The fund will invest across the entire short-dated fixed income spectrum, with a maximum of five years’ maturity, including inflation-linked, investment grade, high yield and hard currency emerging bonds.
According to Axa IM, the UK-domiciled Oeic aims to offer investors the “benefits of global diversification,” while lessening the impact of higher interest rates and volatility, which it believes to be an increasing concern for clients.
Axa’s short duration range, which has been around for 15 years and amassed €26bn in assets under management (AUM), is being "very well received" by the group's client base, according to Rob Bailey, head of UK wholesale distribution at Axa IM.
“We’re really excited to have the opportunity to deliver a global solution to meet ongoing client needs,” he added.
Nicolas Trindade, who runs the £621.9m Axa Sterling Credit Short Duration Bond fund and two other global bond funds from the firm’s World Funds suite, will manage the portfolio.
It will combine the best ideas from Axa’s local market experts and from existing local short duration bond portfolios to create a “truly globally constructed portfolio, with the ability to dynamically asset allocate across the full fixed income short duration spectrum,” said Trindade.
Further, as the strategy targets an average of 20% of bonds maturing each year, he said he will be able to actively reallocate across asset classes with limited transaction costs.
“I believe this strategy represents a compelling opportunity for investors worried about rising yields and volatility in these uncertain times,” he added.