Global High Yield

Strategy description

The Global High Yield strategy primarily invests in worldwide below investment grade corporate bonds and loans. The strategy has no pre-determined style bias and typically holds 200-250 issuers. We actively manage the strategy with a focus on bottom up security selection. We construct the Global High Yield portfolio combining issuer specific analysis and a broader topdown systematic risk analysis.

Objective

Our objective is to outperform the benchmark* by 100 basis points per year. The expected ex-ante tracking error will range from 1-3%.

*Benchmark: 70% Bloomberg Barclays US HY, 30% Bloomberg Barclays Pan-European HY, 2% issuer cap, ex sub-financial, both hedged (EUR).

Key information

Investment objective Aim to outperform the Global High Yield benchmark by 100 basis points per year
Benchmark 70% Bloomberg Barclays US HY, 30% Bloomberg Barclays Pan-European HY, 2% issuer cap, ex sub-financial, both hedged (EUR)
Tracking error range 1% - 3%
Investment Universe
  • Primarily worldwide corporate high yield bonds
  • No exposure to EM sovereign bonds
  • No exposure to equity
Credit quality Ba1/BB+ and below from S&P, Moody’s and Fitch
Currency Exposure
  • Exposure only in OECD country currencies
  • No active currency positions, currency hedged share classes available
Number of Issuers 200-250
Sector exposure No limits but deviations will not be substantial as performance comes from issuer selection and not from large top down bets (such as sector bets)
Regional exposureR No limits but deviations will not be substantial as performance comes from issuer selection and not from large top down bets (such as regional bets)

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Benefit from local expertise and a global approach
  • ‘Clean’ global high yield exposure
  • Focus on avoiding credit losses
  • Style neutral approach

Documents

In the Global High Yield investment process we combine bottom up benchmark-unaware security selection, based on high quality, dedicated in-house fundamental credit research with top down benchmark-aware portfolio construction and risk management.

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Benefit from local expertise and a global approach
  • ‘Clean’ global high yield exposure
  • Focus on avoiding credit losses
  • Style neutral approach

Documents

Sjors Haverkamp

Sjors Haverkamp

Global Head of High Yield

Experience since 1988

NN Investment Partners

+44 (0) 207 382 1332

Key elements

  • Benefit from local expertise and a global approach
  • ‘Clean’ global high yield exposure
  • Focus on avoiding credit losses
  • Style neutral approach

Documents