Robeco has launched a short duration version of their Global Credits strategy for UK wholesale and institutional investors.
The Global Credits – Short Maturity fund will be managed by Victor Verberk and Reinout Schapers.
The core of the portfolio will be invested in developed investment grade corporate bonds with a maximum maturity of six years, but the fund managers will also be able to invest in emerging credits, high yield (mainly BB-rated paper) and securitised credits.
Verberk says: “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 benchmark for the fund is the Bloomberg Barclays Global Aggregate Corporate 1-5 years.
Nick Shaw, responsible for Robeco’s wholesale business in the UK, says the firm is growing its presence and client base in the UK.
Robeco manages £35bn in fixed income with £23bn in credit.