Barings Developed and Emerging Markets High Yield Bond Fund
as of 24/06/2019
|Asset Class||Fixed Income|
Share Class Info
|Share Class||Class A AUD Hedged Inc Monthly Dividend|
|Accumulating / Distributing||Income|
|Share Class Inception Date||16/07/2012|
Why high yield?
The yield environment for fixed income assets remains generally subdued as macroeconomic uncertainty and heightened risk aversion continues to push bond yields in “safe haven” government bond markets to record lows.
One area which continues to display attractive income-generating qualities for yield seeking investors, however, is high yield bonds.
Summary fund objective
The primary investment objective of the Fund is to produce a high level of current yield in dollar terms, commensurate with an acceptable level of risk. Any capital appreciation will be incidental. The policy of the Fund is to invest in a combination of debt and loan securities (including credit linked securities) of corporations and governments (including any agency of government or central bank) of any member state of the Organisation for Economic Co-operation and Development (“OECD”) and of any developing or emerging markets. (Please refer to the Prospectus for the full investment objective and policy.)
We believe, High yield bonds are at the moment one of the few areas of the fixed income universe which continue to generate an attractive level of income for investors. From a valuation perspective, we think the investment case for high yield has become increasingly favourable due to a period of increased risk aversion. In our view, valuations for the asset class continue to price in excessive default rates, which we have not seen and we do not forecast in the coming months. Global high yield default rates remain below the long-term average and we expect this benign environment to persist as firms continue to deleverage and prudently manage balance sheets.
We have a long history of investing in fixed income markets having launched the Baring International Bond Fund in July 1978.
The information available on this website is not an offer to sell or an invitation to apply for this product and is by way of information only, nor is the information available on this website intended as an offering of this product to US Persons. Depending on your jurisdiction, you may not have access to this product. Individual investors should contact their financial advisor before investing in this product. The Key Investor Information Document (KIID), if applicable, must be received and read before investing. All other relevant documents relating to the product such as the Report and Accounts and Prospectus should also be read. The information available on this website does not constitute investment, tax, legal or other advice or recommendation.