Baring AM high yield fund hits $1bn milestone
Baring Asset Management has announced that its high yield bond fund reached over $1bn in assets under management, with an increase of more than 80% in funds since December 2011 from investors looking for alternative sources of income.
According to a statement releases by the company, the fund outperformed its peer group in the year-to-date period, returning 8.7%, net of fees, while long-term investors have seen returns of 13.6% over the past three years.
The fund currently has its lowest exposure to the UK at 4.6% while European holdings stand at 9.1%, having been reduced from 14.9% in December 2011.
As at mid-July, 59.6% of the fund was allocated in US high yield assets, with 19.2% in emerging market high yield debt.
The fund increased its cash allocation from 4.7% in December 2011 to 7.6% in July 2012.
“The record low yields on government paper in some developed markets, namely the US and Germany, has made it difficult for fixed income investors to find sources of income. High yield remains one area which continues to display attractive income-generating qualities for yield-seeking investors. We believe that macroeconomic factors are the primary market drivers, and an active approach to portfolio construction can be key in mitigating some of the market falls and delivering strong returns during continued market volatility,” said Ece Ugurtas (pictured), investment manager of the fund.