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 | Sept 26 2019 |
| Benchmark | ICE BofAML Global High Yield 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
CFA, Head of Hermes Credit and Lead Portfolio Manager
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Fraser joined Hermes in February 2010 and is Head of Credit and lead manager on the Hermes 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. Having previously featured in Financial News’s ‘40 Under 40 Rising Stars of Asset Management’, an editorial selection of the brightest up-and-coming men and women in the industry, 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 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
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Mitch joined Hermes in February 2010 as Head of Research on the Hermes Credit team before becoming Co-Head of Hermes Credit from 2012 to 2019. 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; Co-Chair of the Capital Markets Advisory Committee of the IFRS Foundation; founding member of the Executive Committee for the European Leveraged Finance Association; member of the Sovereign Working Group and the Credit Rating Advisory Committee for the PRI; member of the technical Working Group (Communications and Technology) for the US-based Sustainability Accounting Standards Board (SASB); a workstream member of the UK-China Green Finance Task Force; and sits on the Green Finance Advisory of the City of London.
Aaron Hay
Lead Engager, Fixed Income
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Aaron joined Hermes in August 2018 and is lead engager for the SDG Engagement High Yield Credit Fund, responsible for developing engagement strategies and working with companies in the fund. Prior to this role, he worked in Hermes EOS specialising in North-American company engagement, including the automotive, chemicals, technology and consumer goods sectors, and continues to work with Hermes EOS in thought leadership. Aaron has a decade of experience advising on corporate sustainability strategy and environmental and social challenges across private, public and NGO sectors. Before joining Hermes, Aaron consulted with Accenture Strategy in London, engaging numerous consumer goods, telecoms and logistics clients in sustainability strategy, ethical supply chain development, circular economy and environmental valuation projects. Aaron was previously a senior advisor with Forum for the Future, a UK NGO that partners with large companies to use systems thinking for developing long-term sustainable business models. Aaron also worked in regional government, delivering a pioneering digital ride-matching platform to reduce congestion in Toronto, Canada, and advised information technology executives on ‘Green IT’ strategy and operations at Info-Tech Research Group. Aaron holds an Honours Business Administration (HBA) degree from the Ivey School of Business at Western University, and a MSc in Environmental Technology from Imperial College London.
