Global High Yield Capabilities
Barings Global High Yield Bond Fund
Income Potential Unfolded
CAPTURING ATTRACTIVE GLOBAL INCOME OPPORTUNITIES
Overall MORNINGSTAR RATINGTM1
1. Overall Morningstar Rating as of June 30, 2023 (EAA OE Global High Yield Bond). For the Tranche F USD Acc only, other share tranches may have different performance characteristics. Not intended to be offered to the retail public. Tranche F Shares are generally only available to feeder funds or fund of funds. Annual management fee of Tranche F Shares, which is currently 0%, is significantly lower than that of Tranche G Shares. Investors should note that the performance of Tranche F Shares is for reference only and does not represent the performance of Tranche G Shares.
High Yield has Materially Outperformed Equities in a Low Growth Environment
High current yields on offer today alongside negative correlation to Treasuries positions high yield bonds to be able to absorb materially wider credit spread levels prior to exhibiting negative total returns; equity returns however remain highly sensitive to company earning prospects.
Source: Barings, MSCI World Index, Bloomberg, ICE BofA Global High Yield Index (HW00) USD Hedged. As of December 31, 2022.
Improved Credit Quality Profile
The high yield bond market is higher-quality relative to history, and the opportunity set is made up of a number of large and well-established businesses, including potential rising stars.* (*Rising stars are companies that are upgraded from high yield to investment grade.)
Source: ICE BofA Non-Financial Developed Markets High Yield Constrained Index (HNDC). As of June 30, 2023.
Discounted Prices Offer Potential for Capital Appreciation
Given that high yield bonds are currently trading at a significant price discount, there is strong upside potential—however, security selection is key to capitalizing on opportunities and avoiding additional downside.
Sources: Barings and ICE BofA. Global high yield bond market represented by the ICE BofA Non-Financial Developed Markets High Yield Constrained Index (USD Hedged) (HNDC). As of June 30, 2023.
Note: Effective June 30, 2022, the ICE Fixed Income Index reflects transaction costs. As a result, existing index level total return, price return and excess return fields have been adjusted to reflect the new methodology. All return information prior to June 30, 2022 has not been adjusted.
A Flourishing Income Opportunity
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