We cover a broad spectrum of actively managed fixed income strategies to help investors build diverse portfolios that can be more resilient to economic and market shifts.
Weather economic ups and downs
We've managed fixed income portfolios through economic ups and downs for decades. Our global team of local experts draw on our robust research capabilities and have extensive experience in monitoring risk.
Multi-tiered risk approach
We understand credit, interest rate, inflation, liquidity, and market risks, and we manage against them with the aim of delivering favourable results over the long term.
Backed by research
We use global macroeconomic insights, bottom-up company credit analysis, and an assessment of ESG factors to navigate the increasingly complex fixed income market.
Full spectrum investing
We offer a comprehensive range of strategies spanning the whole spectrum of the fixed income universe across developed and emerging markets, government and corporate debt, and investment grade and high yield markets.
Our fixed income strategies aim to outperform their benchmarks within a 'tracking error budget'. This means the level of active return we aim for is relative to a target level of active risk.
For strategies which are not measured against a benchmark the focus is on delivering attractive risk-adjusted returns by using greater flexibility to navigate market movements without reference to an index.
Why flexible bonds?
Fixed income comprises a variety of sub-asset classes, and different bonds can have different performance and risk drivers. The performance of each sub-asset class is correlated to a different part of the economic cycle, which is in constant motion. We think this is a strong case for building portfolios that can adapt.
An active, unconstrained approach can have the flexibility to use dynamic asset allocation, and effective diversification, to try to capture different performance drivers at the right time, while managing the associated risks.
We aim to deliver portfolio performance with a low correlation to both interest rate and credit risk. We avoid benchmark allocations – instead, we invest across defined risk buckets and seek returns from a diverse set of fixed income strategies.
What is unconstrained fixed income?
Find out more about global strategic bonds and total return investingLearn more
Sustainable & Impact
Why sustainable investing?
At AXA IM, we believe a focus on sustainable investing helps us make better investment decisions and can be a means by which we can help accelerate the transition to a more sustainable world. Companies are having to adapt to their customers’ higher expectations around sustainable practices, which is backed by governmental and regulatory support to incorporate sustainability measures into company information. In addition, industry research and analysis are increasingly suggesting that incorporating ESG factors into investment processes can identify risks while potentially generating excess returns.
Our Sustainable strategies embed sustainability factors into portfolio construction and use responsible investing analysis to refine and enhance the asset class universe. Strategies might follow a best-in-class policy which removes low-ESG-scoring companies, or adjust portfolios to target a specific factor such as a carbon footprint.
Why high yield bonds?
High yield bonds can produce significantly higher income compared to, say, investment grade bonds, and can help diversify a fixed income portfolio. They can produce equity-like returns and typically have shorter maturities (the time until the principal investment is repaid) than many investment grade bonds. They are more exposed to credit risk, which is the risk that the issuer will be unable to repay the loan, but they tend to be less exposed to interest rate risk.
We use bottom-up research to identify companies with improving credit trends, while our macroeconomic insights seek to identify risks and opportunities associated with the overall economy and market. Using this two-pronged approach, we aim to minimise default risk and manage volatility through active management, while pursuing high yield opportunities.
Why emerging markets?
While the risks involved with investing in emerging markets can be higher, so are the yields on offer. This is particularly attractive in the current environment of very depressed yields.
Our emerging markets team focuses on income generation, while attempting to mitigate risk, and aim for attractive returns through a conviction-based, long-term investment approach.
Buy & maintain and solutions
Why buy & maintain?
Buy and Maintain strategies offer a diversified, high quality and cost-effective access to the investment grade credit market and unlike a passive bond approach, these strategies are not tied to a benchmark. This provides the flexibility to build a highly diversified portfolio that is designed to provide downside risk mitigation throughout the market cycle while still aiming to capture credit returns through relative value opportunities.
Our Buy and Maintain credit strategy combines the best of both worlds – the skill and added-value of active credit selection and monitoring, and the low cost of passive management.
Our fundamental investment approach is based on deep credit analysis and a focus on long-term trends. We aim to select high quality bonds which can be held to maturity. While we're always ready to trade in order to preserve value when faced with severe credit concerns, we aim to avoid unnecessary turnover and limit transaction costs to minimise eroding long-term performance.
There is a natural alignment between the time period over which climate risks and opportunities will materialise and the timeframe over which these strategies invest. For this reason, climate change is a key consideration with our Buy and Maintain strategies and it is fully integrated at each stage of the investment process.
No assurance can be given that our fixed income strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to risks including, but not limited to: liquidity risk, credit risk, interest rate risk, counterparty risk, legal risk, valuation risk, operational risk, emerging markets risk; global investments risk; and risks related to the underlying assets.