IA Sterling High Yield
The high yielder : Schroder High Yield Opportunities Of the 33 funds in the IA Sterling High Yield sector ,
Schroder High Yield Opportunities pays the highest yield , at 7.6 %. The analysts at RSMR say the fund differentiates itself from its peers through the integration of stock analysis within the broader fixed income investment process . “ It means that research and investment ideas are shared with the aim of understanding the business models of issuers ,” they explain . “ This understanding puts the managers in a good position to identify how multiple themes are likely to impact the issuer over time .” The fund is a top-quartile performer over five and 10 years .
The short-dated option : Aegon Short Dated High Yield Global Bond
Aegon Short Dated High Yield Global Bond is the only fund in its sector to eke out a positive capital return over the past 12 months , up 0.7 %. In their most recent factsheet , the fund ’ s managers Mark Benbow and Thomas Hanson pointed out the area of the fixed income market most insulated from the action of central banks last year was the front end of credit curves . “ The rising cost of capital can only reprice short-dated credit so far due to their legal final maturity ,” they explained . “ As a result , our portfolio avoided the worst of the sell-off .” Aegon Short Dated High Yield Global Bond is yielding 5.7 %.
The analyst ’ s pick : CT High Yield Bond Paul Angell , senior investment research analyst at Square Mile , singled out the
CT High Yield Bond fund as one of his picks in the sector . “ The fund is run by an experienced team with a strong track record of managing assets in this sector ,” he says . “ The managers tend to focus on avoiding capital loss over the longer term , and this ‘ safety first ’ mentality can be attractive in a market that naturally carries more risk than other parts of the fixed income universe . Nonetheless , the managers have generated a relatively high and stable level of income over most of the fund ’ s life .” CT High Yield Bond is yielding 4.6 %.
Issue 92 - February 2023 / 61 /