ING IM Renta Fund Global High Yield hits EUR1bn in AUM
ING Investment Management’s ING (L) Renta Fund Global High Yield has surpassed the EUR1bn mark in assets under management.
Bolstered by significant inflows from Asia and Europe in 2012, the fund has continued to attract investors with an investment approach that combines a strong focus on risk management with bottom up credit analysis aimed at avoiding credit deterioration and identifying improving credits.
The strategy outperformed the benchmark over both one year and three years, returning 16.25 per cent over 2012 and an average 12.84 per cent per year over the last three years. The performance was driven by an underweight to the lowest yielding most interest rate sensitive names, a focus on single-B rated bonds, and from an overweight to Asian high yield. In addition, the peripheral stress within Europe created several attractive investment opportunities.
Launched in 2001, the fund is managed on a total return basis, combining credit analysis on individual issuers with top down views on regions, credit quality, and industry sectors to construct a diversified investment portfolio that balances the aim to avoid defaults with investments that offer attractive upside potential.
Hans Stoter, head of global high yield at ING Investment Management, says: “Investor appetite for yield has remained the main driver behind investments in this asset class. While overall yields have declined, the compensation for credit risk is still attractive given the strong corporate credit fundamentals. In the current low interest rate environment we expect continued investor appetite for high yield bonds.”
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