27/05/2015
AXA IM extends its range of smart beta products
p { margin-bottom: 0.25cm; line-height: 120%; } AXA Investment Managers has launched a European credit fund to respond to the demands of clients seeking a smart beta strategy denominated in euros. The AXA WF Euro SmartBeta Credit Bond fund is designed especially for institutional investors seeking limited exposure to European credit markets. The fund functions with a ‘buy and maintain’ approach which aims to preserve capital while avoiding credit loss, by reducing transaction costs. The fund invests primarily in investment grade quality corporate bonds denominated in euros, which are highly diversified in terms of issuers, sectors and geography. The team carries out rigorous analysis fo the issuers in order to avoid credit loss, while constantly monitoring the portfolio in order to ensure that it remains within the risk-return profile desired. The construction of a Smart portfolio involves ensuring that 8% to 10% of its assets mature each year. This situation provides some flexibility, which makes it possible to profit from new opportunities offered by the market, and to renew the position of the fund without incurring high transaction costs related to the current lack of liquidity in the market. The manager may invest a limited amount in corporate bonds not denominated in euros, in order to improve diversification and to profit from gains in ecxhange rates, but currency and duration risks will be hedged. The fund will be managed by Damien Maisonniac, who has co-managed the AXA WF Global SmartBeta Credit Bond fund since its launch in January 2013. The fund is registered for sale in many European countries, including France, Germany, Switzerland and the United Kingdom.
