Hermes’ Lundie: Why the traditional barbell strategy of combining lower and higher risk assets no longer works for bond funds

In the current environment of rising correlations and falling yields, investors are compelled to seek higher yields by moving down the spectrum in credit quality. Fraser Lundie, co-head of Hermes Credit and lead portfolio manager on the Hermes Multi Strategy Credit fund discusses in Investment Week how his fund aims to address the challenges in the credit market, by using a low duration and a global approach to preserve capital in today’s unfavourable fixed income universe.

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