Federated Hermes launches ‘Article 9’ Sustainable Global Investment Grade Credit Fund

Federated Hermes Limited has launched the Federated Hermes Sustainable Global Investment Grade Credit Fund with cornerstone investor CCLA, a sustainable investment pioneer. The Fund will be co-managed by senior portfolio managers Nachu Chockalingam and Orla Garvey. 

The Fund seeks to deliver a total return with a reduced environmental footprint compared to the benchmark, which is measured using carbon, water, and waste footprint metrics.

As well as using an exclusions framework, the Fund employs a high barrier to entry for names entering the portfolio, utilising the teams’ proprietary scoring models and engagement expertise. While the Fund is weighted to sustainable leaders, the Fund will opportunistically invest in issuers with clear momentum in sustainability.  

The Fund conforms with ‘Article 9’ of the Sustainable Finance Disclosure Regulation (“SFDR”) and sits within our ‘Sustainable’ range of products. It follows the launch of the Federated Hermes Sustainable Global Equity Fund in 2021. These launches form part of a Fund range segmentation project, allowing clients to easily select Funds based on their sustainability requirements.

This launch builds upon a well-established relationship between Federated Hermes Limited and CCLA. Last year, Federated Hermes Limited’s Credit team was appointed by CCLA as the portfolio manager for two of its fixed-income funds.