JP Morgan's Stealey: Why we have halved our high yield exposure this year

Improving portfolio credit quality behind fund's plans

Iain Stealey of JP Morgan

Iain Stealey of JP Morgan

Iain Stealey, who manages the £65.2m JPMorgan Global Bond Opportunities fund alongside Bob Michele, has been reducing the fund's allocation to high yield over the course of this year and upgrading the credit quality.

Stealey pointed out that the strategy has had a "pretty meaningful allocation to high yield since its launch six years ago". The 'toxic mushrooms' in the high yield market At times, over 50% of the portfolio has been allocated to the high yield space. "We have reduced that pretty significantly," he said. "We are running at slightly over 15% today and that has halved since the beginning of this year." Stealey explained that high yield "has had a very good run this year", with double-digit returns on most high yield markets. He also said at current spread levels "you are not re...

To continue reading this article...

Join Investment Week

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now


Already an Investment Week


More on Funds

The ETF will be available to investors on London Stock Exchange for a total expense ratio of 0.35%.

Franklin Templeton launches Catholic EM sovereign debt ETF

Article 8 ETF for European investors

clock 28 June 2022 • 1 min read
Alex Wright of Fidelity International

Fidelity's Alex Wright: People have misunderstood OMV Russia exposure

'Sentiment is overly pessimistic'

clock 23 June 2022 • 3 min read
iMGP Global Concentrated Equity fund

iM Global Partner launches global equity fund with Scharf

Same approach as Global Opportunity fund

clock 23 June 2022 • 1 min read