Our approach

We are long-term, fundamentally driven investors seeking to capitalise on inefficiencies in the global high yield market. We aim to outperform the market through the cycle with less risk.

Holistic global portfolios

Our global high yield portfolios are constructed free from regional sleeves, giving our team more scope to generate alpha as well as opportunities for arbitrage from multi-currency issuers.

Higher quality

We believe over the long term, higher-rated high-yield names outperform. In pursuit of superior risk-adjusted returns, we focus on higher-rated credits, with a tactical allocation to lower-quality names when appropriate.

Potential benefits

Offering diversification and attractive income potential, high yield bonds can play an important role in a balanced portfolio.

Diversification

Given their low to moderate correlation with other asset classes, high yield bonds can provide diversification in a balanced portfolio.

Smoother returns

Over the past 25 years, high yield bonds have delivered similar returns to equities, but with almost half the volatility.

Attractive income

High yield bonds have the potential to generate attractive all-in yields, supported by stronger company fundamentals than a decade ago.

Key risks

Past performance is not a guide to future performance.

Investment risk

The value of an investment and any income from it can go down as well as up. Investors may not get back the original amount invested.

Credit and interest rate risk

Bond values are affected by changes in interest rates and the bond issuer's creditworthiness. Bonds that offer the potential for a higher income typically have a greater risk of default.

Derivatives risk

Investments can be made in derivatives, which can be complex and highly volatile. Derivatives may not perform as expected, meaning significant losses may be incurred.

Investor in funds

Investments can be made in other funds; this could mean the overall charges are higher.

Illiquid securities risk

Some investments could be hard to value or to sell at a desired time, or at a price considered to be fair (especially in large quantities). As a result their prices can be volatile.

Sustainability risk

The level of sustainability risk may fluctuate depending on which investment opportunities the Investment Manager identifies. This means that the fund is exposed to Sustainability Risk which may impact the value of investments over the long term.

Our high yield investment team

Contact us

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Bond Voyage: A journey into fixed income

Each month, our freewheeling fixed-income newsletter gathers insights from our high-yield, investment-grade, emerging-market and global sovereign bond teams.

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