The maturity bond funds follow one another and are similar… Except the latest from the management company Axiom Alternative Investments, Axiom 2027, which targets securities issued by European banks. The operation remains identical to that of other dated funds: the support has a lifespan known in advance. It has a portfolio of bonds that will be repaid by 2027, the date of the dissolution of the fund. It aims to take advantage of a market window which makes these securities very attractive.
“This year, banks have issued a lot of debt on the market and the demand for these securities has tended to reduce because the rise in interest rates has encouraged many investors to favor sovereign debt or monetary funds. , explains David Benamou, head of investments at Axiom AI. This imbalance between supply and demand allows us to obtain a gross return of more than 7% on good quality issuers.” That is a bonus of more than 2 points compared to an equivalent company in the non-financial sector.
READ ALSO >> LEP: how the Popular Savings Account steals the spotlight from Livret A
As a result, the manager is aiming for an annualized gain objective of around 5.5% net of fees for unitholders. “The fund allows us to crystallize a return for the coming years,” underlines David Benamou. Indeed, it is not certain that the context will remain so favorable indefinitely. Especially since in the next twelve to eighteen months, a drop in short-term interest rates is possible…
#advantages #dated #bank #bond #fund #LExpress