Muzinich & Co, the specialist fund manager, has created an income share class for its $411 million Transatlanticyield Fund, tapping what it sees as demand for this source of returns by clients.

The new share class will make half-yearly income payments. The minimum investment is £100,000 ($156,988) but retail and “super” institutional share classes – the latter offering lower charges but with a £1 million minimum investment – can be created upon demand.

“In the current low-growth environment, yield is becoming increasingly important. However, it is harder to come by from traditional sources such as equity income stocks, government and investment grade bonds,” Joshua Hughes, Muzinich & Co UK institutional sales director, said.

“High yield is transitioning from an asset class that has historically been viewed as a tactical allocation to more of a long-term holding within diversified portfolios,” he said.  

Muzinich & Co concentrates on corporate credit and credit-oriented strategies; it oversees around $17 billion in assets.