Scottish Widows Investment Partnership (Swip) has launched a European high yield bond fund under the management of Steve Logan and Lesley O’Neill.
The fund will be managed along a best ideas approach with Logan and O’Neill targeting a portfolio of around 75 stocks. In addition to a European bias, the fund will also tap into ideas from Swip’s US high yield team, based in New York.
Logan is the head of European high yield, while O’Neill is investment director, European high yield at Swip.
Logan says: “From a market perspective, we believe the European high yield asset class will, over the long term, continue to demonstrate strong growth driven by issuers’ desire to secure long term capital away from the banking sector.
“For investors, the high yield asset class offers the prospect of a strong risk adjusted return and a high level of income that is diversified from equities and other fixed income segments. As stock pickers, we believe the high yield market currently offers investors a number of exciting opportunities. A recession in Europe is already priced into the asset class and the high quality end of the market looks fundamentally cheap.”
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