Muzinich & Co’s Emerging Markets Short Duration Fund has reached USD500 million in assets under management in less than three and a half years.
Launched in July 2013 and managed by Warren Hyland (pictured), the fund has returned 10.20 per cent (net) since inception with a Sharpe Ratio of 1.07.
Hyland and his team primarily invest in corporate investment grade and high yield bonds with short maturities and a duration-to-worst of up to two and a half years. Supported by Muzinich’s global credit research team, they combine bottom-up security selection with a macroeconomic approach to shape regional and sectoral allocations.
Hyland says: “In our opinion, short duration funds offer less volatility than full duration strategies. For investors seeking to limit their exposure to market volatility, we believe a short duration strategy offers valuable protection. The fund grew over 100 per cent in just over 12 months, a testament to investors interest in the strategy.”