- Invest with conviction in 75-125 issues
- Unconstrained by an index – no relative bets
- Investing across US, European and EM corporate debt
- Zero weight unattractive sectors/geographies
- Credit selection primary driver of returns
We aim to build a portfolio with an above average yield at below average prices focusing on out-of-favour areas of the market where the risk of default is often overestimated, but where the issuer is on a stable/improving trend. A large percentage of the portfolio will be invested outside the index. Historically this approach has produced superior returns with substantially lower default rates when compared to a passive or more index-orientated approach and provides investors with genuine diversification benefits.
The team aims to deliver an annual outperformance relative to the Bank of America ML Global High Yield Index (Euro hedged) over the cycle (3-5 years).