The decision to launch was partly driven by the firm's optimistic view of the US economy, according to Yeo in a statement. The fund invests mainly in US-dollar denominated fixed income securities and has the flexibility to invest up to 30 per cent of non-investment grade bonds to maximise yield. Investment currencies are in Singapore dollars or US dollars.

"US Treasury bonds have already started to factor in the prospect of higher interest rates. Short duration bonds are less vulnerable to rising rates, allowing investors to benefit from income pay-outs with measured risk," said Yeo. 

As at 31 October 2013, the fund's initial yield to maturity stood at 3.4 per cent.