AXA Investment Managers has bolstered its 3 billion smart beta range with the launch of the AXA WF Global SmartBeta Equity, a Luxembourg-domiciled Sicav.
Known as AXA WF Global SmartBeta Equity, the new fund will provide long-term investors with low-cost access to a passive globally diversified equity portfolio, according to Financial Standard.
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The new strategy is created to attain 100-200 basis points annualised excess return, with almost 80% of the market volatility, over the full market cycle.
The fund is designed avoid full participation in speculative bubbles, and to exhibit less extreme draw downs amid market shocks.
In May 2012, AXA IM has introduced its SmartBeta solution with a range of corporate bond strategies to offer smart solutions for yielding beta from equity markets and fixed income.
According to AXA IM research the volatile stocks and those with poor earnings sustainability have been continuous sources of additional risk. However, the research also showed that traditional market cap-weighted indices often focus exposure in a relatively small number of large caps.
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By GlobalDataTim Gardener AXA IM head of institutional client strategy said:"Institutional investors want smart, dynamic solutions that generate long-term, cost effective returns. We believe that traditional market cap-weighted indices expose investors to sources of structural systematic risk that, over an investment cycle, are under compensated.
"The AXA WF Global SmartBeta Equity has been designed with the aim of overcoming these challenges and, in turn, achieving improved equity market returns for investors, over the full market cycle," Gardener added.
Craig Hurt AXA IM Director for Australia and New Zealand said: "We believe that blindly tracking an index however it is constructed can never be optimal as they studiously ignore real time information and the evolving environment."
AXA IM currently manages over $4 billion across its SmartBeta strategies with $1.6 billion in fixed income and $2.6 billion in equities.
