Fixed income specialist Muzinich & Co has unveiled a short duration investment grade bond fund in response to strong client demand, according to the firm.
The Global Short Duration Investment Grade Fund seeks to enhance returns while limiting credit and interest rate risk.
The fund, launched originally with €352m in assets, will operate with a maximum duration of 1.5 years and will be co-managed by Anthony DeMeo and Ian Horn.
It also embeds ESG considerations as an integral part of the research process, as well as complies with the Norges Bank Investment Management exclusion list.
Veteran corporate bond investor and lead portfolio manager Tatjana Greil-Castro, said: "We believe the global investment grade market offers a sizable opportunity set for bottom-up credit investors able to identify shorter-maturity corporate bonds with solid underlying fundamentals.
"We have a long tenure in managing short-duration portfolios since the launch of our flagship crossover strategy in 2003.One of our key differentiators is that we seek to achieve the Fund's investment objective of short duration solely by buying cash bonds; we do not use derivatives or synthetic instruments to shorten the duration in our portfolios."
Tom Douie, global head of Distribution, said: "This reflects the current requirements of European investors looking to counteract the growing pool of negative-yielding assets in large parts of the investment grade market."
The team, led by Tatjana Greil-Castro, manages US$13bn in investment grade and crossover strategies.