Axa IM launches fixed term European high yield bond fund
Axa Investment Managers has launched a fixed term bond fund that invests primarily in European corporate high yield debt securities.
Axa Investment Managers has launched a fixed term bond fund that invests primarily in European corporate high yield debt securities.
Jupiter has launched a global emerging market corporate bond fund for its new hire Alejandro Arevalo, who joined the asset manager in December from Pioneer Investments.
With bonds no longer the diversifier they used to be, investors have to increase the number of building blocks in their portfolios.
Investors are stepping up their allocation to high-yield bonds and emerging market debt. The pair were the two best-selling asset classes in January, according to Morningstar fund flows data.
From betting on Europe over the US to sticking by emerging market debt, we look at five ways portfolio managers have stepped outside the box early on in 2017.
Political risk in Europe is likely to be short-lived and presents a buying opportunity for European high yield credit, according to Craig Ellinger, UBS Asset Management’s Chicago-based global head of high yield.
Stronger volatility is coming and credit risks are not properly priced to reflect the change due to investors chasing yield, said Jonathan Xiong, head of the fixed income alternatives group at Goldman Sachs Asset Management.
There has been little movement in the top ranking global emerging markets bonds funds in terms of their assets under management in the past 12 months.
The evolution of the EM bond fund asset class has seen recent launches emphasise either flexibility, blended strategies for instance, or specific areas of the market, such as short duration funds.
The November sell-off in emerging markets debt was more severe for the local currency part of the market, so it is no surprise that hard currency debt funds were among the top performers through November 2016.
JP Morgan Asset Management has launched a Ucits fund for investors looking to maintain their holdings in fixed income and limit their exposure to rising rates, while still achieving a reasonable level of income in the current low interest rate environment.
European investors sold off all types of bonds and bought US equities in November as bond yields and inflation expectations surged. Has the great rotation now finally started?