Fixed Income

Investing in short duration

Offer a first step onto the credit ladder with potentially less uncertainty.

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Why AXA IM for Short Duration

AXA IM has managed short duration strategies for over 20 years and so have established experience investing across different market cycles.

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.

Why consider a short duration strategy now?

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:

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.

Funds

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.

US
Fixed income
US Short Duration High Yield strategy

Investing in USD high yield debt while seeking to avoid the risk of defaults.

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Fixed income
US Credit Short Duration IG strategy

Investing mostly in short duration USD investment grade corporate bonds.

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Euro
Fixed income
Europe Short Duration High Yield strategy

Investing in high yield bonds denominated in European currencies while seeking to avoid the risk of defaults

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Fixed income
Euro Credit Short Duration strategy

Aims to achieve returns throughout the credit cycle with a focus on the front-end of the credit curve.

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Fixed income
Euro Short Duration Bonds strategy

Invests mainly in euro governments and corporate bonds.

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Global
Fixed income
Global Inflation Short Duration strategy

Investing mainly in short duration inflation-linked bonds issued in OECD countries.

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Fixed income
Global Short Duration Bonds strategy

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.

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Other
Fixed income
Asian Short Duration Bonds strategy

Investing across the Asian fixed income market.

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Fixed income
Emerging Markets Short Duration Low Carbon strategy

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.

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Fixed income
China Sustainable Short Duration strategy

Invests mainly in bonds denominated in CNH, CNY and USD and applies an ESG approach.

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Risks

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.

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INVESTMENT STRATEGIES

Fixed Income

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    Disclaimer

    This marketing communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    All investment involves risk, including the loss of capital. The value of investments .and the income from them can fluctuate and investors may not get back the amount originally invested.

    Issued in the UK by AXA Investment Managers UK Limited, which is authorised and regulated by the Financial Conduct Authority in the UK. Registered in England and Wales No: 01431068. Registered Office: 22 Bishopsgate London EC2N 4BQ

    In other jurisdictions, this document is issued by AXA Investment Managers SA’s affiliates in those countries.