Diversifying sources of yield

Today’s market may be unsteady; tomorrow’s yield needn’t be.

OUR STRATEGIES

Navigate rate rises, seek a steadier yield

Interest rates across the world are anticipated to rise over the next couple of years and market volatility is set to increase as central banks begin tightening monetary policy. In this uncertain climate, duration can be an extremely useful tool to help manage portfolios. Bond managers can use duration to compare the risk sensitivity and potential price volatility of bonds with differing yields, prices, coupons and maturities, adjusting duration depending on the market environment.

At AXA Investment Managers we believe that having an allocation to short duration could help investors navigate uneven markets and potentially deliver steadier yield. Our team has over 15 years’ experience managing short duration, across a range of global strategies from investment grade to high yield bonds.

Our short duration strategies generally invest in bonds with maturities of five years or less and seek to capture high current income with low overall volatility, aiming to help investors meet their investment needs.

What’s concerning bond investors? Three risks in three minutes

Returns from global fixed income markets have continued to be disappointing in 2018, and as a result bond investors are focused on a number of risks that could increase volatility in the bond market. In this video Chris Iggo discusses three key risks he believes bond investors should be watching - US interest rates, escalating trade wars and the European political scene.

Yield Insights

Yield is tough to find at the best of times and these are not the best of times. Today, investors must navigate low growth, rising interest rates, tightening monetary policy and increasing volatility in the search for sustainable yield.

Discover our experts’ insights on how to tackle the search for yield, the latest short duration news, the impact this changing environment could have your portfolio and how AXA Investment Managers could help you navigate uncertain markets.

Iggo’s Insight

In his weekly blog, Chris Iggo, CIO fixed income, takes a look at the week’s events, assessing what has happened, the impact on the bond market and what this could mean for investors.