Hermes Investment Management has been awarded a $400 million (€338 million) global high yield credit investment mandate by Första AP-Fonden (AP1), one of five buffer funds in the Swedish national income pension scheme.
The mandate was driven by a desire to improve the geographical diversification of high yield exposure, AP1 said.
Majdi Chammas, head of external management and Tina Rönnholm, portfolio manager responsible for external high yield investments at AP1, said the appointment of Hermes Investment Management as one of its high yield managers followed a comprehensive, global tender process.
They added: “The team is very advanced in the way they integrate ESG issues in their core investment process.
“Their innovative approach of pricing ESG risks in terms of spread in their fundamental credit analysis is leading in the industry.”
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