NETHERLANDS – ABN AMRO Asset Management is introducing a credit bond fund, which will invest in its existing e590m Euro Credit Fund.
The Euro Credit Feeder Fund, to be listed on the Irish Stock Exchange on May 1, will be aimed at investors seeking access to credit bonds with risk control.

The feeder fund will concentrate on credit spreads as a source of out-performance.
By diversifying over different issues the premium received on the bonds should be higher than the expected average default loss, and therefore offers extra return, says the company.

The new fund will have an active global credit policy, and a neutral policy on duration and yield curve exposure against the benchmark. Investment will be in investment grade bonds, category BBB- or higher, says the fund.

The Euro Credit Fund has outperformed by 1.34% since its launch in March 1999.