Bestinvest says
This fund provides core exposure to the European high yield debt markets and is run by a team with a strong track record of providing positive returns relative to peer group funds. The Threadneedle team is amongst the top tier of investors in the European high yield debt market by assets under management. Barrie Whitman, the portfolio manager, has been managing money in this market since its inception in the mid/ late 1990s.
A plain vanilla high yield corporate bond fund, investing mainly in euro and sterling denominated issues, although other currencies can be included. Quasi equity securities are not considered. The essential driver of fund performance is bottom up credit analysis, covenant structure, company valuation, financial analysis and business analysis. Credit analysis is subsequently combined with a top-down sector/industry overlay to finalise the company specific credit opinion. This work enables the team to assess relative value and is combined with portfolio risk management to determine the final stock selection. The reference benchmark is the Merrill Lynch European High Yield Index, 3% constrained, hedged into sterling.