Through their official local representatives Jesmond Mizzi Financial Advisors, Henderson Global Investors has launched the new Henderson Horizon Euro High Yield Bond Fund in Malta.
The fund aims to deliver a high total return with modest long-term capital appreciation during times where yields are under pressure and reducing year on year. Moreover, the fund’s shorter duration makes its bond components less sensitive to the interest rate cycle.
“High Yield Bond funds are a good tool for diversifying an investment portfolio once the investor is ready to accept a higher level of risk. In recent years, investors have been seeking bonds that pay higher interest rates. As the demand for bonds remains high, maintaining a diversified bond portfolio, through bond funds, is as important as ever”, said managing director Jesmond Mizzi.
As an introductory offer, Jesmond Mizzi Financial Advisors are discounting the initial fees payable to 1.5 per cent for all investors who purchase units in the Henderson Horizon Euro High Yield Bond Fund by the end of March.
Henderson’s outlook for the next year is that while economic growth may be hard to come by, default rates are expected to remain relatively low and can be combated through thorough corporate analysis.
The Henderson Horizon Euro High Yield Bond Fund is denominated in euros and income will be paid on a quarterly basis. Presently, the fund is spread across 62 different bonds, offering a good level of diversification.
The main regional exposure of the fund will be Europe and the UK, with some exposure to other countries, including the US.
The Fund will be managed by Henderson’s fixed income experts Stephen Thariyan and Chris Bullock, who are also managers of the €921 million Henderson Horizon Euro Corporate Bond Fund, which was launched in December 2009.The Henderson Horizon Euro High Yield Bond Fund will invest at least 70 per cent of its net assets in sub investment grade corporate debt securities with a credit rating equivalent to BB or lower and denominated in euros and sterling.
Henderson Global Investors have significant expertise in European fixed-income solutions with a team of portfolio managers having a proven successful track record in managing European credit.
Through active management, the credit team has been successful in outperforming others during a period of significant volatility and uncertainty.
Stephen Thariyan, head of credit and co-manager of the fund says: “Our entire team has long covered the full spectrum of the corporate bond market from investment grade through to the high yield and we have just hired two highly experienced credit analysts to ensure we become even stronger. Now that clients have seen our capability in the corporate bond area, it is logical to launch a Euro High Yield Bond Fund to provide them with the opportunity to access the high yield market”.