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The recently renamed Investec GSF Investment Grade Corporate Bond fund has almost trebled in size from $44.8m (£28m) to nearly $120m following the addition of assets from four other funds.

The Luxembourg-based fund, managed by co-head of fixed income John Stopford, has absorbed the Investec GSF US Dollar, European and Sterling Bond funds.

High-yield funds Investec GSF High Income Bond (euro) and High Income Bond (sterling) have also merged, swelling the size of the combined fund to approximately $35m. The fund has also been renamed the European High Income Bond fund.

But the merger came at a price, as management fees for investors in the High Income Bond fund increased by 25 basis points.

Stopford said the new structure would make the funds easier for investors to understand and help clear up any confusion.

"We have ended up with much more streamlined, straightforward funds to invest in different jurisdictions," he said.

"It makes the range much clearer, less complicated, which I'm sure investors will appreciate. We have had a very good response from investors who can clearly see what they are buying."

Since the streamlining of the funds, Stopford said the company had seen interest from around the world.

Investment-grade bonds issued by non-cyclical companies are among the most attractive assets currently, he said, with yields expected to be roughly 7 per cent per year on average over the next three years, "with limited risk of significant underperformance".

"We have had a pretty good year so far generally," Stopford added. "Our performance benefited from the significant rally in corporate bonds both in investment grade and high yield since the turn of the year."

He said the Investment Grade Corporate Bond fund, which can underperform when interest rates rise, had been actively managing risk through Investec's credit team, using derivatives.

Stopford said the fund had taken a more defensive stance towards interest rate exposure in recent months as governments around the world continued to cut rates. Where base rates in countries such as the UK are significantly lower, the potential rise is a risk for the fund.

"We have moved towards a more neutral stance, but we will still have more cash and be more defensively positioned in terms of interest rate exposure," Stopford said.

The revamp of Investec's fixed income offering comes a couple of months after the company overhauled the Investment Grade Corporate Bond fund, changing its name from Investec GSF High Income Bond and its investment strategy.

The merger of the high-yield funds into a single fund, Stopford said, will make access easier for investors as the fund now has dollar, euro and sterling share classes.