Why invest in the AXA Global Short Duration Bond Fund?
1. Global diversification
We aim to harness yield opportunities across different regions and asset classes in the global fixed income market (including investment grade, high yield, hard-currency emerging market and inflation-linked bonds up to a maturity of five years), with the aim to achieve superior risk-adjusted returns.
2. A focus on minimising drawdowns during market downturns.
Our short duration strategy aims to mitigate the impact of rising government bond yields and widening credit spreads. This is intended to result in lower volatility than the all maturities market, while still providing the potential to seize yield opportunities across the short duration global fixed income market. Holdings in riskier asset classes such as high yield and emerging markets are on average even shorter dated, to further limit volatility and default risk.
3. Lower transaction costs through strong, natural portfolio liquidity.
On average 20% of the Fund is expected to mature each year, providing a liquidity buffer which can make a significant difference in stressed market conditions if facing redemptions. It also means that the Fund can generally hold bonds until maturity (unless a severe credit deterioration is expected) while still actively rebalancing across asset classes, naturally limiting transaction costs.