BNY Mellon (Luxembourg) has launched a new sterling share class within its Luxembourg-domiciled WestLB Mellon Compass Fund range.

The Euro Credit Short Duration Fund B, managed by Alexis Renault, invests in euro-denominated corporate bonds with a maximum residual maturity of three and a half years.

The firm said a minimum of 20 per cent of the assets will be invested in sub-investment grade bonds and that the new share class is particularly dedicated to UK investors.

The fund initially launched in August 2011 and now has €384 million (about $502 million) in assets under management, as at 7 January.