Axa's Hayes turns over 40% of Sterling Strategic Bond

Axa's Nick Hayes has turned over 40% of the Sterling Strategic Bond fund since joining the group and assuming control of the mandate three months ago.

The manager has reduced the gilt weighting from 60% to 25% since taking over the fund from Julie Lamirel, as he sees value in investment grade and high yield debt. “Gilts are a safe haven but the yields are not attractive,” Hayes says. Hayes now holds 70% of the fund in corporate bonds, of which 50% is investment grade, having increased the portfolio’s high yield exposure from 2% to 20%. “Corporate results have been strong over the past month, many companies are reducing their debt and large companies are not borrowing much, so for bondholders it is an attractive time,” Hayes says....