High-yield bonds offer higher returns but come with greater default risk, not suitable for all investors. Despite 2022 selloff due to geopolitical and economic issues, 2024 saw recovery supported by strong fundamentals. Data shows inflows into high-yield bond funds. Top-performing EUR high-yield bond funds offer returns of 7.09% over the last year, 8.01% over 3 years, and 3.81% over 5 years compared to Morningstar Eurozone Core Bond Index.

EUR high-yield bond funds invest in sub-investment grade securities denominated in euros or hedged. To find top-performing funds, screen for those with best returns over 1, 3, and 5 years. Focus on actively managed funds in the top 33% of the category with assets over €100 million, resulting in 10 funds.

Fidelity Funds – European High Yield Fund rose 9.53% in the past year, managed by skilled lead managers aiming to outperform the benchmark. Neuberger Berman European High Yield Bond Fund, Nordea 1 – European High Yield Opportunities Fund, and Nomura Funds Ireland PLC – European High Yield Bond Fund also posted gains. BlackRock Global Funds – European High Yield Bond Fund and Muzinich Europeyield Fund are top performers as well.

Read more at Morningstar: 10 Top-Performing EUR High Yield Bond Funds