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Hermes is focusing on growing ESG, credit solutions

Hermes is focusing on growing ESG, credit solutions

Growing demand for thematic investing solutions such as environmental, social and governance (ESG) has led Hermes Investment Management to develop new strategies in this space.

The company’s spokesperson said Hermes will continue to focus on building assets and track record for the two ESG funds it launched in December.  

The Hermes Sustainable Development Goal strategy had about $200 million in assets, while the Hermes Impact Opportunities strategy had about $150 million in assets.

Both Undertakings for Collective Investment in Transferable Securities (Ucits) funds are available to high-net-worth investors in Asia and are managed out of London.

In the first six months from its launch in December, UBS Private Bank was the exclusive distributor for the Sustainable Development Goal fund in Singapore.   

The Sustainable Development Goal (SDG) strategy is managed by the Hermes global small and mid-cap team and aims to deliver strong investment returns through successful SDG-focused engagements with small-and mid-cap companies globally.

Meanwhile, Hermes Impact Opportunities strategy is managed by Citywire AAA-rated Tim Crockford. The Impact Opportunities strategy is a concentrated high-conviction global equity portfolio of 25 to 50 securities.

The stocks are typically held over five to 10 years with a bold philosophical foundation to increase prosperity in society through sustainable impact investing and companies which must be linked to at least one UN Sustainable Development Goal.

The company’s spokesperson said Hermes will continue to look for new ways to access the thematic space.

Andrew Parry, the company’s head of sustainable investing, is responsible for the build out of the entire thematic range.

Meanwhile, Hermes has also been strengthening its credit capabilities over the past few years.

‘We have added a lot of extra people to that team that will allow us to deliver unconstrained multi-asset credit solutions across a range of different credit assets both liquid and illiquid,’ the spokesperson said.

Just last month, Hermes launched a new unconstrained credit strategy targeting institutional and hig-net-worth investors in Asia.

The strategy is managed by Andrew Jackson, the company’s head of fixed income, and Fraser Lundie, co-head of credit and lead credit portfolio manager.

It seeks to exploit opportunities throughout the global liquid credit spectrum in investment-grade and high-yield bonds, loans, credit-default swaps, asset-backed securities and other credit derivatives.

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