JP Morgan Asset Management (JPMAM) has launched a fund that will invest in high yield European corporate bonds but with a duration of no more than five years to maturity.
The Ucits Europe High Yield Short Duration Bond Fund is designed for investors who want a fixed income holding but with less duration risk – that is, limiting exposure to possible rising interest rates.
The fund will aim to generate an annualised return of 75 to 100 basis points over its benchmark – the Bank of America Merrill Lynch Euro Developed Markets High Yield ex Financials 1 to 3 Year – over a given credit cycle.
The firm is building up its European high yield offering and this latest fund follows on from the Europe High Yield Bond Fund, which has $870 million (€816 million) in assets, as of January 13 this year.
The new fund is managed by the same investment team headed by Peter Aspbury.
JPMAM had $420 billion globally in fixed income assets under management at the end of last year.
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