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.
With a focus on minimizing volatility as well as maximizing returns, the strategy has achieved attractive risk-adjusted returns since its launch.