Wealth Manager - the site for professional investment managers

Register for full access to Citywire’s Fund Manager database, news and analysis. Registration is free and only takes a minute.

Axa IM unveils SmartBeta credit fund

Axa IM unveils SmartBeta credit fund

Axa Investment Managers has launched the Axa Sterling SmartBeta Credit Bond fund for managers Mark Benstead and Lionel Pernias.

The Oeic fund, designed for institutional investors, aims to deliver low-cost credit exposure without the drawbacks of market cap-weighted, passive index-tracking strategies.

Benstead, head of sterling credit and Pernias, portfolio manager, follow a ‘Buy and Monitor’ strategy, to buy high quality credit which is held until maturity, unless the credit quality of a bond falls significantly.

The strategy also focuses on optimal portfolio construction and implementation at the time of investing in a bond, to maximise the yield captured and minimise the need for future turnover.

Axa said the fund is therefore designed to provide a way of protecting against systemic and event risks, while providing less volatile returns in a low-cost way.

Rather than track an index that relies on issuance-based debt, which leads to overweighting exposure to the most indebted issuers, the fund aims to reduce concentration to issuers and sectors.

The firm added ‘smart monitoring is also a key feature of the approach: the philosophy is Buy and Monitor rather than Buy and Hold, and significant changes in the credit worthiness of bonds will result in portfolio rebalancing.’

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Citywire TV
Play Inside ETFs: Why the US bull-run still has legs

Inside ETFs: Why the US bull-run still has legs

Global equities suffered a sharp sell-off in the third quarter but exchange traded fund investors are continuing to back the US to outperform in 2015

Play Paul Niven: I won't rip up the Foreign & Colonial Trust history book

Paul Niven: I won't rip up the Foreign & Colonial Trust history book

The newly appointed manager of the Foreign & Colonial trust talks about his plans for UK's oldest investment company.

Play Dangerous daisy chains, Black Friday blues and Uber valuations

Dangerous daisy chains, Black Friday blues and Uber valuations

This week’s Investment Pulse looks at the domino effect in European banks, America’s disappointing Black Friday and how much Uber is really worth.

Your Business: Cover Star Club

Manchester wealth firm hires Coutts director for London launch

Manchester wealth firm hires Coutts director for London launch

Former Coutts director Tony Robinson has joined Chartered Wealth Management to head the company’s newly opened London office.

Wealth Manager on Twitter