The portfolio, which is run by US-based Seix Investment Advisors, will shortly be registered for sale to retail investors in Europe and Asia, Syz said, in line with other Oyster sub-funds.
According to Syz, the launch comes at a favourable time for high yield investing. The firm points to a recent “flight to quality” which triggered a sell-off in the asset class.
With companies displaying strong balance sheets, double-digit yields are “inconsistent with the default rates forecast for the next two years”, it said, presenting an attractive value opportunity.
Oyster Global High Yield holds 80-110 positions and replicates the investment philosophy of Seix’s high yield unconstrained strategy, which focuses on liquid securities and on minimising downside risk by avoiding defaults.
Seix, which was founded in 1992, has a track record in high yield which stretches back to 1997. The firm manages total assets of some $26bn, about half of which is invested in the asset class.
Oyster Global High Yield is Ucits-compliant, has daily liquidity, and is available in dollar, euro-hedged, Swiss franc-hedged and Singapore dollar-hedged share classes.
