AXA IM has launched AXA IM Maturity 2020, a France domiciled fund investing in high yield bonds whose maturity is ending in 2020.
It seeks to deliver a return exceeding that of Bunds with maturity ending in January 2021.
Yves Berger, leading fund manager of AXA IM Maturity 2020, explained high yield bonds offer a large geographical and sectorial diversity of investments. He said high yield bonds with maturities of five to six years can provide attractive credit risk premium in the current low rate environment.
Berger added the fund only selects bonds issued by corporates for which his team assesses debts with maturity ending in 2020 could be recovered.
AXA IM has €447bn of assets under management invested in bonds as at 30 June 2015. Investments in high yield bonds account for €28bn.
AXA IM Maturity 2020 is available in France, Belgium, Spain and might be registered for fund distribution in other European countries.