ING Investment Management launched the ING Renta Fund First Class Yield Opportunities with currently assets of EUR 35 million (USD 46,5 million). The fund seeks to deliver attractive returns by investing in a diversified multi-strategy credit portfolio.
The First Class Yield Opportunities strategy combines the skills of three key investment teams, the Multi-Asset, Credit and Emerging Market Debt boutiques. The strategy profits from ING IM’s proven bottom-up credit selection skills of the various specialized teams as well as the top-down asset allocation skills of the Multi-Asset boutique.
Ewout van Schaick (Head of Multi-Asset strategies) and Roel Jansen (Head of European Investment Grade Credit) act jointly as lead managers for the fund, setting the investment policy and the top down allocation over asset classes. The individual bonds are selected by ING IM specialized teams for investment grade credit, global high yield and emerging market debt. The fund volatility is monitored and can be scaled down depending upon market conditions, which makes it a risk-controlled investment.
Hans Stoter, Chief Investment Officer at ING Investment Management: “Global credit markets have proven to be an attractive investment over time and can be an attractive diversifier for a government bond oriented fixed income portfolio. Returns across global credit markets as well as returns over time deviate significantly which illustrates the importance of dynamic asset allocation. The need to fully understand the issuers and issues and to select the bonds with the most favourable estimated risk-adjusted returns requires analysis by credit specialty teams. The new First Class Yield Opportunities Fund combines our knowledge and experience in all of these fields.”
The strategy focuses on bonds that offer an attractive yield taking into account an estimate of the inherent risks. In order to be able to meet its return and risk objectives, the portfolio managers have the possibility to allocate in a flexible and dynamic manner between the various credit markets, with a strong focus on bottom-up instrument selection, top-down allocation and downside risk management.