Launched today with assets of $77m (£59m), the Ucits vehicle will target a yield of around 5.5%.
The asset manager’s $37.6bn high-yield franchise already incorporates European, US and short duration Ucits portfolios, as well as funds operating in emerging hard and local currency debt.
The new fund is billed as a “natural extension” of its capabilities in the asset class.
Flynn will run the fund in collaboration with US colleagues on his flagship $7.8bn High Yield Bond Fund, as well as local managers in Europe and Asia.
The portfolio is initially split 65% in the US, with 20% in Europe and 15% in emerging markets.
It has around 20% in commodities, though the focus is primarily on high-quality business, particularly those involved in ‘mid-stream’ operations, while there is a preference for so-called ‘fallen angels’ in metal and mining.
Flynn said: “The depth and breadth of the global high-yield universe has developed markedly in recent years, with investors attracted to its defensive characteristics and low correlation to other asset classes.
“In our view, global high-yield valuations are compensating investors for the default risk in the market. Excluding commodity sectors, credit quality across global high-yield markets remains solid, which should set the scene for gradual spread tightening.”