AXA Sterling Credit Short Duration Bond Z Gross Inc

A Select 50 Fund - Fidelity insight

Category GBP Corporate Bond - Short Term

This fund can be held in an Investment ISA, SIPP and Investment Account

Last buy/sell price

101.20p

arrow-up0.00p (+0.00%)

Fund Code

AXTZI

B5VL0B7

GB00B5VL0B78

Prices updated as at 27 Nov 2024

Prices in GBX

Investment objective

The aim of this Fund is to provide an income return combined with any capital growth over the short term (being a period of three years or less). The Fund invests at least 70% of its Net Asset Value in sterling-denominated or hedged back to sterling investment grade bonds (meaning bonds with a Standard & Poor's rating of at least BBB- or such equivalent rating by Moody's or Fitch), which are issued by companies with a bias towards shorter maturities with the aim of reducing the effect of fluctuations in interest rates. The ACD seeks to reduce the effect of credit risk through diversification and its analysis and selection of bonds.

Important documents: Please ensure that you have read the Key Information Document/Technical Guide , Pre-sale Illustrations document & Doing Business with Fidelity document (incorporating the Fidelity Client Terms) and the fund information documents. These can be found within the Charges & documents section.

Our view

Why we like the fund: This fund is managed by an experienced manager with a long track record of running the strategy. The term 'short duration' means that the manager lends money to companies where the loan period is brief (perhaps only a few years). The fund also lends money to lower-risk companies and will take no currency risk; all loans are in sterling. This combination of lending to 'safe' companies and over shorter periods makes this a low-risk fund which can be expected to receive modest but reliable interest payments. How to use the fund: This fund can be a helpful addition to many portfolios, including those that seek a low-risk investment. It offers a small increase in interest above the prevailing cash rates. The shorter duration of its loans means the fund is also less affected by any changes to the interest rates set by the Bank of England. This fund could be a helpful addition to the lower risk portion of a portfolio.

Important Information

Please note the value of investments can go down as well as up so you may get back less than you invested. This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and(3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

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