The Post Global Limited Term High Yield Fund, to be sub-advised by Post, will invest in a portfolio of short-term high yield debt with an expected average maturity of 12-24 months. The management fee on the retail class is 1% and the total expense ratio is expected to be between 1.25% and 1.3%.
Post is an affiliate of Principal Global Investors.
UPDATE – fund facts:
- Institutional class: $300,000 minimum investable;
- Retail class: $10,000 minimum investable;
- Available in hedged shares classes for all major global currencies;
- Authorised Ucits;
- Domiciled in Dublin; registered in (or in process) in most major European markets including UK, France, Spain, Germany, Netherlands, Switzerland, and Sweden;
- No target yield, but current yield for limited term duration high yield is around 6.5%.
- Fund manager will be be Larry Post, the founder of Post Advisory, and Jeremy Sagi.
Nick Lyster, chief executive officer at Principal Global Investors, said the fund launch complemented existing market conditions.
“This fund addresses a fundamental and timely market need. With a rise in interest rates looking likely, limited duration bonds become more attractive as they are less sensitive to destabilizing market movements,” he said.
Larry Post, vice chairman and chief investment officer at Post, indicated that the sector was under-saturated at present.
“We estimate that only 2-3% of high yield managers specialise in limited term, so there is a dearth of expertise in this area. With most market participants reaching for absolute yield, the Limited Term segment has been systematically undervalued. Our proven track record, heavy emphasis on research and active management give us a real competitive edge.”
