AXA IM launches new fund for small cap star

AXA Investment Managers has launched a global small cap fund for Euro Stars A-rated manager Isabelle de Gavoty.

The Luxembourg-domiciled fund is intended to capitalise on de Gavoty’s position as head of European small and mid-cap investments at AXA Framlington.

The AXA WF Framlington Global Small Cap fund will invest in equities and equity-related securities issued by small and medium-sized companies from around the world.

De Gavoty will oversee a team of six small cap specialists, split by global sectors and supported by regional experts.

The AXA Framlington team currently oversees €1.8 billion in existing small and mid-cap funds. It has been investing in small cap names for around 20 years.

Commenting on the launch, de Gavoty said: ‘The global small cap universe is under-researched and under-owned, providing many opportunities for specialist active managers.’

‘Fuelled by secular growth trends and spurred by innovation and M&A activity, global small caps have outperformed broader markets over multiple market cycles.’

De Gavoty currently runs two small and mid-cap European equity funds, the AXA Europe Small Cap and the Luxembourg-domiciled AXA WF Framlington Europe Small Cap funds.

Over the past three years, the AXA WF Framlington Europe Small Cap fund has returned 33.9%. This compares to its Citywire benchmark, the MSCI Europe Small Cap TR EUR, which rose 37.79% over this period.