PineBridge launches USD high yield bond fund in Europe

PineBridge Investments, a global asset manager focused on active, high-conviction investing, has launched the PineBridge USD High Yield Bond Fund. The fund will invest in USD-denominated high yield debt securities and will seek to identify opportunities to capture yield and long-term capital growth for investors. 

The new fund is a sub-fund of PineBridge Global Funds, an Irish domiciled UCITS umbrella fund, authorised and regulated by the Central Bank of Ireland. 

The fund’s investment objective seeks to maximise total return consisting of current income and capital appreciation by primarily investing in USD-denominated high yield debt securities. The Central Bank of Ireland has approved the Fund, with additional registrations across Europe. The fund will be available to institutional investors as well as via private banks and third-party distributors. 

The fund is managed by the PineBridge high yield investment team led by John Yovanovic, head of High Yield Portfolio Management who has overseen the firm’s US high yield capability since 2010, as well as Jeremy Burton, portfolio manager, High Yield. 

The fixed income investment team has a presence across the market, with a large team of investment professionals in the US and Europe, further supported by the firm’s global fixed income team. 

“In recent years, we have witnessed the US dollar high yield market grow in response to investor demand, while at the same time central bank action continues to provide support to the sector. Given these factors, US dollar-denominated high yield could provide an attractive opportunity for investors to diversify their global portfolios during periods of market volatility,” says Yovanovic.  

“In this environment of persistently low interest rates, US dollar high yield could provide investors with an attractive source of yield. Likewise, valuations may indicate an appealing entry point into the US dollar high yield market for long-term investors.”

The investment team leverages an established 20-year track record of managing credit strategies. The team will employ a high conviction investment approach which synthesises top-down proprietary investment research with bottom-up fundamental analysis to identify market inefficiencies and monitor credit risk. The fund will focus on investing in quality high yield securities, with BB and B rated bonds expected to form a core component of the portfolio; with lower-rated credits considered on an opportunistic basis. 

The fund’s investment process is also committed to socially responsible investing and integrates ESG screening as a central part of the credit analysis and risk management process. On a global level, PineBridge is a signatory of the Principles for Responsible Investment (PRI), which provides a framework for reporting and assessing ESG factors. PineBridge recently maintained its position as a top quartile manager for ESG with an A+ rating by the UN PRI.