AllianceBernstein launches short duration high yield bond fund

AllianceBernstein has today launched a short duration high yield bond fund aimed at catering for investors’ increasing wish for reduced volatility in the fixed income space.

The company said the Luxembourg-domiciled fund will invest in sub investment grade securities with an average duration of less than four years.

Announcing the fund, AllianceBernstein said the emphasis was on reducing risk in an environment which has seen increased volatility and retracement in spreads.

Outlining the key themes of the fund, AllianceBernstein said it will focus on higher quality issues, excluding CCC and lower ratings, and also adopt hedging techniques. This will include protection on individual issuers, bond indices and interest-rate options.

The AllianceBernstein Short Duration High Yield Portfolio will be managed by Ivan Rudolph-Shabinsky. It will be benchmarked against the Barclays Capital Global High Yield Corporate 1-5 Year BB/B Index.

Rudolph-Shabinsky said: ‘High Yield securities have seen significant ups and downs recently, but that doesn’t mean it’s time to get out of the market.'

'These bonds are attractive relative to other fixed income sectors, especially as the corporate fundamentals of many companies remain strong.’