Hermes launches absolute return credit fund

Hermes Investment Management has launched the Hermes Absolute Return Credit fund, adding to its suite of global fixed income products.

The Ucits fund, which will be managed by co-head of Hermes credit Fraser Lundie and senior portfolio manager Raphael Muller, aims to target a positive investment return over a rolling 12-month period, irrespective of market conditions.  

The fund, which will target 100 to 150 quality companies, sits within the IA Target Absolute Return sector and all investments will be hedged back to dollar. 

Hermes co-head of credit Fraser Lundie says: ”The Hermes Absolute Return Credit Fund is a market neutral solution and follows our highly successful philosophy that investors must look beyond issuers and focus on a multi-strategy approach which incorporates both long and short investments across multiple security types including loans, bonds and CDS. 

“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.”

The fund is available to both institutional and wholesale investors in the UK, and across many countries in Europe.

The fund has annual charges of 0.97 per cent.