Why consider European high yield?
In comparison to investment grade bonds, high yield (sub-investment grade) bonds offer investors additional levels of income. The asset class has low interest rate sensitivity and a low correlation with government bonds. These characteristics, coupled with the current benign default environment, should ensure European high yield remains a resilient income-producing asset class.
We have a core belief in active first-hand intensive fundamental research, conducted by our own team of portfolio managers and analysts. Our disciplined investment process and focus on risk management are essential components that ensure we deliver attractive levels of income whilst preserving capital.
Aberdeen European High Yield Bond Fund (UK OEIC)
The fund (UK OEIC) aims to deliver attractive levels of income without undue levels of market volatility. We do this by investing into a diversified portfolio of European sub-investment grade bonds that demonstrate robust financial and operational fundamentals throughout a business cycle. Our fundamental approach allows us to invest with conviction which minimises turnover and avoids unwanted transaction costs. The fund is currency hedged to sterling.