What is fixed income?

Fixed income is a catch-all term for investments within the world’s debt and credit markets. It is also a style of investment that has traditionally been associated with helping to mitigate against capital loss.

The most common fixed income investment is referred to as a bond. A bond sits within a portfolio’s fixed income allocation alongside products such as cash and term deposits. These assets are classified as income assets as they provide a steady and generally reliable stream of income.

There are different types of bonds, including government bonds and corporate bonds.

A bond operates like an IOU, whereby you lend your money to an issuer for a set period of time in return for interest payments over the term of your investment. If all goes well, your investment, or capital, is then paid back to you in full at the end of the term known as ‘maturity’.

Our approach to fixed income

We believe the key to superior long-term returns in the fixed income market is a focus on avoiding capital loss, while at the same time compounding the income streams from existing holdings.

We aim to achieve this through fundamental credit analysis of the bonds we hold and macroeconomic research. At the heart of our investment approach lies a robust, repeatable, global investment process, focused on the monitoring of risks. We understand credit, interest rate and market risk and, where possible, monitor against these risks in an effort to deliver consistent performance to our clients.

From our origins managing core assets, our Fixed Income teams now cover the majority of the fixed income spectrum.

" We focus on the needs of our clients, developing solutions that span the majority of the credit continuum."
Hans Stoter, Global Head of Core Investments
This page is for informational purposes only and does not constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services and should not be considered as a solicitation or as investment, legal or tax advice. Past performance is not a guide to future performance.  The value of investments, and the income from them, can fall as well as rise and investors may not get back the amount originally invested.The strategies discussed herein may not be available in all jurisdictions and/or to certain types of investors.