Find the right combination​

Sustainable Fixed Income
To unlock a world of sustainable fixed income with values-based outcomes, you need the right combination of expertise, ESG integration and stewardship. Our capabilities provide the key.

Crack the Sustainable Fixed Income code

It’s about the journey companies are on; not where they are today.
Environmental and societal goals are difficult to measure
Can you trust claims of sustainability?
The industry is new. Track records are short and at a premium
It’s about more than just sustainability – it’s also about seeking financial outperformance

* SCOPE Fund Analysis, 4 July 2022. SCOPE analysed information from 30 large international fund managers, taking into account 58 topics covering areas such as investment processes and corporate governance as well as stewardship efforts to encourage portfolio companies to act more sustainably. ** Source: Federated Hermes, 30 June 2023.

Winner - Engagement
$ 0 tn

Our assets under advice

companies engaged in 2022

PRI rating for Policy Governance, Fixed Income and Real Estate*

Past performance is not a reliable indicator of future results

Source: Federated Hermes as at 31 December 2023. Please note, the total AUM figure includes US$48.8bn managed by Federated Hermes Limited, of which US$7.8bn of assets are managed or under an advisory agreement by Hermes GPE LLP (“Hermes GPE”). US$99.1m of total group AUM figure represents Federated Hermes Limited mandates under advice. *In 2023, FHL received 5 stars in the Policy Governance and Strategy, Fixed Income Corporate, Fixed Income Securitised, Fixed Income Private Debt, Real Estate and Infrastructure modules. We scored 4 stars on the Listed Equity – Active Quantitative, Listed Equity – Active Fundamental, Fixed Income SSA, Private Equity and Confidence Building Measures modules.

Our Strategies

Whatever your focus, our strategies offer the flexibility to invest in Sustainable Fixed Income with a broad range of preferences in mind.


Thematic and values-based approaches for sustainable outcomes.


Mission-led investment strategies to create positive impact.

Sustainable Global Investment Grade Credit
Climate Change High Yield Credit
SDG Engagement High Yield Credit
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Solve the sustainability puzzle

With over US$700bn* of assets under management, we are a global investment manager with operations in London, Pittsburgh, New York, Boston and Asia.

Our pioneering approach to stewardship, innovative ESG strategies and advocacy for a financial system that works for all means we have been at the forefront of sustainable investing since 1983.

*Source: Federated Hermes, 30 June 2023

The DNA of sustainable investing

"For many companies, refinancing is an annual ritual. This means investors have the opportunity to pressure corporate leaders on the need to be more sustainable every time a company wants to sell more debt."

"Simply being able to talk to and advise business chiefs is a useful thing that can bring about positive change"

Mitch Reznick
Head of Research and Sustainable Fixed Income at Federated Hermes

Seamless integration

We believe integrating ESG and sustainability considerations coupled with active engagement is critical to sustainable long-term performance.


We believe an active credit-selection process, guided by top-down analysis is essential to outperforming in both bull and bear markets.

Issuer selection

We look to an investment universe beyond the US and Europe including emerging markets based on our experience that this creates more opportunities and diversified sources of return.

Security selection

We believe that searching capital structures for optimal instruments opens opportunities.

Downside defence

We seek to preserve capital in down-market environments. We believe that this downside defence can improve risk-adjusted returns.

Want to know about the rest of our fixed income range?