Man GLG has launched a UK-domiciled version of its high yield opportunities fund.
Managed by Mike Scott, the Man GLG High Yield Opportunities fund is a global unconstrained high yield strategy 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.
The strategy originally launched in January via a Dublin-domiciled Ucits fund.
Man GLG has now moved to make the fund more readily available to a wider range of investors by launching a UK OEIC, which will be managed with the same process and philosophy as the existing fund.
Scott takes a regional and sector-agnostic approach to selecting securities, and intends to hold between 60-80 positions within the portfolio. The fund's structure allows flexibility on both the long and the short side, with Scott's unconstrained approach enabling the strategy to avoid beta based risk profiles and instead target idiosyncratic opportunities.
Scott believes high yield can offer diversification benefits to portfolios, with lower interest rate duration risk than other fixed income securities, and the potential for an enhanced income which can act both as an attractive source of real return in a world where rates are still artificially suppressed, and as a cushion against volatility.
At launch, the global high-conviction fund is focused on cash generative, less cyclical services businesses, in Europe in particular.