AXA launches European Short Duration High Yield Fund

AXA Investment Managers has expanded its suite of bond funds with the addition of the Europe Short Duration High Yield fund.

The UCITS III fund will be managed by Andrew Wilmont, head of European high yield, and will primarily invest in short-dated euro and sterling denominated high yield corporate bonds. The average duration of the bonds will be less than two years, with the fund targeting annual returns of 5%-6% net of fees. The group said the short duration strategy will provide increased protection against the risk of rising interest rates. "We have seen that investors with bond portfolios are looking to manage the impact that rising interest rates will have in the medium term," said Wilmont. "Sho...