BNY Mellon Investment Management has rolled out a high yield bond fund for European investors.

The new vehicle, known as the Global Short-Dated High Yield Bond fund, is based on an existing low-volatility strategy offered by Insight Investment, which is a part of BNY Mellon.

It aims to offer Libor-plus returns, and will mainly invest in short-dated high yielding bonds, convertibles, loans and asset-backed securities through the selective selling of credit default swap protection.

The fund, a sub-fund of Irish-domiciled UCITS umbrella BNY Mellon Global Funds, will be managed by Ulrich Gerhard.

BNY Mellon head of UK & Ireland intermediary distribution Fergus McCarthy said: ‘In the current low-interest rate environment, characterised by market turbulences and with the prospect of interest rate rises, investors are looking for strategies that can mitigate volatility and reduce their exposure to interest rate sensitivity, whilst seeking higher yields.

“We believe that global short-dated high-yield bonds can help investors achieve this.”

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