ING Investment Management International announced today that the ING (L) Renta Fund Global High Yield has surpassed the €3 billion mark in assets under management (AUM).
Significant inflows have continued despite the decrease in overall yield levels and the general fear of rising interest rates. Throughout the year the asset class has posted a positive total return driven by strong credit fundamentals that have led to a tightening of credit spreads. The negative impact of rising interest rates has been more than compensated by this tightening.
ING IM expects the asset class to post a positive total return in the range of 5.5 to 6% over the next 12 months.
The portfolio management team has managed in the year to date to avoid defaults in all regions. Within the current investment environment, the strategy of the fund is focused on investing in companies that are poised for further tightening as a result of improving credit fundamentals and valuations.
Launched in 2001, the Global High Yield fund is managed on a total return basis, combining credit analysis on individual issuers with top down views on regions, credit quality, and industry sectors to construct a diversified investment portfolio that balances avoiding defaults with investments that offer attractive upside potential.
Tim Dowling, Head of Global High Yield at ING Investment Management: "As valuations become more stretched and the yield on the asset class closer to historic lows, it is important to focus on segments of the market that still have potential for further tightening"
On the Fund's current strategy Tim Dowling continues: "The high yield market continues to benefit from healthy credit fundamentals which will keep default rates at very low levels. We have positioned our portfolio to benefit from this by maintaining a bias towards a careful selection of lower rated credits across our global investment universe while at the same time we have reduced our allocation to the more interest rate sensitive part of the universe."
- Ends -
The elements contained in this document have been prepared solely for the purpose of information and do not constitute an offer, in particular a prospectus or any invitation to treat, buy or sell any security or to participate in any trading strategy. This document is intended for press use only. While particular attention has been paid to the contents of this document, no guarantee, warranty or representation, express or implied, is given to the accuracy, correctness or completeness thereof. Any information given in this document may be subject to change or update without notice. Neither ING Investment Management (Europe) B.V. nor any other company or unit belonging to the ING Group, nor any of its officers, directors or employees can be held direct or indirect liable or responsible with respect to the information and/or recommendations of any kind expressed herein. The information contained in this document cannot be understood as provision of investment services. If you wish to obtain investment services please contact our office for advice. Use of the information contained in this document is solely at your risk. No direct or indirect liability is held for any loss sustained or incurred by readers as a result of using this publication or basing any decisions on it. Investment sustains risk. Please note that the value of your investment may rise or fall and also that past performance is not indicative of future results and shall in no event be deemed as such. This document is not intended and may not be used to solicit sales of investments or subscription of securities in countries where this is prohibited by the relevant authorities or legislation. Any claims arising out of or in connection with the terms and conditions of this disclaimer are governed by Dutch law.
For more information please contact:
Karl Emerick Hanuska
T: +31 70 379 1182
M: +31 6 21827870
Ielse Elisabeth Reinders
T: +31 70 397 1093
M: +31 6 27128196
Press release distributed by Pressat on behalf of Rocket Pop PR, on Friday 16 August, 2013. For more information subscribe and follow http://www.pressat.co.uk/
Business & Finance