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 December 31, 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.
Prices at Current Levels Have Historically Led to Strong 12-month Forward Returns
With high yield bond prices currently trading at a discounted level of around 8%, there is the potential for capital appreciation, as well as the regular coupon income that is on offer from high yield bonds.
ICE BofA Non-Financial Developed Markets High Yield Constrained Index (HNDC). As of 31 December 2023. The data is from 29 January 2010 to 31 December 2023.
Improved Credit Quality Profile
The credit quality of the high yield bond market is higher 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 have been upgraded from high yield to investment grade.)
Source: ICE BofA Non-Financial Developed Markets High Yield Constrained Index (HNDC). As of 31 December 2023.
Manageable Debt Maturities with Select Pull-to-Par Opportunities
Performing companies will typically refinance bonds at least 12-18 months ahead of final maturity, and given the discounted nature of the high yield bond market today, that can present select compelling pull-to-par opportunities.
Sources: ICE BofA Non-Financial Developed Markets High Yield Constrained Index (HNDC). As of 31 December 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.