Ivy Investment Management Company (IICO) has partnered with sub-adviser firm PineBridge to launch the Ivy PineBridge High Yield Fund.
The fund is managed by IICO and sub-advised by PineBridge Investments, a firm with more than USD80 billion in assets under management.
The new fund seeks to provide total return through a combination of high current income and capital appreciation, primarily by investing in a diversified portfolio of high-yield, high-risk fixed income securities from both US and foreign issuers.
This fund joins the Ivy High Income Fund as an investment option offered by the firm in the high-yield bond space. The funds differ within their investment strategies, as the exposure to bonds rated CCC or lower in Ivy PineBridge High Yield is limited to a maximum of 1.2 times the amount of CCC or lower exposure in its benchmark, the Bloomberg Barclays US Corporate High-Yield Bond Index, and the fund will have no bank loan exposure.
“We’re always looking to offer products that appeal to a range of advisors and investors, and this fund fills another niche in the high yield space,” says Thomas W Butch (pictured), CEO of Ivy Distributors. “Ivy PineBridge High Yield Fund’s objective and strategy are complementary to the existing high income fund’s strategy.”
Portfolio managers of Ivy PineBridge High Yield Fund are John Yovanovic, managing director and head of high yield portfolio management for PineBridge; Jeremy H Burton, senior vice-president; and Dan Purser, managing director. They are based in Houston, Texas.