AXA IM expands short duration range with US credit investment grade fund
AXA Investment Managers has announced the launch of the AXA WF US Credit Short Duration IG .
The fund is designed to provide investors with access to the improving US economy and aims to capture additional yield over cash whilst mitigating volatility due to a relatively lower sensitivity to spreads and interest rate, AXA said.
It is the latest addition to AXA IM’s short duration fund range and provides exposure to the US corporate market which is the largest and deepest in the world, thus critical, in our view, for portfolio diversification, investment opportunities and credit selection.
AXA WF US Credit Short Duration IG is an actively managed portfolio investing mainly in US investment grade bonds with an average duration of around 2 years. By focusing on bonds that are close to maturity, the Fund seeks to lower the volatility of returns and reduce the potential negative impact of interest rate rises, thereby providing stable income and better risk adjusted returns.
The AXA WF US Credit Short Duration IG was launched on 3rd September 2013 is Ucits IV compliant and domiciled in Luxembourg. The fund has both retail and institutional share classes and is currently registered in Luxembourg. AXA IM is considering registration across a number of other European countries.
David Fourgoux, manager of AXA WF US Credit Short Duration IG, commented: “The US economy is continuing to recover following the financial crisis. This is benefiting US corporate credit but for many investors, capital preservation and avoiding excess volatility remain key. Compared to traditional longer duration bond strategies, the AXA WF US Credit Short Duration IG offers a lower sensitivity to interest rate risk, while capturing credit spread return through detailed fundamental analysis aimed at accurately assessing the ability of companies to repay and/or refinance the shorter bond maturities in their capital structure.”