BNY Investments has launched the BNY Mellon Efficient Euro High Yield Beta Fund, a strategy that is part of the range offered by Insight Investment, one of the boutiques affiliated with BNY IM. The fund is managed by a team of five professionals led by Paul Benson, Head of Systematic Fixed Income at Insight, and is supported by a broad team of quantitative analysts, traders, and investment analysts.
The fund aims to achieve similar returns and volatility to its benchmark index, the ICE BofA Euro Developed Markets High Yield Constrained, by investing in euro-denominated high yield debt from developed market issuers. The fund is classified as section 8 under the SFDR.
Euro high yield is a dynamic asset class that has outperformed European equities for almost 25 years and currently offers returns close to 7%, said Paul Benson. Traditional high yield investment strategies in euros, whether active or passive, have difficulty taking advantage of the full potential of the market. We trade customized bond baskets to create broad, diversified exposures that mirror the index, mitigating the high potential for tracking error associated with exposure to thinly traded bonds.
The BNY Mellon Efficient Euro High Yield Beta Fund is managed by a team of five professionals led by Benson, supported by a broad team of quantitative analysts, traders and investment analysts. The Systematic Fixed Income team is part of Insight’s Fixed Income Group, which is comprised of 280 investment professionals globally.
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, explains Sasha Evers, head of Europe excluding the United Kingdom at BNY Investments.