AXA Investment Managers, an asset management firm, has reportedly launched a European credit fund in response to strengthen its smart beta range of funds.
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AXA WF Euro SmartBeta Credit Bonds will follow a ‘buy and maintain’ approach with very low turnover and will address the client demand for a euro denominated smart beta strategy.
The fund will primarily invest in euro denominated investment grade corporate bonds with high levels of issuer, sector and geographic diversification.
The new European credit fund will be managed by Damien Maisonniac, who has been co-manager of AXA WF Global SmartBeta Credit Bonds fund since its inception in January 2013.
Maisonniac said: "Unlike index tracking, SmartBeta takes a pragmatic, conservative approach to portfolio construction, resulting in a Fund which we believe is better protected against systemic and issuer-specific risks.
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By GlobalData"We do not allocate to the most debt-burdened entities nor automatically sell when a bond is downgraded to sub investment grade. Instead we seek to minimise over-concentration in issuers or sectors in a pragmatic or ‘smart’ way.
"With our focus on minimising turnover and, where possible, utilising low-cost entries to the market, we believe it is a smarter approach to coping with structural illiquidity in the markets and minimising the corrosive effects that transaction costs will have on the Fund’s performance."
