Global high yield in demand as investors look to ‘remove the alpha handcuffs' says Aviva Investors
Aviva Investors Global High Yield Bond Fund AUM reaches $1bn
Fund gathers $800 million in the last 6 months
Aviva Investors announced today the Aviva Investors Global High Yield Bond fund has gathered over $1 billion in assets, collecting $800 million between October 2011 and February 2012 alone, as European and Asian investors are increasing their allocations to global high yield.
The Aviva Investors Global High Yield Bond Fund was launched in September 2008 and primarily invests in high yield corporate bonds issued by firms domiciled across the globe. The fund is managed by a team from the Aviva Investors High Yield division with Joshua Rank acting as the team lead on the fund. The fund's investor base comprises of investors across Europe, Canada and Asia, including pension funds, insurance companies, financial institutions and fund of funds.
Todd Youngberg, global investment director of fixed income and head of high yield investments, said: "Investors allocating to regional high yield are putting themselves in ‘alpha handcuffs' by not taking advantage of the global reach of the asset class. Currently standing at roughly $1.3 trillion*, we believe the global high yield market offers a wider opportunity set and potentially more alpha sources from which to deliver returns, enabling investors to benefit from tactical and strategic allocations between regions.
"The surpassing of $1 billion in assets for the Aviva Investors Global High Yield Bond is a great achievement and is a reflection of our strong relative performance. Since the fund launched three years ago, investors' allocation to global high yield has increased as they have looked beyond regional allocations to generate returns. Against a backdrop of low interest rates in developed sovereigns and low corporate default rates, we believe this global trend is here to stay as investors look beyond their borders in their reach for yield."
*Source: Barclays Capital Global High Yield Excl CMBS + EMG 2% Cap, 29/2/2012
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