Wealth Manager - the site for professional investment managers

Register to get unlimited access to all of Citywire’s Fund Manager database. Registration is free and only takes a minute.

Yield collapse forces closure of AXA gilt fund

Yield collapse forces closure of AXA gilt fund

AXA Investment Managers has shut its Sterling Gilt fund, attributing the decision to the plummeting yields available from UK sovereign debt.

‘Yields in recent years in the gilt market have fallen to record lows, having a negative effect on the size of the AXA Sterling Gilt fund and reducing demand to the point where the fund value was not economically sustainable,’ a spokesperson for the firm told Wealth Manager.

‘As a result keeping the fund open was not in the best interest of clients.’

The £7.6 million fund will now liquidate on 8 September 2014.

Managed by John Madziyire, the fund has returned 12.2% over the past three years, compared with an average of 15.9% from its Citywire UK Gilt sector.

Madziyire also runs the £23.2 million AXA Sterling Long Gilt fund, which focuses on bonds with longer maturities than its sister strategy.

It has returned 26.8% on a three-year view, a top-quartile performance within its Sterling Bond category where the peer-group average for the period is 19.8%.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play JPM’s Negyal: Back divis to temper EM volatility

JPM’s Negyal: Back divis to temper EM volatility

Omar Negyal, co-manager of the JPMorgan Global Emerging Markets Income trust, says a dividend approach to emerging markets reduces the volatility of investing in the asset class.

Play WMR: Why Russia will lose this war

WMR: Why Russia will lose this war

Author and journalist Adam Lebor believes a perfect storm is brewing when it comes to the Russian economy. .

Play WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

WMR: Gerard Lyons warns Asia is the real risk, not Russia & Ukraine

Chief economic adviser to London mayor Boris Johnson outlines the geo-political risks in Asia and explains why the risk of another eurozone crisis must not be underestimated.

Your Business: Cover Star Club

Profile: 'new normal' now is as dangerous as when it was applied to tech

Profile: 'new normal' now is as dangerous as when it was applied to tech

7IM's CIO Chris Darbyshire says he has been re-energised by his new role, but has little time for 'new normal' doom-mongers

Wealth Manager on Twitter