Hermes Fund Managers has launched a multi strategy fixed income aiming to deliver absolute returns.
The Hermes Multi Strategy Credit fund will target a 7 per cent annualised return through the market cycle but will also look to generate “positive absolute returns on a rolling 12 month basis”.
Hermes said the aim would be to deliver “high-yield-like returns, with significantly lower volatility, and capital preservation characteristics”.
The new fund will be managed by Fraser Lundie (pictured), co-head of Hermes credit and senior credit portfolio manager, and Raphael Muller, senior credit portfolio manager.
Mr Lundie said the fund would combine “high-conviction, long-only investments with a range of defensive market-neutral trades”.
The relative value strategy will look to invest globally across fixed income asset classes.
The fund has been launched with assets of $242.1m (£144m) and is domiciled in Dublin with a base currency of dollars but a sterling hedged share class.
Mr Lundie and Mr Muller have been managing the strategy on which the new fund is based since June 2013 and have generated a return of 11.1 per cent.
The two managers, along with Mitch Reznick, the other co-head of Hermes credit, have been managing relative-value credit strategies together since 2004.
