AXA IM Alts has announced the launch of its AXA IM Investment Grade ABS Fund . This new fund will expand AXA IM Alts’ c.€25bn Asset-Backed Securities (‘ABS’) range and seeks to meet evolving client needs through a highly liquid, diversified, high-quality ABS solution offering potentially an attractive risk-adjusted returns profile.
The Fund is the most liquid offering on AXA IM Alts’ ABS platform featuring daily dealing[2], targeting an AA average rating credit quality portfolio through investing in investment-grade secured assets.[3]
Covering a broad spectrum of consumer-linked assets including corporate credit, real assets and collateralised loan obligations (‘CLOs’), ABS offers a naturally diversified investment universe with low correlated returns and limited drawdowns compared to traditional investment grade credit assets, making it an attractive and resilient investment vehicle. In addition to leveraging the significant market opportunity for ABS and structural benefits of the asset class, AXA IM Investment Grade ABS Fund aims to provide professional investors with access to a selection of the best quality opportunities available, packaged in a highly-liquid, defensively-allocated, and alpha-generating solution.
AXA IM Alts has a long heritage in ABS-managed assets and a proven track-record in delivering performance and significant AUM growth. The Fund will build on AXA IM Alts’ over 20-year track record within ABS investments and strong relationships across the marketplace. This represents AXA IM Alts’ commitment to providing tailored investment solutions that meet various risk-return and liquidity needs of investors as these continue to evolve.
Deborah Shire, Deputy Head of AXA IM Alts, comments: “Through different cycles, ABS has demonstrated resilience and robustness as an asset class. This has led to growing interest and investors’ appetite for ABS solutions. This launch expands our offering to meet evolving investor needs. As an established player with a long heritage in managing ABS solutions, our selective, disciplined approach to investing in ABS assets will also provide our investors with substantial diversification benefits and attractive potential returns.”
Christophe Fritsch, Global Head of Alternative Credit, AXA IM Alts, comments: “This fund was launched in response to investor demand for solutions that offer diversified exposure to asset-backed securities. Institutional investors’ strategic allocations are typically more exposed to corporate credit assets and less exposed to granular consumer portfolios. This fund will allow investors to easily integrate into their strategic asset allocation consumer assets that support the economy by financing households. The Fund’s added diversification benefits and interesting spread pick up characteristics can work to improve the efficient frontier and the quality of investors’ portfolios.”
1. Source: AXA IM Alts unaudited data, as at 30 June 2024.
2. Please refer to the prospectus for a complete view of the redemptions and subscriptions conditions.
3. A- is the targeted average minimum rating which is specified in the Funds legal documentation. AA is the projected average rating which the Portfolio management team may also use as this rating is more appropriate and reflects up to date with market conditions. This is an aim and not a guarantee and is subject to change without notice. The information has been established based on data, projections, forecasts, anticipations and hypothesis which are subjective. This analysis and conclusions are the expression of an opinion, based on available data at a specific date. Due to the subjective aspect of these analyses, the effective evolution of the economic variables and values of the financial markets could be significantly different for the projections, forecast, anticipations and hypothesis which are communicated in this material.
