The modern high yield bond market was first ’institutionalised‘ in the 1970’s/80’s based on the simple observation that investors were overcompensated for the average non-investment grade bond’s default risk. In our view, that is no longer always (or even usually) true of the broad high yield market. However, we still believe it should always be true of a portfolio constructed and managed via the successful implementation of our investment philosophy and process demands.

High yield has outperformed many other asset classes on a total return basis over time. See below the total return (cumulative) by asset class between June 2007 - December 2017.

Historical analysis does not guarantee future results. Source: Bank of America Merrill Lynch as at 31 December 2017.