Axa Investment Managers has launched a fund that combines fixed income and structured finance.
The Axa WF Global Multi Credit fund is Ucits-compliant and invests in the “whole global credit spectrum including all the credit capital structures”.
The fund is managed by Ismael Lecanu a senior portfolio manager, supported by The Duy Nguyen, senior portfolio manager and head of European asset-backed securities.
Traditional global credit markets – including high yield and emerging markets – will be invested in, but up to 50% of the portfolio will be in structured assets.
Axa IM says the portfolio suits the volatile interest rate environment as it can manage duration risk from zero to five years. The investment universe is split into three buckets – defensive, intermediate and aggressive.
There is no benchmark constraint and Lecanu said that higher expected interest rates and credit spread volatility over 2018 meant unconstrained portfolio construction was “crucial to deviate significantly from the traditional benchmarked approach for which negative returns are targeted this year”.
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