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Federated Hermes Launches Article 9 Fund with Cornerstone Investor CCLA

Responsible investment management firm Federated Hermes has unveiled the Federated Hermes Sustainable Global Investment Grade Credit Fund. The fund is launched with sustainable investment firm CCLA as a cornerstone investor. The Article 9 SFDR-compliant fund looks to deliver a total return with a “reduced environmental footprint compared to the benchmark”, which is measured using carbon, water and waste footprint metrics. In addition to the use of an exclusions framework, it employs a high barrier to entry for names entering the portfolio, utilising the teams’ proprietary scoring models and engagement expertise. Although the fund is weighted to sustainable leaders, Federated Hermes said it will “opportunistically invest” in issuers with “clear momentum in sustainability”. The launch continued to build on a “well-established relationship” between the two firms, with Federated Hermes Credit team appointed as the portfolio manager for two of its fixed income funds by CCLA last year. Dan Churchouse, Head of UK Wholesale Distribution at Federated Hermes, said: “We are delighted to be able to further strengthen our relationship with CCLA with our partnership on this new launch. The launch of the Fund fulfils a dual purpose of being the first fixed income launch within our Sustainable range while also responding to investor demand on bringing a global investment grade fund to market.” 

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