Asset manager Neuberger Berman has launched the Short Duration High Yield Bond Fund, a sub-fund of its Dublin-based UCITS fund umbrella, Neuberger Berman Investment Funds.

Russ Covode, Ann Benjamin and Tom O’Reilly, who are responsible for the Neuberger Berman High Yield Bond Fund, will manage the new vehicle.

“Continued interest in the defensive characteristics of short duration credit strategies coupled with our proven 14-year track-record in high yield were the primary drivers for launching a dedicated fund for this strategy,” said Dik van Lomwel, head of Neuberger Berman Europe.

The strategy will involve the same investment processes as the High Yield Bond Fund, but will offer a lower-risk approach, achieved by concentrating on short-duration and high-grade bonds. 

The sub-fund is currently only registered in Ireland, although other country registrations are pending.

Neuberger Berman High Yield Bond Fund had $4.33 billion in assets under management as of 30 November.