Fullerton Fund Management, the Singapore-based financial services firm, has expanded its global fund offering with the launch of a new Asia-focussed fund.

Fullerton Fund Management, the Singapore-based financial services firm, has expanded its global fund offering with the launch of a new Asia-focused fund. 

The Fullerton Asia Short Duration Bond Fund adds to its growing product range, which already covers ASEAN equities, Asian currency bonds, RMB bonds, Greater China equities and Asian high-income equities. Bank Julius Baer is the fund's exclusive distributor. It will be overseen by Patrick Yeo, head of fixed income.

The decision to launch was partly driven by the firm's optimistic view of the US economy, according to Yeo in a statement. The fund invests mainly in US-dollar denominated fixed income securities and has the flexibility to invest up to 30 per cent of non-investment grade bonds to maximise yield. Investment currencies are in Singapore dollars or US dollars.

"US Treasury bonds have already started to factor in the prospect of higher interest rates. Short duration bonds are less vulnerable to rising rates, allowing investors to benefit from income pay-outs with measured risk," said Yeo. 

As at 31 October 2013, the fund's initial yield to maturity stood at 3.4 per cent.