Federated Hermes launches EM Debt Strategy for international clients

Federated Hermes has unveiled its Emerging Market Debt Strategy, the second US-managed product to be made available to non-US clients since Federated Investors Inc. and Hermes Investment Management merged in 2018.

The strategy bolsters Federated Hermes’ full suite of active investment offerings and capabilities for investors around the world. It aims to provide investors with capital growth and a high level of income, by investing across the EMD asset class in sovereign, corporate and quasi-sovereign securities.

The fund’s flexible approach will use thorough top-down and bottom-up analysis, to evaluate the global macro environment, country and security selection.

Mohammed Elmi and Jason DeVito will be Lead Portfolio Managers on the strategy, and will work alongside Ihab Salib as Portfolio Manager. The fund’s international availability is made possible with London-based Mr. Elmi, and Mr. DeVito and Mr. Salib based in the firm’s US headquarters in Pittsburgh.

“As a global asset manager, we have been able to leverage our combined capabilities and grow our global distribution footprint,” said Harriet Steel, Head of Business Development at Federated Hermes.

“Adding this Strategy to our international platform of products represents a deepened collaboration and further alignment to our clients’ needs. Mohammed, Jason and Ihab bring a wealth of experience and a deep understanding of markets, proved by their track record of consistent, low volatility, since 2009.”

The fund will also track the unique ESG risks that exist in the market. The team at Federated Hermes has developed an ESG scoring methodology that is focused on emerging markets. It will assess and select promising long-term opportunities in the region, and it will identify and respond to risks early as they arise.

Mr. Elmi said the fund’s flexibility is important for investors and is the key for high returns.

“Given the impact of global macro themes and idiosyncratic factors on EM, it has never been more important for investors to have the flexibility to invest across differing EM asset classes,” he said.

“We draw on our experience, dedicated analytical capabilities, a focus on the fundamentals and constant dialogue with issuers to deliver clients with consistency and essential diversification.”