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Global High Yield Beta

Passive Fixed Income Efficient Beta Global
  • Benchmark Bloomberg Barclays Global High Yield Total Return Index
  • Inception Date September 2020

Strategy Overview

Mellon’s Global High Yield Beta strategy offers an efficient, disciplined and systematic approach designed to capture high yield returns benchmarked against the Bloomberg Barclays Global High Yield Total Return Index.

 

Objective
The strategy is designed to overcome the most significant challenges in today’s high yield marketplace— high transaction costs and lack of liquidity—by providing liquid, cost-effective beta exposure that covers the full credit quality spectrum of the global high yield market.

 

Approach
Mellon’s unique approach to investing in high yield utilizes our cutting-edge trading innovation to cost-effectively source diversified baskets of bonds through credit portfolio trading. The strategy leverages Mellon’s proprietary, time-tested credit model to enhance security selection within the high yield universe, mitigating exposure to lower quality issuers and over-valued bonds. A key objective of this strategy is to maintain a constant beta of 1.0 against the benchmark while actively managing systematic (market) and idiosyncratic (issuer-specific) risk exposures.

 

Please note that all investment strategies involve risk.

PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.