The Art of Diversification: effective portfolio creation in real estate
Video transcript Vincent, you’ve recently written a great paper on portfolio construction and real estate debts. What are the key takeaways? The premise (of the paper) was that modern portfolio theory (MPT) by Markowitz1 – which is the popular framework for constructing investment portfolios – is based on the idea that the risk of an […]
EM in trade finance: unmet demand and alpha potential
Fast reading Federated Hermes’ Trade Finance Strategy has a global investment mandate. We seek to maximise the benefits of portfolio diversification and generate higher potential risk-adjusted returns for investors – wherever in the world those opportunities may be. While the Strategy also invests in developed markets (DM), our portfolio of alternative credit assets typically has […]
Real estate debt: uncorrelated returns throughout the cycle
Video transcript We are in a market where there’s a lot of geopolitical instability, and investor returns from an equity standpoint against real estate have been quite low. Why now for European real estate debt? This is a typical ‘interesting’ market – a lovely euphemism – but in a way there’s nothing much new under […]
Private equity in a net zero world
Managing climate risks and opportunities
Trade Finance whitepaper
Uncorrelated alpha potential
How project finance fits into a trade finance strategy
Fast reading Project finance supports the underlying infrastructure that makes trade possible. Federated Hermes focuses on operational and expansionary infrastructure project financing, secured on infrastructure assets that generate steady cash flows. We invest in limited-tenor loans that fund well-established, large-scale projects in emerging as well as developed markets. Trade finance introduces third parties into the […]
Everything you wanted to know about tariffs and trade finance
(but were afraid to ask)
Why invest in trade finance?
Fast reading Global merchandise trade volumes reached US$25tn in 2022 – up from approximately US$14tn in 20071 – bolstered by rapid growth in so-called south-south trade (between developing countries), which is forecast to represent 40% of global trade by 20302. Among the factors that makes trade finance a unique investment proposition is that it sits […]
Various tailwinds support private markets
2025 Outlook
Financing Europe’s push for energy security
Trade finance case study
