Axa Investment Managers (Axa IM) has launched a long-term credit fund on the Asset Management Exchange (AMX) – an institutional platform for investors and asset managers.
The fund, with over $1 billion (€0.9 billion) in assets, aims to build a well-diversified, benchmark-agnostic, long-dated credit portfolio that delivers predictable cash flows.
“Over the last two years we have seen large schemes implementing segregated mandates to meet the cashflow negativity challenge,” said Sebastien Proffit, head of portfolio solutions, fixed income at the fund manager.
Using what Axa IM calls the “buy and maintain” approach, the Long Term Credit Fund aims to reduce transaction costs and prevent the schemes becoming a forced seller during a market sell off.
AMX is backed by investment consultant Willis Towers Watson which has claimed it could knock 40 basis points off global equity costs. The platform’s chief executive Oliver Jaegemann said: “In today’s environment pension funds want to ensure that their portfolio is suited to the current market conditions and that it also reflects the outcomes that they seek.”
“Pressure on cost transparency is driving pension funds to review the value they are generating in exchange for the total costs they are paying.”
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