We've created a global credit strategy intending to deliver high-yield returns whilst also allowing investors to invest in positive change in society and the environment
Committed to active corporate engagement since 1983, we have a large team skilled in face-to-face engagement with corporate executives and directors
A credit team whose co-heads have worked together for nearly 15 years to deliver superior, consistent returns with a focus on security selection across geographies, capital structures and debt instruments
The SDGs provide an ideal framework to identify ex-ante potential for creating positive change through engagement to create more impactful and profitable companies
The SDGs are a universal set of goals, targets and indicators for global development. They serve as a blueprint for significantly changing the world — by ending global poverty, safeguarding the planet and aiming for prosperity for all — by 2030. Established by the UN in September 2015, the SDGs were adopted by the international community, including 193 governments.
There are 17 SDGs, and within these goals there are 169 targets and 230 indicators. They are integrated and indivisible and balance three primary dimensions of sustainable development: the economic, social and environmental. To achieve these goals, it is estimated that it will require an investment of between $5-7tn each year until 2030. Approximately $1tn comes from public funds from the UN and member countries annually, while private capital must fund the remaining $6tn annually. Learn more about the SDGs here. 1
| Portfolio Managers | Mitch Reznick, CFA; Fraser Lundie, CFA |
| Lead Engagement Manager | Aaron Hay |
| Inception date | Oct 02 2019 |
| Benchmark | ICE BofAML Global High Yield Constrained Index hedged to USD* |
| Instruments | Primarily high-yield corporate bonds |
| Approximate number of issuers | 75-100 |
| Base Currency | USD, hedged (no active currency positions are taken versus the benchmark)* |
| Liquidity | Daily |
| Tracking Error | Typically 2-4%, ex-ante |
*The Company shall use the above benchmark for performance comparisons with the Fund, as deemed appropriate. For the avoidance of doubt the Fund’s objective is not to track the performance of an index or benchmark. The Fund does not charge any performance fees and, accordingly, no fees are paid to the Investment Manager on the basis of outperformance of an index or benchmark.
Fraser Lundie
Head of Credit and Lead Portfolio Manager
Fraser Lundie
Head of Credit and Lead Portfolio Manager
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Fraser joined the international business of Federated Hermes in February 2010 and is Head of Credit and lead manager on the range of credit strategies. Prior to this, he was at Fortis Investments, where he was responsible for European high yield credit. Fraser graduated from the University of Aberdeen with an MA (Hons) in Economics; he earned an MSc in Investment Analysis from the University of Stirling and is a CFA charterholder. In 2017, Fraser joined the board of CFA UK, a member society of the CFA Institute. He was featured in the Financial News’ ‘40 Under 40 Rising Stars of Asset Management’, an editorial selection of the brightest up-and-coming men and women in the industry, and in 2015 Fraser was named as one of the top 10 star fund managers of tomorrow by the Daily Telegraph. In 2016, Citywire Americas named Fraser number one in their global high yield manager review, and InvestmentEurope and Investment Week both named the Federated Hermes Multi-Strategy Credit Fund top global bond fund at their respective 2017 Fund Manager of the Year Awards.
Mitch Reznick
CFA, Head of Research and Sustainable Fixed Income
Mitch Reznick
CFA, Head of Research and Sustainable Fixed Income
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Mitch joined the international business of Federated Hermes in February 2010 as Head of Research on the Credit team before becoming Co-Head of Credit from 2012 to 2019. In 2019, in addition to his role of Head of Research, he became Head of Sustainable Fixed Income and co-manager of the Federated Hermes SDG Engagement High Yield Credit Fund. Prior to this he was Co-Head of Credit Research for the global credit team at Fortis Investments. Other roles at Fortis include portfolio manager of European high yield funds, based in London, and senior credit analyst, based in Paris. Before this he worked as an associate analyst in the leveraged finance group at Moody’s Investors Service in New York. Mitch earned a Master’s degree in International Affairs at Columbia University in New York City and a Bachelor’s degree in History at Pitzer College, one of the Claremont Colleges in California. He is a CFA charterholder and Co-Chair of the Federated Hermes Sustainability Investment Centre. Among his current and former advocacy roles are: founding member of the Executive Committee for the European Leveraged Finance Association (ELFA); Co-Chair of the Credit Risk and Ratings Advisory Committee at the Principles for Responsible Investment (PRI); workstream member CFO Taskforce for the United Nations Global Compact (UNGC); member the Target Setting workstream at the Institutional Investors Group on Climate Change (IIGCC); Technical Working Group (Communications and Technology) for the US-based Sustainability Accounting Standards Board (SASB); (former) Co-Chair of the Capital Markets Advisory Committee of the IFRS Foundation; (former) member of the Sovereign Working Group (PRI); (former) workstream member of the UK-China Green Finance Task Force; and (former) Green Finance Advisory of the City of London.
Nachu Chockalingam
CFA, Senior Credit Portfolio Manager
Nachu Chockalingam
CFA, Senior Credit Portfolio Manager
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Nachu joined the international business of Federated Hermes in March 2018 as a portfolio manager responsible for emerging market debt. She joined from Ontario Teachers’ Pension Plan, where she was a portfolio manager responsible for the plan’s active investments in emerging markets and European credit. Nachu started her career at JPMorgan in London as a sell-side analyst covering, firstly, European high yield and investment grade and then CEEMEA credit and was at the bank in London for 13 years. Nachu graduated from the London School of Economics with a degree in Economics and is a CFA charterholder.
