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Investment Strategies

Fixed Income

We cover a broad spectrum of fixed income strategies to help investors build diverse portfolios that can be more resilient to economic and market shifts.

Fixed income in numbers

€537 bn
of assets1
103
fixed income professionals2
25 + years
experience in fixed income3

Our Approach

Fixed income can help preserve capital, generate regular income from coupon payments on fixed rate bonds, and help to offset market fluctuations over time. It can also provide diversification in a portfolio that includes other asset classes, including generally riskier ones, like equities.

Actively managed funds

Building a diversified portfolio of single fixed income securities can be time consuming and costly for an individual investor. That's why we offer mutual funds in fixed income that we actively manage.

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.

Global scale and experience

We have 120+ experts across three continents and 20+ years experience in fixed income investing.4

  • [4] As of December 2018

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.

We offer investors the flexibility to capitalise on opportunities across the fixed income spectrum.

Our active flexible fixed income strategies have the freedom to respond to market environments, rather than following a benchmark. This allows us to put the focus on achieving a return target for a given level of risk.

FIXED INCOME

Unconstrained Fixed Income

Find out more about total return investing

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We actively manage investments for our clients every day, with the aim of outperforming market benchmarks.

Setting a benchmark can help individual investors understand the specific types of investments a strategy will make and provide a means of measuring its performance versus the wider market. 

While benchmarks can provide a good indicator of the sectors, regions, or credit ratings included in the portfolio, an active approach doesn't simply replicate the benchmark in the portfolio. Instead, it uses the managers' knowledge and skill to build a selective portfolio of the most attractive opportunities within the benchmark, with the aim of adding value on top of it's performance – an 'active return'. 

Our 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.

Buy & Maintain Credit

Our buy and maintain credit strategy aims to mitigate downside investment risk through a high level of diversification across sectors, regions, and issuers.

Why buy & maintain credit?

Buy and maintain strategies offer diversified, conservative exposure to the investment grade credit market. Unlike a typical passive strategy, these strategies are not tied to a benchmark. This provides the flexibility to build a highly diversified portfolio that's designed to provide downside risk mitigation throughout the market cycle.

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 lower cost of passive management.

Our strategy

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 transaction costs. Fewer costs mean there's less chance of eroding long-term performance.

Risk Warning

Investment in fixed income involves risks including the loss of capital and some specific risks such as credit risk, counterparty risk, derivatives, interest rate risk, liquidity risk, geopolitical risk and volatility risk.

Related Articles

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Rates & reflation: Tackling the big questions in Fixed Income

  • 31 March 2021
  • 5 min read
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The problem with credit indices

  • 29 March 2021
  • 5 min read
Fixed Income

Quick Take with Nick Hayes - March 2021

  • 22 March 2021
  • 3 min read

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    Disclaimer

    This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services, and should not be considered as solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.

    All investment involves risk , including the loss of capital. The value of investments .and the income from them can fluctuate and investors may not get back the amount originally invested.

    Risk Warning

    The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.