The fund is set for launch in May and will be managed by Anne Yobage, who also runs the $4.1bn offshore version of the fund alongside the US fixed interest team.
The 18-strong fixed interest team is lead by Hannah Strasser and manages almost $40bn in total. The fund will aim to deliver a high level of income by investing largely in sub-investment grade corporate debt securities from companies which do the majority of their business in the US. It will focus on those securities with shorter maturity dates.
Axa Investment Managers head of UK sales Rob Bailey says: “With interest rates still at historic lows, the inevitability of interest rate rises is not to be underestimated for fixed income investors. To counter the threat posed by rising interest rates, investing in short duration fixed income securities that have a reduced level of sensitivity to interest rates is a compelling proposition.”
“We have seen substantial interest and demand from our clients for our existing offshore fund. As results from our survey of intermediaries in Q4 2009 showed, there is an increased appetite for fixed income products. Investors should therefore be looking at how they can diversify their exposure in Fixed Income. The Axa US short duration high yield fund will offer UK investors a good level of diversification in their portfolios and a potential for a strong level of income.”