Scottish Widows Investment Partnership has launched a European High Yield Bond fund as it plans to grow its fixed income business.
Steve Logan, head of European high yield, and Lesley O’Neill, investment director, European high yield, manage the new fund.
The duo will manage the fund using a best ideas approach, the group says, identifying compelling investment opportunities across the European high yield bond market and select 75 stocks.
Even though they will retain a European bias, the duo will also incorporate the best investment from their New York-based colleagues.
“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,” Logan says. “A recession in Europe is already priced into the asset class and the high quality end of the market looks fundamentally cheap.”
©2011 funds europe