With a bias towards higher-quality issues than the US market, the European high yield universe offers a slightly different risk-reward profile to its longer-established American counterpart. However, we run our European high yield strategy according to essentially the same tried-and-tested approach as our US strategy.
Launched in 2000, our European high yield strategy creates well diversified portfolios, allocating primarily to BB- and B-rated bonds, along with access to high-potential BBB and CCC issues. It mainly invests in bonds issued by European companies and denominated in the euro, Swiss franc or sterling, and generally avoids significant allocations to financials.
With a focus on minimizing volatility as well as maximizing returns, the strategy has achieved attractive risk-adjusted returns since its launch.