Sparinvest High Yield Value Bonds is best amongst peer group funds investing in high yield corporate bonds.
Over the past five years, Sparinvest High Yield Value Bonds has given investors an annual return of 18.9%.* This makes the fund the best in Europe amongst peer group funds investing in high yield corporate bonds.
Highest returns in Europe
Investors in Sparinvest High Yield Value Bonds fund can allow themselves to be satisfied. With an average annual return of 18.9% over the last five years, they have had Europe's highest return on corporate bonds. And that great performance places the fund at the top of Morningstar category: ‘Global High Yield Bonds – EUR Hedged’ in Europe.
Value generates excess returns
When investing in corporate bonds, the key to good returns is to find companies where the risk of bankruptcy is expected to be low. For Sparinvest High Yield Value Bonds fund, individual corporate bonds are selected using a special value-strategy, where the goal is to find healthy – but undervalued – companies that have to pay higher interest rates on their bonds than they should.
For example, it may be that the company is based in an unpopular region or that the market ignores the fact that the company may have low debts or valuable assets, both of which are positive factors with a major impact on the ability to pay a bond back. It is exactly this focus on neglected and unpopular companies that accounts for a great part of the fund’s success.
A successful strategy
The Value Bonds strategy was pioneered by Sparinvest with the launch of this fund in November 2005. Eight years on, all our corporate bond funds follow the same strategy. On its third birthday in September, Sparinvest Emerging Market Corporate Value Bonds also topped its Morningstar category, showing that the Value Bonds approach also works in emerging markets. Our success has attracted much investor attention, and today we manage almost EUR 2.3bn in our corporate bond funds.
* Sparinvest SICAV High Yield Value Bonds EUR R. Average annual return over five years 31 October 2008 - 31 October 2013. Please note that past performance cannot be considered a guarantee of future performance, as the value of investments can either increase or decrease.