Man European High Yield Opportunities Strategy

Man European High Yield Opportunities Strategy is an actively managed strategy that is predominantly focused on pan-European high yield bonds. The team’s philosophy is based on an unconstrained, high conviction approach, which involves rigorous fundamental research to uncover value across the universe.
 
  • The strategy aims to provide income and capital growth by investing directly or indirectly in fixed and floating rate securities predominantly in pan-Europe
  • Bottom-up analysis is at the forefront of the strategy’s investment process and is intended as the primary driver of performance whilst investment themes provide a top-down lens as the secondary driver
  • The strategy is run by a multi-award winning portfolio manager, Michael Scott, who has an established track record of investing in high yield bonds1
  • The strategy will use the ICE BofA European Currency High Yield Constrained Index2 for performance comparison purposes only

Approach

The investment team employ a bottom-up approach within a repeatable, data driven investment process. By seeking to avoid many of the risks that a large number of macro focused high yield funds are subject to, the team have a highly dynamic security selection process.

Bottom-up credit selection forms the focal point of the investment process and the investment team conducts a rigorous analysis of an issuer’s solvency and ability to meet its debt obligations before any investment is made. The team conduct in-depth research into issuers’ business models and assess multiple fundamental factors both on a historical and forward looking basis to derive how future credit quality may evolve.

Investment themes help to provide the top-down lens which bottom-up decisions are viewed through. These themes will be formed based on consideration of the macroeconomic backdrop as well as consumer trends, technology, demographics, regulation and other secular drivers that may impact the investment landscape at a regional, country, sector or issuer level.

The unconstrained remit of the strategy provides the portfolio manager with the freedom to avoid unwanted risk concentrations by region, currency or sector that exist from time to time in credit benchmarks.

This repeatable and iterative process is designed to build both a high conviction yet diversified portfolio through active management, with the aim of delivering attractive risk adjusted returns and consistent alpha through all market conditions.

Approach Long-only
Asset Class Credit
Geographic Focus Pan-Europe