Federated Hermes, Inc. (NYSE:FHI), a global leader in active investment management, today announced the launch of the Federated Hermes Global Short Duration Bond Fund. The new fund is now available to investors and offers a portfolio dedicated to credit opportunities at the shorter end of the curve.
It is available to investors in Ireland, Italy, Portugal, Singapore, Spain, Germany and the United Kingdom.
The Federated Hermes Global Short Duration Bond fund aims to provide investors with the ability to take a step further along the yield curve from liquidity products, while maintaining a lower exposure to interest rate and credit risk than intermediate and long-duration fixed income offerings. It is part of a wider range of short duration products that bridge the gap between Federated Hermes USD 637 billion global liquidity platform and USD100 billion fixed income platform.
The current macro environment means that interest rates are likely to remain elevated and the pace of future monetary policy easing likely to be gradual. This, coupled with the possibility of further geopolitical risks and idiosyncratic events, has resulted in increased investor demand for opportunities to access short-dated investments across multiple sectors globally.
The Fund is co-managed by Ihab Salib, Head of International Fixed Income, and Nicholas Tripodes, CFA, Head of Low Duration and Structured Products Group. With Portfolio Manager Yulia di Mambro responsible for Emerging Markets; John Polinski for European Corporates and Andrew Lennox for European ABS.
Our global strategy enhances diversification by spreading investments across various markets and currencies. This approach not only taps into various sources of alpha from across our fixed income platform but is also capable of generating better risk adjusted total returns. The fund also benefits from the higher liquidity typically associated with short duration bonds, allowing investors easier access to their capital. We believe this new offering perfectly complements our existing liquidity, ultrashort, and low duration strategies.
Ihab Salib, Head of International Fixed Income
In the current macroeconomic environment, this new Global Short Duration Bond fund will offer compelling advantages for investors. By focusing on short duration bonds, we can provide a portfolio for investors looking to extend their duration as and when interest rates come down, one that aims to deliver lower volatility, offering a more stable investment option during times of uncertainty.
Dan Churchouse, Head of Business Development for UK & Ireland
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