The London-based corporate credit specialist Muzinich & Co has launched an emerging market short duration corporate bond fund.

The London-based corporate credit specialist Muzinich & Co has launched an emerging market short duration corporate bond fund.

The Ireland-domiciled UCITS fund will invest in a diversified portfolio of short duration investment grade and high yield corporate bonds from emerging markets-focused issuers. The fund will focus on hard currency bonds and is managed by Warren Hyland and Christina Bastin.

“The potential returns from emerging markets are very compelling,” said George Muzinich, chief executive and founder of Muzinich & Co.

“But due to the divergence of returns between countries and issuers, high quality active management is typically required to add real alpha. By focusing on shorter-term debt, we believe we are better able to control volatility, which can be higher in emerging markets than in more established ones,” added Muzinich.

The firm also said that the fund will be maintained for an expected duration of no longer than two and half years.

Muzinich & Co. is a global institutional asset management firm with offices in New York, London, Cologne and Paris. As of 30 September 2013, the firm manages over $25 billion in assets.