AXA Investment Managers has expanded its US high yield products range by launching new AXA WF US Dynamic High Yield Bonds fund.
Managed by Carl Whitbeck, the fund provides flexible exposure to the US high yield market by investing in cash bonds along with an overlay of credit default swaps (CDS).
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The Luxembourg-domiciled fund will invest in companies with solid business models and improving credit fundamentals.
Launched with initial seed capital of $100m, the fund invests in a basket of US dollar-denominated cash high yield bonds and has the ability to write single name CDS protection in order to add leverage while expressing positive views on individual issuers.
Additionally, this fund will hold lower number of positions to better react to market moves in real time.
The new fund, which adds to Axa’s existing US Short Duration and US Core High Yield funds, has both retail and institutional share classes.
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By GlobalDataWhitbeck said: "The fund’s flexible approach will allow us to optimise our high yield exposure in order to reflect our top down view.
"This new strategy builds upon our existing US Core High Yield strategy but targets higher return potential in both neutral and bull markets via the CDS overlay, but with volatility closer to that of the broad high yield market," he added.
