iM Global Partner lists its first European high-yield UCITS ETF in Paris

Managed by Polen Capital, PEHY:FP debuts on Euronext Paris as the fourth product in iMGP’s active ETF platform and the firm’s first foray into fixed income.

It is iMGP’s first active fixed-income ETF in Europe and the fourth product in a UCITS active ETF platform built over fifteen months, which now covers three asset classes: alternatives, equities and, as of today, bonds. The fund is classified as an Article 8 fund under the SFDR.

The product offers daily, liquid access to the highest-quality segment of the leveraged credit universe. iMGP’s global range of active ETFs, across Europe and the United States, currently manages approximately $4.5 billion.

The timing of the launch is no coincidence. Institutional allocators are reviewing their exposure to private credit, a market increasingly characterised by shrinking illiquidity premiums, mark-to-model valuations and redemption lock-up mechanisms.

The strategy

Management is entrusted to Polen Capital’s Leveraged Credit team, led by Ben Pakenham, formerly Head of European High Yield and Global Loans at Aberdeen, where his team managed over $2 billion in European and global high-yield assets. The portfolio targets an outperformance of 75–100 basis points relative to the ICE BofA Euro High Yield Constrained Index.

The process is based on four elements. Credit selection is fundamental and bottom-up, seeking mispriced bonds that incorporate a margin of safety. The approach is high-conviction, with a concentrated portfolio of 70–90 issuers rather than a basket of 300 securities replicating the index. Risk management is disciplined and supported by top-down macro analysis. The environmental, social and governance (ESG) criteria set out in Article 8 are incorporated into the security selection process.

The strategy was launched as a Luxembourg SICAV in July 2025, with seed capital from a major French insurer. The ETF share class listed today broadens access without altering the investment process.

An alternative to private credit

After a decade of strong growth, the illiquidity premium of private credit has narrowed significantly, whilst the structural risks of the segment remain unchanged. European high yield offers institutional investors certain characteristics that private markets are increasingly struggling to provide.

It is the highest-rated segment within the leveraged credit universe. It has a lower concentration in the technology sector, with exposure to software and IT at around 4%, compared to around 25% in private credit. It offers daily prices, formed and settled on the stock exchange, as opposed to NAVs calculated using models (mark-to-model) and redemptions subject to lock-ups. It has also delivered positive returns during the recent rally: around +2% in April 2026 and around +1% in May 2026.

PEHY is designed to capitalise on this opportunity in the most efficient format currently available to European investors: actively managed, transparent, tradable on a daily basis and with an all-in cost of 0.70%.

Julien Froger, Managing Director and Head of Europe at iM Global Partner:

“This is a statement of intent. European high yield is an asset class where conviction-based, active management has long been under-represented in ETF format — PEHY closes that gap. It is our first move into fixed income on our active ETF platform, and it will not be our last. Ben Pakenham and his team bring extensive expertise built over many years, and since the fund’s establishment in July 2025 with the backing of a major French insurer, investor demand for this format has been unambiguous.”

Ben Pakenham, Portfolio Manager at Polen Capital:

“European high yield is an important segment of the leveraged credit universe, being one that offers both an attractive yield and the transparency of daily pricing. Our process is built on fundamental credit selection: identifying mispriced bonds, managing risk with discipline, and targeting a consistent yield premium through the cycle. Making this strategy available in an ETF format is a natural evolution — it broadens access without changing anything about the way we manage the portfolio.»

The platform draws on over seven years of experience in active ETFs gained through iMGP’s US operations, where the strategy managed by DBi is the world’s largest managed futures ETF. Across Europe and the US, iMGP’s range of active ETFs manages a total of approximately $4.5 billion. Further additions across various asset classes are expected in the coming months.

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