Federated Hermes introduces a worldwide short-term investment fund
In a move to cater to the growing demand for liquidity solutions, Federated Hermes has announced the launch of its latest fixed income strategy - the Federated Hermes Global Short Duration Bond Fund. This fund aims to offer investors credit opportunities concentrated at the shorter end of the yield curve, providing a step up along the yield curve from liquidity products while maintaining lower exposure to interest rate and credit risk compared to intermediate and long-duration bond offerings.
The new fund is a natural extension of Federated Hermes' short duration product range, bridging the gap between its $637 billion global liquidity platform and its $100 billion fixed income platform. The strategy enhances diversification by spreading investments across various markets and currencies, aiming to generate better risk-adjusted total returns.
The fund benefits from the higher liquidity typically associated with short duration bonds, allowing investors easier access to their capital. It is co-managed by experienced fixed income professionals within Federated Hermes, including Yulia di Mambro, John Polinski, Andrew Lennox, Ihab Salib, and Nicholas Tripodes, who bring expertise in international fixed income, emerging market research, European corporates, and European asset-backed securities.
The Global Short Duration Bond Fund is available to investors in Ireland, Italy, Portugal, Singapore, Spain, Germany, and the UK. The fund's strategy targets institutional and private banking clients, particularly in Asia Pacific and Europe, reflecting strong demand and momentum for liquidity solutions in those regions.
Dan Churchouse, head of business development for UK & Ireland at Federated Hermes Limited, endorses the new Global Short Duration Bond fund. He comments, "In this current macroeconomic environment, investors are seeking compelling advantages, and our new fund offers just that. The fund provides stability in the face of elevated interest rates, a cautious monetary easing path, and ongoing geopolitical and idiosyncratic risks."
The fund offers an alternative to traditional liquidity products, delivering lower volatility, offering a more stable investment option during times of uncertainty. It also represents a natural complement to Federated Hermes' existing liquidity, ultrashort, and low duration strategies.
In summary, the Federated Hermes Global Short Duration Bond Fund was launched to meet evolving client priorities by providing an investment option that balances yield enhancement beyond traditional liquidity products with a focus on risk mitigation and liquidity advantages characteristic of short duration bonds.
The new Global Short Duration Bond Fund, managed by experienced fixed income professionals at Federated Hermes, offers investors a chance to generate better risk-adjusted total returns by spreading investments across various markets and currencies, as it is a natural complement to their existing fixed income strategies in business. This fund, available to investors in several countries, is an alternative to traditional liquidity products, delivering lower volatility and providing stability during uncertain times, while also catering to the growing demand for liquidity solutions in finance, particularly in Asia Pacific and Europe.
