Neuberger Berman has launched the Neuberger Berman Short Duration High Yield Bond Fund, an offshore product offering investors a low-risk strategy.

The Ireland-domiciled fund will form part of the Neuberger Berman Investments Funds range and be managed by the team responsible for the US$4.33 billion High Yield Bond Fund, using the same investment process.

The High Yield Bond Fund has struggled against its sector in the past year, returning 1.82 per cent against an average of 4.39 per cent.

Lead portfolio managers Ann Benjamin, Russ Covode and Tom O'Reilly will head the management team of the new fund, which the group said will offer a 'lower-risk approach which will be achieved by focusing on short-duration, high-grade bonds’.

Neuberger said the trio will be supported by a large leveraged credit research team.

Dik van Lomwel, head of Neuberger Berman Europe, said, '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.'