The strategy is new for the firm but is launched alongside its existing $1bn Global High Yield Bond Fund.
It will invest in high yield corporate bonds around the globe, with an average maturity of less than five years.
Jeremy Hughes, senior high yield portfolio manager will be the lead manager of the fund and will draw on the support of five portfolio managers and 26 credit analysts, based in the US, UK, Europe and Asia Pacific.
Todd Youngberg, global investment director of fixed income and head of high yield investments, said: "The challenging economic conditions of the past few years have prompted institutional investors to increasingly reduce risk in their portfolios while trying to maintain strong levels of income.
"Addressing the duration of bond investments is an important step in this process as it defines both price volatility due to spread movement and interest rate risk investors are taking. Next to credit risk this is the main concern for bond holders."
He added: "As an asset class, high-yield bonds currently have a substantial yield advantage versus government bonds. This attractive yield level, coupled with the diversification benefits due to its low correlation with other asset classes is encouraging institutional investors to invest."
