Henderson Global Investors, through its official local representatives Jesmond Mizzi Financial Advisors, has brought the Horizon Euro High Yield Bond Fund to Malta.
The fund aims to deliver a high total return with modest long-term capital appreciation during times when yields are under pressure and reducing year-on-year. The fund’s shorter duration makes its bond components less sensitive to the interest rate cycle.
“High yield bond funds are a good tool to diversify an investment portfolio once the investor is ready to accept a higher level of risk,” Jesmond Mizzi explained. “In recent years, investors are seeking bonds paying higher interest rates. As the demand for bonds remains high, maintaining a diversified bond portfolio, through bond funds, is as important as ever.”
Under an introductory offer, Jesmond Mizzi Financial Advisors is 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 maintains 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 euro and income will be paid quarterly. The fund is spread into 62 different bonds offering an adequate 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 and the rest of the world.
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 hold significant expertise in European fixed income solutions with a team of portfolio managers having a proven successful track record in managing European credit.
“Our 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,” Stephen Thariyan, head of credit and co-manager of the fund, explained.
“Now that clients have seen our capability in the corporate bond area it is logical to launch of a Euro High Yield Bond Fund to provide them with the opportunity to access the high yield market.”