Axa Investment Managers (Axa IM) has expanded its range of funds investing in short duration bonds with an Asian fund launch.
The asset manager, which already has US and UK short-dated bond funds available to UK retail investors, has launched the Axa WF Asian Short Duration Bonds.
The fund is a Luxembourg-domiciled Sicav but is registered in the UK with a sterling share class.
Managed by Jim Veneau, head of fixed income Asia at Axa IM, along with a team of team of four Hong Kong-based analysts, the fund will buy high yield and investment grade bonds with a short duration.
Short duration bonds are those with low sensitivity to changes in interest rates, so will lose less value when rates go up but gain less when rates fall.
The asset class has increased in popularity in recent years as investors try to predict when the US and US will raise their base interest rate from their current record lows.
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