Federated Hermes has launched a Global Short Duration Bond Fund, targeting the short end of the curve.
This new fund is designed to provide investors with the ability to step further away from liquidity products, while maintaining a lower exposure to both interest and credit risk.
It is part of a wider range of short duration products that bridge the gap between Federated Hermes’s $637bn (£463bn) global liquidity platform and its $100bn (£72bn) fixed income platform.
The fund is currently available to investors in Ireland, Italy, Portugal, Singapore, Spain, Germany and the UK.
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The fund is co-managed by head of international fixed income Ihab Silab and head of low duration and the firm’s structured products group Nicholas Tripodes.
The pair are supported by portfolio managers Yulia di Mambro, John Polinski and Andrew Lennox who oversee emerging markets, European corporates and European ABS, respectively.
This launch highlights the demand for short duration assets with First Eagle Investments launching a real estate debt fund earlier this month that also targeted the short end of the curve.
“Our global strategy enhances diversification by spreading investments across various markets and currencies,” said Silab.
“This approach not only taps into various sources of alpha from across our fixed income platform but is also capable of generating better risk adjusted total returns.
“The fund also benefits from the higher liquidity typically associated with short duration bonds, allowing investors easier access to their capital.”
Earlier this year, Federated Hermes’s head of European direct lending Patrick Marshall also highlighted the importance of geographical diversification when discussing his own strategy.
