High Yield Debt

Dutch pension fund | July 2017

Engagement at a glance

A Dutch pension fund was entering US high yield debt, reducing its European HY exposure, and sought an appropriate pooled fund for a first EUR 15 million investment. They wished to avoid short-duration strategies and minimise off-benchmark exposure, with an emphasis on sector and security selection.



As a Dutch investor, the client needed a manager with ability to provide regulatory FTK reporting (look-through, ratings, cash flow and yearly cost transparency). They also needed a readily available UCITS fund and, while US HY bond manager may have long histories of running money in segregated accounts or in 40ACT funds, many do not offer UCITS vehicles.


  • The client’s requirements for a UCITS vehicle, a deep understanding of Dutch regulatory requirements and no short-duration strategies narrowed the available opportunity set, making it critical to scour the universe for a strong group of appropriate offers – 27 in total.

  • In-depth qualitative and quantitative analysis revealed eight that were better equipped to generate through-the-cycle outperformance, with a process driven by credit sector and security selection.

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