Trustnet Magazine 92 February 2023 | Page 60

Performance of funds vs sector and index
SECTOR PROFILE

Performance of funds vs sector and index

Name 1yr (%) 3yr (%) 5yr (%) 10yr (%)
Schroder High Yield Opportunities
-7.0
2.9
10.3
63.1
CT High Yield Bond
-6.8
-2.3
6.5
38.5
Aegon Short Dated High Yield Global Bond
0.7
7.6
14.2
N / A
ICE BofA Sterling High Yield
-6.6
-0.7
10.9
63.0
IA Sterling High Yield
-5.8
-0.0
7.3
34.1
Source : FE Analytics
yield for the first time in more than a decade ,” he says . “ Also , if things do go wrong , high yield credit , while still a risk asset , offers more protection than equities and tends to recover quicker .” For instance , von Stockum notes that in 2008 , the FTSE 100 took about three years to climb to new highs , while sterling high yield recovered in about a year . He also notes there is a surprising amount of diversity in the sector . “ A quick glance will reveal a variety of funds with quite different approaches : short-duration funds , European high yield funds , US high yield funds , global high yield funds , as well as those asserting in their name ESG integration or SDG alignment . Not all apples are the same .” In the longer term , Mike Della Vedova , manager of the T Rowe Price Global High Yield Bond fund , believes that fundamental conditions in the high yield asset class and its underlying credit quality remain “ solid ”. “ Of course , we do expect an increase in the market ’ s default rate – it has been less than 1 %,” he says . “ However , in 2023 we do not expect it to rise above the long-term average level of roughly 3 %, despite the tough environment .”
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