AXA Investment Managers has increased its coverage of the short duration bond market with a new global approach for sector specialist Nicolas Trindade.
The Luxembourg-domiciled AXA WF Global Short Duration Bonds fund gives European investors access to its wider global short duration strategy.
The fund aims to offer investors the benefits of global diversification while mitigating the impact of rising interest rates and volatility.
Trindade will seek to generate income through a low duration approach, while retaining relevant levels of liquidity and risk-adjusted returns. It can invest in securities with a maximum maturity of five years, which includes inflation-linked, investment grade, hard currency EMD and high yield bonds.
As the strategy targets on average 20% of bonds maturing each year, Trindade will have the ability to actively reallocate across asset classes, with limited transaction costs.
The AXA IM short duration range has total assets under management of €25 billion globally. This new fund is registered for distribution in Austria, Belgium, Denmark, Finland, France, Germany Italy, Luxembourg, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and UK.