Jupiter is launching a high yield short duration bond fund to be managed by Adam Darling, who currently jointly manages the Jupiter Corporate Bond fund.
Mr Darling will work with other members of the Jupiter fixed income team to create a portfolio of about 75 bonds, with three quarters of those being instruments with a date to maturity of five years or less.
High yield bonds are those with a credit rating lower than BBB.
Ariel Bezalel, head of fixed income at Jupiter, said: “The launch of a Global High Yield Short Duration fund is very much a natural next step for Jupiter’s fixed income strategy.
"High yield bonds have been a key component of our unconstrained bond funds for over ten years, meticulously researched and selected by our talented team of credit analysts.
“Adam has a huge depth of experience in the high yield space, and we are delighted to launch this new fund under his management, enabling our clients to access a dedicated portfolio of high-yield securities, managed in the same truly active and high conviction style as our existing fixed income suite.”
Tom Sparke, investment director at GDIM, a discretionary fund management firm in Cambridge, said: “A global high yield fund using shorter-duration assets has many advantages and allows investors to take on a lower level of risk to obtain generous yields.
"Funds of this type can actively manage a high quality portfolio of funds from a global universe while traversing rockier periods with less downside.
"Liquidity also tends to be higher in short-durations stocks. Jupiter’s fixed income team has an excellent track record and this should serve the fund well on a total return basis.”
david.thorpe@ft.com
