Hermes Investment Management is launching high yield funds focused on social and environmental engagement, together with investment banks, Federated Investors and UBS. The trio are launching the SDG Engagement High Yield Credit funds, which will look to achieve a meaningful social and/or environmental impact on top of a strong return by investing in high yield bonds and engaging with their issuers. The new products will form part of UBS’s $5 billion commitment to SDG-related impact investing and will also be the first new strategy added to its sustainable multi-asset portfolio since its launch last year. The new funds aim to support key sustainability initiatives across the financial services industry, including the UN-backed Principles for Responsible Investment (PRI), which has called for fund managers to engage more effectively with bond issuers, and the International Finance Corporation’s Operating Principles for Impact Management, a new set of global impact investing standards.

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