ODDO BHF Asset Management has launched a global version of a euro credit fund that invests in bonds with short duration.
The firm launched the ODDO BHF Global Credit Short Duration product on October 22 and said the fund had since raised €65 million.
ODDO’s global fund follows on from a euro credit short duration product whose assets total over €1.8 billion.
Like other managers launching short duration funds in recent months, the firms said short-dated corporate bonds offer an attractive risk-return profile in the current low-interest environment.
“As the risk of default decreases over time, strategies focusing on shorter maturities benefit from lower default risk while yields are still at an attractive level. At the same time, shorter maturities are less sensitive to interest rate and spread moves,” the firm said.
The fund will invest predominantly in high-yield bonds with a rating of at least B3 or B- but can increase the portion of investment-grade securities to up to 100% depending on the credit cycle.
The fund is managed in Düsseldorf by Alexis Renault, global head of high yield, and has been registered for distribution in Germany, Austria, France and Spain.
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