Comprehensive Fixed Income Solutions | Insight Investment | Insight Investment

Investing in credit offers the potential for higher yields than government strategies and lower volatility than riskier asset classes such as high yield or equities.

We are a leading asset manager in corporate bonds with long-established credit expertise and globally based credit teams. Our active portfolio management process draws on our fundamental credit research and analytical resources.

We aim to provide investors with consistent risk-adjusted returns from corporate bonds and invests across a wide range of credit opportunities.

Our credit capabilities are available on a pooled or segregated basis for UK, European or global mandates.

Pooled fund options

• BNY Mellon Global Credit Fund
• BNY Global Short-Dated Credit Fund
• BNY Mellon European Credit Fund
• Insight UK Corporate All Maturities Bond Fund
• Insight UK Corporate Long Maturities Bond Fund

More information on funds Insight manages for BNY Mellon is available here. More information on Insight’s funds is available on our funds and prices page.

We have a long and successful history of managing global government debt. We follow a rigorous, disciplined and proven investment process that includes in-depth analysis within a strong risk-controlled framework. The aim is to add consistent value in all market conditions using both conventional and index-linked bonds across the UK, European and global fixed income markets.

Our capabilities allow us to add potential value through long or short duration positions, exploit shifts in the yield curve, security selection across the curve and cross-country relative-value trades.

Investors can access our government bond capabilities across sterling, euro, US dollar and global markets on a segregated basis.

Pooled fund options

• BNY Mellon Gilt Fund

More information on funds Insight manages for BNY Mellon is available here.

For aggregate portfolios of government and corporate bonds we use a dynamic market allocation approach to exploit value opportunities. Here, our proprietary 'units of risk' model provides us with a consistent way to quantify and scale risk, enabling us to optimise the risk/return ratio.

Our aggregate capabilities can be accessed on a pooled basis (see below), or on a segregated basis.

Pooled fund options

• BNY Mellon Global Aggregate Bond Fund
• BNY Mellon Euroland Bond Fund

More information on funds Insight manages for BNY Mellon is available here.

We believe that investing in a short-dated approach to high yield can offer a number of benefits over an all-maturity benchmark-related approach.

• Credit curves in high yield can be flat as issuers typically receive a single rating regardless of the maturity of the debt. In our experience, this often results in impressive value in short-dated issues.
• A portfolio can deliver lower interest rate risk, lower volatility and better liquidity.
• There is a potential for a greater certainty of outcome and relatively large premium for short-dated issues.

Our team aims to provide investors with consistent risk-adjusted returns to high yield by investing across a wide range of opportunities. We apply a disciplined process that prioritises credit analysis and pinpointing value.

Investors can access our high yield capabilities on a segregated basis.

Pooled fund options

• BNY Mellon Global Short-Dated High Yield Bond Fund
• BNY Mellon Floating Rate Credit Fund

More information on funds Insight manages for BNY Mellon is available here.

Systematic fixed income

Insight also provides a distinctive, systematic approach to invest in liquidity-challenged fixed income markets, such as high yield, where high transaction costs, poor trading liquidity, and operational complexities present significant challenges to traditional active as well as passive managers.

By combining our proprietary quantitative alpha models with pioneering trading and implementation technology we seek to produce reliable alpha, reduce risk, and provide unprecedented liquidity to investors.

Emerging market economies have quickly expanded to a point where they collectively contribute more to global growth than developed economies. This opportunity set spans multiple countries at different stages of the economic and monetary cycle, across a range of sub-asset classes and instruments – including government and corporate debt in local or external currencies, derivatives and foreign exchange markets.

At Insight, we have designed emerging market debt capabilities that allow investors access to this opportunity set according to their risk/return preferences. These exploit attractive beta and alpha opportunities rather than relying on structural beta alone to drive returns, a feature which is typical of traditional benchmark-driven strategies.

Pooled fund options

• BNY Mellon Emerging Markets Debt Fund
• BNY Mellon Emerging Markets Corporate Debt Fund
• BNY Mellon Emerging Markets Debt Local Currency Fund
• BNY Mellon Emerging Markets Debt Total Return Fund

More information on funds Insight manages for BNY Mellon is available here.

Our buy and maintain bond capabilities offer investors a smarter low-turnover approach to access global credit market beta relative to traditional passive approaches.

We invest in diversified portfolios of global issuers with strong credit quality and aim to avoid over-exposure to the most indebted companies or industries, as can be typical with market capitalisation-weighted index approaches.

Our segregated strategies can be constructed to aim to deliver returns in line with a client’s specific requirements. Our pooled funds can offer constant-duration, long-dated or decaying duration solutions. We also offer a buy and maintain bond strategy within our Responsible Horizons range, which incorporates sustainable investment criteria and takes ESG factors into account when making investment decisions.

Features

• Protection against defaults: the strategies are screened by our portfolio managers and credit analysts for any investments at risk of loss from default or significant deterioration in long-term issuer credit quality.
• Avoid biases of market capitalisation weighted benchmarks: buy and maintain approaches can avoid weighting a portfolio towards the most indebted issuers – an inherent characteristic of market capitalisation weighted benchmarks.
• Continual refreshment of credit views: we use coupon flow and modest turnover to ensure the composition of issuers and sectors reflects Insight's most up-to-date views.
• Performance yardstick: clients can measure the value added over an economic cycle by comparing fund performance versus a customised index constructed using the same buy and maintain ideology.
• Cost efficient: we look to deliver market beta without the transaction costs associated with market weighted index tracking strategies.
• Risk controlled: our benchmark-agnostic approach can avoid the risk associated with sector and issuer concentration typically associated with traditional indexed approaches.

