Bearing Asset Management Launches Monthly-Paying Global High-Yield Bond Fund

[Asia Economy Reporter Minji Lee] Global asset management firm Baring Asset Management announced on the 29th the launch of the Baring Monthly Payout Global High Yield Securities Sub-Fund (hereinafter referred to as the Baring Monthly Payout Global High Yield Bond Fund).

This fund is a monthly payout version of the "Baring Global High Yield Securities Sub-Fund [H] (Bond - Fund of Funds)" introduced domestically last year. It is designed to provide a stable cash flow by paying a fixed level of distributions every month.

The fund's main investment targets are high yield bonds in the United States and Europe. High yield bonds generally offer relatively higher interest compared to government bonds or regular corporate bonds, making them attractive investment options during low interest rate periods. Additionally, during times of increased uncertainty, regional asset allocation between the U.S. and European markets is expected to provide excellent diversification benefits.

Despite ongoing market uncertainties caused by the novel coronavirus disease (COVID-19) and various geopolitical issues, Baring Asset Management's analysis indicates that attractive opportunities still exist in the high yield market. Since the financial crisis, the quality of high yield bonds has improved, and especially this year, investment opportunities can be found in so-called "fallen angels"?bonds downgraded from investment grade to high yield, the company explained.

Bae In-su, CEO of Baring Asset Management Korea, stated, "While high yield bonds offer higher returns compared to government or regular corporate bonds, they also carry relatively higher risks. Therefore, the ability of an active management firm to thoroughly analyze and evaluate the fundamentals of the bond issuers and the value of the bond collateral is extremely important."

CEO Bae added, "This year, due to the volatility caused by COVID-19 and the ultra-low interest rate environment, the need for securing stable cash flow has become higher than ever. The Baring Monthly Payout Global High Yield Bond Fund will serve as a reliable pillar providing a stable monthly income source for those preparing for life after retirement." This fund is available for subscription through Korea Investment & Securities and SC First Bank, and Baring Asset Management plans to gradually expand its sales channels.