UBS and Hermes Team up for High Yield Impact Fund

Sep 2019
Global, September, 26 2019 - Hermes Investment Management and its US owner Federated Investors have teamed up with Swiss giant UBS to launch a new SDG Engagement High Yield Credit fund.

The fund will seek to achieve a meaningful social and/or environmental impact as well as a compelling return by investing in high yield bonds and engaging with their issuers.

It will have a lead engager dedicated to driving positive change in line with the United Nations Sustainable Development Goals framework.

Hermes will offer it as a Ucits-compliant fund to European investors, while a mutual fund for US investors will be available in through Federated Investors.

UBS will make the funds available through its fund platform to US and non-US clients and the funds will form part of UBS’s $5 billion commitment to SDG-related impact investing.

The fund will be managed by Mitch Reznick, head of research and sustainable fixed income at Hermes and Fraser Lundie, head of credit at Hermes. Aaron Hay of Hermes will be lead engager on the fund.

It will be available to European investors on 2 October 2019 and the UBS Global Wealth Management will make the funds available on its platforms starting in October.

Commenting on the launch, Mark Haefele, chief investment officer at UBS Global Wealth Management, said: 'Investors must understand companies’ sustainability issues on every level as they strive to maximize their returns as well as their support for sustainability goals.

'Engaging with firms as issuers of debt as well as equity is an important new step on this journey.'


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