SDG Engagement High Yield Credit

Seeking positive outcomes for investors and society.

Reasons to invest

Positive outcomes for investors and society

We aim to generate attractive returns for investors while benefitting society over the long term.

SDG investing

We seek positive changes for society and the environment through engagement with companies on the United Nations’ Sustainable Development Goals (SDGs).

Future leaders

To create change, we invest in the companies we believe will make an impact tomorrow – rather than those making an impact today.

Investment strength

Since 2004, we have delivered attractive high yield credit returns through relative-value investing across the capital structures of companies worldwide.

Engagement depth

Our dedicated engagers are supported by EOS at Federated Hermes, a leading global stewardship team, and the pioneering Responsibility Office.

Strategy overview

Mitch Reznick
Combining global, high-conviction credit investing with SDG-aligned engagement, we seek long-term outperformance and positive impact.
Mitch Reznick, CFA
- Head of Research and Sustainable Fixed Income

Why SDG Engagement High Yield Credit ?

In a world facing transitions in climate, technology, demographics, and geopolitics, it is imperative companies take action on sustainability. Investors have an important role to play. Our dual objective is attractive investment returns and a positive impact on society and the environment. These goals are not in opposition but are interlinked.

The strategy aims to generate a positive societal and environmental impact through engagement with companies focused on the United Nations’ Sustainable Development Goals (SDGs). We aim to deliver returns to society by identifying global high yield companies with impact potential. We engage with these companies to help them make positive changes to society and the environment.

We aim to deliver superior risk-adjusted returns versus the global high yield market via an investment process that is more than 15 years in the making. Our flexible, proven investment thesis aims to exploit valuation anomalies across geographies, along credit curves, and within capital structures, based on its acute focus on security selection. By seeking the impact leaders of tomorrow and engaging with companies on sustainability, we aim to invest in companies with improving fundamentals and long-term profitability, while mitigating downside risk.

How we invest

Style
Our approach
Engagement overview

Investment philosophy

Seeking positive outcomes for investors and society

We believe our dual objectives are interwoven and self-reinforcing. By identifying tomorrow’s impact leaders and engaging with companies on the SDGs, we aim to generate positive societal and environmental impact – which will, in the long term, reward the companies and their investors.

SDGE HYC investment philosophy infographic

Investment process

SDGE HYC investment process infographic

Team

Fraser Lundie

Fraser Lundie, CFA

Head of Fixed Income – Public Markets, Federated Hermes Limited

Nachu Chockalingam

Nachu Chockalingam, CFA

Senior Credit Portfolio Manager, Federated Hermes Limited

Mitch Reznick

Mitch Reznick, CFA

Head of Sustainable Fixed Income, Federated Hermes Limited

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Product information

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Insights

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Our Purpose

To deliver Sustainable Wealth Creation

Like all our investment capabilities, Federated Hermes SDG Engagement High Yield Credit aims to deliver Sustainable Wealth Creation: the generation of wealth through investments that enrich investors, society and the environment over the long term.

Our business provides three equally powerful pathways to achieving this aim. Federated Hermes SDG Engagement Yield Credit features in the Impact route.

Active ESG on blue background

Responsible, active investing for long-term performance.

Sustainable on green background

Thematic and values-based approaches for sustainable outcomes.

Impact on orange background

Mission-led investment strategies to create positive impact.

Federated Hermes
SDG Engagement High Yield Credit