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Sponsored Report: High Yield - Seeking global exposure in high yield.

Financial Times Mandate, March, 2006

Global high yield

FT Mandate: Following the credit rating downgrade, Ford and

General Motors now accounts for 7 per cent of the Merrill Lynch Global High Yield Index. Does this concentration represent a risk or a golden investment opportunity for high yield bond managers?

Andrew Wilmont: At AXA Investment Managers (AXA IM) we believe that high yield fund performance should first and foremost come from bond coupons and not from price appreciation of the individual securities we own. On average, high yield bonds exhibit a negative skew with limited price upside while retaining a potential for large price downside. It is because of this that we have strict limitations on the percentage of holdings per issue, issuer and industry within our...

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