Guardian Investors Services, a subsidiary of Guardian Life Insurance Co., has launched a new bond fund that answers the fears of investors who have taken widely publicized cautions about bond rate volatility to heart. The Guardian Low Duration Bond Fund reduces the risk of interest rate volatility because it focuses on shorter-duration instruments.

"We believe this fund will appeal to risk-averse investors who seek higher yields than are
available in money market funds, but are unwilling to take on the additional interest rate risk or volatility of a longer-duration bond fund," said Thomas G. Sorrell, EVP and CIO.

The fund uses the Lehman Brother U.S. Government 1-3 Year Bond Index as its benchmark and invests primarily in short-term Treasuries, agencies, investment-grade corporate bonds, high-yield corporate bonds and mortgage-backed and asset-backed securities. The fund is managed by Howard W. Chin, who also manages Guardian’s Investment Quality Bond Fund and Bond Fund.

The new fund is being sold through financial advisors and the company’s 401(k) program.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.