BNY Mellon Investment Management has launched a US High Yield Beta fund, for UK and European institutional and intermediary clients.
The fund will be managed by Mellon Capital Management Corporation, an investment boutique of BNY Mellon IM.
It seeks to overcome the difficulties that high-yield bond funds have experienced with respect to achieving clients’ performance objectives by following an approach that aims to achieve returns similar to the Bloomberg Barclays US Corporate High Yield index over a full market cycle.
Paul Benson, head of fixed income portfolio management at Mellon Capital Management Corporation, said: “We believe there is a real opportunity in the high yield market.
"Our investment strategy offers investors the chance to make a cost effective asset allocation to the US high yield market.
"We have a wealth of experience in the sector and our track record is proof of the importance we place on results.
"We aim to deliver consistent long-term investment returns well within our clients' risk profiles.”
Jason Hollands, managing director of business development and communications at Tilney Bestinvest, said this fund undoubtedly provides a very cost effective way of accessing the US high yield bond market, with a disciplined credit screening and portfolio construction process.
He said: "Whether you want to be allocating to US high yield at the current time is up for debate as a lot of hot money has been flowing into the asset class recently via US mutual funds and ETFs.
"With the Fed starting to unwind its balance sheet and continued uncertainty around the extent to which President Donald Trump can implement his proposed fiscal measures, there is clearly the potential for increased volatility across fixed income markets."