Pooled fund options

• Buy and Maintain Bond Fund
• Long Dated Buy and Maintain Bond Fund
• Short Dated Buy and Maintain Bond Fund
• Maturing Buy and Maintain Bond Funds
• Responsible Horizons Buy and Maintain Bond Fund

More information on Insight’s funds is available on our funds and prices page.

In this video, Clare Bews, Integrated Solutions Credit Portfolio Manager discusses broadening the strategic credit opportunity.

In our experience, asset-backed securities (ABS) and other secured finance assets can offer greater yield and lower risk than similar quality credit opportunities.

Key benefits

• Yield premium: There is an excess spread available relative to investment-grade corporate credit with no compromise on credit quality.
• Greater cashflow certainty: At the heart of each investment is a contractual promise to pay, secured by ring-fenced or identified assets which increases the certainty of payment.
• Structural protection: Low loan-to-value ratios, covenants protecting the lender's position and structures with built in excess collateral are some of the ways that secured finance investments can be structured to help protect investors from defaults.

Key capabilities

Our capabilities are available on a segregated basis, and our funds include:

• Secured Finance Fund
• Secured Finance II Fund
• Enhanced ABS Fund
• High Grade ABS Fund
• Global ABS Fund
• Liquid ABS Fund

More information on Insight’s funds is available on our funds and prices page.

Our systematic fixed income investing approach utilises what we believe is an innovative model-driven approach to unlocking value in inefficient bond market segments. We use this in seeking to deliver greater consistency in long-term returns through enhanced liquidity and broad diversification.

Pooled fund options

• BNY Mellon Efficient Euro High Yield Beta Fund
• BNY Mellon Efficient U.S. High Yield Beta Fund
• BNY Mellon Efficient Global High Yield Beta Fund
• BNY Mellon Efficient U.S. Fallen Angels Beta Fund

More information on funds Insight manages for BNY Mellon is available here.

The BNY Multi-Sector Credit Income Fund seeks to generate consistent attractive income as well as capital growth. Benchmark agnostic, the Fund dynamically accesses the full credit spectrum with low-interest rate duration and global diversification.

The Responsible Horizons Multi-Sector Credit strategy seeks to generate a total return by investing primarily in a broad range of debt and debt-related securities while taking ESG factors into account.

To find out more about our strategy and to access our capabilities, please contact your Insight representative.

Key features

Access: the strategy targets assets across the full credit spectrum from a well-resourced, highly rated and experienced fixed income team.

Precision: the strategy employs a relative value framework to assess all credit asset classes implemented using Insight’s proprietary Units of Risk budgeting system.

Experience: Insight has extensive track records both within and across credit sub-asset classes through a range of market environments.

Pooled fund options

• BNY Mellon Multi-Sector Credit Income Fund
• Responsible Horizons Multi-Sector Credit Strategy

 More information on funds Insight manages for BNY Mellon is available here.

Taxable US municipal bonds can provide non-US investors with opportunities for higher risk-adjusted returns as issuers often have high levels of credit resilience while offering attractive yields.  

Insight’s highly experienced specialist Municipal Bond Team can help you add resilience to your portfolio via a focus on revenue bonds and help you add value by exploiting opportunities in a fragmented market.

Pooled fund options

• BNY Mellon U.S. Municipal Infrastructure Debt Fund

More information on funds Insight manages for BNY Mellon is available here.

Insight’s Responsible Horizons strategies are specifically designed for investors seeking responsible investment outcomes.

The range aims to help investors achieve two key goals: an investment portfolio that aligns with both future financial targets and sustainability goals.

Pooled fund options:

• Responsible Horizons UK Corporate Bond Fund
• Responsible Horizons Multi-Sector Credit Fund
• Responsible Horizons Euro Corporate Bond Fund
• Responsible Horizons Euro Impact Bond Fund
• Responsible Horizons EM Debt Impact Fund
• Responsible Horizons Buy and Maintain Bond Fund

For more information on the Responsible Horizons range, visit the page here.

Our absolute return bond strategies aim to produce attractive returns in all market conditions by taking a flexible, broad approach to fixed income. An unconstrained approach means the ability to invest across government bonds, investment grade, high-yield, loans, asset-backed securities, emerging markets and currencies.

Features

• Cash-plus goal: not tied to the confines of a traditional fixed income benchmark index.
• Flexible derivatives platform: managers are able to express both positive and negative views, aiming to generate positive performance in all market conditions and hedge unwanted or unrewarded risks where desirable.
• Global diversification: investing across the full global opportunity set while operating within strict risk-management parameters.
• Effective return-seeking component of an LDI strategy: aim to help generate positive absolute returns while avoiding downside risks in seeking to help improve a pension scheme's funding level.

Pooled fund options

• BNY Mellon Absolute Return Bond Fund
• BNY Mellon Absolute Return Credit Fund
• Insight Bonds Plus Fund

More information on funds Insight manages for BNY Mellon is available here.

More information on Insight’s funds is available on our funds and prices page.

Our absolute return convertible bond strategy seeks to generate attractive risk-adjusted returns that demonstrate low correlation to bond and equity markets. The strategy contains volatility by using a focused portfolio of long positions in convertibles paired with dynamic equity hedges.

Key features

Seeking strong risk-adjusted returns: Through combining the defensive characteristics of convertible bonds with robust credit and equity analysis, we believe the strategy has the ability to deliver strong risk-adjusted returns throughout the market cycle.

Opportunity set: A number of different factors have led to convertible bond issuance increasing to levels not seen in over a decade, with significant growth in potential opportunities for active investors.

Pooled fund options

• BNY Mellon Absolute Return Global Convertible Fund

More information on funds Insight manages for BNY Mellon is available here.