AXA IM launches inflation-linked bond fund
AXA Investment Managers (AXA IM) has launched the AXA WF Universal Inflation Bonds fund, giving investors access to inflation-linked bonds worldwide.
The unconstrained fund, which offers both retail and institutional share classes, will invest in both developed and emerging markets, and is managed by Jonathan Baltora – part of a team already managing over €20bn in global inflation strategies.
Baltora said: “The period of great moderation is over and inflation is an increasingly global phenomenon generated by new macroeconomic dynamics. For years developed economies have imported disinflation from emerging markets. This is now changing and so presents us with an opportunity which we will aim to capture within the portfolio.”
“The positioning of the portfolio is designed to efficiently allocate exposure to those economies that are driving global growth, as opposed to giving weight to more indebted economies. We therefore base the asset allocation on country GDP weightings and rules-based filters with the aim to maximise liquidity and tax efficiency.”