Sustainability. We mean it.

Your Questions Answered by Hermes Absolute Return Credit

20 November 2019 |
Active ESG
Your Questions Answered: a quarterly Q&A series featuring the top questions that clients and prospective clients ask our investment teams.
Why do absolute-return fixed-income strategies appeal to investors? What are our current views of the credit markets, and how does Hermes Absolute Return Credit (ARC) embody our flexible approach? These are some of the key questions that our clients and prospective investors ask about Hermes ARC. Here we provide the answers.
1. What is the appeal of absolute-return credit strategies?
2. How is ARC positioned for any turbulence that could lie ahead?
3. What range of alpha sources does ARC provide exposure to?
4. How does ARC demonstrate Hermes' approach to flexible credit?
5. What is your view of the current market?
6. How might ARC use downside protection during a market selloff?
7. What importance does ARC place on good liquidity?
8. With such a diversified portfolio, how does ARC express its ESG convictions?


Risk profile

  • Past performance is not a reliable indicator of future results.

  • The value of investments and income from them may go down as well as up, and you may not get back the original amount invested.

  • Targets cannot be guaranteed.

  • It should be noted that any investments overseas may be affected by currency exchange rates.

  • This information does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments.

  • Where the strategy invests in debt instruments (such as bonds) there is a risk that the entity who issues the contract will not be able to repay the debt or to pay the interest on the debt. If this happens then the value of the strategy may vary sharply and may result in loss. The strategy makes extensive use of Financial Derivative Instruments (FDIs), the value of which depends on the performance of an underlying asset. Small changes in the price of that asset may cause larger changes in the value of the FDIs, increasing either potential gain or loss.

Related insights

Lightbulb icon

Get the latest insights straight to your inbox