Fast reading
- Over the last five years, international trade supply chains have undergone significant transformations due to geopolitical tensions, technological advancements and changing consumer expectations. These forces are driving a broader transformation toward supply chains that are more resilient, transparent and sustainable.
- The Federated Hermes Trade Finance Strategy has continued to demonstrate strong resilience amid tariff fluctuations. By prioritising trade loans tied to essential goods that may be less susceptible to tariffs – and maintaining a diversified approach across not only trade directions but supply chain structures as well, we believe we have sheltered the majority of our portfolio from high tariffs.
- The remaining is concentrated in sectors with the flexibility to pivot sourcing strategies if needed, potentially ensuring minimal disruption. By staying agile and forward-looking, we continue to navigate the complexities of global trade with confidence – seeking to deliver uncorrelated returns and opportunity for our clients in an unpredictable world.
Federated Hermes trade finance and tariffs report
Trade Finance
Potential to access uncorrelated alpha with limited reliance on traditional return drivers.
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