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Man GLG launches high yield fund for AAA-rated Schroders hire

Man GLG launches high yield fund for AAA-rated Schroders hire

Man GLG has launched an unconstrained global long-short high yield fund for star AAA-rated star signing Mike Scott (pictured).

Scott had held the highest rating awarded by Citywire for more than two years up to the last month he was eligible, before he announced his departure from his former employer, Schroders, in September.

The mandate will be available for an annual charge of 0.6%. It will typically invest in between 60-80 securities, and will at launch hold a relatively conservative selection of ‘less cyclical’ businesses.

Scott said: ‘The fund will employ the same process and philosophy I have used for many years.

‘Given the starting point for the asset class coupled with a highly conducive macro back drop of sluggish growth and low inflation, I think there is the potential for a solidly positive year, particularly from the pan-European high yield market.

‘Spreads could widen a little from here, albeit in a contained way given the still mild default rate outlook. That said, I believe the yield is attractive and, following a period of marked underperformance of Europe versus the US last year, has created a very interesting entry point for specific high yield credits.’

Scott was hired by Man GLG shortly after its acquisition of Sanlam’s strategic bond business added AA-rated Craig Veysey to its payroll.

Scott was rated by Citywire on his performance across a trio of Schroders bond funds: High Yield Opportunities, Strategic Bond, and the ISF Global Credit Income fund, all of which sat near the top of their respective over the three years to his departure.

Man GLG chief executive Teun Johnston said: ‘Mike is a talented portfolio manager whose process and investment philosophy have stood the test of time. We are pleased to be able to launch a fund with him as we seek to further develop our credit platform and enhance our suite of fixed income portfolios.’

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