Global High Yield

Investment Objective

The Global High Yield strategy aims for a gross outperformance of 150 basis points per annum versus the Bloomberg Barclays Global High Yield ex CMBS ex EMG 2% Cap Index over a full investment cycle.


The strategy seeks to generate total return by investing across the full maturity spectrum of below investment grade corporate bonds denominated in various currencies. The strategy may also invest up to 30% in investment grade corporate bonds and government securities. The strategy typically does not invest in equities, leveraged loans, or emerging market sovereigns.

In the Global High Yield strategy, we manage six key factors when trying to generate return.

Three factors: issue selection (including investment decisions on seniority/ subordination, covenant protection, maturity, and bond versus CDS exposures), sector weighting, and quality tilt typically contribute the majority of any excess returns relative to the benchmark.

Positions in three other areas are also actively managed: geographic exposure, duration and curve positioning, and liquidity. These factors together contribute the balance of any excess returns versus the benchmark.