Bestinvest says
This is a higher credit quality version of its sister fund, the Muzinich Short Duration High Yield Fund. As a consequence we would expect this fund to be less sensitive to changes in the market's perception of default risk. Due to its short duration nature the fund is also generally less sensitive to changes in the yield curve. Whilst the fund can hold some short dated high yield bonds the average credit quality of the fund must be at least investment grade (BBB-).
The fund will invest the majority of its assets in investment grade securities such as corporate bonds rated BBB-/Baa3. At all times invest at least 60% of its Net Asset Value will be invested in investment grade securities. The investment team's process focuses on bottom up fundamental credit analysis with an emphasis on a company's financial credit worthiness and covenant terms. The fund only invests in cash bonds, no derivatives are used in the portfolio management process. The asset allocation decision between quality and high yield bonds is driven by fundamental analysis and valuation factors.