ING Investment Management International’s ING (L) Renta Fund Global High Yield has surpassed the EUR6 billion mark in assets under management (AUM).
Inflows into the fund, which had just pushed through the EUR5 billion mark in February, came from diverse flows including Western Europe, Eastern Europe and Asia, mostly through wealth management and fund distributors.
Tim Dowling, Head of Global High Yield at ING Investment Management says: “The High Yield story of limited defaults, low duration and spreads still above the record lows previously set makes this asset class very appealing in a low yield world. The global search for yield has led to continuous inflows.”
ING IM reiterated that its outlook for the asset class remains cautiously optimistic; the investment manager continues to prefer spread risk over rate risk, reflecting the belief that credit fundamentals remain healthy leading to low default rates. Furthermore, ING IM believes that the global economic recovery, particularly in the US, will lead to gradually rising interest rates.
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.
