By combining global, high-conviction credit selection with defensive trades, we aim to generate strong capital returns and an attractive level of income.
We exploit opportunities across the ratings spectrum in the US, Europe and emerging markets.
We strive to shield our return-seeking positions using an array of trades with the potential to reduce losses.
We seek robust capital returns and an attractive, consistent yield.
Global, high-conviction, long-only positions balanced by defensive trades helps to achieve a high level income.
A skilled, integrated team whose principal members have worked together since 2004.
Propriety analytical tools and engagement help us ESG risks and deliver sustainable returns.
Exposure to the team’s best long-only credit investments, combined with strategies that defend against market volatility, should generate positive absolute returns through the cycle. In seeking to achieve this, the fund is split into two Multi-Strategy Credit buckets:
Identifying outperforming credit investments requires a broad mandate. The team researches the US, Europe and the emerging markets to exploit differences in the valuation and return prospects of securities.
Crucially, this universe enables them to avoid chronically overvalued sectors and access better liquidity.
Finding a good credit name, however, is not enough. The team believes that security selection is equally as important as issuer selection, given the varying risks and return potential of different securities within each issuer’s capital structure. Exploiting such relative value is core to generating positive returns.
Defensive trades, which include outright short, curve and capital structure trades, aim to defend the portfolio’s performance in down markets.
Fraser Lundie
Head of Credit and Lead Portfolio Manager
Fraser Lundie
Head of Credit and Lead Portfolio Manager
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Fraser joined the international business of Federated Hermes in February 2010 and is Head of Credit and lead manager on the range of credit strategies. Prior to this, he was at Fortis Investments, where he was responsible for European high yield credit. 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. He was 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 in 2015 Fraser was named as one of the top 10 star fund managers of tomorrow by the Daily Telegraph. In 2016, Citywire Americas named Fraser number one in their global high yield manager review, and InvestmentEurope and Investment Week both named the Federated Hermes Multi-Strategy Credit Fund top global bond fund at their respective 2017 Fund Manager of the Year Awards.
Vincent Benguigui
Portfolio Manager
Vincent Benguigui
Portfolio Manager
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Vincent joined the international business of Federated Hermes in 2013 and is portfolio manager responsible for short duration strategies and global risk management for the credit portfolios. He also oversees the implementation of non-linear trading strategies, with extensive use of derivatives products such as credit options and indices. He joined from Scor Global Investments in Paris, where we was credit analyst across European high yield. Vincent holds a Master’s degree in Banking and Finance with Honours from Pantheon-Assas University in Paris, as well as a Bachelor in Management from Dauphine University in Paris.
Nachu Chockalingam
CFA, Senior Credit Portfolio Manager
Nachu Chockalingam
CFA, Senior Credit Portfolio Manager
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Nachu joined the international business of Federated Hermes in March 2018 as a portfolio manager responsible for emerging market debt. 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 covering, firstly, European high yield and investment grade and then CEEMEA credit and was at the bank in London for 13 years. Nachu graduated from the London School of Economics with a degree in Economics and is a CFA charterholder.
