Hermes launches Absolute Return Credit Fund

Global bondsHermes Investment Management has expanded its suite of global fixed income offerings with the launch of the Hermes Absolute Return Credit Fund.

The firm, which has £30.1 billion (€41.5 billion) of assets under management, says the Ucits fund aims to achieve an absolute return over a rolling 12-month period, irrespective of market conditions.

Managed by Fraser Lundie, co-head of Hermes Credit, and Raphael Muller, senior portfolio manager, the fund will draw on the Hermes Credit team’s experience in managing relative-value credit strategies.

Another fund the team currently runs is the Hermes Multi Strategy Credit strategy, which has returned 12.8% cumulative since inception and celebrated its two-year anniversary on June 1, 2015.

Fraser Lundie, co-head of Hermes Credit, says the Hermes Absolute Return Credit Fund is market neutral and will follow the firm’s philosophy that investors should focus on a multi strategy approach, which incorporates both long and short investments across a number of security types.

He adds: “In the past decade we have seen the globalisation of credit markets in the US, Europe and emerging markets and in order to fully maximise these opportunities on offer, investors must invest with a truly global mandate, which is core to our offerings.”

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