Muzinich targets short-duration BBB bonds

RiskMuzinich & Co. in London has launched a global short duration fund that aims to limit credit risk and limit risk from changes in bank interest rates.

Set up in response to client demand, the firm says, the fund will be offered within a Ucits structure and managed to a maximum duration of one-and-a-half years. It will provide daily liquidity with an average credit rating of at least mid-BBB.

The Global Short Duration Investment Grade Fund was launched with €352 million of seed assets and Muzinich said environmental, social and governance considerations are an “integral” part of the research process.

It also complies with the Norges Investment Management exclusion list which rules out companies from its portfolios based on a range of industry and thematic criteria. These include controversial weapons, tobacco, mining or use of coal, and severe environmental damage.

The investment team will be led by Tatjana Greil-Castro.

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