ING Investment Management has introduced a global high yield product for institutional investors. The fund has raised $190 million over four weeks since its launch.
"There has been a growing interest from institutional clients for packaged solutions in fixed interest," ING Investment Management head of fixed income James Wright said.
"The market has moved on and today structured credit instruments that would have been considered exotic just a few years ago are now rapidly moving into the mainstream of portfolio management thinking."
The Global High Yield Maximiser Fund targets a return of 15 per cent and will invest in high yield loans, high grade asset backed securities, investment grade credit, mezzanine debt, commercial mortgage backed securities and emerging market debt.
The product has raised $90 million from Asian investors following a four-week roadshow to the region. About $100 million of local institutional money has been committed to the fund.
We will now be talking to asset consultants and superannuation funds about the product, Wright said.
A fund suitable for distribution though master trusts and wrap platforms will be available by the end of May.
This week a report from Standard & Poor's on the fixed interest sector found fixed income managers were combining traditional sub-sectors with non-traditional sectors such as high-yield debt, emerging-market debt, global convertibles, and loans and collateralised debt obligations (CDOs).
