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RLAM launches two global high yield funds
by Emma Dunkley on Feb 18, 2013 at 13:31
The Global High Yield fund aims to deliver growth and income, targeting a return of 1% a year above its benchmark, the BoAMLL BB-B Global Non-Financial High Yield Constrained index.
The Royal London Short Duration Global High Yield fund aims to provide income, and target a return of 2% a year above its benchmark of three month Libor, while keeping a duration of close to two years.
Hussain said: ‘The current economic environment of low growth and low interest rates is expected to continue for some time and provides a benign default climate, with default rates continuing to fall, benefiting from a virtuous cycle of refinancing.’
The two Dublin-domiciled funds invest in debt issued by companies globally and across the high yield credit spectrum, with a small amount of allocation to investment grade possible.
Hussain and his assistant manager Stephen Tapley will use a value-oriented credit investment process focusing on security selection combined with top-down macro analyses.
The investment approach focuses on catalysts expected to lead to a change in the risk profile of companies.
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