The strategic overlay in the new AXA WF Global Credit Bonds fund will focus on credit indices and involve applying long and short derivative positions.
According to AXA, the overlay will allow changing views to be implemented in the portfolio quickly and inexpensively as it removes the need to sell and buy other assets and for currency exchange.
AXA says the approach should yield results in a steady and consistent way.
The company has selected Nicole Montoya, a senior portfolio manager, to run the new fund, in conjunction with local credit teams in the US, Europe and the UK.
At the end of December last year, AXA Fixed Income managed $176bn of assets.
