1Man GLG, Man Group’s discretionary investment management business, today announces the launch of Man GLG High Yield Opportunities, a new UCITS fund.
Managed by Mike Scott, Man GLG High Yield Opportunities is a global unconstrained high yield fund aiming to deliver a high level of income and strong total returns through the cycle, via an integrated investment philosophy which combines bottom-up fundamental credit selection with top-down thematic investment analysis. The credit selection forms the focal point of the investment process with the thematic analysis helping shape overall portfolio allocations.
Scott, who joined Man GLG from Schroders at the end of 2018, takes a regional and sector-agnostic approach to selecting securities, and will typically hold 60-80 positions within the portfolio. The fund’s structure allows flexibility on both the long and the short side.
At launch, the high-conviction fund intends to be particularly focused on cash-generative and less cyclical businesses which have reached attractive valuations.
Mike Scott, Portfolio Manager at Man GLG, 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.”
Teun Johnston, CEO of Man GLG said:
“Mike is a talented portfolio manager whose process and investment philosophy have stood the test of time. We are pleased to be able to launch a fund with him as we seek to further develop our credit platform and enhance our suite of fixed income portfolios.”