Axa Investment Managers’ Julie Lamirel has increased covered bond exposure of the Axa Sterling Credit Short Duration Bond fund by 3%, Financial Times reports. Lamirel is also purchasing more euro-denominated bonds and hedging back to sterling.

The £91.8 million fund’s European exposure was 40% and U.K. exposure was 38% at the end of May. Lamirel is avoiding emerging market bonds, except a small holding in Russian oil company Gazprom due to risk in emerging markets.

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