes? I’m a portfolio manager in our credit team, and joined Federated Hermes in June of 2022. I co-manage our Sustainable Investment Grade product with a particular focus on rates and inflation-linked markets. How did you get started in your career? In truth, I wasn’t exactly sure what I wanted […]

360°, Q2 2023

Blue water of the ocean

Divergence, duration, dislocation

Overlooked and underappreciated: The case for Korea

 At the end of May 2023, the Federated Hermes Asia ex-Japan Strategy’s key country active overweight remains Korea, at +13.96% relative to benchmark, whereas the strategy’s main underweight is India, sitting at 16.83% below the benchmark, as shown by Figure 1 below.1 We prefer Korean stocks because they currently present very cheap valuations amid improving […]

Putting the ‘investment’ in investment grade credit

Skycraper buildings

Why now? Yields are at decade highs: Yields, which sit at almost 5% for the global investment grade market, are looking very attractive. Historically, and looking at the past decade in particular, yields are now at the highest level seen for the investment grade market, as demonstrated in Figure 1 below. This indicates that a […]

European Equities Sustainability Report

Fast reading: The electric vehicle (EV) market has the potential to deliver strong growth and long-term outperformance both in terms of financial returns and driving sustainable change. Companies that provide key components to the auto industry and boast significant market share can provide a compelling way to gain indirect exposure to the market. We prefer […]

Federated Hermes launches ‘Article 9’ Sustainable Global IG Credit Fund

Federated Hermes Limited has launched the Federated Hermes Sustainable Global Investment Grade Credit Fund with cornerstone investor CCLA, a sustainable investment pioneer. The Fund will be co-managed by senior portfolio managers Nachu Chockalingam and Orla Garvey. The Fund seeks to deliver a total return with a reduced environmental footprint compared to the benchmark, which is […]