AXA Investment Managers has launched a Global Short Duration Bond fund focusing on mitigating the risk of rising interest rates and the resulting volatility.
Investing in bonds with a maximum of five years maturity, the fund will look at the whole short-dated spectrum including investment grade, high yield, inflation-linked and hard currency EM bonds.
The UK-based OEIC will employ a combination of active management and optimal portfolio diversification in order to ensure liquidity and the preservation of capital.
This will be the ninth fund in the firm's short duration range, which was launched 15 years ago and has €26bn in assets under management.
It will be managed by Nicolas Trindade, fund manager at AXA IM, who will be able to take high conviction and high yielding positions due to the limited maturity on the bonds.
He said: "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."
The institutional clean share class fee for the fund is 40bps.
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