Liquidity

Cash remains a competitive asset class for investors seeking diversification through lower-risk, more-liquid assets. At Federated Hermes, cash gets the royal treatment through commitment and experience built over 50 years of managing liquidity.¹

¹ Federated Hermes Inc. (FHI) has been running institutional money market portfolios since 1974.

High-quality liquidity solutions

Why Federated Hermes Liquidity Management

Investment philosophy and process

Credit research

Credit research is the foundation of our investment process. Our experienced team assesses capitalisation, liquidity, qualitative considerations, profitability and agency ratings. We then use proprietary decision tools to determine an internal credit rating.

ESG

We integrate environmental, social and governance (ESG) factors into an intensive credit review process in a non-exclusionary way.

ESG Dashboard

We synthesize key metrics into a proprietary ESG Dashboard, which provides a concise assessment of a company’s exposures to material ESG risks.

Portfolio

Our portfolio managers construct portfolios based on an approved-issuer database while considering relative-value analysis, average maturity targets and liquidity management.

ESG in liquidity

Integrating environmental, social and governance (ESG) issues into the investment management process has evolved with the market’s recognition of how an institution’s long-term strategic focus on corporate sustainability can enhance its risk-return profile. Lessons learned from the recent past also underline the importance of identifying and avoiding risky corporate management structures and/or ill-focused strategic priorities.

Despite the relevance of ESG considerations for investors, the money market space is particularly challenging when it comes to integrating ESG data into the investment process in a non-exclusionary way.

Federated Hermes believes the combination of deep ESG analysis and impactful engagement can make genuine ESG integration possible. We combine ESG analysis on an issuer level with direct engagement with corporate entities, global banks and other issuing institutions.