AXA Investment Managers has added to its family of bond funds by launching a Europe-focused short duration bond fund.
AXA Investment Managers has added to its family of bond funds by launching a Europe-focused short duration bond fund. The Lux-domiciled AXA IM FIIS Europe Short Duration High Yield UCITS will be managed by Andrew Wilmont, AXA IM’s head of European high yield and is said to be targeting annual returns of 5 to 6 per cent net of fees. As its name suggests, the fund will invest in short-dated euro and sterling-denominated high yield corporate bonds with an average duration of less than two years. The reasoning behind this is to protect investor capital against the obvious risks of rising interest rates. The firm, globally, has EUR10billion in short duration assets in strategies including Sterling Short Duration Credit, US Short Duration High Yield and Euro Short Duration Credit. Wilmot said the firm had seen investors with bond portfolios looking to manage the impact that rising interest rates would have in the medium term. “Short duration high yield bonds can offer the best of both world – access to the income and returns high yield can offer, while minimizing the interest rate risk,” said Wilmot.