Hermes launches new unconstrained credit fund

By Daniel Lanyon on Wednesday 30 May 2018

Editor's PickAlternative Lending

The firm, which manages £33.6bn of assets, has added to its global fixed income product offering two years after launching its first direct lending strategy.

Hermes launches new unconstrained credit fund
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Hermes Investment Management has launched a new credit portfolio, partly targeting alternative assets.

The Hermes Unconstrained Credit Fund, seeded by cornerstone investors including Quilter Multi-Asset, has investor commitments of £185m. It aims to offer a high-conviction, multi-sector credit solution that is structured to perform throughout market cycles, according to the firm.  

While the investment process centres on global liquid-credit markets the fund will also look to exploit opportunities throughout loans and asset-backed securities and other credit derivatives.

Andrew Jackson, Head of Fixed Income, and Fraser Lundie, Co-Head of Credit and Lead Credit Portfolio Manager, will manage the Fund.

Jackson said: “We view flexibility and risk management as the most important tools in any fixed income asset manager’s toolkit. It is for that reason that we continue to utilise security selection and ESG as primary tenets of our approach”.

“Together with our highly skilled, integrated team with expertise across the liquid-credit markets, asset-based lending and derivatives, we seek to further diversify the underlying universe of global assets, extend the ability to deviate meaningfully from benchmarks, and to fully utilise the range of credit instruments as risk mitigation tools,” he added.

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