Federated Hermes Launches Article 9 Investment Grade Credit Fund Targeting Carbon, Water & Waste Leaders
Investment manager Federated Hermes announced today the launch of the Federated Hermes Sustainable Global Investment Grade Credit Fund, aimed at delivering a total return, with a reduced environmental footprint encompassing carbon, water and waste.
The new fund, which conforms with Article 9 of the EU’s Sustainable Finance Disclosure Regulation (SFDR), launches with sustainability-focused investment manager CCLA as a cornerstone investor. According to CCLA’s Head of Investment Solutions, Ben Funnell, the launch if the fund comes as investment grade credit “has become substantially more attractively valued” as an asset class over the past several months.
“We expect good real returns from the sector given starting yields today. Federated Hermes has significant expertise in the space, and aligns with our firm’s and our investors’ values in terms of responsible investing.”
According to Federated Hermes, the fund will primarily target sustainable leaders, it will also opportunistically invest in issuers with clear sustainability momentum. Security selection will utilize proprietary scoring models and engagement expertise, in addition to using an exclusions framework.
The new fund will be co-managed by Federated Hermes senior portfolio managers Nachu Chockalingam and Orla Garvey.
“Our dual objectives are not independent goals and seeking investment grade corporate issuers that also aim to mitigate the damage they cause or improve upon the impact they have relative to people and the planet will offer real value to our clients.”