AXA Swiss Institutional Fund - Bonds Domestic CHF Redex

Redex makes active management even less dependent on market trends

Very low interest rates are prompting more and more investors to seek out investments whose capital is protected against rises in interest rates.

By launching the new Redex investment class, AXA Investment Managers offers an interesting alternative way of retaining an allocation in CHF bonds while at the same time significantly lowering duration and by doing so reducing dependency on changes in interest rates.

It is based on the AXA Swiss Institutional Fund - Bonds Domestic, which in recent years has consistently surpassed Swiss institutional investors' expectations, not only in terms of capital preservation during the crisis but also in terms of performance.

The active management of this fund is also the basis for the new Redex (Reduction of duration exposure) unit class. In order to reduce sensitivity to interest rates, our derivatives specialists at AXA Investment Managers Paris have lowered the duration of the Redex unit class to a target duration (against the benchmark) of around 1 year. This makes the interest rate risk much lower than that of traditional unit classes.

The combination of an active investment style and reduced duration in the bond portfolio brings together the strengths of AXA Investment Managers and offers investors an investment opportunity that provides them with partial protection against rising interest rates.