AXA Investment Managers (AXA IM) has unveiled a pair of actively managed fixed income ETFs – one covering global inflation-linked bonds, the other short-dated investment grade debt.
The AXA IM Global Inflation-Linked Bond Opportunities UCITS ETF (ACPI) debuts with a total expense ratio (TER) of 0.20% and is listed on Deutsche Boerse. Listings on Borsa Italiana and SIX Swiss Exchange are expected to follow.
The AXA IM Short Duration Income UCITS ETF (ASHU) is slightly lower fee at 0.19% and will begin trading on Deutsche Boerse, Borsa Italiana and SIX Swiss Exchange shortly.
ACPI will look for alpha by selecting from inflation-linked securities issued by OECD governments included in the Bloomberg World Government Inflation 1-10 Year Total Return index.
By tethering the coupon and principal to a country’s inflation rate, inflation-linked bonds help protect fixed income investors from the erosion of purchasing power due to rising prices.
ASHU will target opportunities within its Bloomberg Global Aggregate Corporate 1-3 Yrs Total Return index universe.
Olivier Paquier, Global Head of ETF Sales at AXA IM, said: “These two active ETFs combine two of AXA IM's key areas of expertise: conviction-driven management based on rigorous proprietary research and the proven experience of our fixed income investment teams.”
AXA IM re-entered Europe’s ETF market in 2022 and has since rolled out a 17-strong range of active and passive ETFs housing $3.7bn in assets under management (AUM).
However, it was acquired earlier this week by BNP Paribas in a €5.1bn deal to create one of Europe’s largest asset managers.
The respective ETF franchises will continue to operate as separate entities for the time being while a “common roadmap” to align them is thrashed out.
