Axa registers European short-duration high yield fund in Germany
AXA Investment Managers has registered its European short-duration high yield in Germany for local distribution. It is at least the second product the French management group has registered in the country this quarter.
The AXA IM FIIS Europe Short Duration High Yield fund was launched in August and is managed by Andrew Wilmont (pictured), Axa IM’s head of European high yield. His team has an average experience in the industry of more than 10 years, according to Axa.
The fund concentrates mainly on short-dated high yield corporate bonds denominated in euros and English pounds (kurzlaufende, auf Euro und Englische Pfund lautende High-Yield-Unternehmensanleihen).
Presently the average duration of the bonds is less than two years, and cannot be increased above three years at the maximum.
The fund has a target in the current environment to make 5% to 6% per year, after fees.
Axa says short-term bonds have a lifetime, normally of five years or less, so they are not as sensitive to interest rates as some other sorts of bonds.
Axa already manages about €10bn in in short-term eurobonds in funds such as the Euro Short Duration Credit, Sterling Short Duration Credit, and US Short Duration High Yield funds.
Wilmont says: “With short-duration high yield bonds one can get the ‚best of both worlds‘ – yield and return on capital, which high yield bonds offer with minimisation of interest rate risks at the same time.”
In November Axa IM introduced its AXA WF Optimal Absolute flexible fund into Germany and Austria, and plans to distribute it further throughout Europe. That fund is run by Serge Pizem, leader of the Optimal Investments team at Axa.