Smarter risk taking by exploiting global opportunities

Global High Yield Strategy

The Global High Yield strategy invests in high yielding bonds globally to achieve superior returns by generating alpha from diligent market and security selection.

Our approach aims to offer investors an active, truly global and flexible approach to sub-investment grade markets. Investing across the globe allows our portfolio managers to exploit opportunities by identifying global trends and positioning the portfolio through credit cycles across the different regions. We believe that a global approach is superior to a regional one as no market consistently outperforms the rest; furthermore the greater breadth of opportunities should give an active manager more scope for adding value.

Philosophy

We believe that ‘Good things happen to good companies’ and therefore target fundamentally strong and improving companies. Alpha is generated from companies where we see credit improvement.

Process and risk management

• Top down views direct portfolio construction and research focus ( Geopolitical, Economic etc.)
• Superior bottom up financial and qualitative research – includes ESG factors as part of core quantitative and qualitative analysis
• Prudent risk management (liquidity, market and idiosyncratic risk) and position sizing
• Proprietary risk systems protect against default and distress

Key Documents

	Insight: ESG: an essential risk mitigation tool for fixed income portfolios
	Flyer: Global High Yield Strategy summary
	Q&A: David Newman discusses his views on the nature of the high yield market

Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested.  

Investing in fixed income instruments may expose investors to various risks, including but not limited to creditworthiness, interest rate, liquidity and restricted flexibility risks. Changes to the economic environment and market conditions may affect these risks, resulting in an adverse effect to the value of the investment. During periods of rising nominal interest rates, the values of fixed income instruments (including short positions with respect to fixed income instruments) are generally expected to decline. Conversely, during periods of declining interest rates, the values of these instruments are generally expected to rise. Liquidity risk may possibly delay or prevent account withdrawals or redemptions.

Past performance is not a reliable indicator of future results. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency.

The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. 

This is a marketing communication issued by Allianz Global Investors UK Limited, 199 Bishopsgate, London, EC2M 3TY, www.allianzglobalinvestors.co.uk.   Allianz Global Investors UK Limited, company number 11516839, is authorised and regulated by the Financial Conduct Authority.  Details about the extent of our regulation are available from us on request and on the Financial Conduct Authority's website (www.fca.org.uk). The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors UK Limited.