Back
PineBridge Launches USD High Yield Bond Fund in Europe
LONDON, 19th October 2020 – PineBridge Investments (“PineBridge”), a global asset manager focused on active, high-conviction investing, today announced the launch of the PineBridge USD High Yield Bond Fund (the “Fund”), a sub-fund of PineBridge Global Funds, an Irish domiciled UCITS umbrella fund, authorized and regulated by the Central Bank of Ireland. The Fund will invest in USD-denominated high yield debt securities and will seek to identify opportunities to capture yield and long-term capital growth for investors.
The Fund’s investment objective seeks to maximize total return consisting of current income and capital appreciation by primarily investing in USD-denominated high yield debt securities. The Central Bank of Ireland has approved the Fund, with additional registrations across Europe*. The Fund will be available to institutional investors as well as via private banks and third-party distributors.
The Fund is managed by the PineBridge high yield investment team led by John Yovanovic, Head of High Yield Portfolio Management who has overseen the firm’s US high yield capability since 2010, as well as Jeremy Burton, Portfolio Manager, High Yield. The fixed income investment team have a deep presence across the market, with a large team of investment professionals in the US and Europe, further supported by the firm’s global fixed income team.
“In recent years, we have witnessed the US dollar high yield market grow in response to investor demand, while at the same time central bank action continues to provide support to the sector. Given these factors, US dollar-denominated high yield could provide an attractive opportunity for investors to diversify their global portfolios during periods of market volatility,” said John Yovanovic.
“In this environment of persistently low interest rates, US dollar high yield could provide investors with an attractive source of yield. Likewise, valuations may indicate an appealing entry point into the US dollar high yield market for long-term investors.”
The investment team leverages an established 20-year track record of managing credit strategies1. The team will employ a high conviction investment approach which synthesizes top-down proprietary investment research with bottom-up fundamental analysis to identify market inefficiencies and monitor credit risk. The Fund will focus on investing in quality high yield securities, with BB and B rated bonds expected to form a core component of the portfolio; with lower-rated credits considered on an opportunistic basis.
The Fund’s investment process is also committed to socially responsible investing and integrates ESG screening as a central part of the credit analysis and risk management process. The incorporation of ESG screening into the Fund is integral to the firm’s goal of optimizing economic returns for a given level of risk, to improve and preserve the financial interests of clients across PineBridge’s global investment platform. On a global level, PineBridge is a signatory of the Principles for Responsible Investment (PRI), which provides a framework for reporting and assessing ESG factors. PineBridge recently maintained its A+ rating by the UN PRI, demonstrating the firm’s position as a top quartile manager for our approach to ESG over recent years2.
The Fund is one of many within the PineBridge Global Funds umbrella, which provides investment solutions within a UCITS compliant investment vehicle, authorized and regulated by the Central Bank of Ireland.
1 As at 28.09.20
2 UN Principles for Responsible Investment (PRI) signatories are required to disclose their responsible investment process annually through a detailed reporting framework, which the PRI reviews and assigns a rating. As a result of this process, in 2020 the PRI maintained PineBridge’s “A+” rating for strategy and governance, as well as an “A” rating across the firm’s traditional asset classes.
For further details on PRI methodology, the Full Assessment Report or the Transparency Report please visit the Corporate Responsibility ESG Investment on pinebridge.com.
Third-party rankings and recognition are no guarantee of future investment success. Working with a highly rated advisor does not ensure that a client or prospective client will experience a higher level of performance or results. Ratings should not be construed as an endorsement of the advisor by any client nor are they representative of any one client’s evaluation. Moreover, the underlying information has not been audited by the PRI or any other party acting on its behalf. While every effort has been made to produce a fair representation of performance, no representations or warranties are made by PRI as to the accuracy of the information presented, and no responsibility or liability can be accepted for damage caused by use of or reliance on the information contained within this report. Information regarding PRI methodology and grades is sourced from PRI. PineBridge Investments makes no representations, warranties, or opinions based on PRI methodology, ratings, or other data.
About PineBridge Investments
PineBridge Investments is a private, global asset manager focused on active, high-conviction investing. We draw on the collective power of our experts in each discipline, market, and region of the world through an open culture of collaboration designed to identify the best ideas. Our mission is to exceed clients’ expectations on every level, every day. As of 31 March 2023, the firm managed US$147.4 billion across global asset classes for sophisticated investors around the world.