Why AXA IM for Short Duration
With investment teams based across the major investment markets, we are able to provide our clients with the best short duration ideas from our local experts.
Through this experience and expertise, we have developed a range of short duration strategies to meet our clients needs including our market leading US short duration high yield strategy.
In the current market environment, investors looking for income sources are moving up the risk spectrum in their search of higher yields. Short duration strategies offer a potential route for many different investing requirements:
Exposure to asset classes
Through Short duration strategies, investors can find exposure to underlying asset classes such as high yield or inflation with potentially less interest rate risk exposure.
Complementary to cash
Short duration strategies may be complementary to cash or money market allocations due to their potential for frequent cash flows.
An actively managed short duration solution focused on careful credit selection provides cautious investors with an option that reduces volatility associated with taking on more risk, especially when market conditions are set to remain volatile.
Less uncertainty, dampen volatility and improve liquidity
Short duration bonds offer the potential to deliver a more attractive income than cash or ‘safe-haven’ government bonds currently, while aiming to minimise interest rate risk and smooth volatility.
Bonds with shorter durations are less sensitive to changing interest rates and therefore usually less volatile in a changing rate environment. Furthermore, cash flows from frequently maturing bonds may provide better liquidity than longer-term bonds which offers the potential to be regularly re-invested at higher yields in the market. This makes short duration bonds likely to be less volatile than longer duration fixed income debt.
An intermediate step
Of course, short duration strategies are not entirely risk-free but rather offer an intermediate step out of cash into riskier assets but with lower volatility than longer-duration credit. This potentially provides the opportunity for a more cautious route to seeking capital growth and higher income in more adventurous areas such as short-term high yield or emerging market corporate bonds.
Visit your local fund centre
Visit our fund centre to get more information on our range of fixed income strategies, going from credit to short duration to high yield.
Investing in USD high yield debt while seeking to avoid the risk of defaults.View funds
Investing mostly in short duration USD investment grade corporate bonds.View funds
Investing in high yield bonds denominated in European currencies while seeking to avoid the risk of defaultsView funds
Aims to achieve returns throughout the credit cycle with a focus on the front-end of the credit curve.View funds
Invests mainly in euro governments and corporate bonds.View funds
Investing mainly in short duration inflation-linked bonds issued in OECD countries.View funds
Invests in a diversified portfolio of short duration investment grade or non-investment grade bonds by issuers located anywhere in the world including emerging markets.View funds
Investing across the Asian fixed income market.View funds
Invests mainly in short duration bonds issued in the emerging debt universe. Aims to provide a carbon footprint, and secondly have a water intensity, that is at least 30% lower than that of the benchmark1.View funds
Invests mainly in bonds denominated in CNH, CNY and USD and applies an ESG approach.View funds
No assurance can be given that our fixed income strategies will be successful. Investors can lose some or all of their capital invested. Our unconstrained fixed income strategies are subject to risks including counterparty risk, operational risk, liquidity risk, credit risk, and the impact of any techniques such as derivatives. The use of such strategies may also involve leverage, which may increase the effect of market movements and may result in significant risk of losses.
We cover a broad spectrum of fixed income strategies to help investors build diverse portfolios that can be more resilient to economic and market shifts.Discover our strategies