Axa IM closes two bond funds

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Axa Investment Management is closing two of its bond funds due to lack of demand and shortage of assets.

On 20 November, the firm will close the £35.4m Sterling Long Gilt fund, managed by Nicolas Trindade, as well as John Madziyire’s £41.7m Sterling Long Corporate Bond fund.

The two fund managers will continue to work at the firm with Trindade continuing to run the £275m Sterling Credit Short Duration bond fund and Madziyire focusing on Axa’s segregated mandates.

A spokesperson for Axa says: “We continually review our fund offering to ensure they are in the best interests of investors and also match market demand. Having considered the size of the two funds in question we believe they are no longer economically sustainable.

“We have considered client demand and believe we will not see a resurgence in demand for these funds. In addition, we anticipate that due to the size of the funds we will find it increasingly difficult to source suitable investment opportunities to enable the funds to achieve their objectives.

“In light of this and to avoid shareholders being unduly disadvantaged, we have decided to close both the Axa Sterling Long Gilt fund and the Axa Sterling Long Corporate Bond fund.”

The Sterling Long Gilt and Sterling Long Corporate Bond funds returned 16.4 per cent and 15.2 per cent over three years to 13 October respectively beating their sector average, according to FE.