Investor demand has prompted Standard Asset Management (Standard) to launch a new short duration fund, the Amex Global Ultra Short High Yield Fund.
Standard is solely focused on the management of high yield and emerging market debt instruments in order to seek absolute returns with low volatility, and the new fund aims to invest in a broad investment universe with the objective of providing yield in a low interest environment while still managing risk.
It will include investments in both emerging market and high yield bond instruments as well as in asset allocation, while the fund may also invest in local currency investments and corporate debt instruments if the opportunities are available.
Many local currency bonds have short maturities and provide the potential for further yield enhancing opportunities as well as diversification benefits. The global local currency bond markets are currently worth in excess of USD 2 trillion.
Standard Asset Management manages the Amex Global Ultra Short High Yield fund as a sub-advisor to American Express Funds. Standard also manages the Amex Global Emerging Market Liquidity Fund and the Amex Global High Yield Euro Fund.
Commenting on the launch of the fund, John Cleary, chief investment officer, Standard Asset Management, said: "With interest rates low, investors have been calling for a short duration fund with the ability to invest in opportunities with potentially high yields. The Amex Global Ultra Short High Yield Fund will seek to exploit pricing inefficiencies to generate higher yield and there are many opportunities in this respect: non-sovereign credits in emerging markets are often mispriced, sovereign credit ceilings often prevent good quality credits from getting the appropriate rating and there are specific arbitrage opportunities available from certain financial institutions."