iM Global Partner is preparing to launch a European High Yield strategy managed by its partner, Polen Capital, designed to provide access to Europe’s diverse credit market during a time when investors are reassessing their global portfolio allocations.
Ben Pakenham, who was Head of European High Yield and Global Loans at a UK-based asset manager prior to joining Polen Capital, will serve as lead portfolio manager of the strategy. In addition to Pakenham, the European High Yield team also includes co-portfolio manager and research analyst Adam Tabor as well as research analysts Andrew Carrie and Julien Martin.
Together, the team was previously responsible for managing more than USD2 billion of European and Global High Yield assets for a well-established UK firm. The team has extensive experience running strategies that generated a relative yield advantage with a lower default rate than the broader European high yield market.
IM Global Partner and Polen Capital believe what sets the team apart is the way they view credit risk through a different lens than credit ratings agencies, believing that structural inefficiencies in the leveraged credit market create attractive opportunities for active managers to exploit.
By carrying out fundamental research, they seek to identify mispriced securities with an embedded margin of safety to build concentrated, yield-advantaged portfolios. At the same time, the team remains informed by the macro environment and implements strategic overlays to align their portfolio positioning with the broader economic backdrop.
iM Global Partner will launch a European High Yield UCITS Funds within its Luxembourg SICAV, iMGP, that will be sub-advised by Polen Capital.
Julien Froger, Managing Director, Head of Europe, iM Global Partner, says: “Given higher interest rates, strong company fundamentals and the attractiveness of the European market in the current geopolitical environment, we think there is a strong investment case for European high yield strategies right now. We are excited to be working with a high-calibre team of high yield experts on an actively managed strategy that will provide our investors with an additional source of return in their portfolios.”
Ben Pakenham, Portfolio Manager, Polen Capital, says: “I couldn’t be more enthusiastic about the future of our leveraged credit business. By building world-class franchises in both global and European markets, we will amplify the strengths of our outstanding US credit platform.”
He adds: “Through Polen’s long-held investment philosophy of generating a through-the-cycle yield advantage while mitigating downside risks, we believe that we can generate attractive relative returns for our clients. Our team is passionate about creating innovative, best-in-class strategies that are meticulously tailored to meet our clients’ evolving needs, which should position us well to service growing customer demand for these asset classes.”
