Man GLG  

Man GLG launches high yield bond fund

Man GLG launches high yield bond fund

Man GLG is launching a high yield bond fund for Mike Scott, the fund manager it recruited from Schroders in September 2018.

The Man GLG High Yield Opportunities fund will aim to achieve a high level of income for investors.

The fund has a global mandate.

Mr Scott said in the prevailing market conditions the fund will focus on the bonds of businesses that are less cyclical.

High Yield bonds are those with a credit rating of less than BBB, and so all have a credit rating of less than investment grade.

There will be between 60 and 80 holdings in the fund.

Mr Scott had spent 12 years at Schroders.

He said: "The fund will employ the same process and philosophy I have used for many years within Man GLG's performance-driven platform that leverages the latest technology and sophisticated risk analytics.

"I look forward to working with the team in managing the fund and broadening out the high yield offering at an exciting time for the business.

"Given the starting point for the asset class coupled with a highly conducive macro back drop of sluggish growth and low inflation, I think there is the potential for a solidly positive year, particularly from the pan-European high yield market.

"Spreads could widen a little from here, albeit in a contained way given the still mild default rate outlook.

"That said, I believe the yield is attractive and, following a period of marked underperformance of Europe versus the US last year, has created a very interesting entry point for specific high yield credits.

"Nonetheless, it is vital to be focused on credit selection and we expect to see more disparity emerge between good and bad credits."

Tom Sparle, investment director at GDIM, a discretionary fund management firm in Cambridge, said: "Mike Scott had a superb track record over a long tenure at Schroders and it seems he will have a similar remit in the new Man GLG fund.

"The fund can express positive and negative positions in an array of assets and over a wide region so the opportunity set is significant.  We will be following the fund's progress with interest."

david.thorpe@ft.com