Asset manager BNY Investments has introduced the BNY Mellon Efficient Euro High Yield Beta Fund investing in Euro-denominated high-yield debt from developed market issuers.
The fund, managed by Insight Investment, owned by BNY, aims to mirror the performance and volatility of the ICE BofA Euro Developed Markets High Yield Constrained Index. It also meets the EU Sustainable Finance Disclosure Regulation’s Article 8 requirements.
This fund is part of Insight’s Systematic Fixed Income strategy, which minimizes transaction costs while enhancing liquidity and diversification through a portfolio trading approach. It uses a proprietary credit model for advanced security selection and risk mitigation.
Funds shift as investors react to European political changes
“Euro high yield is a dynamic asset class that has outperformed European equities for almost 25 years and currently offers yields close to 7%,” said Paul Benson, head of systematic fixed income, Insight. “Traditional Euro high yield strategies, whether passive or active, have struggled to extract the market’s full potential.”
Sasha Evers, head of Europe ex-UK at BNY Investments, commented: “The introduction of a Euro high yield offering, given the attractive yields available, plays into investor demand and appetite to increase the adoption of systematic methods.”
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Part of the Ireland-domiciled BNY Mellon Global Funds, plc range, the fund is registered for sale in several European countries including Austria, Belgium, France and the UK. It aims to provide performance and volatility similar to its benchmark, the ICE BofA Euro Developed Markets High Yield Constrained Index. It tracks Euro-denominated high-yield corporate debt from developed market issuers across various sectors.
