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 March 31, 2025 (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.
GDP growth is not a predictor of High Yield Performance
Historically, the high yield market has performed reasonably well in low growth environments. For example, since 2010 Europe has experienced a lower real GDP growth rate vs. the U.S., but the European high yield bond market has consistently outperformed the U.S. market on a like for like currency hedged basis—including in 2024 when U.S. growth far exceeded that of Europe.
Low Growth is not an Impediment for High Yield Performance
Source: Bloomberg and ICE BofA. As of March 31, 2025. Returns in USD hedged terms.
Higher Credit Quality Profile Relative to History
It is worth noting that high yield bond markets remain on solid footing and have one of the highest credit rating profiles today relative to history. Many issuers are BB-rated, and only 10% of the market is comprised of CCC-rated companies.
Improved Credit Quality Profile
Source: ICE BofA Non-Financial Developed Markets High Yield Constrained Index (HNDC). As of March 31, 2025.
High income may provide a cushion even if the macro environment deteriorates
When the yield level has exceeded 7%, as it is currently, the high yield bond market has historically delivered attractive average returns in the following 24 months.
Yields at Current Levels Have Historically Led to Compelling Forward Returns (Dec 2004 - Mar 2025)
| Yield to Worst | Average Return in the Subsequent 6 Months | Average Return in the Subsequent 12 Months | Average Return in the Subsequent 24 Months |
| >7.0% | 5.8% | 11.3% | 21.7% |
| >8.0% | 6.8% | 13.7% | 31.2% |
Sources: ICE BofA Developed Markets High Yield Constrained Index (HYDC). As of March 31, 2025. The reference period is from December 31, 2004 to March 31, 2025. Based on monthly observations.
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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