Investing worldwide, we exploit differences in relative value throughout issuers’ capital structures aiming to outperform through the cycle.
A global approach to exploit the globalisation of the global high yield credit market.
By searching the capital structures of issuers for securities, we seek bonds and derivatives with superior relative value.
Identifying outperforming securities is more important than picking issuers that simply pay back.
A skilled, integrated team whose principal members have worked together since 2004.
We believe that global, relative-value investing throughout the capital structures of issuers can deliver strong returns through the cycle.
Through top-down analysis, we determine our risk appetite and the return prospects of different regions and sectors. These findings direct our disciplined, bottom-up research, in which we seek exposure to issuers with attractive credit risks and aim to determine which securities in their capital structures provide superior relative value.
Our global approach, in which we invest throughout the US, Europe and the emerging markets, provides us with access to an expansive set of opportunities and sources of liquidity.
We believe that global, relative-value investing throughout the capital structures of issuers can deliver strong returns through the cycle.
This requires a broad mandate. By investing worldwide, we are exposed to more opportunities to exploit differences in valuation and potential return, and can better manage liquidity risk. Our top-down analysis assesses the return prospects of different regions and sectors, and informs our bottom-up research of companies. We aim to identify attractive issuers and, crucially, determine which bonds and credit-default swaps in their capital structures provide superior relative value.
We historically assessed companies’ environmental, social and governance (ESG) risk alongside core operating and financial risks. Now we are furthering this analysis by using a proprietary pricing model to capture the influence of ESG factors on credit spreads. It shows the correlations between an issuer’s QESG Score – developed using best-of breed external research and insights from the engagement specialists in EOS – and their credit-default-swap spread. This enables us to calculate the marginal price of the ESG risk for each issuer, and anticipate changes in valuation. It is an informative analytical tool, enabling us to avoid issuers with tight spreads and low QESG Scores and favour those with wide spreads and high QESG Scores.
Fraser Lundie
CFA, Head of Fixed Income – Public Markets, Federated Hermes Limited
Fraser Lundie
CFA, Head of Fixed Income – Public Markets, Federated Hermes Limited
View Bio
Fraser joined in February 2010 and is Head of Fixed Income – Public Markets and lead manager on the range of credit strategies. Based in London, he is responsible for leading the strategic development of the Credit platform and investment teams, offering solutions accessing all areas of the global credit markets. Prior to this, he was at Fortis Investments, where he was responsible for European High Yield. 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, where he also sits on their Sustainability Steering Committee, as well as the Professionalism Steering Committee overseeing the society’s advocacy and thought leadership work. He has previously 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 was also named as one of the top 10 star fund managers of tomorrow by the Daily Telegraph. Other notable accolades have come from Citywire Americas, which named Fraser number one in their global high yield manager review, and InvestmentEurope and Investment Week, which both named the Federated Hermes Multi-Strategy Credit Fund top global bond fund at their respective 2017 Fund Manager of the Year Awards.
Nachu Chockalingam
CFA, Senior Credit Portfolio Manager, Federated Hermes Limited
Nachu Chockalingam
CFA, Senior Credit Portfolio Manager, Federated Hermes Limited
View Bio
Nachu joined in March 2018 as a portfolio manager within the Credit team. She is co-portfolio manager of the SDG Engagement High Yield Credit strategy and the Climate Change High Yield strategy, as well as the sustainable portfolio manager for our range of flexible credit strategies. 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 where she spent 13 years covering, firstly, European high yield and investment grade and then CEEMEA credit. Nachu graduated from the London School of Economics with a degree in Economics and is a CFA charterholder.