Netherlands-based funds house Robeco has launched a short-duration version of its Global Credits strategy which aims to provide investors with an unconstrained approach to global credits investing while focusing on the shorter end of the market.
The Global Credit – Short-Maturity fund, managed by Victor Verberk and Reinout Schapers, will be mostly invested in developed investment grade corporate bonds with a maximum maturity of six years.
Portfolio managers will have the flexibility to invest in emerging credits, high-yield and securitised credits to enhance returns while controlling the overall risk profile.
Verberk said: “Short-duration credits have historically delivered higher risk-adjusted returns than longer dated credits due to a low-risk anomaly in credit markets.
“Turnover and transaction costs of a short-duration credit fund are also lower, as short-dated credits are typically held until maturity. This makes strategic allocation to short-duration credit bonds in a fixed income portfolio a sensible thing to do.”
The launch is aimed at both institutional and wholesale investors and the fund will be available on the main UK distribution platforms.
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