New Star International has launched the Dublin-based European High Yield Bond fund and has registere...
New Star International has launched the Dublin-based European High Yield Bond fund and has registered its offshore range in Switzerland. This comes after the group revealed it will have an IPO in the UK.
The New Star European High Yield Bond fund is being managed by James Gledhill and has the same investment approach as the UK-based High Yield fund. Marketing director Rob Page said the fund, which aims to deliver a yield of between 5% and 5.5% a year, has accumulated £35m in assets and will be actively marketed in France, Switzerland and Spain.
Gledhill said the fund will have a neutral asset allocation of 55% in high yield and 45% in investment grade bonds. He added: "The allocation will vary over time depending on our view of high yield and investment grade. We were 60% invested in high yield but we have reduced this exposure."
The weighting to investment grade bonds provides diversification for the European High Yield fund. "Investment grade and high yield bonds react differently to market environments," said Gledhill. "High yield performs better in a strong economic environment whereas investment grade performs more strongly in a weaker economic scenario."
New Star International has also registered six sub-funds of its Dublin range in Switzerland, which is also registered for sale in Sweden, Finland, Denmark, Malta, France and the UK.
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