The first European-domiciled liquidity product the firm has launched
(LONDON, 14 June 2023) – Federated Hermes, Inc. (NYSE:FHI), a global leader in active, responsible investing, today announces the launch of the Federated Hermes Short-Term Euro Prime Fund. The new Fund, is now available to investors and offers a portfolio of high-quality euro-denominated short-term debt instruments.
The Federated Hermes Short-Term Euro Prime Fund is the first European-domiciled liquidity product the firm has launched, following the completion of Federated Investors’ acquisition of Hermes Investment Management in July 2018.
As Federated Hermes’ first euro-denominated money markets solution, the Fund is an extension of the asset manager’s currency offering from its $505.8 billion AUM (as at 31 March, 2023) global liquidity platform, sitting alongside its Short-Term USD Prime and Short-Term Sterling Prime Funds.
Interest rate increases by the European Central Bank have reignited investor demand for the asset class in recent months, following years of near-zero rates. The Fund offers asset allocators with daily euro liquidity requirements an opportunity to deliver an improved return profile on their bank deposits.
The Fund is co-managed by Gary Skedge, Senior Portfolio Manager, and Joanne Bartell, Portfolio Manager, overseen by Deborah Cunningham, Chief Investment Officer of Global Liquidity Markets, and Paige Wilhelm, Senior Portfolio Manager and Head of the Prime Liquidity Group.
Both Skedge and Bartell are highly experienced portfolio managers with a proven track record of delivering strong investment performance. The Fund will initially be available to investors in Austria, Finland, Germany, Ireland, Italy, Luxembourg, Portugal, Spain, Netherlands and the United Kingdom.
The Fund’s comparative performance will be measured against the IMMFA EUR Prime MMFS Stable NAV peer group.
Commenting on the launch, Deborah Cunningham, Chief Investment Officer, Global Liquidity Markets, Federated Hermes, said: “We are delighted to launch the Federated Hermes Short-Term Euro Prime Fund for investors seeking income. In an uncertain and volatile market environment, short-term debt can offer investors a low-risk, highly liquid solution, invested in high-quality assets. We believe that the European short-term debt market offers particularly attractive investment opportunities amid higher interest rates as well as protection from inflation.”
The plan, assembled in collaboration with its clients, identifies the focus of its engagement with companies in the year ahead based on the most material drivers of long-term sustainable wealth for its clients and their ultimate beneficiaries.