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Hermes launches multi strategy credit fund for A-rated Lundie

Hermes launches multi strategy credit fund for A-rated Lundie

Hermes Fund Managers has launched a credit fund for Citywire A-rated Fraser Lundie (pictured) and Raphael Muller.

The Hermes Multi Strategy Credit fund will aim to deliver high-yield-like returns with lower volatility, and also offer capital preservation characteristics. It has no benchmark and targets annualised returns of 7%. 

Hermes has piloted the strategy since 1 June 2013, during which time it has returned 11.1% gross of fees according to the group. This encouraged it to distribute the fund, which has amassed $242.1 million in assets, to the wider market on 1 May this year.  

'Five years into the high-yield bull market, investors continue to seek strong returns but are wary of valuation and liquidity risks. By combining high-conviction, long-only investments with a range of defensive market-neutral trades, the Hermes Multi Strategy Credit fund aims to consistently deliver positive risk-adjusted returns,' Lundie, co-head of Hermes Credit and manager of the Hermes Global High Yield Bond fund, said.

'With a truly global approach, we search the high-yield and investment-grade bond, credit derivative and loan markets across multiple geographies for securities with the best return prospects.'

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Fraser Lundie
Fraser Lundie
40/48 in Bonds - Global High Yield (Performance over 3 years) Average Total Return: 3.10%
Raphael Muller
Raphael Muller
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