BNY Investments launches a fund that invests in European high yield
26 JUN, 2024
BNY Investments has announced today the launch of the BNY Mellon Efficient Euro High Yield Beta Fund. Managed by Insight Investment, the fund aims to record a return and volatility similar to its benchmark index, the ICE BofA Euro Developed Markets High Yield Constrained, by investing in high yield debt denominated in euros from issuers in developed markets.
The fund is classified as Article 8 in accordance with the European regulation on disclosure of sustainability-related information in the financial services sector (SFDR, for its acronym in English).
Fund Strategy
The fund's strategy is part of the range offered by Insight through its Systematic Fixed Income capability, in which it manages assets of 9.100 billion dollars. Systematic Fixed Income combines Insight's innovative portfolio trading approach, which aims to reduce transaction costs while improving liquidity and diversification, with a proprietary credit model that allows for a more sophisticated security selection and helps to mitigate the risk of losses.
The BNY Mellon Efficient Euro High Yield Beta Fund is managed by a team of five professionals, led by Paul Benson, and is backed by an extensive team of quantitative analysts, traders and investment analysts. The Systematic Fixed Income team is part of Insight's Fixed Income Group (FIG), composed of 280 investment professionals from around the world.
The fund is part of BNY Mellon Global Funds and is registered in Austria, Belgium, Denmark, Finland, France, Germany, Italy, Luxembourg, Netherlands, Norway, Sweden, Switzerland, Spain and the United Kingdom.
Euro high yield is a dynamic asset class that has outperformed European equities for nearly 25 years and currently offers yields close to 7%. Traditional investment strategies in euro high yield, whether active or passive, struggle to extract the full potential of the market. We trade customized bond baskets to create broad, diversified, index-like exposures, mitigating the high potential tracking error associated with exposure to infrequently traded bonds.
Paul Benson, Head of Systematic Fixed Income at Insight
As a pioneer of this investment style, Insight has developed a deep understanding of systematic investment. The launch of a high yield strategy in euros, which currently offers attractive returns, responds to investor demand and interest in expanding the adoption of systematic methods.
Sasha Evers, Head of Europe ex United Kingdom at BNY Investments
