Chris McGinley

Federated Hermes, a global leader in active investment management, has announced its entry into Australia’s wholesale investor market with the launch of the Federated Hermes Global Trade Finance Fund, a distinctive uncorrelated income strategy offering the potential for low volatility of return, with negligible interest rate and short credit duration risks^[1].

The Federated Hermes Global Trade Finance Fund is a feeder that invests in an AUD-denominated share class of the Federated Hermes Project and Trade Finance Master Fund (the “Underlying Fund”). This new feeder fund offers Australian wholesale investors, especially those seeking diversification, access for the first time to the trade finance asset class which Federated Hermes has offered to global institutional investors for more than 15 years. Positioned between public and private markets, trade finance can serve as a diversifier in investors’ portfolios due to its limited reliance on traditional return drivers, while providing quarterly liquidity^[2].

The Fund is managed by Chris McGinley, Head of Trade Finance, supported by portfolio managers Maarten Offeringa and Kazaur Rahman. It is registered for sale in Australia, available only to wholesale investors and those advised by their Financial Advisers.

Chris McGinley, Head of Trade Finance at Federated Hermes, said: “The defensive power of trade finance during periods of public market turbulence is well recognized by our institutional clients, who value its diversification benefits. Federated Hermes Trade Finance strategy, now accessible to a wider range of investors in Australia, invests across a broad spectrum of loan types, sectors, and regions, aiming to deliver risk-adjusted returns for investors.”

Liz White, Associate Director of Business Development, Australia, at Federated Hermes commented: “This fund launch marks the first step in rolling out a broader investment strategy for wholesale investors in Australia. While Federated Hermes is best known in Australia as a strategic adviser and provider to institutional investors, we are now leaning on our rich wealth management heritage across the United States and Europe to expand into the wholesale segment with a tailored product that historically has been limited to institutional-grade investors. This move not only paves the way for future offerings, but also demonstrates our understanding of the specific needs of wholesale investors and commitment to building a stronger presence in the market.”

Trade finance has traditionally been the sole domain of large international banks. Federated Hermes gives investors access to this alternative asset class by co-investing with these banks to provide relatively short-term loans used to finance the physical flow of essential goods around the world. These goods are used as the primary source of collateral within the loan, and their essential nature underpins the continued demand for trade finance, even in times of market volatility.

Federated Hermes has established itself over the past several years as a leading provider of active investment strategies for local institutional investors and a trusted partner in delivering stewardship services to Australia’s major superannuation funds, including several of the top 10. Building on its global segment expertise and scale, the firm is now accelerating its expansion into the Australian wealth management market, positioning itself to become a major player in the segment.

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Notes:
[1]Returns are not guaranteed. Negligible interest rate risk through a floating rate structure and self liquidating transactions. All investments contain risk and may lose value.
[2]  Federated Hermes’ Trade Finance Strategy provides quarterly redemptions and daily mark-to- market information

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