The AXA ACT Carbon Transition Global Short Duration Bond fund, which has already received £127m in seed capital from Aon, aims to offer global diversification and dynamic asset allocation across the full short-dated fixed income spectrum.
Through a bottom-up fundamental analysis and top-down asset allocation approach, the strategy will primarily invest in investment grade bonds but will also opportunistically invest in high yield and emerging market debt.
AXA IM appoints head of euro investment grade and high yield
Nicolas Trindade, who currently manages £2bn in global and sterling liquid short-dated fixed income strategies for the firm, will be the lead portfolio manager of the fund.
“With global yield curves still inverted, we believe this is a great opportunity to launch a fund able to select the most compelling net zero opportunities in an asset class offering both high yields and the potential for an attractive total return,” Trindade said.
“This new fund will continue to focus on providing investors with strong downside mitigation and ‘natural’ portfolio liquidity, while ensuring that the names we invest in are committed to the net zero transition.”
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