Axa IM launches global short duration fund

Bailey Rob AxaAxa IM has added a global short duration Oeic fund to its €26bn (£22bn) short duration range.

The Axa Global Short Duration Bond fund’s aim is ‘superior’ risk-adjusted returns and capital preservation through a low duration, actively managed and diversified portfolio.

The fund invests in fixed income with a maximum maturity of five years, including inflation-linked, investment grade, high yield and hard currency emerging market bonds, to limit the volatility associated with interest rates and credit spreads.

On average, 20 per cent of the strategy’s bonds will mature each year, meaning manager Nicolas Trindade can switch between asset classes with limited transaction costs.

Trindade says: “The launch of this is a further extension of Axa IM’s short duration range, which began 15 years ago.

“We have local market experts – and local short duration bond funds – in each of the asset classes in which this strategy invests. Their best ideas are combined within a truly globally constructed portfolio, with the ability to dynamically asset allocate across the full fixed income short duration spectrum. I believe this strategy represents a compelling opportunity for investors worried about rising yields and volatility in these uncertain times.”

Rob Bailey, head of UK wholesale distribution at AxaIM, says: “Short duration strategies have been very well received by our client base reflecting the increasing concern around liquidity and interest rate risk. We’re really excited to have the opportunity to deliver a global solution to meet ongoing client needs.”