Late in 2006, Danish fund management group, Sparinvest, introduced a whole new investment
concept to Europe with its Sparinvest High Yield Value Bonds fund. Has the fund – which seeks out
higher yields from smaller and undervalued companies – delivered the outperformance predicted
by the academic evidence?
Sparinvest High Yield Value Bonds fund offers a unique approach, based on academic evidence showing that
investors can expect better long-term results if they lend their money to smaller companies, undervalued by the market, than to bigger companies paying a higher yield to compensate for a poorer credit rating.